WisdomTree Global ex-US Qual Div Gr ETF’s management team is rated Average, but a solid investment process still helps this strategy retain its Morningstar Medalist Rating of Bronze. The portfolio maintains a sizable cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The strategy's sensible investment philosophy merits an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in quality exposure and yield exposure compared with category peers. High quality exposure is attributed to stocks with low financial leverage and strong returns on equity. And a high yield exposure is rooted in holding high dividend-paying or buyback stocks. The strategy’s management team earns an Average People Pillar rating. The strategy's parent organization earns the firm a Below Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Canadian Natural Resources

Rogers

ASML Hld

AAR CORP.

Cornerstone Building Brands Inc

Carlisle Companies

Thomson Reuters

Gold Fields Ltd.

Canadian Pacific Railway

Evotec SE

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. WisdomTree Global ex-US Qual Div Gr Fd earns an Above Average Process Pillar rating. 

The largest contributor to the rating is that this fund tracks an index. Historical data, like Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Impressive risk-adjusted performance also influences the rating. This can be seen in the fund's five-year alpha calculated relative to the category index, which suggests that the managers have shown skill in their allocation of risk. Lastly, the process is limited by the turnover of talent across its parent firm. The firm's asset-weighted manager tenure of three years suggests it could do more to retain portfolio managers.

 This strategy targets deeper value plays than its peers’ average in the Foreign Large Growth Morningstar Category. But in terms of size exposure, it does not have much of a bias and resembles the typical portfolio. Examining additional factor exposure, this strategy has consistently favored high-quality stocks, including those with low financial leverage and solid returns on equity, compared with Morningstar Category peers during recent years. Though it may trail peers during an economic boom, this orientation contributes to helping it weather periods of economic stress better. In recent months, the strategy was more exposed to the Quality factor compared with its Morningstar Category peers as well. This strategy has also displayed a tendency to hold more companies with high dividend or buyback yields than peers over recent years. High-yield stocks tend to be associated with more mature, profitable businesses that can grow as well as provide a stream of income. Such stocks could suffer, however, if setbacks force them to cut their dividends. Compared with category peers, the strategy also had more exposure to the Yield factor in the most recent month. In addition, this strategy has constantly held more illiquid stocks, evidenced by holdings' low trading volume, resulting in higher liquidity risk exposure than peers. Less-liquid stocks might offer strong returns to compensate for their risks, but they can be harder and more expensive to trade in bear markets. In recent months, the strategy also had less Liquidity factor exposure than its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section. 

 The portfolio is overweight in energy and technology relative to the category average by 3.8 and 2.9 percentage points, respectively. The sectors with low exposure compared to category peers are financial services and consumer cyclical, with financial services underweighting the average portfolio by 8.6 percentage points of assets and consumer cyclical similar to the average. The strategy owns 303 securities and is quite concentrated. More concretely, 35.5% of the portfolio's assets are housed within the top 10 holdings, compared to the category’s 17.8% average. And finally, in terms of portfolio turnover, looking at year-over-year movements, 67% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Above Average

Process

WisdomTree’s equity  team is comparable to peers, resulting in an Average People Pillar rating. There’s a deep bench of five managers listed on the fund. Together, they manage a total of 113 strategies, with a Bronze asset-weighted average Morningstar Medalist Rating, indicating the potential to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

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 Global ex-U.S. Quality Dividend Growth Fund

DNL tracks a dividend-weighted index composed of dividend-paying growth companies in the global ex-US equity market.

The WisdomTree Global ex-U.S. Quality Dividend Growth ETF (DNL) made its debut on 06/16/2006, and is a smart beta exchange traded fund that provides broad exposure to the World ETFs category of the market.

Is WisdomTree Global ex-U.S. Quality Dividend Growth ETF (DNL) a Strong ETF Right Now?

WisdomTree Global ex‐U.S. Quality Dividend Growth Fund ETF holds about 300 international dividend stocks with quality and earnings growth characteristics. The portfolio is well-diversified across sectors and countries, and direct exposure to China is moderate. DNL total return is great relative to peers, but this “dividend growth” ETF is not for dividend-growth investors.

DNL: Successfully Combining Quality, Dividend, And Growth

The WisdomTree Global ex-U.S. Quality Dividend Growth Fund ETF is a good option for international investing due to its valuation, income, and fundamental focus. The DNL ETF holds a well-diversified portfolio of dividend-paying companies from select developed international and emerging markets outside the U.S. Despite short-term challenges, DNL's robust strategy, diversified portfolio, and dividend yield focus make it an investment worth considering.

DNL: Dividend Focused Against Weak Momentum

WisdomTree Global ex‐U.S. Quality Dividend Growth Fund implements a strategy based on profitability and earnings growth. It is well-diversified across sectors and countries, but quite concentrated in top holdings. Exposure to geopolitical risks is significant.

DNL: Better For Total Return Than Dividend Growth

WisdomTree Emerging Markets Quality Dividend Growth Fund

WisdomTree US Smallcap Quality Dividend Growth Fund

WisdomTree US Quality Dividend Growth Fund

WisdomTree Europe Quality Dividend Growth Fund

WisdomTree International Quality Dividend Growth Fund

A key driver of long-term compound returns is dividend growth, which is driven by corporate profitability. Using over 50 years of data, a strategy that identified the top 20% of stocks by profitability posted annual returns of 11.73%, outperforming the lowest ROE group by 451 basis points per year. Profitable companies with excellent margins and efficient assets have the potential for faster dividend growth rates in the future.

