The WisdomTree U.S. LargeCap Dividend ETF (DLN) made its debut on 06/16/2006, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
DLN is managed by Wisdomtree, and this fund has amassed over $5.87 billion, which makes it one of the larger ETFs in the Style Box - Large Cap Value. Before fees and expenses, DLN seeks to match the performance of the WisdomTree U.S. LargeCap Dividend Index.
The WisdomTree U.S. LargeCap Dividend Index is a fundamentally weighted index that measures the performance of the large-capitalization segment of the U.S. dividend-paying market.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.28%.
The fund has a 12-month trailing dividend yield of 1.80%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
DLN's heaviest allocation is in the Financials sector, which is about 17.4% of the portfolio. Its Information Technology and Healthcare round out the top three.
Taking into account individual holdings, Jpmorgan Chase & Co (JPM) accounts for about 3.46% of the fund's total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL).
Its top 10 holdings account for approximately 24.66% of DLN's total assets under management.
Performance and Risk
The ETF has added about 5.61% and is up about 16.21% so far this year and in the past one year (as of 02/18/2026), respectively. DLN has traded between $70.70 and $93.64 during this last 52-week period.
The ETF has a beta of 0.79 and standard deviation of 11.67% for the trailing three-year period, making it a medium risk choice in the space. With about 311 holdings, it effectively diversifies company-specific risk .
Alternatives
WisdomTree U.S. LargeCap Dividend ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $83.8 billion in assets, Vanguard Value ETF has $170.08 billion. SCHD has an expense ratio of 0.06% and VTV changes 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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WisdomTree U.S. LargeCap Dividend ETF (DLN): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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