WisdomTree US Quality Dividend Growth Fund | research notes

Introducing WisdomTree US Quality Dividend Growth Fund: A Value-Oriented Approach to Dividend Investing

Overview

WisdomTree US Quality Dividend Growth Fund (NASDAQ: DGRW) is an actively managed exchange-traded fund (ETF) designed to provide investors with exposure to high-quality US companies that have a history of consistent dividend growth. The fund utilizes a unique value-oriented approach to identify undervalued companies with strong financials and a commitment to shareholder returns.

Investment Strategy

DGRW's investment strategy is centered around three key pillars:

• Quality: The fund invests in companies with solid fundamentals, strong balance sheets, and proven track records of profitability.
• Dividend Growth: Companies must have a history of increasing their dividends for at least five consecutive years.
• Value: The fund uses a proprietary valuation model to identify undervalued stocks that are trading at a discount to their intrinsic value.

Portfolio Construction

The fund's portfolio consists of approximately 50-70 companies that meet the above criteria. The fund managers actively monitor the portfolio, adjusting weights as needed to maintain the desired balance of quality, dividend growth potential, and valuation.

Key Features

• High Yield: DGRW has a trailing 12-month dividend yield of approximately 3%, which is significantly higher than the S&P 500.
• Dividend Growth: The fund has a long-term dividend growth rate of over 8%, demonstrating the companies' commitment to returning cash to shareholders.
• Value Orientation: DGRW's value approach aims to identify undervalued companies with strong growth potential, enhancing the potential for capital appreciation.
• Active Management: The fund is actively managed by experienced portfolio managers who conduct thorough research and due diligence to select the best investments.

Benefits for Investors

• Reliable Income: DGRW provides investors with a consistent source of dividend income.
• Growth Potential: The fund's focus on high-quality companies with dividend growth potential offers the potential for long-term capital appreciation.
• Diversification: The fund's diversified portfolio of companies across various industries and sectors helps to reduce overall investment risk.
• Tax Efficiency: Dividends received from DGRW are typically eligible for the qualified dividend tax rate, providing tax savings for many investors.

Conclusion

WisdomTree US Quality Dividend Growth Fund is a compelling choice for investors seeking a combination of income, growth, and value in their investment portfolio. The fund's unique value-oriented approach and active management provide investors with access to high-quality companies at attractive valuations, offering the potential for a well-rounded investment experience.

WisdomTree US Quality Dividend Growth Fund (WDS)

Business Model

WDS is an actively managed exchange-traded fund (ETF) that invests in high-quality U.S. companies with a history of consistent dividend growth. Its objective is to provide investors with long-term capital appreciation and income through a diversified portfolio of quality dividend-paying stocks.

Key Investment Strategy:

• Quality Focus: Selects companies based on a comprehensive set of financial and qualitative factors, including strong balance sheets, high profit margins, and stable cash flows.
• Dividend Growth: Targets companies with a track record of increasing dividend payments over time.
• Equity Allocation: Invests primarily in common stocks of both large-cap and mid-cap companies.
• Active Management: The fund's portfolio is managed by a team of experienced investment professionals who conduct in-depth research and analysis to identify attractive investment opportunities.

Advantages Over Competitors

WDS offers several advantages over its competitors in the dividend growth ETF space:

1. Robust Screening Process: WDS employs a rigorous screening process that uses both quantitative and qualitative criteria to identify high-quality companies. This selective approach results in a concentrated portfolio of truly exceptional businesses.

2. Disciplined Dividend Growth Focus: The fund's exclusive focus on companies with a history of consistent dividend growth ensures that investors benefit from both capital appreciation and rising income streams. This discipline has helped WDS deliver superior long-term returns.

3. Active Management Expertise: WDS is actively managed by a dedicated team of investment professionals with extensive experience in dividend investing. Their insights and analytical capabilities enable the fund to adjust its portfolio dynamically to capture changing market trends.

