WisdomTree U.S. High Dividend Fund (ARCA: DHS)

最新ニュース WisdomTree U.S. High Dividend Fund (ARCA:DHS)

WisdomTree U.S. High Dividend Fund

WisdomTree High Dividend Fund

Financial Services

Healthcare

Consumer Defensive

Energy

Utilities

Real Estate

Consumer Cyclical

Communication Services

Technology

Basic Materials

Industrials

The Fund employs a passive management or indexing investment approach designed to track the performance of the Index. The Fund generally uses a representative sampling strategy to achieve its investment objective, meaning it generally will invest in a sample of the securities in the Index whose risk, return and other characteristics resemble the risk, return and other characteristics of the Index as a whole. Under normal circumstances, at least 95 percent of the Funds total assets (exclusive of collateral held from securities lending) will be invested in constituent securities of the Index and investments that have economic characteristics that are substantially identical to the economic characteristics of such constituent securities.

Abbvie Inc

Exxon Mobil Corp

Chevron Corp

Altria Group Inc

International Business Machs Com

Philip Morris International Inc

Morgan Stanley

Citigroup Inc.

Bristol-Myers Squibb Co.

United Parcel Service Inc

johnson &amp; johnson

Pepsico Inc/nc

At&Amp;T Inc

merck &amp; co inc/nj

Gilead Sciences Inc

WisdomTree US High Dividend Fund

Strategy Shares Day Hagan Smart Buffer ETF

DAH SING BANKING GRP ORD by Dah Sing Banking Group Ltd.

Dah Sing Banking Group Ltd

As Trump tariffs take another spin through Mexico and Canada, investors are left navigating an increasingly <a href="https://www.benzinga.com/topic/tariffs">complex trade landscape</a>. 
While the long-term economic impact remains "indeterminate for both the U.S. and others," Sam Rines, macro strategist at WisdomTree, sees this as a pivotal stress test for economies and supply chains that have hardened over the past six years.
<h2 class="wp-block-heading">Mexico &amp; Canada: The First To React To Trump Tariffs</h2>
In a <a href="https://www.benzinga.com/government/regulations/25/02/43440692/us-mexico-agrees-on-one-month-tariffs-pause-stocks-rebound-peso-rallies">swift diplomatic maneuver</a>, Mexico and the U.S. have reached what Rines calls "a détente of sorts." It may not be a full-fledged trade agreement, but it's enough of a political win for Trump to delay and reassess.
Canada has also<a href="https://www.benzinga.com/25/02/43450261/trump-trudeau-strike-border-security-deal-tariffs-on-canada-paused-for-at-least-30-days"> reached a temporary agreement</a> with the U.S., while the EU is bracing for its turn in the trade spotlight. Interestingly, "India (and others) are not being mentioned in the same context," a nod to Prime Minister Narendra Modi's past alignment with Donald Trump.
Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/02/43432736/copper-stocks-on-shaky-ground-jpmorgan-analysts-say-tariffs-deepseek-cloud-outlook">Copper Stocks On Shaky Ground, JPMorgan Analysts Say: Tariffs, DeepSeek Cloud Outlook</a>
<h2 class="wp-block-heading">Dividend Payers Take Center Stage</h2>
So, who benefits from a protracted tariff skirmish? "The winners in a prolonged trade and tariff skirmish are U.S. domestically focused businesses," Rines notes, pointing to value stocks with limited exposure to trade volatility.
Dividend payers stand out as particularly "attractive," with Rines emphasizing their resilience over buyback-heavy firms. Those companies prioritizing stable income distribution are likely to emerge as the "biggest winners."
<h2 class="wp-block-heading">ETFs To Watch</h2>
For US investors looking to capitalize, ETFs such as the Vanguard Dividend Appreciation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIG#NYSE">VIG</a>), iShares Select Dividend ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DVY#NASDAQ">DVY</a>), the WisdomTree U.S. High Dividend Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHS#NYSE">DHS</a>) and the WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DGRW#NASDAQ">DGRW</a>) could offer exposure to resilient, dividend-paying U.S. firms. 
Those betting on an America-first trade boom might look at Schwab U.S. Dividend Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHD#NYSE">SCHD</a>) for companies committed to consistent payouts.
Rines leaves no doubt that this turbulence is far from over: "America First economic policies are seizing the attention of the markets… this is not going to abate in the near future and neither will the consequent volatility." Investors should buckle up, as the tariff rollercoaster shows no signs of slowing.
Read Next: 
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<li><a href="https://www.benzinga.com/government/regulations/25/02/43437906/constellation-brands-most-exposed-name-as-trump-tariffs-go-live-analysts-advise-adjusting-prices">Constellation Brands &#8216;Most Exposed Name&#8217; As Trump Tariffs Go Live: Analysts Advise Adjusting Prices</a></li>
</ul>
Photo: Chip Somodevilla/Shutterstock.com

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Macro Economic Events

Regulations

Broad U.S. Equity ETFs

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Trading Ideas

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DGRW

iShares Dow Jones Select Dividend Index Fund

SCHD

Dividend Stocks Could Be 'Biggest Winners' As Trump's Trade Moves Shake Markets: WisdomTree Expert

As Brent crude and <a href="https://www.benzinga.com/topic/energy">gasoline prices rise</a>, WisdomTree Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WT#NYSE">WT</a>) Head Of Equity Strategy Jeff Weniger is calling it: &#8220;A notable set-up for large-cap value relative to Growth&#8221; is taking shape.
What Happened: Since September, Brent crude has shot up by 12 points. And gasoline prices remained relatively flat year-over-year. Weniger now sees the rise in energy prices as a game-changer for the market. 
Investors should shift focus toward large-cap value stocks — particularly those with exposure to the energy sector, he says.
&#8220;If investors are of the view that crude oil will keep running, this could create a notable set-up for Large Cap Value relative to Growth,&#8221; Weniger told Benzinga in an exclusive interview.
For investors seeking exposure, there are four popular large-cap value equity ETFs in the U.S. to consider:
<ul>
<li>Vanguard Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTV#NYSE">VTV</a>)</li>
<li>Capital Group Dividend Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CGDV#NYSE">CGDV</a>),</li>
<li>iShares Core High Dividend ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HDV#NYSE">HDV</a>)</li>
<li>WisdomTree U.S. High Dividend Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DHS#NYSE">DHS</a>) </li>
</ul>
Read Also: <a href="https://www.benzinga.com/economics/macro-economic-events/25/01/43017610/oil-prices-break-80-reach-6-month-highs-despite-israel-hamas-ceasefire-deal-why-is-crude-rallying">Oil Prices Break $80, Reach 6-Month Highs Despite Israel-Hamas Ceasefire Deal: Why Is Crude Rallying?</a>
<h2 class="wp-block-heading">Energy Prices, Sectors, Impact On Growth</h2>
The S&amp;P 500 Value Index (SVX), with 6% of its weight in the energy sector, is in a prime position to benefit from rising oil prices. In contrast, the S&amp;P 500 Growth index, with just 1% exposure to energy, could face headwinds.
&#8220;If the consumer does take a hit from some forthcoming rise in gasoline prices, that could be another headwind for the S&amp;P 500 Growth index,&#8221; Weniger adds.
The Vanguard S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOOG#NYSE">VOOG</a>) tracks the performance of companies in the S&amp;P 500 Growth Index, just as the iShares S&amp;P 500 Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVE#NYSE">IVE</a>) tracks the performance of companies in the S&amp;P 500 Value Index.
With the consumer spending more at the pump, the S&amp;P 500 Growth index—heavily weighted (16%) in Consumer Discretionary—could feel the pinch, while the Value index, with just 5% in the same sector, remains less exposed. 
The game plan? Look to Large Cap Value stocks with energy exposure as an effective hedge against rising gas prices.
<h2 class="wp-block-heading">Investors Should Take Note</h2>
For those expecting oil to continue its upward trajectory, Weniger's advice is clear: &#8220;Large Cap Value relative to Growth&#8221; could be the play to make in the coming months. 
As gasoline prices climb, those invested in energy-heavy Value stocks may find themselves ahead of the curve.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/25/01/43013634/opecs-optimism-clashes-with-ieas-conservative-2025-oil-growth-projections">OPEC&#8217;s Optimism Clashes With IEA&#8217;s Conservative 2025 Oil Growth Projections</a></li>
</ul>
Image: Shutterstock

Long Ideas

Exclusives

Interview

Capital Group Dividend Value ETF Capital Group Dividend Value ETF

CGDV

VOOG

EXCLUSIVE: WisdomTree Exec Predicts Energy Prices Will Create 'Notable Set-Up For Large Cap Value Relative To Growth'

