Launched on 06/16/2006, the WisdomTree Global ex-U.S. Quality Dividend Growth ETF (DNL) is a smart beta exchange traded fund offering broad exposure to the World ETFs 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.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
DNL is managed by Wisdomtree, and this fund has amassed over $479.90 million, which makes it one of the larger ETFs in the World ETFs. This particular fund seeks to match the performance of the WisdomTree Global ex-U.S. Quality Dividend Growth Index before fees and expenses.
The WisdomTree Global ex-U.S. Quality Dividend Growth Index is a fundamentally weighted index that measures the performance of dividend paying stocks with growth characteristics in the developed and emerging markets outside of the United States.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.42% for this ETF, which makes it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 2.01%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Taiwan Semiconductor Manufacturing Co Ltd accounts for about 5.23% of total assets, followed by Industria De Diseno Textil (ITX) and Gsk Plc (GSK).
DNL's top 10 holdings account for about 35.42% of its total assets under management.
Performance and Risk
Year-to-date, the WisdomTree Global ex-U.S. Quality Dividend Growth ETF has added roughly 7.66% so far, and is down about -0.59% over the last 12 months (as of 05/29/2025). DNL has traded between $32.16 and $40.81 in this past 52-week period.
The ETF has a beta of 0.95 and standard deviation of 18% for the trailing three-year period, making it a medium risk choice in the space. With about 330 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree Global ex-U.S. Quality Dividend Growth ETF is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $30.86 billion in assets, Vanguard Dividend Appreciation ETF has $88.93 billion. DGRO has an expense ratio of 0.08% and VIG charges 0.05%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
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 Global ex-U.S. Quality Dividend Growth ETF (DNL): ETF Research Reports GSK PLC Sponsored ADR (GSK): Free Stock Analysis Report Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports iShares Core Dividend Growth ETF (DGRO): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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