4. Cost Efficiency: As an ETF, WDS offers low expense ratios compared to actively managed mutual funds. This reduced cost structure benefits investors by enhancing returns over time.

5. Diversification Benefits: WDS provides instant diversification across multiple industries and sectors through a single investment. This diversification helps mitigate risks and enhances portfolio stability.

6. Tax Efficiency: ETFs typically offer tax efficiency due to their lower turnover rates. WDS's focus on holding quality dividend-paying stocks further reduces its turnover, potentially minimizing taxable distributions.

7. Liquidity and Accessibility: WDS trades on major stock exchanges, making it highly liquid and accessible to investors. Its ETF structure allows for easy buying and selling throughout the trading day.

WisdomTree US Quality Dividend Growth Fund (DGRW)

Investment Objective: To seek total return by investing primarily in U.S. dividend-paying large-capitalization companies with strong quality characteristics.

Investment Strategy:

• Focuses on dividend-paying companies with a market capitalization exceeding $10 billion.
• Selects companies based on a combination of quality factors, including:
  • Strong balance sheet
  • High return on equity
  • Stable earnings growth
  • Low debt-to-equity ratio
• Uses quantitative analysis to identify companies with consistently rising dividends.
• Maintains a diversified portfolio with exposure to various sectors and industries.

Portfolio Characteristics:

Asset Allocation:

• 99% Equity
• 1% Cash and Equivalents

Sector Allocation:

• Technology (27.6%)
• Healthcare (19.6%)
• Financials (11.4%)
• Consumer Discretionary (10.0%)
• Communication Services (8.9%)
• Industrials (7.4%)
• Energy (5.4%)
• Utilities (4.2%)

Top 10 Holdings:

• Microsoft Corporation (MSFT)
• Apple Inc. (AAPL)
• UnitedHealth Group Inc. (UNH)
• Mastercard Incorporated (MA)
• Visa Inc. (V)
• PepsiCo Inc. (PEP)
• Berkshire Hathaway Inc. (BRK.B)
• Procter & Gamble Co. (PG)
• Johnson & Johnson (JNJ)
• Coca-Cola Co. (KO)

Performance:

• Since inception (March 2013): 10.54% annualized return
• YTD (as of June 30, 2023): -12.33%

Dividend Yield: 2.10% (annualized)

Fees and Expenses:

• Expense ratio: 0.45%

Distribution Frequency: Quarterly

Liquidity: Traded daily on the New York Stock Exchange (NYSE)

Outlook:

• Given the fund's focus on quality companies with strong dividend growth potential, the outlook is generally positive.
• The fund is well-positioned to navigate market volatility and provide consistent returns over the long term.
• The current market environment, characterized by rising interest rates and inflation, may pose some challenges for the fund's growth potential.
• However, the fund's selective investment approach and focus on high-quality companies should help mitigate these challenges.

Suitability:

• Suitable for long-term investors seeking income and capital appreciation through exposure to U.S. dividend-paying stocks.
• Appropriate for investors with a moderate to low risk tolerance.
• Not suitable for investors seeking short-term or speculative investments.

Disclaimer: The information provided is for informational purposes only and should not be considered investment advice. Investors should consult with a financial professional before making any investment decisions.

Companies Similar to WisdomTree US Quality Dividend Growth Fund

1. iShares Core High Dividend ETF (HDV)

• Homepage: https://www.ishares.com/us/products/239601/ishares-core-high-dividend-etf
• Why customers may like it: HDV offers a diversified portfolio of high-dividend-paying stocks from the S&P 500 index. It provides reliable income with a relatively low expense ratio.

2. Vanguard High Dividend Yield Index Fund ETF (VYM)

• Homepage: https://investor.vanguard.com/etf/profile/VYM
• Why customers may like it: VYM invests in companies that have paid consistent dividends and increased them over time. It provides exposure to a broad range of dividend-growth stocks with low costs.

3. SPDR S&P Dividend ETF (SDY)

• Homepage: https://www.spdrfunds.com/etf/overview/sdy
• Why customers may like it: SDY tracks the S&P High Yield Dividend Aristocrats Index, which includes companies with a long track record of dividend growth. It offers a combination of dividend yield and capital appreciation potential.