The dividend yield on the S&amp;P 500 is just 1.74%. Ten-year Treasuries are barely more impressive at 1.87%, so it&#39;s no wonder that plenty of investors will revisit high dividend stocks and exchange traded funds this year.
There are dozens of high-yield dividend ETFs on the market and while many simply weight securities by yield and go from there, the WisdomTree U.S. High Dividend Fund (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dhs#NYSE">DHS</a>) adds more protection to the high dividend scenario.
Some added protection with high dividend strategies is an often overlooked benefit because stocks gain high yields for a simple reason: falling share prices. Additionally, many of the companies in the high-yield camp are financially strained and may be apt to reduce or suspend dividends.
<h3>Why It&#39;s Important</h3>
The <a href="https://www.wisdomtree.com/index/wthye">WisdomTree U.S. High Dividend Index</a>, DHS&#39;s underlying benchmark, weights components by yield, but the value, quality and momentum factors are part of the equation, too.
&ldquo;The value factor is designed to lower weight to companies deemed expensive by other traditional measures of <a href="https://www.wisdomtree.com/blog/glossary#Valuation">valuation</a>,&rdquo; <a href="https://www.wisdomtree.com/blog/2020-01-08/wisdomtrees-new-equity-income-evolution-composite-risk-scoring">WisdomTree said in a recent note</a>. &ldquo;The quality factor is designed to lower weight to companies with poor profitability metrics or declining measures of profitability. The momentum factor is designed to lower weight to companies that have a high yield but only because their stock prices are declining.&rdquo;
DHS yields 3.5%, but it&#39;s not overly dependent on traditional high-yield sectors as real estate and utilities combine for just 24% of the fund&#39;s weight. Conversely, health care and technology, steady dividend growth groups, combine for over 26%.
Although it&#39;s a high-yield fund, many of DHS&#39;s 318 components have lengthy dividend increase streaks, some of which are measured in decades.
<h3>What&#39;s Next</h3>
WisdomTree uses the value, quality and momentum factors to render a composite score that filters out bad apples, providing an extra layer of protection for investors. In fact, nearly 100 companies were excluded from DHS during the most recent evaluation period.
&ldquo;While the excluded companies had substantially higher dividend yields, other metrics were much less favorable,&rdquo; said WisdomTree. &ldquo;The aggregate trailing <a href="https://www.wisdomtree.com/blog/glossary#Price-to-earnings%20(P/E)%20ratio">P/E ratio</a> for these excluded companies was 30x earnings, driven by the fact that more than one-quarter of the basket has negative trailing earnings. Looking at a standard quality metric like <a href="https://www.wisdomtree.com/blog/glossary#Return%20on%20Equity%20(ROE)">return on equity</a>, we also saw substantially lower values. These companies also were net share issuers, diluting existing shareholders by issuing 3% of new shares outstanding.&rdquo;
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How This High Dividend ETF Adds Another Layer Of Protection

High dividend stocks and exchange-traded funds are often thought to be vulnerable when the Federal Reserve embarks upon rate tightening cycles. For instance the WisdomTree U.S. High Dividend Fund (NYSE: <a class="ticker" href="/stock/dhs#NYSE">DHS</a>) tracks an index that has a trailing 12-month dividend yield of 4.08 percent and since the start of 2018, the S&amp;P 500 has outpaced DHS by a significant margin.
DHS allocates more than 13 percent of its weight to real estate stocks, its second-largest sector allocation. The fund also devotes 18.52 percent of its combined weight to the rate-sensitive utilities and telecommunications sectors. All of that is to say that the ETF&#39;s laggard status in the face of four Fed rate hikes since the start of last year isn&#39;t surprising, but over the long term, DHS has the potential to surprise even as borrowing costs climb.
Declining Treasury yields don&#39;t guarantee outperformance by high dividend strategies. Those declining rates merely make, in theory, high-yield strategies more attractive.
<h3>
	What To Know</h3>
&ldquo;From April 19, 2013, to July 8, 2016&mdash;when rates were falling by 35 <a href="https://www.wisdomtree.com/blog/glossary#Basis%20point">basis points (bps)</a> to that generational low&mdash;the S&amp;P 500 Growth Index posted a total return of 53.56 percent while the WisdomTree U.S. High Dividend Index rose &#39;just&#39; 45.12 percent, a gap of 844 bps (199 bps annualized),&rdquo; said WisdomTree <a href="https://www.wisdomtree.com/blog/2018-04-20/high-dividend-stocks-a-lonely-opportunity">in a recent note</a>.
Year-to-date, DHS has been hampered by its exposure to sectors deemed as rate-sensitive as well as lack of exposure to groups that benefit from higher interest rates. For example, the fund devotes just 6.71 percent to financial services stocks, but that time is probably too narrow in which to measure DHS&#39;s rising rates abilities.
<h3>
	Why It&#39;s Important </h3>
If it were a trade, expectations for higher interest rates this year would likely be seen as crowded.
&ldquo;And crowded is an understatement: 38 of 43 economics teams anticipate a rise in 10-Year Treasury yields by the fourth quarter of 2019, with a median target of 3.42 percent,&rdquo; said WisdomTree. &ldquo;If they are proven wrong&mdash;and if the market keeps &#39;caring&#39; about rates in 2018 the way it did in 2016 and 2017&mdash;DHS could surprise investors to the upside.&rdquo;
<h3>
	What&#39;s Next </h3>
The case for DHS isn&#39;t done. In fact, the ETF has some rebound potential. Its largest sector weight is the <a href="https://www.benzinga.com/trading-ideas/long-ideas/18/04/11539681/a-leveraged-etf-on-the-cusp-of-something-big#/null">rebounding energy patch</a> at 13.28 percent. That sector often performs well when rates and inflation rise. Additionally, DHS allocates almost 23 percent of its combined weight to health care and technology names -- sectors that have been durable in previous tightening environments.
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Markets

Don't Fret About This High Dividend ETF

There are hundreds of funds, mutual funds and exchange traded funds claiming to be &ldquo;balanced,&rdquo; with balanced usually meaning a 60-40 split between equities and fixed income. A fund that is 60-40 in one year can change the following year, surprising investors in the process.
The WisdomTree Balanced Income Fund (NYSE: <a class="ticker" href="/stock/wbal#NYSE">WBAL</a>), which debuted in December, helps ameliorate the balance conundrum faced by so many funds. WBAL is dedicated to the 60-40 approach. If its allocations drift, the fund is rebalanced for a 60-percent allocation to stocks and 40 percent to bonds. WBAL&#39;s holdings are other ETFs.
&ldquo;A benefit of WBAL&rsquo;s ETF-of-ETFs structure is that, despite the current weighted-average expense ratio of WBAL&rsquo;s 12 underlying ETFs being 32 basis points, we structured it so that its all-in cost will always be 35 bps, or 3 incremental basis points beyond what would be incurred from owning the 12 ETFs individually,&rdquo; WisdomTree <a href="https://www.wisdomtree.com/blog/2018-04-02/wbal-the-problem-solving-etf-of-etfs">in a Monday note</a>.
<h3>
	More WBAL Details</h3>
WBAL holds 11 ETFs, <a href="https://www.wisdomtree.com/etfs/asset-allocation/wbal">according to issuer data</a>. Nine of those funds are WisdomTree products. WBAL&#39;s top two holdings are the WisdomTree Barclays Yield Enhanced US Aggregate Bond Fund (NYSE: <a class="ticker" href="/stock/aggy#NYSE">AGGY</a>) and the WisdomTree High Dividend Fund (NYSE: <a class="ticker" href="/stock/dhs#NYSE">DHS</a>). AGGY and DHS combine for 39.1 percent of WBAL&#39;s weight.
The five equity-based ETFs held by WBAL are all WisdomTree dividend funds. That quintet provides exposure to U.S. large-caps, developed markets equities and emerging markets. WBAL&#39;s fixed income holdings include exposure to U.S. Treasuries, mortgage-backed securities, emerging markets debt, corporate bonds and interest rate hedging strategies.
&ldquo;WBAL has a threefold engagement with prudent investing concepts: for one, it buys equities and liquidates bonds after the former underperforms and vice versa,&rdquo; said WisdomTree. &ldquo;Second, it buys beaten-down asset class sleeves at the underlying ETF level at rebalancing time. Third, its subcomponent ETFs engage <a href="https://www.wisdomtree.com/blog/glossary#Value">value</a> screens at the individual security level.&rdquo;
<h3>
	The Right Mix</h3>
WBAL sports a 30-day SEC yield of 3.07 percent. That is more than what investors find on 10-year Treasuries and many U.S. dividend ETFs.
&ldquo;As we dig into WBAL, built-in common sense jumps out,&rdquo; adds WisdomTree. &ldquo;It engages in disciplined rebalancing, its expense ratio is nearly half the cost of the typical allocation fund, it taps into smart beta factors and, of course, it comes in an ETF structure.&rdquo;
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News

