The WisdomTree U.S. LargeCap Dividend ETF (DLN Quick QuoteDLN - Free Report) made its debut on 06/16/2006, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market.

What Are Smart Beta ETFs?

The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.

Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.

If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.

Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.

This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.

Fund Sponsor & Index

Because the fund has amassed over $5.55 billion, this makes it one of the larger ETFs in the Style Box - Large Cap Value. DLN is managed by Wisdomtree. Before fees and expenses, this particular fund seeks to match the performance of the WisdomTree U.S. LargeCap Dividend Index.

The WisdomTree U.S. LargeCap Dividend Index is a fundamentally weighted index that measures the performance of the large-capitalization segment of the U.S. dividend-paying market.

Cost & Other Expenses

For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.

Operating expenses on an annual basis are 0.28% for this ETF, which makes it on par with most peer products in the space.

The fund has a 12-month trailing dividend yield of 1.82%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

Looking at individual holdings, Us Dollar accounts for about 79.11% of total assets, followed by Dreyfus Trsy Oblig Cash Mgmt Cl Ins and Microsoft Corp (MSFT).

DLN's top 10 holdings account for about 124.79% of its total assets under management.

Performance and Risk

The ETF has gained about 14.57% and is up about 12.13% so far this year and in the past one year (as of 12/17/2025), respectively. DLN has traded between $70.70 and $88.80 during this last 52-week period.

The fund has a beta of 0.79 and standard deviation of 11.88% for the trailing three-year period, which makes DLN a medium risk choice in this particular space. With about 307 holdings, it effectively diversifies company-specific risk .

Alternatives

WisdomTree U.S. LargeCap Dividend ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.

Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $71.12 billion in assets, Vanguard Value ETF has $156.55 billion. SCHD has an expense ratio of 0.06% and VTV changes 0.04%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.