WisdomTree US High Dividend ETF takes a different approach than most to capture the market’s highest dividend payers. Its risk-conscious screens and low fee make this a compelling choice for yield-conscious investors.
The WisdomTree High Dividend Index, which this fund fully replicates, emphasizes the highest-yielding stocks in the market while effectively controlling risk in what can be a volatile segment. It weights the top 30% of dividend payers by their projected cash dividends, then boosts the weight of those with the best combined quality and momentum characteristics by 50%. The extra consideration given to these names should reduce exposure to stocks whose dividend policies conceal shaky fundamentals, negative momentum, or both. 
Weighting by dividends effectively doubles down on firms whose prices have declined relative to their dividends and trims exposure to those on the rise. A broad selloff in 2022 meant this contrarian approach pushed the portfolio down the market cap ladder relative to its large-value peers. Its smaller average size is a new phenomenon; it tended to follow the category index’s sizing before 2022. This recent shift should give the fund a boost during market rallies as smaller stocks tend to rise faster than larger stocks. 
The fund falls into the large value category, but its sector composition diverges substantially from the category index, owing to its dividend focus. The fund is notably overweight energy and utilities stocks at the expense of healthcare and industrials. These differences are a symptom of its modified dividend-weighting scheme, and they present a source of active risk that may not always be rewarded by the market.
Past performance has been mixed relative to the Russell 1000 Value Index despite achieving a consistently higher 12-month yield. For the 10 years through June 2023, the fund underperformed the benchmark by about one percentage point annualized. Its risk-conscious approach helped the fund achieve a lower standard deviation of returns than the index but not enough to carve a risk-adjusted advantage.

Analyst Rating

Reliably High Dividend Yield

Associate Analyst

Zachary Evens

Exxon Mobil

AbbVie

Chevron

Philip Morris

Cisco Systems

Altria

Pfizer

AT&T

Pioneer Natural Resources

This fund earns an Above Average Process Pillar rating for sidestepping many of the risks associated with dividend investing.

Above Average

Process

A team at Mellon subadvises this portfolio. While it has navigated a recent overhaul, Mellon’s solid index-tracking resources and global trading desk remain intact. It retains its Average People Pillar rating.
Marlene Walker-Smith was named Mellon’s head of equity index portfolio management following Tom Durante’s retirement in June 2021. She heads up a fresh roster of named managers on this fund. None of the current managers were listed on this fund before October 2020. Walker-Smith should prove ready for the task. She started with Mellon in 1995 and long served as a behind-the-scenes portfolio manager under Durante. Plus, her predecessor’s retirement was planned, allowing her to benefit from a comfortable transition.
Each of the four managers that report to Walker-Smith—David France, Todd Frysinger, Vlasta Sheremeta, and Michael Stoll—are backed by an associate portfolio manager and at least one index analyst. This support should help the managers focus on tax efficiency and carve out other advantages at the margin. Manager compensation is not tied to index-tracking performance. However, the management team is subject to independent risk oversight from both Mellon and WisdomTree.

Average

People

WisdomTree is improving, but its shaky global fund lineup and uncertain trajectory hold its rating to Below Average. 

WisdomTree’s research organization has long been a strength. Under CIO Jeremy Schwartz, the team has generated creative, economically sound ideas and evolved them into investable products, like the efficient core series. A recent focus on investor education spawned the Portfolio Analysis Tools Hub, an online platform that taps the team’s brainpower to help investors make better investment decisions.

The firm’s product lineup is a mixed bag. To complement its core lineup of fundamentally weighted strategies, WisdomTree has recently launched funds targeting established factors instead of trendy themes—an encouraging reorientation. Yet the shutdown of WisdomTree U.S. Growth and Momentum ETF calls WisdomTree’s commitment to these funds into question, and vestiges from its laxer product-development era look ripe for closure. Its European lineup features risky trading tools that are hard for investors to use well. 

WisdomTree’s future may hinge on WisdomTree Prime, its blockchain-based digital wallet. The launch reflects founder and CEO Jonathan Steinberg’s conviction in the disruptive potential of the blockchain. Prime shouldn’t hurt WisdomTree fund investors (most funds on the platform are zero-fee), but it may distract the firm from shoring up its core offering.

Below Average

Parent

WisdomTree U.S. High Dividend Fund

DHS tracks a dividend-weighted index of high-dividend-paying US companies. The index excludes companies with a market cap of less than $200 million.

Launched on 06/16/2006, the WisdomTree U.S. High Dividend ETF (DHS) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.

Should WisdomTree U.S. High Dividend ETF (DHS) Be on Your Investing Radar?

Invesco FTSE RAFI Developed Markets ex-U.S. ETF

Pacer Metaurus US Large Cap Target Dividend 300 ETF

Serious investors see the beauty of investing in ETFs that yield 3-5%. The Globe and Mail published an opinion piece on September 26 discussing dividend stocks becoming more critical than ever due to higher interest rates and the end of cheap capital.

3 ETFs to Buy Yielding 3%-5%

Dividends have underperformed other equity factors in 2023. WisdomTree U.S. High Dividend Fund is undervalued and investors should stick with income-focused strategies. DHS focuses on high-yield companies in the 2nd quartile, has a value-oriented portfolio, and shows potential for a rally in the second half of the year.