Bonds

AGGY

WBAL

A WisdomTree Balanced ETF Of ETFs That Engages With 'Prudent Investing Concepts'

Conventional wisdom dictates that rising interest rates are often punitive for high-dividend stocks and corresponding sectors. That was certainly the case in 2017, as the rate-sensitive telecom sector was the worst-performing group in the S&amp;P 500, while the largest real estate and utilities exchange traded funds posted an average annual gain of 8.5 percent, well below the 21.7 percent returned by the S&amp;P 500.
The WisdomTree U.S. High Dividend Fund (NYSE: <a class="ticker" href="/stock/dhs#NYSE">DHS</a>) rose 11.7 percent last year. DHS tracks the WisdomTree U.S. High Dividend Index, which includes the top 30 percent of highest yielders from the WisdomTree Dividend Index. DHS&#39;s benchmark is weighted by cash dividends paid, but with yield playing a part in the selection process, the fund was hampered by rising Treasury yields.
Conversely, DHS could make for an ideal contrarian value play in 2018 for investors who believe the Federal Reserve will not proceed with multiple rate hikes. Lopsided consensus could bolster the DHS contrarian thesis.
<h3>
	The Consensus Take&nbsp;</h3>
A broad swath of market observers believe Treasury yields will march higher this year, so much so that the trade could be getting a little crowded.
&ldquo;The thing is that right now there is a remarkably crowded Wall Street consensus that U.S. 10-Year T-note yields will continue to rise in 2018, so much so that predictions by 54 out of 61 economists compiled by Bloomberg in January see them going higher,&rdquo; WisdomTree said&nbsp;<a href="https://www.wisdomtree.com/blog/2018-01-18/dhs-bucking-18-street-consensus">in a recent note</a>. &ldquo;In fact, not one economics team put a &#39;1&#39; as the first digit on the yield for the end of 2018. This is a crowded consensus.&rdquo;&nbsp;
DHS&#39;s sector weights highlight its vulnerability to rising Treasury yields. Real estate, telecommunications and utilities names combine for almost 31 percent of the fund&#39;s roster, but DHS is trading higher to start 2018 while real estate and utilities stocks sag.
<h3>
	What If The Masses Are Wrong?&nbsp;</h3>
If market participants expecting higher Treasury yields &ldquo;are proved wrong, which happens too often for comfort when the consensus is lopsided, we could be looking at a <a href="https://www.wisdomtree.com/blog/glossary#Value">value</a> play for the few who entered 2018 with a contrarian view on rates,&rdquo; said WisdomTree. &ldquo;And rates may not even have to move lower to aid DHS; it could be as simple as a situation in which rates do not move much higher, or that they chop sideways, disappointing the economists&rsquo; collective forecasts and surprising the masses.&rdquo;
For those wanting to bet on rebounds in rate-sensitive sectors, DHS may be the way to do it. Over the past three years, the ETF&#39;s annualized volatility has been significantly below the comparable metric on the largest real estate, telecom and utilities ETFs.
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A Contrarian Dividend Idea

WisdomTree Investments, Inc. (NASDAQ: <a class="ticker" href="/stock/wetf#NASDAQ">WETF</a>), one of the largest issuers of smart beta exchange-traded funds, added to its ETF stable Thursday with the debut of two new funds.
The WisdomTree ICBCCS S&amp;P China 500 Fund (NYSE: <a class="ticker" href="/stock/wchn#NYSE">WCHN</a>), which tracks the S&amp;P China 500 Index, adds to WisdomTree&#39;s expansive lineup of international ETFs, including emerging markets funds. China is the largest country weight in many traditional, diversified emerging markets ETFs, but those funds often feature large exposure to state-owned enterprises while lacking leverage to more exciting growth opportunities in the Chinese economy.
&ldquo;When measured purely by market capitalization, China has the second largest equity market in the world,&rdquo;<a href="https://globenewswire.com/news-release/2017/12/21/1268961/0/en/WisdomTree-Launches-ICBCCS-S-P-China-500-Fund-WCHN-and-Balanced-Income-Fund-WBAL.html"> said WisdomTree</a>. &ldquo;Over the last decade, Chinese policy-makers led by President Xi Jinping have sought to gradually open the historically off-limits Chinese markets to outside capital.&rdquo;
<h3>
	A Different Approach </h3>
WCHN is heavily allocated to three sectors: technology, financial services, and consumer discretionary. Those groups combine for 68.5 percent of the new ETF&#39;s weight. Tencent Holdings Ltd. (OTC: <a class="ticker" href="/stock/tcehy#OTC">TCEHY</a>) and Alibaba Group Holding, Ltd. (NYSE: <a class="ticker" href="/stock/baba#NYSE">BABA</a>) combine for 16.6 percent of WCHN&#39;s roster. WCHN&#39;s top 10 holdings combine for nearly 35 percent of the new ETF&#39;s weight.
&ldquo;The S&amp;P China 500 Index is one of the only broad-based indexes offering exposure to all Chinese equity share classes, listed both in Mainland China and internationally,&rdquo; according to WisdomTree. &ldquo;In addition, because the S&amp;P China 500 Index reflects the sector composition of the total universe of Chinese companies, it has a more diversified sector exposure when compared with other China-focused indexes.&rdquo;
WCHN charges 0.55 percent per year, or $55 on a $10,000 investment.
<h3>
	An ETF Of ETFs</h3>
The WisdomTree Balanced Income Fund (NYSE:WBAL) is WisdomTree&#39;s newest income offering. WBAL looks to hold an income-oriented portfolio of 60 percent stocks and 40 percent fixed income.
WBAL tracks the WisdomTree Balanced Income Index, which &ldquo;is designed to provide a balanced exposure to global equities and fixed income and is comprised of ETFs. The ETFs comprising the Index, which may include WisdomTree ETFs and non-WisdomTree ETFs, must trade on a U.S. stock exchange and are reconstituted and rebalanced annually,&rdquo; according to WisdomTree.
The WisdomTree High Dividend Fund (NYSE: <a class="ticker" href="/stock/dhs#NYSE">DHS</a>) and the WisdomTree Barclays Yield Enhanced US Aggregate Bond Fund (NYSE: <a class="ticker" href="/stock/aggy#NYSE">AGGY</a>) combine for almost 40% of WBAL&#39;s weight. Nine of the ETF&#39;s 11 holdings are other WisdomTree ETFs. WBAL charges 0.35 percent per year, or $35 on a $10,000 investment.
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New ETFs

Emerging Market ETFs

BABA

TCEHY

WCHN

WETF

WisdomTree Introduces New China, Income ETFs

Even with all the talk about rising interest rates in the United States, exchange-traded funds focusing on dividends are enjoying a banner 2016 when it comes to adding new assets &mdash; that, after dividend strategies struggled in 2015.
Dividend investing is usually most effective with long-term holding periods, but knowing that is only half the battle. With so many dividend exchange-traded funds on the market, selectivity is key even for investors looking to buy and hold.
&ldquo;Dividend investing is the hot ETF strategy of the year so far. The asset class has just experienced its largest quarterly inflow haul on record in Q3, when investors ploughed over $9 billion into the 268 globally listed funds tracked by the Markit ETP analytics database. This bumper result adds to the strong tally gathered by dividend ETFs in the opening half of the year; taking the net fund flows to $21.6 billion, nearly $3 billion more than the previous yearly record set back in 2013,&rdquo; said Markit <a href="http://www.markit.com/Commentary/Get/28102016-Equities-Dividend-ETFs-come-back-in-vogue-in-2016">in a recent note</a>.
<h3>A Popular Dividend ETF</h3>
For example, the Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="/stock/vig#NYSE">VIG</a>), the largest U.S. dividend ETF, has hauled in $1.44 billion in new assets this year. VIG&#39;s underlying index requires member firms to have dividend increase streaks of at least 10 years, meaning newer dividend growth stocks, such as Apple Inc. (NASDAQ: <a class="ticker" href="/stock/aapl#NASDAQ">AAPL</a>), <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/10/8590023/etfs-delivering-dividend-growth-the-right-way">are not found in VIG</a>.
<h3>Another Favorite</h3>
The WisdomTree High Dividend Fund (NYSE: <a class="ticker" href="/stock/dhs#NYSE">DHS</a>) has been another popular destination among dividend ETFs.
DHS&#39;s underlying index, the WisdomTree High Dividend Index (WTHYE) &ldquo;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,&rdquo; <a href="http://www.wisdomtree.com/etfs/index-details.aspx?indexid=3">according to WisdomTree</a>.
DHS is a defensive ETF that marries two favored income themes: low volatility and dividend yield. The ETF&#39;s underlying index yields just over 4 percent with annualized volatility of under 18 percent, according to issuer data.
DHS has seen $275.1 million in year-to-date inflows, confirming investors&#39; thirst for higher-yielding equities.
&ldquo;The Vanguard Dividend Appreciation ETF is still the most popular dividend ETF, but its place at the top of the rankings is threatened as investors pick products that invest in stocks that offer a high yield over those that that have a track record of growing payments. This strong appetite for yield has seen the Vanguard High Dividend Yield ETF gather $3.1 billion of inflows. The high dividend yield offerings from Powershares and iShares have also proved popular with both finds outpacing their larger peer&rsquo;s $1.39 billion year to date inflow performance,&rdquo; added Markit.