4. ProShares S&P 500 Dividend Aristocrats ETF (NOBL)

• Homepage: https://www.proshares.com/funds/nobl
• Why customers may like it: NOBL invests in S&P 500 companies that have increased their dividends for at least 25 consecutive years. It provides exposure to high-quality, dividend-growing stocks.

5. Invesco Dynamic Dividend ETF (DVY)

• Homepage: https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=E27643
• Why customers may like it: DVY uses a dynamic strategy to select companies with a history of dividend growth and attractive valuations. It provides a balanced approach to dividend investing.

History of WisdomTree US Quality Dividend Growth Fund (DGRW)

2006:

• WisdomTree Investments, Inc. (WisdomTree) was founded in New York City.

2009:

• WisdomTree launched the WisdomTree Emerging Markets SmallCap Dividend Fund (DEMS), the predecessor to DGRW.

2011:

• DEMS was restructured and renamed the WisdomTree US Quality Dividend Growth Fund (DGRW).

2012:

• DGRW began trading on the American Stock Exchange (now Cboe Global Markets).

2013:

• WisdomTree became a publicly traded company on the Nasdaq Stock Market (WETF).

2015:

• WisdomTree acquired the assets of the Natixis Dreyfus US Quality Income Fund (NTQUX) and merged them into DGRW.

2016:

• DGRW's expense ratio was reduced from 0.58% to 0.48%.

2017:

• WisdomTree launched the WisdomTree US Quality Dividend Growth Fund ETF (DGR), an exchange-traded fund that tracks DGRW.

2019:

• DGRW's expense ratio was further reduced to 0.42%.

2023:

• As of March 2023, DGRW had over $6 billion in assets under management and a yield of approximately 2.2%.

Key Features:

• Investment Objective: To provide investors with long-term capital appreciation and dividend income.
• Investment Strategy: Invests in dividend-paying companies with high-quality fundamentals and a history of dividend growth.
• Market Cap: Focuses on large-cap and mid-cap stocks.
• Distributions: Pays dividends on a quarterly basis.
• Expense Ratio: 0.42% (as of March 2023).

2023

• January: WisdomTree US Quality Dividend Growth Fund (DGRW) announces a 0.20% annual dividend yield.

2022

• December: DGRW pays a $0.20 per share dividend.
• November: DGRW's net asset value (NAV) reaches $52.14 per share.
• October: DGRW launches a covered call strategy to enhance income generation.
• August: DGRW's assets under management (AUM) exceed $10 billion.
• June: DGRW announces a 0.20% annual dividend yield.

2021

• December: DGRW pays a $0.19 per share dividend.
• November: DGRW's NAV reaches $50.23 per share.
• September: DGRW surpasses $8 billion in AUM.
• July: DGRW announces a 0.19% annual dividend yield.
• March: DGRW launches a new share class with a lower expense ratio.

Exceptional Dividend Growth and Quality with WisdomTree

I am overjoyed to share my highly positive experience with WisdomTree US Quality Dividend Growth Fund. This exceptional mutual fund has consistently exceeded my expectations, delivering remarkable dividend growth and unwavering quality.

Dividend Growth that Inspires

WisdomTree has a remarkable history of dividend growth. Over the past decade, the fund has increased its dividends by an impressive 11.3% annually. This consistent growth has provided me with a stable and growing income stream, allowing me to meet my financial goals with ease.

Uncompromising Quality

Quality is paramount to WisdomTree. The fund invests in a portfolio of high-quality companies that have strong fundamentals, such as robust balance sheets, consistent earnings growth, and experienced management teams. This focus on quality has ensured that my investments are well-protected and have the potential for long-term success.

Diversification and Risk Management

The fund's diversified portfolio provides me with peace of mind. WisdomTree invests across a wide range of sectors, including technology, healthcare, and consumer staples. This diversification helps to reduce risk and maximize my return potential, even during volatile market conditions.

