The new funds will prioritise “shifting trends in dividends” and “future dividend growth potential.”
Potential for dividend growth has become an even more important means for investors to generate income in a lower interest rate environment, according to WisdomTree.
For this reason, the new funds were designed to appeal to investors who “are keen to explore more developed methodologies to gain access to dividend-related strategies,” which will “deliver the potential for enhanced risk-adjusted returns,” said Viktor Nossek, director of research at WisdomTree Europe.
The dividend growth ETFs achieve this target by harnessing three-year average return of equity and return on assets figures “as a driving force for stock selection,” “tilting towards quality companies with low debt and high return on equity,” said Nossek.
The stocks that are selected by the quality growth indices also “exhibit consistently higher median dividend growth compared to market capitalisation-weighted benchmarks excluding Emerging Markets,” the asset manager said.
ETF strategist at WisdomTree Europe, Nizam Hamid, added: “The addition of these new ETFs means that we now offer UCITS ETFs that cover the full spectrum of dividend and income related investment themes. The WisdomTree Global Quality Dividend Growth UCITS ETF (GGRA) also represents our first global equity product to be launched on our UCITS platform.”
The ETFs are offered with a USD base currency, though the funds will also be listed in sterling.