AAPL

Investors Lavish Praise And Dollars Upon Dividend ETFs

Over the long term, dividend growth and reinvestment of those growing dividends are potent boosters of a portfolio&#39;s total returns. Dividend growth can often be found via the quality factor, and there is no shortage of exchange-traded funds offering investors exposure to both themes.
Among the most seasoned and best-performing ETFs with featuring steady dividend growth and quality tilts are the WisdomTree LargeCap Dividend Fund (ETF) (NYSE: <a class="ticker" href="/stock/dln#NYSE">DLN</a>) and the WisdomTree High Dividend Fund (NYSE: <a class="ticker" href="/stock/dhs#NYSE">DHS</a>), both of which turned 10 years old earlier this year.
<h3>DHS, DLN In Focus</h3>
DHS&#39;s underlying index, the WisdomTree High Dividend Index (WTHYE) &ldquo;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,&rdquo; <a href="http://www.wisdomtree.com/etfs/index-details.aspx?indexid=3">according to WisdomTree</a>.
DHS is a defensive ETF that marries two favored income themes: low volatility and dividend yield. The ETF&#39;s underlying index yields just over 4 percent with annualized volatility of under 18 percent, according to issuer data.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/analyst-ratings/analyst-color/16/10/8553267/finding-dividend-etfs-with-healthy-reit-allocations">Finding Dividend ETFs With Healthy REIT Allocations</a></bzrelatedlink>
An important point to note is that as the current bull market has extended its now lengthy run, favored factors such as low volatility and high dividends have gotten progressively more expensive. However, WisdomTree ETFs, such as DHS, have avenues for tempering investors&#39; exposure to richly valued stocks and sectors.
<h3>Bull Market Influence</h3>
&ldquo;While the WisdomTree Indexes certainly saw P/E multiple expansion, albeit to varying degrees, it&rsquo;s important to note that each has an annual <a href="http://www.wisdomtree.com/blog/index.php/glossary/#Rebalance">rebalance</a> that builds in a sensitivity relative valuation. Over time, the avenue to gaining greater weight in these indexes is through the growth of <a href="http://www.wisdomtree.com/blog/index.php/glossary/#Dividend">dividends</a> &mdash; an important distinction to be made against indexes that may be weighted by <a href="http://www.wisdomtree.com/blog/index.php/glossary/#Market%20capitalization">market capitalization</a>,&rdquo; said WisdomTree <a href="https://www.wisdomtree.com/blog/index.php/shifting-trends-from-low-volatility-to-quality-dividend-growth/">in a recent note</a>.
Since inception, DHS has topped 77 percent of rival funds. Over the past five years, that number jumps to 99 percent.
While investors have poured billions off fresh capital into bond ETFs and defensive sectors drove the S&amp;P 500 earlier this year, those themes, particularly the latter, are showing vulnerability as bond traders price in rising odds of the Federal Reserve raising interest rates in December.
&ldquo;If the U.S. Federal Reserve embarks on a cycle of raising <a href="http://www.wisdomtree.com/blog/index.php/glossary/#Interest%20rates">interest rates</a>&mdash; even a slow cycle &mdash; then dividend-paying stocks such as those in the Utilities or Telecommunication Services sectors may face competition as sources of income,&rdquo; noted WisdomTree.
On that note, it is worth highlighting that DLN allocates just 11.3 percent of its weight to rate-sensitive telecom and utilities stocks. Conversely, the ETF devotes nearly 27 percent of its combined weight to cyclical technology and energy stocks, sectors that historically perform well when rates rise.
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ETFs Delivering Dividend Growth The Right Way

Investors love dividends and dividend exchange traded funds. Over $100 billion has flowed into such ETFs over the past five years. ETF issuers have also been embracing the ETF of ETFs structure, or those ETFs that are comprised of other ETFs.

	Those two themes meet in the newly minted Amplify YieldShares Prime 5 Dividend ETF (BATS: PFV). PFV hails from the same issuer that launched the Amplify Online Retail ETF (NASDAQ: <a class="ticker" href="/stock/ibuy#NASDAQ">IBUY</a>), one of this year&#39;s <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/09/8497921/a-new-possibly-better-way-to-play-consumer-discretionary-stoc">best-performing consumer discretionary</a> ETFs.

	The quintet of dividend ETFs comprising PFV&#39;s lineup is curated based on factors such as low fees, low volatility and income-generating potential. PFV&#39;s roster is comprised of well-known dividend and value ETFs, such as the iShares Core High Dividend ETF (NYSE: <a class="ticker" href="/stock/hdv#NYSE">HDV</a>), Vanguard High Dividend Yield ETF (NYSE: <a class="ticker" href="/stock/vym#NYSE">VYM</a>), Schwab US Dividend Equity ETF (NYSE: <a class="ticker" href="/stock/schd#NYSE">SCHD</a>), Schwab U.S. Large-Cap Value ETF (NYSE: <a class="ticker" href="/stock/schv#NYSE">SCHV</a>) and the WisdomTree High Dividend Fund (NYSE: <a class="ticker" href="/stock/dhs#NYSE">DHS</a>).

	&ldquo;Potential investors should be aware of their company exposure when investing in these types of fund-of-fund strategies. For instance, investors would be overweight large companies like Microsoft Corporation (NASDAQ: <a class="ticker" href="/stock/msft#NASDAQ">MSFT</a>), AT&amp;T (NYSE: <a class="ticker" href="/stock/t#NYSE">T</a>) and Exxon Mobil Corp. (NYSE: <a class="ticker" href="/stock/xom#NYSE">XOM</a>) as the five underlying ETFs all count these companies among their top holdings,&rdquo; according to <a href="https://www.etftrends.com/2016/09/a-new-fund-of-funds-etf-to-target-right-dividend-stocks/">ETF Trends</a>.

	DHS has been remarkably productive and rewarding for investors over the past decade. The ETF tracks the WisdomTree High Dividend Index, which is one of &ldquo;11 of WisdomTree&rsquo;s 12 dividend-weighted Indexes beat their comparable broad based cap-weighted index over the past 10 years in the U.S. and in the developed world,&rdquo; <a href="https://www.wisdomtree.com/blog/index.php/wisdomtrees-10-year-anniversary-how-did-we-do/">according to WisdomTree</a>.

	A significant driver of DHS&#39;s success is that the ETF, like other WisdomTree dividend ETFs, breaks from the norms of the dividend ETF universe. Those norms being either weighting by yield or focusing on backward-looking dividend increase streaks. Rather, DHS&#39;s underlying index &ldquo;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,&rdquo; <a href="http://www.wisdomtree.com/etfs/index-details.aspx?indexid=3">according to WisdomTree</a>.

	SCHD is the least expensive ETF in PFV&#39;s lineup with an annual fee of just 0.07 percent. DHS is the only ETF on PFV&#39;s roster that pays a monthly dividend. The new amplify ETF charges 0.49 percent per year, or $49 on a $10,000 investment.