Exceptional Customer Service

The WisdomTree customer service team is exceptional. They are knowledgeable, responsive, and always willing to go the extra mile. Their support has made managing my investments a seamless and stress-free experience.

Conclusion

Investing with WisdomTree US Quality Dividend Growth Fund has been one of the wisest financial decisions I have ever made. Their consistent dividend growth, unwavering quality, diversification, and exceptional customer service have made them my go-to choice for dividend investing. I highly recommend this fund to anyone looking for a reliable and potentially rewarding investment.

Unlock the Power of Dividend Growth: Discover WisdomTree US Quality Dividend Growth Fund

Are you seeking a reliable and consistent stream of income from your investments? Look no further than the WisdomTree US Quality Dividend Growth Fund. This expertly managed fund offers investors the opportunity to tap into the growth potential of dividend-paying stocks while mitigating risk.

Key Features:

• Focused on Dividend Growth: The fund invests in a diversified portfolio of high-quality companies with a strong track record of dividend growth.
• Quality Screening: Companies are meticulously screened for financial health, profitability, and competitive advantages to ensure sustainability and resilience.
• Active Management: The fund is actively managed by a team of experienced investment professionals who monitor market conditions and adjust the portfolio accordingly.
• Low Expenses: The fund's management fees are among the most competitive in the industry, ensuring cost efficiency for investors.

Benefits:

• Income Generation: Receive regular dividend payments, providing a steady income stream.
• Capital Appreciation: Benefit from the potential growth of dividend-paying stocks over time.
• Risk Mitigation: The fund's focus on quality companies and dividend growth reduces volatility and enhances portfolio stability.
• Tax Advantage: Dividend distributions may be eligible for preferential tax treatment, depending on your individual circumstances.

Why WisdomTree?

WisdomTree is a leading provider of exchange-traded funds (ETFs) and has over 20 years of experience in the financial industry. The company is known for its innovative investment strategies and commitment to delivering value to investors.

Get Started Today:

To learn more about the WisdomTree US Quality Dividend Growth Fund, visit our website at [WisdomTree US Quality Dividend Growth Fund Link].

Don't miss this opportunity to invest in a fund that combines the benefits of dividend growth, quality, and active management. Join the WisdomTree family today and start building a more secure financial future.

Main Supplier (Upstream Service Provider) of WisdomTree US Quality Dividend Growth Fund

Name: WisdomTree Investments, Inc.

Website: https://www.wisdomtree.com/

Services Provided:

WisdomTree Investments, Inc. provides a wide range of investment management and advisory services to WisdomTree US Quality Dividend Growth Fund, including:

• Portfolio management: WisdomTree manages the fund's portfolio of US dividend-paying stocks, selecting and weighting investments based on factors such as quality, dividend growth potential, and financial health.
• Investment research: WisdomTree conducts thorough research on companies and the dividend landscape to identify potential investment opportunities.
• Trading and execution: WisdomTree executes trades on the fund's behalf, ensuring efficient and cost-effective execution of portfolio changes.
• Compliance and regulatory oversight: WisdomTree ensures that the fund complies with all applicable laws and regulations, including SEC reporting and disclosure requirements.
• Customer service and administration: WisdomTree provides ongoing customer support and handles administrative tasks such as account maintenance, fund distribution payments, and shareholder reporting.

Additional Notes:

• WisdomTree US Quality Dividend Growth Fund is an actively managed fund, which means that WisdomTree Investments has discretion over the fund's investments and can make changes to the portfolio as needed.
• WisdomTree Investments is a leading global asset manager with expertise in dividend investing and exchange-traded funds (ETFs). It manages over $100 billion in assets and offers a range of investment products for both individual and institutional investors.

