DES: SmallCap Dividend Fund ETF and WisdomTree US Yield

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DES - Market Position

Ticker Symbol Product Type Asset Class Strategy Payment Frequency Geographic Focus Expense Ratio Sponsor
DES ETF Equity Dividend ETF SmallCap Dividend Fund Quarterly US Domestic 0.38% WisdomTree

DES Overview - The WisdomTree U.S. SmallCap Dividend Fund

The WisdomTree U.S. SmallCap Dividend Fund (DES) is an Exchange-Traded Fund (ETF) designed to track the performance of dividend-paying small-cap stocks in the United States. It offers investors exposure to a diversified portfolio of small-cap companies that have a history of paying dividends, aiming to capture the potential for both dividend income and capital appreciation. DES follows a strategy focused on high-dividend-yielding stocks within the small-cap segment, targeting companies with sustainable dividend policies and consistent dividend growth over time.

One of DES's key features is its quarterly payment frequency, providing investors with regular income distributions. The fund primarily focuses on domestic companies in the US market, aligning with its geographic focus on US domestic equities. With an expense ratio of 0.38%, DES aims to provide cost-effective exposure to small-cap dividend-paying stocks compared to actively managed funds.

Investors interested in small-cap stocks with a dividend income component may find DES attractive due to its targeted strategy and potential for long-term returns. However, like all investments, DES carries risks, including market fluctuations, sector-specific risks, and changes in dividend policies of the underlying companies. It's essential for investors to conduct thorough research and consider their investment goals and risk tolerance before investing in DES or any ETF.

DES - Price / Yield

DES - Portfolio and Asset Allocation

The WisdomTree U.S. SmallCap Dividend Fund (DES) maintains a diversified portfolio with a strong focus on dividend-paying stocks in the small-cap segment. As of the latest data, DES's top holdings include companies like Organon & Co. (OGN), Tfs Financial (TFSL), and CVR Energy Inc (CVI). These holdings reflect a strategic allocation strategy with an emphasis on sectors such as Financial, Industrials, and Consumer Cyclical, constituting significant portions of the fund's asset allocation.

The portfolio's asset allocations are structured to capture opportunities across various sectors while managing risks associated with market fluctuations. Noteworthy holdings like Kohl's Corporation (KSS) and Allete Inc (ALE) provide stability and growth potential, contributing to DES's overall performance.

Investors benefit from DES's dividend income component as the fund targets companies with sustainable dividend policies and consistent dividend growth. The portfolio's payment frequency adds to the appeal for income-focused investors, offering regular income distributions from high-dividend-yielding small-cap stocks.

While DES's portfolio showcases strengths in dividend-focused small-cap stocks, investors should consider factors such as market conditions, sector performance, and the fund's expense ratio to make informed investment decisions aligned with their financial goals and risk tolerance.

Top 10 Holdings

As of May 4, 2024, the top 10 holdings of the WisdomTree U.S. SmallCap Dividend Fund (DES) are:

Name Weight
OGN - Organon & Co. 1.48%
TFSL - Tfs Financial 0.87%
CVI - CVR Energy Inc 0.86%
KSS - Kohl's Corporation 0.79%
ALE - Allete Inc 0.78%
EPR - Epr Properties 0.77%
AROC - Archrock, Inc. 0.69%
BNL - Broadstone Net Lease, Inc. 0.63%
FIBK - First Interstate Bancsystem 0.62%
CCOI - Cogent Communications 0.61%

Asset Allocation

The WisdomTree U.S. SmallCap Dividend Fund (DES) has the following asset allocation as of May 4, 2024:

Sector Weight
Financial 25.36%
Industrials 14.72%
Consumer Cyclical 14.59%
Real Estate 10.13%
Energy 8.77%
Utilities 7.28%
Basic Materials 5.42%
Healthcare 3.83%
Technology 3.82%
Consumer Defensive 3.21%
Communication Services 2.84%
General 0.02%

Dividend Yield and Distribution History

Section Details

DES Dividend Data

The WisdomTree U.S. SmallCap Dividend Fund (DES) pays quarterly dividends. The most recent ex-dividend date was on April 24, 2024, with a dividend payment of $0.065 per share on April 29, 2024.

