Asset manager WisdomTree has added euro and pound sterling currency-hedged share classes to its flagship quality dividend growth range – the WisdomTree US Quality Dividend Growth Ucits ETF.
WisdomTree US Quality Dividend Growth Ucits ETF – GBP Hedged (DGRB) and WisdomTree US Quality Dividend Growth Ucits ETF – EUR Hedged Acc (DGRE) come with a total expense ratio of 0.35%, and are currently listed on the London Stock Exchange, Borse Xetra and Borsa Italiana.
The five-star Morningstar-rated WisdomTree US Quality Dividend Growth Ucits ETF is constructed around dividend-paying companies on three factors – earnings growth, return on equity and return on assets with sustainable dividend policies.
WisdomTree said the stocks are also risk-tested using a screening procedure – the composite risk score. Using quality and momentum metrics to rank companies and screen out the potential value traps, each company is weighted on its cash dividend paid (market capitalisation x dividend yield).
These steps deliver a “blended exposure” to the quality and value factors which in turn provide a “balanced, core equity strategy” through high-quality and high-profitability dividend-growing companies at “a reasonable valuation”.
Since its inception in 2016, the WisdomTree US Quality Dividend Growth Ucits ETF has returned 13.12% annually, outperforming the S&P 500 over the period with lower volatility.
Earlier in March, WisdomTree also launched euro and pound sterling currency-hedged share classes for the $767 million WisdomTree Global Quality Dividend Growth Ucits ETF, allowing Euro and GBP-based investors to access these strategies while offsetting foreign currency risk.
Over the past year, the Quality Dividend Growth Ucits ETF range has achieved $521 million in net new flows, bringing the range to $1.3 billion of assets under management in Europe.
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