WisdomTree US Quality Dividend Growth Fund (DGRW)

Main Customers

The main customers of the WisdomTree US Quality Dividend Growth Fund are individual investors and investment advisors who are seeking income and long-term capital appreciation. Specifically, DGRW targets investors who:

• Value high-quality companies with consistent dividend growth
• Seek a portfolio of dividend-paying stocks with strong fundamentals
• Have a long-term investment horizon

Target Investor Profile

• Investment Objective: Long-term capital appreciation and income generation
• Risk Tolerance: Moderate
• Investment Horizon: 5+ years
• Suitability: Individuals and institutions seeking exposure to US dividend-paying stocks

Investment Strategy

DGRW invests in a portfolio of high-quality, dividend-paying US companies that meet the following criteria:

• Strong financial health and profitability
• Consistent dividend payments and growth
• Attractive valuations relative to earnings and cash flow

The fund uses a quantitative approach to identify companies that meet these criteria. It also incorporates environmental, social, and governance (ESG) factors into its investment analysis.

Website

https://www.wisdomtree.com/us/en/etf/dgrw

Key Revenue Stream

Investment Advisory Fees:

WisdomTree US Quality Dividend Growth Fund (QDF) generates revenue primarily through investment advisory fees charged to its shareholders. These fees are based on a percentage of the fund's net assets under management (AUM). As of December 31, 2022, the fund's management fee was 0.25% of its AUM.

Estimated Annual Revenue

The exact amount of WisdomTree US Quality Dividend Growth Fund's annual revenue depends on the fund's AUM, which can fluctuate over time. However, based on the fund's historical AUM and management fee, we can estimate its annual revenue as follows:

• As of December 31, 2022, QDF had approximately $9.3 billion in AUM.
• Applying the 0.25% management fee, the estimated annual revenue for the fund is approximately $23.25 million (0.0025 x $9.3 billion).

Additional Revenue Streams

In addition to investment advisory fees, WisdomTree US Quality Dividend Growth Fund may also generate limited revenue from other sources, such as:

• Licensing and Intellectual Property Fees: WisdomTree may earn revenue from licensing its proprietary index methodologies and other intellectual property to third parties.
• Distribution and Servicing Fees: WisdomTree may receive fees for distributing and servicing the fund's shares to investors and financial intermediaries.

However, these additional revenue streams are likely to be relatively small compared to investment advisory fees.

WisdomTree US Quality Dividend Growth Fund

Key Partners

WisdomTree US Quality Dividend Growth Fund does not explicitly disclose its key partners on its website or in its fund prospectus. However, WisdomTree, the fund's investment advisor, has several key partners that support its operations and investment strategies. These partners include:

Index Providers

• MSCI Inc. (www.msci.com) - MSCI provides WisdomTree with index data and analytics used in the construction and management of the fund's underlying index.
• CRSP (www.crsp.com) - CRSP provides WisdomTree with historical stock market data used for research and analysis.

Data Vendors

• Bloomberg L.P. (www.bloomberg.com) - Bloomberg provides WisdomTree with real-time market data and news.
• FactSet Research Systems Inc. (www.factset.com) - FactSet provides WisdomTree with financial data and analytics.

Custodians

• State Street Corporation (www.statestreet.com) - State Street acts as the custodian for the fund's assets, providing safekeeping and administration services.

Transfer Agents

• Computershare Investor Services LLC (www.computershare.com) - Computershare acts as the fund's transfer agent, handling the issuance, redemption, and transfer of fund shares.

Marketing and Distribution Partners

• AllianceBernstein L.P. (www.alliancebernstein.com) - AllianceBernstein distributes WisdomTree's funds to institutional investors.
• Invesco Distributors, Inc. (www.invesco.com) - Invesco Distributors distributes WisdomTree's funds to retail investors.

Other Partners

• auditor - Ernst & Young LLP (www.ey.com)
• legal counsel - Debevoise & Plimpton LLP (www.debevoise.com)

Key Cost Structure of WisdomTree US Quality Dividend Growth Fund

The WisdomTree US Quality Dividend Growth Fund (DGRW) is an actively managed exchange-traded fund (ETF) that invests in high-quality dividend-paying US companies. The fund's portfolio is constructed using a proprietary quality scoring system that evaluates companies based on their financial health, growth prospects, and dividend yield.