DES Dividend Yield

As of April 26, 2024, the 30-day SEC yield for DES is 2.81%. This means that for every $100 invested in the fund, investors would receive approximately $2.81 in dividends per year, assuming the yield remains constant.

DES Dividend History

DES has a history of paying quarterly dividends. The dividend payments may fluctuate based on the performance of the underlying dividend-paying stocks held by the fund.

DES Dividend Growth

DES's dividend payments are dependent on the dividend growth and performance of the underlying stocks in the fund's portfolio. The fund's investment strategy focuses on companies with a history of consistent dividend growth, which may contribute to increasing dividend payments over time. However, dividend growth is not guaranteed.

DES Dividend Stability

DES aims to provide a relatively stable income stream by investing in high-quality, dividend-paying stocks of small-cap U.S. companies. However, the dividend payments are not guaranteed and may be affected by changes in market conditions or the performance of the underlying stocks in the fund's portfolio.

DES - Chart

CGDV - Comparative Analysis

Let's compare DES with prominent competitors, focusing on key aspects like performance, fees, and strategy: (as of May 2024)

Investment Focus High-quality, dividend-paying stocks of small-cap U.S. companies Small-cap U.S. stocks Small-cap U.S. stocks
Current Yield 2.81% 1.67% 1.49%
Expense Ratio 0.38% 0.04% 0.04%
Investment Strategy Passively tracks the WisdomTree U.S. SmallCap Dividend Index Passively tracks the CRSP US Small Cap Index Passively tracks the Dow Jones U.S. Small-Cap Total Stock Market Index
Strengths Focuses on dividend-paying small-cap companies, moderate expense ratio Low expense ratio, broad exposure to small-cap U.S. stocks Low expense ratio, diversified holdings in small-cap segment
Weaknesses Potential for higher volatility due to small-cap focus, moderate expense ratio Less emphasis on dividend growth, potentially lower returns than actively managed funds Less emphasis on dividend growth, potentially lower returns than actively managed funds

Dividend History (Last 5 distributions)

Ex-Dividend Date Cash Amount Record Date Pay Date
Apr 24, 2024 $0.08 Apr 25, 2024 Apr 29, 2024
Mar 22, 2024 $0.06 Mar 25, 2024 Mar 27, 2024
Feb 23, 2024 $0.05 Feb 26, 2024 Feb 28, 2024
Jan 25, 2024 $0.01 Jan 26, 2024 Jan 30, 2024
Dec 28, 2023 $0.02 Dec 29, 2023 Jan 03, 2024


Technical Analysis

Additional Information and Risks

The WisdomTree U.S. SmallCap Dividend Fund (DES) offers investors exposure to a diversified portfolio of small-cap dividend-paying stocks, making it an attractive choice for those seeking income and potential growth in the small-cap segment. Its focus on high-dividend-yielding companies in the U.S. market enhances its appeal to income-oriented investors.

However, investors should consider several risks before investing in DES. The fund's expense ratio of 0.08% is relatively low but can impact overall returns, especially in comparison to similar ETFs and index funds. Market volatility can also affect the fund's performance, leading to fluctuations in dividend yield and stock price.

Additionally, DES's sector allocation and stock holdings may expose it to risks associated with specific industries or individual companies. Investors should assess the fund's portfolio composition and diversification strategy to understand its market risk.

While DES provides opportunities for dividend income and small-cap equity exposure, investors should conduct thorough research and consider their investment objectives and risk tolerance before including DES in their investment portfolio.

It's important to note that past performance or forecast cannot guarantee future results, and investors should consult with a registered investment adviser or financial professional before making investment decisions.