IBUY

MSFT

SCHV

Get 5 Dividend ETFs In 1 With This New ETF

Although stocks surged Monday, just 14 exchange-traded funds hit all-time highs. Indicating that conservative, lower beta fare is still in style, six of the seven sector ETFs that hit new highs Monday were consumer staples, telecom or utilities funds.
Of the seven ETFs in the all-time high club, five were dividend ETFs. That quintet includes the WisdomTree High Dividend Fund (NYSE: <a class="ticker" href="/stock/dhs#NYSE">DHS</a>). The $1.12 billion DHS recently celebrated its tenth anniversary. Length of track record is often important to many advisors and investors when evaluating ETFs and mutual funds, but so is the productivity of a given fund over its lifespan.
<h3>Dominating DHS</h3>
DHS has been remarkably productive and rewarding for investors over the past decade. The ETF tracks the WisdomTree High Dividend Index, which is one of &ldquo;11 of WisdomTree&rsquo;s 12 dividend-weighted Indexes beat their comparable broad based cap-weighted index over the past 10 years in the U.S. and in the developed world,&rdquo; <a href="https://www.wisdomtree.com/blog/index.php/wisdomtrees-10-year-anniversary-how-did-we-do/">according to WisdomTree</a>.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/06/8128053/fed-indulges-this-preferred-etf">Fed Indulges This Preferred ETF</a></bzrelatedlink>
A significant driver of DHS&#39;s success is that the ETF, like other WisdomTree dividend ETFs, breaks from the norms of the dividend ETF universe. Those norms being either weighting by yield or focusing on backward-looking dividend increase streaks. Rather, DHS&#39;s underlying index &ldquo;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,&rdquo; <a href="http://www.wisdomtree.com/etfs/index-details.aspx?indexid=3">according to WisdomTree</a>.
<h3>Allocations And Holdings</h3>
The ETF&#39;s largest sector weight is 17.8 percent to consumer staples with another 11.1 percent devoted to utilities names, so DHS gets income investors to a place many currently want to be: the intersection of low volatility and yield. DHS has a distribution yield of nearly 2.60 percent, or nearly 100 basis points above Monday&#39;s closing yield on 10-year Treasurys.
Top 10 holdings in DHS include venerable dividend payers such as AT&amp;T Inc. (NYSE: <a class="ticker" href="/stock/t#NYSE">T</a>), Exxon Mobil Corporation (NYSE: <a class="ticker" href="/stock/xom#NYSE">XOM</a>), Procter &amp; Gamble Co (NYSE: <a class="ticker" href="/stock/pg#NYSE">PG</a>) and The Coca-Cola Co (NYSE: <a class="ticker" href="/stock/ko#NYSE">KO</a>). Each of those stocks are dividend aristocrats, indicating that although DHS&#39;s methodology does not obsess over dividend increase streaks, there is plenty of dependable dividend growth to be had with this ETF.
Of course, risk-adjusted returns are what is really important to investors. Over the past three years, DHS is up 38.6 percent, including dividends paid, with annualized volatility of 11.9 percent. By comparison, Vanguard&#39;s two domestic dividend ETFs have each under-performed DHS while both have been slightly more volatile than the WisdomTree offering.

A Dividend Dynamo Ascends To New Highs

Although S&amp;P 500 dividend growth will slow this year, it is accurate to say the current bull market has been kind to dividend investors. Many trusted dividend payers have extended lengthy streaks, some in the order of multiple decades, of boosting payouts while other companies have become new dividend payers and growers.
Scores of dividend exchange-traded funds have been born during the current bull market, but some well-known dividend ETFs are older than that. For example, the WisdomTree High Dividend Fund (NYSE: <a class="ticker" href="/stock/dhs#NYSE">DHS</a>) will turn 10, along with several other WisdomTree dividend ETFs, next month. And what a decade it has been for the $1 billion DHS.
DHS&#39;s underlying index, the WisdomTree High Dividend Index (WTHYE) &ldquo;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,&rdquo; <a href="http://www.wisdomtree.com/etfs/index-details.aspx?indexid=3">according to WisdomTree</a>.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/05/7918486/a-small-cap-dividend-etf-keeps-proving-its-worth">A Small-Cap Dividend ETF Keeps Proving Its Worth</a></bzrelatedlink>
<h3>What Sets DHS Apart</h3>
Unlike rival dividend ETFs, DHS is not reliant on dividend increase streaks as a stock selection tool. That said, investors will be assured to know that many of the over 400 companies found in DHS are dividend aristocrats. For example, top 10 holdings Procter &amp; Gamble Co (NYSE: <a class="ticker" href="/stock/pg#NYSE">PG</a>) and The Coca-Cola Co (NYSE: <a class="ticker" href="/stock/ko#NYSE">KO</a>) have two of the longest dividend increase streaks among all S&amp;P 500 companies. 
DHS is a defensive ETF that marries two favored income themes: low volatility and dividend yield. The ETF&#39;s underlying index yields just over 4 percent with annualized volatility of under 18 percent, according to issuer data.
In <a href="http://www.wisdomtree.com/blog/index.php/our-u-s-dividend-funds-are-turning-10-years-old/">a note out Tuesday</a>, WisdomTree pointed out that since inception, DHS has topped 77 percent of rival funds. Over the past five years, that number jumps to 99 percent.
<h3>2 More Names</h3>
&ldquo;For the five years ended March 31, 2016, every single WisdomTree Fund we show beat more than 90 percent of its respective peer group. <a href="http://www.wisdomtree.com/etfs/fund-details.aspx?etfid=4">DHS</a>, <a href="http://www.wisdomtree.com/etfs/fund-details.aspx?etfid=3">DON</a> and <a href="http://www.wisdomtree.com/etfs/fund-details.aspx?etfid=15">DES</a> all beat 99 percent of their respective categories over this time frame,&rdquo; said WisdomTree.
DON and DES refer to the WisdomTree MidCap Dividend Fund (ETF) (NYSE: <a class="ticker" href="/stock/don#NYSE">DON</a>) and the WisdomTree SmallCap Dividend Fund (ETF) (NYSE: <a class="ticker" href="/stock/des#NYSE">DES</a>), which have recently been <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/05/7918486/a-small-cap-dividend-etf-keeps-proving-its-worth">highlighted in this space</a>. 
DHS&#39;s returns during the current bull market are staggering as well. This bull market started on March 10, 2009, and since then, DHS is up nearly 212 percent. When accounting for reinvested dividends, the ETF&#39;s bull market performance is even more jaw dropping with a gain of nearly 308 percent since March 10, 2009. By comparison, the largest U.S. dividend ETF has returned &ldquo;just&rdquo; 197 percent over that period even factoring in reinvested dividends.

WisdomTree Trust WisdomTree SmallCap Dividend

This Dividend ETF Has Been Winning For A Long Time

A volatile start to the year for equities has investors craving safe-haven assets. In past periods of volatility, safe-haven assets have included dividend stocks and exchange traded funds, but with S&amp;P 500 dividend slowing, some income investors are giving dividends the cold shoulder.

	The WisdomTree High Dividend Fund (NYSE: <a class="ticker" href="/stock/dhs#NYSE">DHS</a>) is one way for investors to maintain dividend exposure while playing defense. DHS&#39;s underlying index, the WisdomTree High Dividend Index (WTHYE) &ldquo;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,&rdquo; <a href="http://www.wisdomtree.com/etfs/index-details.aspx?indexid=3">according to WisdomTree</a>.

	Although energy dividends are under fire, the sector is the second-largest in DHS at 14.9 percent, trailing consumer staples by 350 basis points. DHS also has some <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/09/5851566/a-dividend-etf-for-the-conservative-investor">leverage to declining Treasury yields</a> as rate-sensitive utilities and telecom stocks combine for over 22 percent of the ETF&#39;s weight.

	&ldquo;We screened all the WisdomTree equity Funds in search of what has been our most defensive equity Fund thus far in 2016. The answer: the WisdomTree High Dividend Fund (DHS). The Index it tracks, the WisdomTree High Dividend Index, declined just 3.2% through February 15 at a time when the S&amp;P 500 Index had declined by 8.5%. The WisdomTree High Dividend Index is exhibiting three characteristics that investors typically search for in choppy markets: defensive sector exposure, lower beta and a healthy dividend yield,&rdquo; said WisdomTree Chief Investment Strategist Luciano Siracusano <a href="http://www.wisdomtree.com/blog/index.php/get-more-defensive-with-your-equity-exposure/">in a new note</a>.

	Through Monday, DHS is down just 1.3 percent year-to-date, easy topping plenty of rival dividend ETFs, including two Vanguard funds.

