ETF Research and Analysis

by Adam McCullough, CFA
Suitability
WisdomTree LargeCap Dividend is a fundamentally weighted dividend-focused strategy. It effectively diversifies risk and rebalances into stocks as they become cheaper relative to their dividends, which should give it an   Read more 

Bull Case

This fund’s dividend-weighting approach effectively diversifies firm-specific risk and avoids sector concentration.
The fund’s annual contrarian rebalance differentiates it from its dividend-targeting peers and should help it benefit from mean-reversion in valuations.
This fund’s fee lands it in the cheapest decile of the large-value category. Read more 

Bear Case

Although this fund’s fee is low compared with actively managed counterparts, there are cheaper dividend-oriented and index alternatives.
The fund’s lack of a profitability or dividend sustainability screen could cause it to hold stocks that may cut their dividend payments. Read more 

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