Is WisdomTree U.S. Quality Dividend Growth ETF (DGRW) a Strong ETF Right Now?

Launched on 05/22/2013, the WisdomTree U.S. Quality Dividend Growth ETF (DGRW) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.

What Are Smart Beta ETFs?

The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.

Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.

However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.

By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.

This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.

Fund Sponsor & Index

Because the fund has amassed over $15.44 billion, this makes it one of the largest ETFs in the Style Box - Large Cap Value. DGRW is managed by Wisdomtree. DGRW, before fees and expenses, seeks to match the performance of the WisdomTree U.S. Quality Dividend Growth Index.

The WisdomTree U.S. Quality Dividend Growth Index is a fundamentally weighted index that consists of dividend-paying stocks with growth characteristics.

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.

Operating expenses on an annual basis are 0.28% for DGRW, making it on par with most peer products in the space.

DGRW's 12-month trailing dividend yield is 1.41%.

Sector Exposure and Top Holdings

Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.

For DGRW, it has heaviest allocation in the Information Technology sector --about 25.7% of the portfolio --while Healthcare and Industrials round out the top three.

Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 5.38% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).

Its top 10 holdings account for approximately 36.98% of DGRW's total assets under management.

Performance and Risk

So far this year, DGRW has lost about -1.31%, and it's up approximately 12.2% in the last one year (as of 03/24/2026). During this past 52-week period, the fund has traded between $71.28 and $93.64.

The fund has a beta of 0.83 and standard deviation of 12.37% for the trailing three-year period, which makes DGRW a medium risk choice in this particular space. With about 201 holdings, it effectively diversifies company-specific risk .

Alternatives

WisdomTree U.S. Quality Dividend Growth ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value 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 Index Fund ETF Shares (VIG) tracks NASDAQ US Dividend Achievers Select Index. iShares Core Dividend Growth ETF has $37.77 billion in assets, Vanguard Dividend Appreciation Index Fund ETF Shares has $99.35 billion. DGRO has an expense ratio of 0.08% and VIG changes 0.04%.

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.

Boost Your Portfolio with Our Top ETF Insights

Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.

Don’t miss out on this valuable resource. It’s free!

Get it now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

WisdomTree U.S. Quality Dividend Growth ETF (DGRW): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research