DHS: High Dividend Stocks Inexpensive Heading Into Year-End

Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the WisdomTree U.S. High Dividend ETF (DHS) is a smart beta exchange traded fund launched on 06/16/2006.

Is WisdomTree U.S. High Dividend ETF (DHS) a Strong ETF Right Now?

WisdomTree U.S. High Dividend Fund ETF has a yield of 4.11% but has historically underperformed the overall market. The fund can still offer value for certain types of investors.

DHS: Don't Expect Much Beyond Income

The WisdomTree U.S. High Dividend Fund ETF focuses on high dividend-paying stocks. The DHS ETF's selection methodology creates large sector bets, which can lead to a 'boom/bust' returns profile.

DHS: Experiencing The Bust Phase

WisdomTree Emerging Markets High Dividend Fund

WisdomTree Global High Dividend Fund

iShares Core Dividend Growth ETF

WisdomTree US Quality Dividend Growth Fund

Sound Equity Income ETF

WisdomTree U.S. Total Dividend Fund

WisdomTree International High Dividend Fund

VanEck Morningstar High Dividend ETF

iShares Select Dividend ETF

AAM S&P Emerging Markets High Dividend Value ETF 

First Trust Morningstar Dividend Leaders Index Fund

Fidelity Dividend ETF for Rising Rates

Fidelity High Dividend ETF

First Trust Value Line Dividend Index Fund

Xtrackers MSCI All World ex US High Dividend Yield Equity ETF

Xt EAFE Div Yld Shs

iShares Core High Dividend ETF

Voya Asia Pacific High Dividend Equity Income Fund

Voya Emerging Markets High Income Dividend Equity Fund

Invesco KBW High Dividend Yield Financial ETF

Legg Mason Low Volatility High Dividend ETF

Legg Mason International Low Volatility High Dividend ETF

FlexShares Quality Dividend Defensive Index Fund

Investing in dividend-paying stocks has proved to be a helpful strategy, outperforming global markets over the long term. Dividend income strategies play an important role for multi-asset income portfolios. But they can also run the risk of being too narrowly focused, which can limit both income potential and upside participation when equity markets rise.

Dividend Investing: Broader Is Better For Multi-Asset Strategies

Invesco S&P Intl Developed High Dividend Low Volatility ETF

ETRACS 2xMonthly Pay Leveraged US Small Cap High Dividend ETN

AAM S&P 500 High Dividend Value ETF

Invesco S&P 500 High Dividend Low Volatility ETF

SPDR Portfolio S&P 500 High Dividend ETF

Timothy Plan High Dividend Stock ETF

Vanguard High Dividend Yield ETF

Vanguard International High Dividend Yield ETF

WBI Power Factor High Dividend ETF

Invesco S&P SmallCap High Dividend Low Volatility ETF

Stocks paying higher dividends showed their mettle during a challenging 2022: the S&P 500 High Dividend Index declined only a modest –1.1% even as the S&P 500 tumbled –18.1%. In our view, much of the volatility in high-dividend strategies, broadly speaking, comes down to portfolio design choices, which can create very different characteristics.

Taming Biases In High-Dividend Equity Strategies

Intel

It is rare for an S&P 500 company to cut a dividend, particularly for a payer as large as Intel. A strong ramp up in research and development spending with a sudden slowdown in sales caused Intel to trip up on fulfilling its dividend obligations.

Too Much Of A Good Thing

DHS, from WisdomTree, is a high-dividend ETF. It pays dividends monthly and is based on an index methodology that is somewhat unique among its peers. In this article, using DHS's summary prospectus, I briefly summarize this unique strategy and discuss some of its pros and cons.

DHS: High Dividends And A Monthly Payout, But Watch Those Fees

Dividends have been one of the hottest investing themes in town over the last several weeks, going back to the Fed's regular, and aggressive, rate hikes in the fall.

Why DHS Could Be The Right Dividend ETF for 2023

Avantis U.S. Small Cap Value ETF

VictoryShares US EQ Income Enhanced Volatility Wtd ETF

Pacer US Cash Cows 100 ETF

VictoryShares US Small Cap High Div Volatility Wtd ETF

Invesco Zacks Mid-Cap ETF

WisdomTree U.S. SmallCap Dividend Fund

Dimensional US Targeted Value ETF

WisdomTree US Smallcap Quality Dividend Growth Fund

SPDR Dow Jones Industrial Average ETF

Global X SuperDividend US ETF

TrueShares Low Volatility Equity Income ETF

WisdomTree U.S. LargeCap Dividend Fund

WisdomTree U.S. MidCap Dividend Fund

ALPS Equal Sector Weight ETF

Invesco S&P 500 Equal Weight Communication Services ETF

Fidelity Blue Chip Growth ETF

American Century Focused Dynamic Growth ETF

Fidelity MSCI Energy Index ETF

First Trust Consumer Discretionary AlphaDEX Fund

First Trust Technology AlphaDEX Fund

This article summarizes the performance of the entire U.S. equity market by examining 1Y, 3Y, 5Y, and 10Y returns for 850+ ETFs across 40 categories. Major indices declined, but investing in Energy, High-Dividend, and Large-Cap Value ETFs softened the blow. Meanwhile, searching for the bottom in mega-cap growth and thematic ETFs didn't work.

