WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ: DGRW), an exchange-traded fund (ETF), focuses on high-quality, dividend-paying U.S. stocks. It aims to track the WisdomTree U.S. Quality Dividend Growth Index, which includes the top 300 dividend-paying companies based on growth and quality factors. The fund’s current dividend yield was reported at 1.8% during its last rebalance, compared to 1.3% for the S&P 500.
The fund emphasizes dividend payments more than market cap, leading to companies like Microsoft having an 8% weighting, while others like ExxonMobil, with a higher yield of 3.4%, rank higher in holdings. However, DGRW’s 0.28% expense ratio is significantly higher than other high-dividend ETFs, such as Vanguard High Dividend Yield ETF (0.06%) and Schwab U.S. Dividend Equity ETF (0.06%).
Despite its focus on dividend growth, which historically generates higher total returns, DGRW may not be the best option for passive income, as multiple ETFs offer higher yields and lower costs.