	Defense is making a difference for DHS this year as the ETF devotes nearly half its combined weight to defense consumer staples, utilities, telecom and healthcare stocks. Seven of the ETF&#39;s top 10 holdings hail from three of those groups. Eight of the top 10 holdings in DHS are Dow components with AT&amp;T Inc. (NYSE: <a class="ticker" href="/stock/t#NYSE">T</a>) and Phillip Morris Intentional (NYSE: <a class="ticker" href="/stock/pm#NYSE">PM</a>) being the outliers.

	Importantly, the quality/value combination bears fruit. Over the past five years, 12 months and year-to-date, the index DHS tracks has outperformed the Russell 1000 Value Index, <a href="http://www.wisdomtree.com/etfs/index-details.aspx?indexid=3">according to WisdomTree data</a>.

	&ldquo;By selecting stocks based on high dividend yields and then weighting them based on the dollar value of regular cash dividends paid to shareholders, the WisdomTree High Dividend Index typically exhibits a value tilt. However, by focusing on dividends in the selection and weighting process&mdash;unlike some market cap-weighted value indexes&mdash;this strategy typically generates a higher starting dividend yield and greater overall exposure to the &#39;defensive sectors&#39; of the market,&rdquo; adds Siracusano.

Intraday Update

A Decadent Defensive Dividend ETF

WisdomTree Investments, Inc. (NASDAQ: <a class="ticker" href="/stock/wetf#NASDAQ">WETF</a>), the fifth-largest U.S. issuer of exchange-traded funds, entered the commodities corner of the ETF business for the first time Friday, announcing the acquisition of closely held GreenHaven Commodity Services, LLC for $11.75 million in cash.
With the acquisition of GreenHaven Commodity Services, New York-based WisdomTree gains two commodities ETFs &ndash; the GREENHAVEN Continuous Commodity Indx Fnd (NYSE: <a class="ticker" href="/stock/gcc#NYSE">GCC</a>) and the GreenHaven Coal Fund ETV (NYSE: <a class="ticker" href="/stock/tons#NYSE">TONS</a>).
&ldquo;GCC has $247 million in assets under management and TONS has $1 million in assets under management, as of October 28, 2015. The financial impact of the transaction is not material to WisdomTree earnings per share,&rdquo; <a href="http://finance.yahoo.com/news/wisdomtree-enter-commodity-etf-space-100000648.html.">according to a statement</a>.
<h3>The WisdomTree Advantage</h3>
Investors and ETF market observers have, broadly speaking, typically associated WisdomTree with being one of the dominant players in several of the ETF industry&#39;s fastest-growing segments, including currency hedged ETFs and strategic beta funds. For example, the WisdomTree Inter Hedged Eq Fund (NYSE: <a class="ticker" href="/stock/hedj#NYSE">HEDJ</a>) is this year&#39;s top asset-gathering ETF.
 Additionally, WisdomTree offers an expansive lineup of <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/10/5951737/quality-and-value-meet-in-this-dividend-etf">seasoned, well-heeled dividend ETFs</a>, including the WisdomTree LargeCap Dividend Fund (ETF) (NYSE: <a class="ticker" href="/stock/dln#NYSE">DLN</a>) and the WisdomTree High Dividend Fund (NYSE: <a class="ticker" href="/stock/dhs#NYSE">DHS</a>).
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/10/5951737/quality-and-value-meet-in-this-dividend-etf">Quality And Value Meet In This Dividend ETF</a></bzrelatedlink>
	&ldquo;WisdomTree&rsquo;s planned acquisition of these unique commodity funds emphasizes our continued commitment to providing differentiated solutions in response to developments in the market and investor preferences,&rdquo; said WisdomTree CEO and President Jonathan Steinberg in the statement.
Although WisdomTree has previously been rumored to be a potential takeover target, the company has proven to be more buyer than seller, particularly in recent years. Last year, the company acquired Boost, a boutique provider of inverse and leveraged ETFs.
As of October 28, WisdomTree had over $57.4 billion in ETF assets under management, putting it well ahead of sixth-place First Trust, which had $41.3 billion in assets.
Image Credit: <a href="https://pixabay.com/en/environmental-protection-886673/">Public Domain</a>

Commodities

HEDJ

TONS

WisdomTree Enters Commodities ETF Arena

The quality and value factors are two of the most followed and studied investment factors, but they can be mutually exclusive. Of course, it is possible for a value stock to not be a quality stock. Likewise, stocks with frothy valuations do not always lack quality simply because they are pricey.
With that in mind, it can be difficult to efficiently marry the two factors under the roof of a single exchange-traded fund, though plenty of ETF issuers have tried and continue to trying. One ETF that has successfully married quality and value is the WisdomTree High Dividend Fund (NYSE: <a class="ticker" href="/stock/dhs#NYSE">DHS</a>).
<h3>Highlight On DHS</h3>
The WisdomTree High Dividend Fund, which is home to nearly $940 million in assets under management and is nearly nine and a half years old, is, as its name implies, a high dividend ETF. Predictably, that means a combined weight of nearly 21 percent to high-yielding telecommunications and utilities stocks. DHS follows the WisdomTree High Dividend Index (<a href="https://www.google.com/finance?q=INDEXNYSEGIS%3AWTHYETR&amp;ei=3qEzVqGqJsaqjAHY145Q">WTHYE</a>).
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/10/5922372/counting-on-quality-with-etfs">Counting On Quality With ETFs</a></bzrelatedlink>
That index &ldquo;searches for relatively higher-yielding U.S. dividend payers, thereby establishing a value type of exposure. With the extended period of low interest rates that we&rsquo;ve seen, these types of stocks have tended to become more expensive, as they are seen as sources of potential income generation,&rdquo; <a href="http://www.wisdomtree.com/blog/index.php/the-marriage-of-quality-value/">according to a recent note</a> from WisdomTree, the fifth-largest U.S. ETF issuer.
<h3>Companies In DHS</h3>
Though DHS does not depend on dividend increase streaks as part of its weighting methodology, the ETF is chock full of companies with lengthy track records of boosting payouts.
For example, Dow components Exxon Mobil Corporation (NYSE: <a class="ticker" href="/stock/xom#NYSE">XOM</a>), Procter &amp; Gamble Co (NYSE: <a class="ticker" href="/stock/pg#NYSE">PG</a>) and The Coca-Cola Co (NYSE: <a class="ticker" href="/stock/ko#NYSE">KO</a>) are all dividend aristocrats. Those stocks combine for over 10 percent of DHS&#39;s weight.

DHS not depending on dividend increase streaks as a gauge of a company&#39;s future ability to pay and raise dividends opens the door for the ETF to include some recent dividend growers. For example, the ETF&#39;s top 10 holdings include some companies that lowered dividends during the financial crisis, including General Electric Company (NYSE: <a class="ticker" href="/stock/ge#NYSE">GE</a>) and JPMorgan Chase &amp; Co. (NYSE: <a class="ticker" href="/stock/jpm#NYSE">JPM</a>), but have recently <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/10/5941516/these-etfs-deliver-dividend-consistency">been resuming dividend growth</a>.
<h3>Allocations</h3>
On a related note, financial services accounts for 17 percent of DHS&#39;s weight, the ETF&#39;s largest sector allocation. That sector was a dividend offender during the crisis, but has recently been one of the leading sources of <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/09/5851574/a-quality-dividend-etf-for-todays-tumultuous-rate-environment">S&amp;P 500 dividend growth</a>.
	&ldquo;Clearly, the focus in value strategies is on how price relates to fundamentals such as dividends, earnings or book value. Quality factors focus on the inherent stability of the fundamentals themselves, making the two approaches interesting complements,&rdquo; noted WisdomTree.
Importantly, the quality/value combination bears fruit. Over the past five years, 12 months and year-to-date, the index DHS tracks has outperformed the Russell 1000 Value Index, <a href="http://www.wisdomtree.com/etfs/index-details.aspx?indexid=3">according to WisdomTree data</a>.
Image Credit: <a href="https://pixabay.com/en/macbook-laptop-business-work-924781/">Public Domain</a>

Quality And Value Meet In This Dividend ETF

Conventional wisdom says dividend stocks and some payout-based exchange traded funds are supposed to be conservative investments.

	However, not all dividend ETFs make good on that promise. In particular, the array of dividend funds that select and weight stocks based on yield can exposure investors to myriad risks, including frothy valuations, dividend cuts and suspensions and interest rate risk due to often <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/08/5774526/utilities-resurgence-helps-some-dividend-etfs-inflows-a-diffe">excessive weights </a>to rate-sensitive sectors.

