4 min readBy Ron Koren ETF Insider
DGRO Vs DES: Sectors and Top Holdings
We'll conduct an in-depth comparison between two prominent ETFs: DGRO (iShares Core Dividend Growth ETF) and DES (WisdomTree U.S. SmallCap Dividend Fund).
The DES issuer, WisdomTree Investments, Inc., is renowned for its innovative approach to index-based investing. Established in 2006, WisdomTree has been a pioneer in creating fundamentally weighted indexes that reflect various segments of the market. The DES ETF, which tracks the performance of the small-capitalization segment of the U.S. dividend-paying market, exemplifies WisdomTree's commitment to offering investors exposure to unique market niches through passive management strategies. With its focus on dividend-weighted indexes and representative sampling strategies, WisdomTree continues to be a prominent player in the ETF landscape, providing investors with access to diverse investment opportunities.
While the DES ETF, following a passive management approach, primarily aims to track the performance of the small-capitalization segment of the U.S. dividend-paying market, its dividend distribution reflects the aggregate cash dividends each component company is projected to pay in the coming year. Companies eligible for inclusion in the DES Index must meet specific criteria, including regular cash dividend payments, a market capitalization of at least $100 million, and a median daily dollar trading volume of at least $100,000. The Index's dividend weighting occurs annually based on the most recently declared dividend per share, with heavier weights assigned to companies projected to pay more dividends.
The DES Fund, operating in alignment with its designated investment strategy, primarily focuses on tracking the performance of the Underlying Index. This index, meticulously compiled and maintained by S&P Dow Jones Indices LLC, consists of a carefully selected subset of securities from the S&P 500® Index that exhibit robust growth characteristics. Employing a stringent methodology, each security within the Parent Index undergoes thorough evaluation, assigned both growth and value scores based on issuer characteristics. Unlike broader indices, the Underlying Index is finely tuned to exclude overlapping securities, ensuring a concentration solely on those demonstrating pure growth attributes. As of June 30, 2023, the Underlying Index comprised 57 constituents with varied market capitalizations. The DES Fund adopts a full replication approach, investing in all securities within the Underlying Index in proportion to their respective weightings. While the Fund aims to maintain diversification, it may transition to a non-diversified status solely due to shifts in constituent market capitalization or index weighting, without requiring shareholder approval. Furthermore, the Fund's concentration policy limits investments in any single industry or group of industries, aligning with the concentration reflected in the Underlying Index. As of April 30, 2023, the Fund exhibited notable exposure to the energy sector, with its portfolio holdings expected to evolve over time in response to market dynamics.
The correlation aspect of the WisdomTree U.S. SmallCap Dividend Fund (DES) is essential for understanding its performance relative to the small-capitalization segment of the U.S. dividend-paying market. As DES tracks the performance of the WisdomTree U.S. SmallCap Dividend Index, investors rely on its correlation with this index to gauge its alignment with small-cap dividend-paying stocks. Utilizing ETF Insider's web app, investors can delve into DES's correlations with various sectors and assets, providing deep insights into its behavior and potential portfolio diversification benefits. The visualization tool offered by ETF Insider aids investors in comprehending the overlap between DES and other assets or sectors, facilitating informed investment decisions.
The DESFund (DES) primarily operates within the small-capitalization segment of the U.S. dividend-paying market. This segment encompasses a diverse range of industries, including financials, industrials, and consumer discretionary sectors, which together form a significant portion of the index's total weighting. DES employs a passive management strategy, aiming to track the performance of its underlying index by investing in a sample of securities that mirror the risk and return characteristics of the index. The index is dividend-weighted annually, with companies projected to pay higher dividends receiving heavier weighting. Additionally, sector exposure within the index is capped at 25%, except for real estate, which is capped at 10%, allowing for a diversified investment approach within DES.
The DES ETF, tracking the performance of the small-capitalization segment of the U.S. dividend-paying market, provides investors with exposure to a unique slice of the American economy. With its focus on dividend-paying companies falling within the bottom 25% of the market capitalization, DES offers a specialized approach to capturing potential returns from smaller companies with strong dividend profiles. Investors looking to tap into the growth potential of smaller dividend-paying firms can utilize DES either as part of a diversified portfolio or as a targeted investment strategy. For detailed insights into DES's exposure, including market sectors and regions, investors can leverage ETF Insider, our web app offering comprehensive data visualization tools to explore correlations, overlaps, and more for all US ETFs.
ETF Insider is a data-driven portfolio analytics and optimization platform that introduces a more efficient and practical way to visualize, analyze and optimize portfolios.
Rather than focusing on the surface-level attributes of ETFs and Mutual Funds, ETF Insider goes deeper by examining the underlying holdings of exchange traded products.
By organizing and structuring that data, investors can easily navigate within their overlapping layers.
This innovative perspective combined with modern data visualization and modeling tools, provides an entirely new approach to portfolio optimization that can quickly expose both portfolio inefficiencies and opportunities.
4 min readWe'll conduct an in-depth comparison between two prominent ETFs: DGRO (iShares Core Dividend Growth ETF) and DES (WisdomTree U.S. SmallCap Dividend Fund).
4 min readCompare the VYM and DES ETFs with our thorough analysis. Dive into the performance metrics, underlying assets, and investment strategies to see how they stack up against each other. Whether you're a seasoned investor or just getting started, our comparison provides valuable insights to guide your investment decisions.
4 min readDES and SDIV cater to investors seeking dividend income, but their strategies, scopes, and risk profiles differ significantly. Consider using ETF Insider.
ETF Insider is a novel portfolio optimization tool that uses the power of data visualization to gain insight into portfolio compositions, concentration risks, portfolio efficiency and more. Complex financial data can be transformed into visually appealing and easily digestible graphs and charts, allowing investors to quickly identify trends and make well-informed investment decisions. Not only does this save time, but it also increases the accuracy and effectiveness of portfolio management.
