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WisdomTree LargeCap Dividend ETF: Monthly Distributions And Meager Expense Ratio

Published Thu, 08 Oct 2020 04:49:50 -0400 on Seeking Alpha

Seeking AlphaETF AnalysisWisdomTree LargeCap Dividend ETF: Monthly Distributions And Meager Expense RatioOct. 8, 2020 4:49 AM ET|| About: WisdomTree LargeCap Dividend ETF (DLN)by: Vasily ZyryanovVasily Zyryanov Long/Short EquitySummaryThe WisdomTree U.S. LargeCap Dividend Index that is being tracked by DLN represents a fraction of the WTDI by including the 300 stocks with the highest market values.
As of October 6, with assets under management of ~$2.29 billion, DLN has a relatively versatile portfolio of 278 stocks.
IT, health care, and consumer staples, the market-darling sectors amid the COVID-19 economy, which combined account for 49.4% of the total, dominate the portfolio of DLN.
DLN has not delivered alpha in the last 10 years and this year due to its limited exposure to the FAANGM.
DLN has a standardized yield of 2.92%, which looks quite appealing, especially considering that the fund distributes income on a monthly basis. Another advantage is its minuscule expense ratio of only 0.28%.
Though the COVID-19 economy precipitated a dividend slump across the globe, a plethora of attractive dividend opportunities survived the downturn.
Today, I continue my series of articles on dividend-focused ETFs with a piece on the WisdomTree LargeCap Dividend ETF (DLN), a fund that has indubitable advantages coupled with a few weaknesses.
Introduction - The fund's composition
In September, I covered the WisdomTree MidCap Dividend ETF (DON) and the WisdomTree U.S. High Dividend ETF (DHS), which share a somewhat similar methodology with DLN. However, DHS is much pickier, as it tracks the index that factor in a composite risk score, a metric that was designed to identify and exclude the weakest stocks and thus mitigate the portfolio risk.
The WisdomTree U.S. LargeCap Dividend Index that is being tracked by DLN is much simpler. Precisely like the WTMDI, the WTLDI is based on the WisdomTree U.S. Dividend Index. It represents a fraction of it by including... Read more