WisdomTree has expanded its flagship equity ETF range with the launch of the WisdomTree UK Quality Dividend Growth UCITS ETF (UGRW) on the London Stock Exchange. UGRW, seeks to track the price and yield performance, before fees and expenses, of the WisdomTree UK Quality Dividend Growth Index and has a total expense ratio of 0.29 per cent.
The firm writes that the index follows a rules-based, fundamentally weighted approach and is comprised of high-quality dividend paying companies from the UK market with high return on equity, high return on assets and high medium-term earnings growth. By focusing on quality stocks, the index aims to provide both upside participation in bull markets and exposure to leading dividend growers. The index excludes companies which do not meet WisdomTree’s ESG (environmental, social and governance) criteria.
The WisdomTree UK Quality Dividend Growth UCITS ETF delivers a unique and thoughtfully blended exposure to the Quality and Dividend factors which in turn provide a balanced, core equity strategy through high-quality and high-profitability dividend growing companies, at a reasonable valuation. The ETF complements the Global, US and Eurozone exposure in WisdomTree’s Quality Dividend Growth UCITS ETF range.
Pierre Debru, Head of Quantitative Research & Multi Asset Solutions, WisdomTree, says: “High-quality companies are known for their stability and resilience, even amid market volatility and economic downturns. These companies tend to have strong balance sheets, low debt levels and robust cash flows. A quality-focused investment can make portfolios more resilient, helping investors build wealth over the long term and weather the inevitable storms along the way. By focusing on quality companies and adopting a forward-looking approach to dividend growth, we’ve developed a core equity range that has consistently delivered strong results across regional exposures.”
WisdomTree writes that its flagship equity ETF range with USD14.4 billion in assets under management globally, demonstrates the value and trust investors place on WisdomTree’s research-driven, systematic approach and strong track record in smart indexing.
Alexis Marinof, Head of Europe, WisdomTree, says: “This new UCITS ETF complements the existing Quality Dividend Growth range, providing another option for investors seeking a core UK equity investment solution. With our Quality Dividend Growth range continuing to grow and attract more interest, the time was right to expand the suite of ETFs and launch a UK-focused approach of our flagship equity strategy for UK investors.”
In March 2023, WisdomTree launched EUR and GBP currency-hedged share classes for the WisdomTree Global Quality Dividend Growth UCITS ETF, and in August 2023 also launched EUR and GBP currency-hedged share classes for WisdomTree US Quality Dividend Growth UCITS ETF The addition of the currency-hedged share classes to the Quality Dividend Growth range allows Euro and GBP based investors to access these strategies effectively while offsetting foreign currency risk.
