WisdomTree launches Europes first dividend ETFs

In an effort to further capitalise on the growing demand for smart beta exposure, ETF provider WisdomTree has listed four dividend-weighted ETFs on the London Stock Exchange.

WisdomTree launches Europes first dividend ETFs

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The four funds are designed to provide investors with exposure to large and small-cap US and European equities, the group said, and track proprietary WisdomTree indices, most of which have been live since 2006.

According to WisdomTree, the indices are weighted by “dividend stream” over which it holds the registered trademark, which it defines as “the sum total of regular dividends paid in a particular index”.

The group added: “Historically, dividends have provided a majority of the stock market’s real return over time and unlike other factors, dividends are an objective measure which are not affected by accounting treatments.”

WisdomTree feels that in the current low-yield environment, a dividend-weighted ETF could also result in an increase in a portfolio’s trailing 12-month dividend and thus, also, its income.

The four ETFs will initially be traded in sterling, euros and dollars, they are Dublin-domiciled and physically replicated GBx, EUR and USD.  The ETFs are Irish-domiciled and physically replicated, with the underlying shares being held with State Street, the group said.

The four funds, tabled below have a total expense ratio ranging between 0.29% and 0.38%.

Name TER (p.a.) Index dividend yield

WisdomTree Europe Equity Income UCITS ETF 

0.29% 5.7%

WisdomTree Europe SmallCap Dividend UCITS ETF 

0.38% 3.9%

WisdomTree US Equity Income UCITS ETF 

0.29% 3.6%

WisdomTree US SmallCap Dividend UCITS ETF

0.38% 3.6%


 

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