	Although it is down 6.8 percent year-to-date, the WisdomTree High Dividend Fund (NYSE: <a class="ticker" href="/stock/dhs#NYSE">DHS</a>) has the potential to regain favor among conservative dividend investor, particularly if the Federal Reserve continues to pass on raising interest rates. That is to say DHS has some sensitivity higher interest rates by way of a combined 21.5 percent weight to telecom and utilities stocks, two sectors with reputations for <a href="http://www.benzinga.com/analyst-ratings/analyst-color/15/09/5834437/dont-mess-with-these-etfs-if-interest-rates-rise">lagging after Fed liftoff</a>.

	Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/09/5851089/fed-free-week-still-full-of-obstacles-for-etfs#/null">Fed-Free Week Still Full Of Obstacles For ETFs</a>

	The WisdomTree High Dividend Index (WTHYE) &ldquo;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,&rdquo; <a href="http://www.wisdomtree.com/etfs/index-details.aspx?indexid=3">according to WisdomTree</a>.

	Though the index currently trades at a slight price-to-earnings ratio premium to the S&amp;P 500, there is an emphasis on the value factor with DHS.

	&ldquo;The fund&#39;s value exposure has been deeper than most large-value funds, although it has drifted over time,&rdquo; according to a recent <a href="http://news.morningstar.com/articlenet/article.aspx?id=715019">Morningstar research note</a>. &ldquo;Currently, the fund&#39;s value tilt is more modest, and it gives an underweighting to financials relative to the Russell 1000 Value Index. The fund will naturally shift toward the highest-yielding stocks and sectors at rebalance.&rdquo;

	At almost 17.2 percent, financials services is the largest sector weight in DHS. With energy the ETF&#39;s third-largest sector weight at 13.3 percent, DHS has some protection against higher interest rates because cyclical energy names are <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/09/5832788/these-sector-etfs-could-shine-after-a-rate-hike">historically stout performers after</a> the Fed boosts borrowing costs.

	DHS, however, is not a free lunch because, as was noted earlier, there are risks associated with high-yield dividend stocks.

	&ldquo;Dividend-paying stocks have historically outperformed the market. Between 1927 and 2014, stocks that pay a dividend have beaten the total market by about 0.7 percentage points annualized. Stocks in the highest-yielding 30% of the market have done even better, outperforming by about 1.5 percentage points annualized. However, high-yielding stocks can be risky. The highest-yielding stocks have had greater volatility than the broader market because some of these stocks are distressed and may offer an attractive yield as compensation for risk,&rdquo; according to Morningstar.

	To be fair, DHS has been slightly less than the two largest high-yield dividend ETFs over the past three years and DHS pays a monthly dividend -- something its rivals do not do.

A Dividend ETF For The Conservative Investor

As money rotates out of some of the hottest sectors of 2013, not all ETFs are falling victim to profit-taking and sector rotation.

	There are a handful of ETFs that have been able to avoid the recent pickup in selling and have shown above-average relative strength.

	If the selling continues for a couple of weeks, there is a good probability that the strong ETFs could continue to outperform their peers.

	Three such ETFs that are about as different as can be are listed below.

	The Wisdomtree Equity Income ETF (NYSE: <a class="ticker" href="/stock/dhs#NYSE">DHS</a>) tracks a fundamentally weighted index of 406 stocks that pay some of the highest dividend yields.

	All stocks are based in the U.S. with the highest concentration in the financials (19 percent), consumer staples (14 percent), and health care (14 percent). Bellwether stocks Microsoft (NASDAQ: <a class="ticker" href="/stock/msft#NASDAQ">MSFT</a>), AT&amp;T (NYSE: <a class="ticker" href="/stock/t#NYSE">T</a>), and Johnson &amp; Johnson (NYSE: <a class="ticker" href="/stock/jnj#NYSE">JNJ</a>) are the top three holdings accounting for 13 percent of the allocation.

	See also:<a href="http://www.benzinga.com/etfs/sector-etfs/14/03/4421662/buying-into-oversold-etfs-bjk-socl-pbs-fb-goog"> Buying Into Oversold ETFs</a>

	Over the last 12 months the ETF is up 10 percent and is currently trading at the best since December 2007. The dividend yield on the ETF is 3.4 percent.

	The Market Vectors Semiconductor ETF (NYSE: <a class="ticker" href="/stock/smh#NYSE">SMH</a>) is a surprise ETF on the list considering the widespread selling throughout the majority of the technology sector.

	The basket of 26 holdings hit the highest level in a decade this week led by a breakout in the ETFs largest holding, Intel (NASDAQ: <a class="ticker" href="/stock/intc#NASDAQ">INTC</a>). The other semiconductor ETFs have not held up as well and that has to do with SMH boasting a 19 percent allocation in INTC. As goes INTC, so goes SMH in the last couple of weeks.

	The iShares S&amp;P Global Infrastructure Index ETF (NYSE: <a class="ticker" href="/stock/igf#NYSE">IGF</a>) is trading at its best level since September 2008 led by a plethora of international stocks. With only 31 percent of the portfolio invested in the U.S., both Europe and Asia play an important role in the performance.

	There is 40 percent in both the utilities and industrials with another 20 percent in energy stocks. Due to the ETFs exposure to the utilities it boasts a 3.5 percent dividend yield that attract income-seeking investors.

	All three ETFs have been outperforming for specific reasons, but in general investors are looking for both yield and perceived safety as soon as the selling starts to hit the overall markets.

	Matt McCall is the editor of ETF newsletter <a href="http://marketfy.com/store/item/marketforce/" style="font-size:14px;color:rgb(35,109,201);font-family:'Open Sans', Arial, FreeSans, Garuda, Helvetica, 'Bitstream Vera Sans', sans-serif;line-height:21px;">MarkETForce </a>available at marketfy.com

Sector ETFs

iShares S&P Global Infrastructure Index Fund

INTC

ETFs Shrugging Off The Selling (DHS, SMH, IGF, INTC)

Here is the ETF Professor's ETF Watch List for Thursday, August 29, 2013.

The ProShares UltraShort Real Estate (NYSE: <a class="ticker" href="/stock/srs#NYSE">SRS</a>) merits attention.

So does the Market Vectors Coal ETF (NYSE: <a class="ticker" href="/stock/kol#NYSE">KOL</a>).

Give the WisdomTree Equity Income ETF (NYSE: <a class="ticker" href="/stock/dhs#NYSE">DHS</a>) a look.

Keep an eye on the iShares MSCI Japan ETF (NYSE: <a class="ticker" href="/stock/ewj#NYSE">EWJ</a>).

Emerging markets plays of the day: PowerShares India Portfolio (NYSE: <a class="ticker" href="/stock/pin#NYSE">PIN</a>), iShares MSCI Peru Capped ETF (NYSE: <a class="ticker" href="/stock/epu#NYSE">EPU</a>) and the iShares MSCI South Africa ETF (NYSE: <a class="ticker" href="/stock/eza#NYSE">EZA</a>).

Forex play of the day: CurrencyShares Swiss Franc Trust (NYSE: <a class="ticker" href="/stock/fxf#NYSE">FXF</a>).

Bond play of the day: PowerShares Global Short Term High Yield Bond Portfolio (NYSE: <a class="ticker" href="/stock/pghy#NYSE">PGHY</a>).

Short Ideas

Currency ETFs

Pre-Market Outlook

PGHY

ETFs to Watch August 29, 2013 (EZA, FXF, SRS)

Seduced by backward-looking dividend increase streaks, investors have fallen in love with dividend ETFs such as the Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="/stock/vig#NYSE">VIG</a>) and the SPDR S&amp;P Dividend ETF (NYSE: <a class="ticker" href="/stock/sdy#NYSE">SDY</a>).

	VIG is the largest U.S. dividend ETF by assets and SDY does battle with the iShares Dow Jones Select Dividend Index Fund (NYSE: <a class="ticker" href="/stock/dvy#NYSE">DVY</a>) for the number two spot.

	To become part of VIG's lineup, companies must have dividend increase streaks of at least 10 years. For SDY, the streak must be 25 years. Despite the fact that it has been proven there are other ways to find <a href="http://www.benzinga.com/news/13/05/3605442/look-forward-not-backward-with-dividend-etfs">dividend growth and stellar performances</a> among dividend ETFs, investors still lover SDY and VIG. The two ETFs have garnered over $3.3 billion in news assets this year.