The key cost structure of DGRW includes the following:

• Management fee: 0.30% per year. This fee is paid to the fund's investment adviser, WisdomTree Asset Management.
• Administrative and custodian fees: 0.15% per year. These fees cover the costs of the fund's administrative and custodial services, such as record-keeping, accounting, and safekeeping of assets.
• Other expenses: These expenses may include brokerage commissions, trading costs, and other miscellaneous expenses.

The estimated annual cost of investing in DGRW is 0.45%. This means that for every $10,000 invested in the fund, investors can expect to pay approximately $45 in fees over the course of a year.

It is important to note that the cost structure of ETFs can vary depending on the fund's investment strategy and the fees charged by the investment adviser and custodian. Investors should carefully consider the cost structure of an ETF before investing to ensure that it aligns with their investment objectives and risk tolerance.

Additional Information

In addition to the key cost structure, DGRW also has a number of other features that investors should be aware of:

• Investment objective: The fund's investment objective is to provide total return through a combination of capital appreciation and dividend income.
• Investment strategy: The fund invests in a portfolio of high-quality dividend-paying US companies. The fund's portfolio is constructed using a proprietary quality scoring system that evaluates companies based on their financial health, growth prospects, and dividend yield.
• Dividend yield: The fund's dividend yield is typically around 2.5%.
• Risk profile: The fund's risk profile is considered to be moderate.
• Minimum investment: The minimum investment in DGRW is $1,000.

Investors should carefully consider the fund's investment objective, investment strategy, and risk profile before investing.

Sales Channels

WisdomTree US Quality Dividend Growth Fund (WTDGD) utilizes various sales channels to distribute its shares to investors. These channels include:

• Financial Advisors: WTDGD works with registered investment advisors (RIAs), broker-dealers, and other financial advisors who provide investment advice and portfolio management services to individual and institutional clients.
• Institutional Investors: The fund also targets institutional investors such as pension plans, endowments, and foundations by offering customized solutions that meet their specific investment objectives.
• Direct Sales: WTDGD offers direct purchase options through its website and over the phone, allowing investors to invest directly in the fund without the involvement of a financial advisor.

Estimated Annual Sales

The estimated annual sales for WisdomTree US Quality Dividend Growth Fund are not readily available from publicly available sources. However, the fund's assets under management (AUM) provide an indication of its sales activity. As of June 30, 2023, WTDGD had approximately $7.5 billion in AUM. This suggests that the fund has experienced steady growth in sales over the past year.

Additional Information

• Sales Commissions: Financial advisors and broker-dealers typically receive sales commissions on the sale of mutual funds. These commissions are paid by the fund company and are not directly borne by the investors.
• Distribution Fees: WTDGD may also pay distribution fees to financial institutions that promote or sell the fund to their clients. These fees are intended to cover the marketing and distribution expenses incurred by these institutions.
• Sales Practices: WisdomTree is committed to adhering to ethical and responsible sales practices. The company provides ongoing training to its distribution partners to ensure that they understand and follow industry regulations and best practices.

Customer Segments

1. Individual Investors (50% of annual sales)

• Seeking a combination of dividend income and long-term capital appreciation
• Typically have a moderate to high-risk tolerance
• Invest for retirement, education, or other long-term financial goals

2. Financial Advisors (30% of annual sales)

• Recommend the fund to clients seeking dividend-growth exposure
• Serve high-net-worth individuals, families, and institutions
• Value the fund's track record, low fees, and dividend focus

3. Institutional Investors (20% of annual sales)

• Include pension funds, endowments, and mutual funds
• Seek a diversified portfolio of dividend-paying stocks
• Value the fund's investment strategy and risk management practices

Estimated Annual Sales

The estimated annual sales for WisdomTree US Quality Dividend Growth Fund are as follows:

• 2020: $1.5 billion
• 2021: $2.2 billion
• 2022: $2.8 billion

Note:

These figures are estimates based on publicly available information and may vary from actual sales.

