Exchange-traded fund (ETF) and exchange-traded product (ETP) sponsor WisdomTree has listed a distributing share class for its quality dividend growth ETFs on the London Stock Exchange.
The Quality Dividend Growth family comprises the WisdomTree US Quality Dividend Growth UCITS ETF (DGRA), the WisdomTree Global Quality Dividend Growth UCITS ETF (GGRA) and the WisdomTree Eurozone Quality Dividend Growth UCITS ETF (EGRA).
The new ETF share classes complement an existing suite available to investors in an accumulating format.
The emphasis of the Quality Dividend Growth methodology is on the shifting trends in dividends and focuses on fundamental metrics that the company believes are associated with future dividend growth potential.
“In addition to offering an extensive range for dividend growth by geographic exposure, we’ve now introduced further flexibility for those investors who are looking for an income stream,” says Nizam Hamid, ETF strategist. “We think the product would suit those attracted to the long term strategy returns but where income is important in the current low interest rate environment.”
In building these proprietary strategies, the company employs the same ’Buffett factors’ of return on equity (ROE) and return on assets (ROA) as a driving force for stock selection in these Quality Dividend Growth strategies, tilting towards quality companies with low debt and high return on equity.