Designed to offer exposure to small-cap dividend-paying stocks with growth characteristics, the ETF has an expense ratio of 0.38%.
WisdomTree research director Jeremy Schwartz said that WETF’s family of dividend growth ETFs offer a dividend growth methodology that is generally found in the small-cap scenario.
"DGRS is the first, and only, strategy focusing on the U.S. market’s small-cap dividend growth leaders, a segment we believe offers some of the most attractive dividend growth opportunities," Schwartz added.
He further stated that contrary popular notion that high quality, dividend growth opportunities are tied to blue chip, large-cap stocks, but improving US economy interest rates will make small caps more attractive than large caps.
The DGRS seeks to offer a diversified basket of small-cap dividend-paying securities with growth characteristics, differentiated exposure from traditional dividend funds, and at annual index rebalance, single stock cap of 2%, sector cap of 25%.
DGRS is WisdomTree’s third dividend growth ETF, following the US dividend growth fund (DGRW) and the global ex-US growth fund (DNL).
WETF currently provides 51 ETFs across equities, fixed income, currency income and alternatives asset classes and has nearly $31.6bn in ETF assets under management.