Value Proposition of WisdomTree US Quality Dividend Growth Fund

The WisdomTree US Quality Dividend Growth Fund (DGRW) is an actively managed exchange-traded fund (ETF) that seeks to provide investors with a combination of dividend income and capital appreciation by investing in a portfolio of US large-cap stocks with strong financial fundamentals and a history of dividend growth.

Key Features:

• Focus on Quality Dividend Growth: Invests in companies with consistent dividend growth, strong financial health, and a commitment to returning capital to shareholders.
• Active Management: Managed by a team of experienced portfolio managers who select stocks based on their individual merits, focusing on companies with robust fundamentals.
• Diversified Portfolio: Provides a broad exposure to the US large-cap equity market, with over 300 holdings across various sectors.
• High Yield Potential: Offers the potential for attractive dividend income, as the portfolio consists of companies with a history of increasing their dividend payments.
• Growth Potential: While income generation is a primary objective, DGRW also aims to provide capital appreciation through exposure to high-quality growth companies.
• Low Expense Ratio: Has a low expense ratio compared to similar ETFs, providing investors with cost-effective exposure to quality dividend growers.

Benefits for Investors:

• Income Generation: Potential for regular dividend payments, providing a source of passive income.
• Dividend Growth: Opportunity to benefit from the compounding effect of dividend increases over time.
• Capital Appreciation: Exposure to high-quality companies with growth potential, offering the possibility of capital gains.
• Diversification: Access to a broad range of dividend-paying stocks, reducing the risk associated with investing in individual companies.
• Hands-Off Approach: Actively managed by professionals, allowing investors to benefit from expert stock selection without the need for active portfolio management.

Target Investors:

• Investors seeking a combination of dividend income and capital growth.
• Investors with a long-term investment horizon.
• Investors looking for a diversified exposure to quality dividend-paying US large-cap stocks.
• Investors who prefer a hands-off approach to investing.

Risk Factors of WisdomTree US Quality Dividend Growth Fund (DGRW)

1. Market Risk

• The fund's value may fluctuate with the overall stock market, which can be affected by economic, political, and social factors.

2. Equity Risk

• The fund invests in equity securities, which are subject to market risk and can decline in value.

3. Small-Cap Risk

• The fund invests in small-cap stocks, which are generally considered to be more volatile and less liquid than large-cap stocks.

4. Dividend Risk

• Companies may reduce or eliminate dividend payments, which would reduce the fund's income and potential capital gains.

5. Sector Risk

• The fund is concentrated in the technology and healthcare sectors, which may perform differently than the broader market.

6. High Yield Risk

• The fund invests in some high-yield dividend-paying stocks, which may be more volatile and subject to credit risk.

7. Interest Rate Risk

• Rising interest rates can make dividend-paying stocks less attractive, potentially leading to a decline in the fund's value.

8. Currency Risk

• The fund invests in stocks denominated in currencies other than the US dollar, which can lead to foreign exchange fluctuations that may affect the fund's value.

9. Inflation Risk

• Inflation can erode the value of the fund's dividend income and capital gains over time.

10. Fund-Specific Risk

• The fund's investment strategy may not be successful, and the fund may not meet its investment objectives.

11. Expense Risk

• The fund's expenses, such as management fees and trading costs, can reduce the fund's returns.

12. Liquidity Risk

• The fund may not be able to sell all of its holdings quickly at a reasonable price, which could affect its ability to meet redemption requests.

13. Cybersecurity Risk

• The fund's operations and the assets it invests in could be vulnerable to cyberattacks, which may result in financial losses, disruption of services, or unauthorized access to sensitive information.

14. Taxation Risk

• Dividends and capital gains distributions from the fund may be subject to income taxes, which can reduce the fund's returns.

It's important to note that these risks are not exhaustive and investors should carefully consider all potential risks before investing in the WisdomTree US Quality Dividend Growth Fund.