The Dividend Driver: Return On Equity

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Bull vs. Bear is a weekly feature where the VettaFi writers' room takes opposite sides for a debate on controversial stocks, strategies, or market ideas — with plenty of discussion of ETF ideas to play either angle. For this edition of Bull vs.

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WisdomTree Global ex-U.S. Quality Dividend Growth Fund ETF has a relatively large asset base, decent expense ratio, offers quarterly pay-out, and has been generating decent average yield since the last ten years. Overall, top holdings of the DNL ETF's portfolio from both EM and developed markets performed well during the short run and the long run.

DNL: A Diversified Large-Cap Global Equity ETF Generating Strong Returns

Despite a tough market selloff, firms paid out record numbers of dividends in 2022, offering dividend ETFs a major source of current income for their holders.

Diversify for the Better With These Quality Dividend ETFs

Dividends were star players last year for investors, buoying portfolios with current income when clear answers to the market's uncertainties were hard to find. Last year wasn't a one off, though, with the markets offering the potential for a “dividend decade” moving forward, according to the folks at WisdomTree Investments.

Embrace a “Dividend Decade” in Quality Dividend ETF DNL

WisdomTree Global ex-U.S. Quality Dividend Growth Fund is an international dividend ETF. DNL selects constituents based on expected earnings growth and past ROE/ROA.

DNL: Global Dividend ETF Expecting Earnings Growth

Is WisdomTree Global exU.S. Quality Dividend Growth ETF (DNL) a Strong ETF Right Now?

In a new weekly commentary regarding the ongoing conversation about the Fed and inflation, Wharton finance professor Jeremy Siegel declared that based on last week's economic data and recent Fed talk, inflation may largely be in the rearview mirror.

Jeremy Siegel: Data Shows Inflation Is Mostly Behind Us

DNL is an international, ex-U.S. dividend growth ETF. It mitigates risks by filtering constituents with fundamental and momentum factors.

DNL: Global Dividend Growth With Risk Mitigation

WisdomTree Japan Hedged Equity Fund

WisdomTree Emerging Markets SmallCap Dividend Fund

WisdomTree 90/60 US Balanced Fund

With money flowing and pivoting within markets as volatility continued in January, many investors sought hedges, havens, and diversification with their investments. The following are the top five ETFs by flows for WisdomTree in the month of January.

The Top 5 Performing WisdomTree ETFs in January

DNL invests in non-U.S. dividend stocks exhibiting growth characteristics. It does not compromise on quality, separating the wheat from the chaff using ROE and ROA. The UK, France, and Taiwan are its three main allocations together accounting for close to 30%.

DNL: The Strategy Has Vulnerabilities

Investors looking for quality approaches to durable domestic dividend equities could find the WisdomTree US Quality Dividend Growth Fund (DGRW) attractive. DGRW tracks the WisdomTree U.S. Quality Dividend Growth Index and has an international counterpart that investors might want to consider: the WisdomTree Global ex-U.S. Dividend Growth Fund (NYSEArca: DNL).

DNL: Better Dividends, Higher Growth, Attractive Valuations

WisdomTree International SmallCap Dividend Fund

With global dividends rebounding and bond yields sagging, now is an opportune time for advisors to discuss the right dividend strategies with clients. WisdomTree delivers one in the form of the Global Dividend Model Portfolio, which features nine exchange trade funds spanning domestic, developed international, and emerging markets equities.

Lots of Quality Dividend Strategies in One Model Portfolio

Interest rates are low and corporate profits and cash stockpiles are running high. Those are signs that dividend stocks are back in style.

Low Interest Rates and Big Cash Stockpiles: The Dividend Dream Team

Amid forecasts that dividend growth is back, more clients are asking advisors about dividend exchange traded funds. Advisors can answer that call with WisdomTree's Global Dividend Model Portfolio.

Examining WisdomTree's Global Dividend Model Portfolio

WisdomTree's DNL has been a long-term underperformer, but the current inflationary environment could be ideal for the ETF to shine at last. If there is a year to bet on earnings (and possibly dividend) growth, cyclical sectors and international stocks, 2021 is probably it.

DNL: If Inflation Is The Problem, Dividend Growth Could Be The Solution

With U.S. stocks climbing, clients may be content to stand pat with offerings in their home market. Yet forward-thinking advisors may want to consider the benefits of international diversification.

The Case for International ETF Investing in Q2

DNL picks global stocks (ex-US) on quality and growth and then weights them as per their dividend credentials. DNL's top-10 stocks have relatively superior ROEs and ROAs.

WisdomTree Global Ex‐U.S. Quality Dividend Growth Fund: Quality Does Not Come Cheap

Invesco S&P 500 Quality ETF

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The best dividend ETFs for Q1 2021 are SPHQ, DNL, and VIG.

Best Dividend ETFs for Q1 2021

Data confirm that 2020 will go down as a checkered year when it comes to dividend growth and that phenomenon isn’t confined to the U.S. However, with the right strategies, advisors can insulate client portfolios from the ill effects of negative dividend action.

In Rough Year for Global Dividends, Find Safety in this Model Portfolio

One question we are often asked is, "why bother with international investments?"

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