U.S. Equity ETFs: The Best And Worst Of 2022

iShares MSCI Chile ETF

iShares MSCI Brazil ETF

FlexShares High Yield Value-Scored Bond Index Fund

iShares U.S. Oil Equipment & Services ETF

VanEck Vectors Pharmaceutical ETF

Pacer Trendpilot US Large Cap ETF

Invesco S&P Ultra Dividend Revenue ETF

iShares MSCI Global Gold Miners ETF

Sprott Gold Miners ETF

Simplify Volatility Premium ETF

iShares MSCI Turkey ETF

SPDR S&P Oil & Gas Equipment & Services ETF

Stocks closed off a tumultuous year on a sour note in December. What's next for best ETFs?

Best ETFs Try To Emerge For A Better 2023 For Investors

A new year means an opportunity to reassess portfolios, revisit priors, and plan ahead – for investors as well as ETFs. That includes a standout strategy from one of the hottest areas of the last few months, dividend ETFs, with one top three dividend ETF, specifically, making some interesting changes to its weights.

One Top 3 Dividend ETF Just Rebalanced — See How

Nasdaq F&B Shs Nasdaq Food & Beverage

iShares U.S. Insurance ETF

VanEck Vectors Oil Services ETF

Invesco DB US Dollar Index Bullish Fund

Wall Street wrapped up 2022 with the biggest annual loss since 2008 and the first yearly fall since 2018.

5 Top-Ranked ETF Wins Amid Worst Market in 2022

The Index DHS tracks reconstituted on December 14, 2022, resulting in significant changes to the portfolio's composition. Volatility increased while quality and earnings momentum decreased. The ETF's high 0.38% expense ratio didn't change either, unfortunately.

DHS: 3.82% Yield After December Reconstitution, Still A Buy

AXS Astoria Inflation Sensitive ETF

Vanguard Dividend Appreciation ETF

Perhaps no news story defined the year for markets as thoroughly as the question of inflation has. From the definitional debate about whether inflation was sticky or transitory to the market's refusal to bow to the Fed's historically aggressive rate hike campaign, inflation and its consequences have investors looking for the right ETFs to respond.

ARK Innovation ETF

ProShares Bitcoin Strategy ETF

Vanguard Extended Duration Treasury ETF

Pure Cannabis ETF

There's one upside to this year's terrible performance for most ETFs. It'll be easier to do better next year.

Investors Think They Found A Way To Make More Money Next Year

Speaking on a webinar titled “Is the Fed Embarking on an Irreversible Policy Mistake?” WisdomTree Investments Senior Investment Strategy Advisor and Wharton finance professor Jeremy Siegel spoke to the hikes and repeatedly questioned the Fed's judgment, questioning why the bank would emphasize lagging statistics like housing.

Jeremy Siegel: Fed “Failing to Realize How Different This Is”

WisdomTree Japan Hedged Equity Fund

WisdomTree Japan Hedged SmallCap Equity Fund

The end of a wild year brings with it an opportunity to reflect on the strategies and sectors that can be counted as winners in 2022. Investors had a lot to navigate this year, from Russia's ongoing invasion of Ukraine to a one-two inflation and interest rate hike punch.

Hedged Equities, Dividends Among 2022 ETF Winners

It would be an understatement to say that 2022 has been a wild year in the markets. From Russia's invasion of Ukraine to lingering supply issues and rising rates, some of the most popular sectors from 2021 took some big hits.

Consider Japan, Dividends in ETFs for 2023

AGFiQ U.S. Market Neutral Anti-Beta Fund

iShares Commodities Select Strategy ETF

iPath Bloomberg Nickel Subindex Total Return ETN

KFA Mount Lucas Index Strategy ETF

Credit Suisse S&P MLP Index ETN 

Simplify Interest Rate Hedge ETF

Invesco Dynamic Energy Exploration & Production ETF

Advocate Rising Rate Hedge ETF

The year 2022 has been awful to Wall Street. But these ETF areas -- energy, commodities, dividends, defensive ETFs and rate hedge ETFs -- emerged winners.

Be Thankful to These ETF Areas in 2022

The WisdomTree U.S. High Dividend Fund ETF gives investors exposure to high dividend-paying stocks. The DHS ETF is not afraid to make large sector bets, which makes its relative returns either top quartile or bottom quartile in any given year.

WisdomTree U.S. High Dividend Fund: Currently A Hero

As highlighted by the performances of broader equity benchmarks such as the S&P 500, 2022 will go down as a forgettable year for equities. However, there are some bright spots.

DHS Delivers High-Dividend Goods

Dividend ETFs act as a great safety. These ETFs beat the S&P 500 this year.

4 Dividend ETFs Almost Flat YTD & Yielding At Least 3%

News for WisdomTree U.S. High Dividend Fund ETF (DHS)