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Sleep Well With The WisdomTree LargeCap Dividend ETF

Published Mon, 06 Jul 2020 15:52:35 -0400 on Seeking Alpha

Seeking AlphaETF AnalysisSleep Well With The WisdomTree LargeCap Dividend ETFJul. 6, 2020 3:52 PM ET|| About: WisdomTree LargeCap Dividend ETF (DLN)by: The Value TrendThe Value Trend Value, growth at reasonable price, long-term horizonSummaryDLN is a great way to gain exposure to a moderate dividend and quality companies.
The fund has outperformed many of its peers over the last decade.
The exposure to large-cap dividend paying companies makes it a good investment in times of market volatility.
Thesis Summary
The WisdomTree LargeCap Dividend ETF (DLN) is a competitively priced ETF holding some quality companies. Its exposure to large, income-paying stocks makes it a great investment for those seeking a secure way of achieving a moderate yield.
ETF Overview
"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. The Index is comprised of the 300 largest companies ranked by market capitalization from the WisdomTree U.S. Dividend Index. The index is dividend weighted annually to reflect the proportionate share of the aggregate cash dividends each component company is projected to pay in the coming year, based on the most recently declared dividend per share."
Source: Wisdomtree.com
With an expense ratio of 0.28%, this fund is competitively priced. Below, we can see a list of holdings and sector breakdowns.

Source: Seeking Alpha
As we can see, about a third of this fund is allocated towards technology and healthcare, but the fund has significant exposure to all the other sectors. Having said this, the top 10 holdings account for under 30% of the total allocation, meaning the ETF is well-diversified across its 300 holdings. The current yield stands at around 2.93%, and the fund has a 5-year growth rate of 8.83%. However, the fund cut its dividend by 32% back in April.
Recent Performance
In the chart below,... Read more