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Dividend-growth ETF DLN keeps pace with S&P 500 at lower volatility

The WisdomTree U.S. LargeCap Dividend Fund has $6.25 billion in assets and allocates about 40% to financial services, healthcare and consumer staples, while technology accounts for 21.7%.

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ETF Trends highlights the WisdomTree U.S. LargeCap Dividend Fund (DLN) as investors revisit dividend-growth strategies, noting the fund is nearly keeping pace with the S&P 500 this year while subjecting investors to significantly less annualized volatility, which the outlet frames as a better risk-adjusted outcome.

The article says DLN blends established payout-growth names with newer companies in the dividend-growth “fray,” and points to Morningstar analyst Dan Lefkovitz, who argues dividend growth signals corporate quality because only consistently profitable companies can raise cash returns to shareholders.

It also notes dividend growth indexes often skew toward value and defensive sectors, and attributes that pattern to many payout-growth leaders coming from financial services, healthcare, industrials and consumer defensive areas.

ETF Trends adds that DLN’s biggest sector exposure is technology at 21.7%, and cites Nvidia as the ETF’s second-largest holding after the company raised its dividend earlier this year by 2,400%.

Latest closeS&P 500 7,675.92 ▼0.4%

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