ETF Research and Analysis
by Bradley KaySuitability
WisdomTree LargeCap Dividend DLN provides a handy alternative U.S. equity core holding for investors who want a value tilt and extra income. This fund tries to provide some extra value to investors by forgoing the standard market-capitalization weighting used by common market indexes such as the S&P 500, the Dow Jones Wilshire 5000, and Morningstar's own U. Read more
WisdomTree LargeCap Dividend DLN provides a handy alternative U.S. equity core holding for investors who want a value tilt and extra income. This fund tries to provide some extra value to investors by forgoing the standard market-capitalization weighting used by common market indexes such as the S&P 500, the Dow Jones Wilshire 5000, and Morningstar's own U. Read more
Bull Case
The fund is an inexpensive way to buy a basket of high-yielding stocks. Its low price tag ensures that most of the income that its underlying holdings throw off ends up in investors' pockets.
The portfolio is well-diversified by stock and sector. That's kept a lid on volatility and explains why we wouldn't need a large margin of safety to invest here.
Due to a total-dividend weighting rather than a yield weighting, this dividend fund still concentrates in the largest, high-quality businesses, which are more likely to maintain their dividends. Read more
Bear Case
Cheap, but not the least expensive dividend-oriented ETF around because of Vanguard High Dividend Yield Index ETF VYM.
Money paid out to shareholders as dividends is not being reinvested in the business. This means investors frequently trade off some price appreciation for the higher current income. Read more
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