	Rising 10-year Treasury yields could rain on that parade. While there is no such thing as a risk-free investment, PIMCO's Bill Gross recently said as much, the perception is that U.S. Treasurys are less risky than stocks. Yields on 10-year Treasurys spiked above 2.5 percent earlier Friday and that could be a cause for concern for VIG and SDY shareholders.

	Simple math could hammer these ETFs on multiple fronts. The trailing 12-month yield on VIG is 2.17 percent, <a href="http://finance.yahoo.com/q?s=vig&amp;ql=1">according to Yahoo Finance</a>. SDY's is 2.15 percent, <a href="https://www.spdrs.com/product/fund.seam?ticker=SDY">according to issuer data</a>. In an effort to be generous, we can point to SDY's 30-day SEC yield of 2.43 percent, but we still arrive at a number that is currently below the yield on 10-year Treasurys.

	So in order to keep their exposure to stocks that have raised their dividends in the past with no guarantees of future increases, could opt to remain in two dividend ETFs that now feature trailing 12-month yields that both more than 30 basis points below 10-year Treasurys.

	"But I want to stay in stocks," says Bob, the avid income investor. Fair enough, but along those lines it must be noted that the PowerShares S&amp;P 500 Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/splv#NYSE">SPLV</a>) now features a trailing 12-month yield that is 80 basis points higher than VIG's and a 30-day SEC yield that is more than 50 basis points higher than SDY's, <a href="http://www.invescopowershares.com/products/overview.aspx?ticker=SPLV">according to PowerShares data</a>.

	These ETFs Top Treasury Yields 
	To be fair, it is understandable why investors have been infatuated with VIG and SDY. The dividend increase streaks imply some level of safety and both ETFs are chock full of familiar blue chips such as AT&amp;T (NYSE: <a class="ticker" href="/stock/t#NYSE">T</a>), Johnson &amp; Johnson (NYSE: <a class="ticker" href="/stock/jnj#NYSE">JNJ</a>) and Procter &amp; Gamble (NYSE: <a class="ticker" href="/stock/pg#NYSE">PG</a>). Additionally, 
	it should be ignored that both ETFs have returned over 49 percent in the three years dating back to June 18, 2010.

	On the other hand, VIG is heavy on staples stocks while SDY devotes a combined 27 percent of its weight to the staples and utilities sectors, two industry groups that are richly valued. So not only would a new investor to these funds be sacrificing yield relative to 10-year Treasurys, that investor would also be <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/06/3686221/dividend-etfs-no-need-to-pay-up-for-yield">paying up for past dividend growth</a>. Not to mention the problematic utilities exposure should interest rates rise in earnest.

	Investors can and should do better. Again, VIG and SDY are fine ETFs. The point here is not to offend their issuers or investors that own those funds. However, the reality is that yields on those ETFs are now piddly compared to almost risk-free asset.

	The WisdomTree Equity Income Fund (NYSE: <a class="ticker" href="/stock/dhs#NYSE">DHS</a>) is one alternative. DHS has $694.1 million in assets under management, or not even 70 percent of the assets SDY has attracted this year. More importantly, the fund's 30-day SEC yield is 3.61 percent and the distribution yield is 3.32 percent, well ahead of 10-years, <a href="http://www.wisdomtree.com/etfs/fund-details.aspx?etfid=4">according to WisdomTree data</a>.

	DHS does not focus on dividend increase streaks. Rather it tracks a index that "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." The result is 64.2 percent three-year gain, massive out-performance of SDY and VIG.

	The WisdomTree Dividend ex-Financials Fund (NYSE: <a class="ticker" href="/stock/dtn#NYSE">DTN</a>) is another option to consider. Although DTN obviously lacks exposure to the financial services sector, a group that has grown its dividends in recent years, the ETF has <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/04/3530295/yes-this-etf-offers-dividend-growth">shown decent dividend growth</a> since the financial crisis. 

	Additionally, DTN is chock full of U.S. large-caps. The ETF's underlying index has had a beta of just 0.78 and annualized volatility of less than 12.3 percent since inception. The 30-day SEC yield is 3.3 percent and the distribution yield is just over three percent. DTN's three-year return is 63.4 percent. 

	One final thought: It is not unreasonable to say income investors like regular income. DHS and DTN pay monthly dividends. VIG and SDY pay quarterly.

	<a href="http://www.benzinga.com/trading-ideas/long-ideas/13/04/3530295/yes-this-etf-offers-dividend-growth">For more on ETFs, click </a><a href="http://www.benzinga.com/etfs">here</a>.

PowerShares S&P 500 Low Volatility Portfolio

SPLV

Rising 10-Year Yields Could Crush Popular Dividend ETFs

A better-than-expected May jobs report was the catalyst to lift U.S. stocks to another strong showing last week.

	Employers added 175,000 new jobs last month, but the unemployment rate rose to 7.6 percent from 7.5 percent. Still, that was enough to hearten the bulls. Over the last two days of the week, the S&amp;P 500 surged 2.1 percent to notch a weekly gain of 0.8 percent.

	All three major U.S. indexes gained more than one percent on Friday.

	The good thing about the jobs report, except for the part where the unemployment rate rose and the March and April numbers were revised lower, is the part where it probably was not strong enough to bring an immediate end to quantitative easing. However, a watered down version of QE appears likely and perhaps as soon as late in the third quarter. That is a reality markets must begin reconciling.

	That and plenty of other issues in the week ahead that should have a meaningful impact on the following ETFs.

	ProShares UltraShort FTSE China 25 (NYSE: <a class="ticker" href="/stock/fxp#NYSE">FXP</a>) 
	We are getting right to the heart of matter with the inclusion of FXP on this week's list. Rather than recommend a short position in the iShares FTSE China 25 Index Fund (NYSE: <a class="ticker" href="/stock/fxi#NYSE">FXI</a>), a long position in the double-leveraged FXP could be the alluring play for the early part of this week. It is obvious why that is the case.

	China's exports rose just one percent last month, the lowest increase since July 2012. Economists expected a 7.3 percent increase. Imports fell 0.3 percent, but economists expected a six percent rise. At this writing, retail sales and industrial output data for May had not been released, but a Reuters poll taken before Sunday's retail and industrial data shows industrial output is seen up 9.3 percent, unchanged from April, while growth in fixed-asset investment, one of the two main drivers of China's economy in 2012, likely rose 20.5 percent in the first five months of this year, <a href="http://finance.yahoo.com/news/china-trade-data-underscores-growth-055032145.html">Reuters reported.</a>.

	Markets are pricing in disappointment. When U.S. stocks soared Friday, FXI fell, meaning FXP was up. FXP also crept above its 200-day moving average last week, a bullish sign.

	iShares MSCI Frontier 100 ETF (NYSE: <a class="ticker" href="/stock/fm#NYSE">FM</a>) 
	There is an obvious reason why the iShares MSCI Frontier 100 ETF makes this week's list and, no, it is not the ongoing out-performance by <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/05/3638201/frontier-markets-etfs-soared-in-may">frontier markets of their emerging markets peers</a>.

	Rather, on Tuesday, index provider MSCI (NYSE: <a class="ticker" href="/stock/msci#NYSE">MSCI</a>) announces its annual market reclassification and that could be big news for Qatar and the United Arab Emirates. Qatar and UAE have been angling for a promotion to emerging markets status for several years, only to have been rebuffed by MSCI on the past five occasions.

	There is no denying that stocks <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/05/3634970/volume-spikes-in-frontier-etfs-as-dubai-stocks-surge">in Dubai have been among the world's best performers this year</a>. Shares listed in Abu Dhabi, another Emirate, have been stellar as well. MSCI's decision could mean a epic near-term bounce or sell-off for FM and other frontier ETFs. There is not likely to be any middle ground.

	WisdomTree Equity Income Fund (NYSE: <a class="ticker" href="/stock/dhs#NYSE">DHS</a>) 
	The WisdomTree Equity Income Fund merits consideration not because there are a slew of news events scheduled this week that could affect the ETF's 350 components. DHS is worth a look because although concerns about rising interest rates remain high, investors still like dividend stocks. It is merely a matter of being properly positioned in the dividend stock arena for future payout growth.

	As <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/06/3648147/time-to-shift-to-these-dividend-etfs">has been previously noted</a>, DHS accomplishes that with a 24.4 percent combined weight to technology and financial services names.

	Additionally, the fund is more attractive than some of its larger, more heralded rivals on the basis of yield and total returns. DHS has a trailing 12-month yield of 3.2 percent, about 100 basis points higher than the largest dividend ETF.

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

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WisdomTree U.S. High Dividend Fund

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