Fund Launches as U.S. Dividend Growth Accelerates1
DGRW to Capture Market's Dividend Growth Leaders
NEW YORK, May 22, 2013 (GLOBE NEWSWIRE) -- WisdomTree (Nasdaq:WETF), an exchange-traded fund ("ETF") sponsor and asset manager, today announced the launch of the WisdomTree U.S. Dividend Growth Fund (DGRW) on the NASDAQ Stock Market. DGRW is designed to provide exposure to dividend-paying stocks with growth characteristics and has an expense ratio of 0.28%.
Jeremy Schwartz, WisdomTree Director of Research, said, "Investors are hungry for income in this low interest rate-, low yield-environment. Rather than relying on historical records of dividend increases, DGRW uses real-time growth and quality metrics focused on companies who are growing their dividends."
The WisdomTree U.S. Dividend Growth Fund (DGRW) seeks to offer:
- A diversified basket of dividend-paying securities with growth characteristics
- Heavy exposure to technology sector, the sector currently leading the market's dividend growth
- At annual index rebalance, single stock cap of 5%, sector cap of 20%
"We believe the key drivers of dividend growth are constantly changing. And a number of dividend-based indexes – through restrictive inclusion screens based on patterns of historical dividend trends – may miss out on what we see as dividend growth opportunities in today's market," Schwartz said. "We have created an additional subset of our broad dividend index family that incorporates factors we believe to be most important indicators of a company's ability to grow their dividends – one that isn't solely dependent on past history of dividend hikes."
Investors should carefully consider the investment objectives, risks, charges and expenses of the Funds before investing. To obtain a prospectus containing this and other important information, call 866-909-9473 or visit wisdomtree.com. Read the prospectus carefully before investing.
Dividends are not guaranteed and a company's future abilities to pay dividends may be limited. A company currently paying dividends may cease paying dividends at any time.
Diversification does not eliminate the risk of experiencing investment losses.
There are risks associated with investing, including possible loss of principal. Funds focusing their investments on certain sectors increase their vulnerability to any single economic or regulatory development. This may result in greater share price volatility. Please read the Fund's prospectus for specific details regarding the Fund's risk profile.
WisdomTree Funds are distributed by ALPS Distributors, Inc.
Jeremy Schwartz is a registered representative of ALPS Distributors, Inc.
1 Source: Prof. Robert Shiller, Yale University, 2013; WisdomTree.
WisdomTree Dividend Index: Measures the performance of dividend-paying companies incorporated in the United States that pay regular cash dividends and meet WisdomTree's eligibility requirements. Weighted by indicated cash dividends.
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Source:WisdomTree Investments, Inc.