DES Vs WDIV: Tracking and Exposure
4 min read
By Beqa Bumbeishvili, ETF Insider

DES Vs WDIV: Tracking and Exposure

Exchange-Traded Funds (ETFs) have transformed the landscape of modern investing by providing a convenient way for investors to access a diversified portfolio of assets within a specific sector. In this article, we will conduct an in-depth analysis of two prominent ETFs: DES (WisdomTree U.S. SmallCap Dividend Fund) and WDIV (SPDR S&P Global Dividend ETF). Our exploration will encompass key elements such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

DES Vs WDIV: Overview

DES and WDIV cater to the world of dividends, but with distinct focuses. DES aims to offer exposure to small-cap dividend-paying stocks within the United States, while WDIV casts a wider net by including global dividend-paying stocks. This core difference in geographical scope contributes to unique risk and return profiles for each ETF, which we'll delve into further in the following sections.

DES Vs WDIV: Sectors and Top Holdings

Delving into the sectors and top holdings of these ETFs offers valuable insights into their composition. DES emphasizes small-cap stocks across various sectors such as industrials, consumer discretionary, and healthcare. In contrast, WDIV encompasses global companies from multiple sectors, ranging from technology and financials to consumer staples. Investors can better align their investment preferences by examining the sectoral allocation and top holdings of each ETF.

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DES Vs WDIV: Capitalization and Strategy

The contrast in capitalization and strategy between DES and WDIV reflects their intended goals. DES, with its emphasis on small-cap stocks, provides exposure to companies with smaller market capitalizations. On the other hand, WDIV's strategy is rooted in the pursuit of global dividend opportunities, resulting in a broader selection of stocks with varying market capitalizations. Investors must consider how these strategies align with their risk tolerance and investment objectives.

DES Vs WDIV: Tracking and Exposure

Understanding how DES and WDIV track their respective benchmarks is essential for potential investors. DES tracks the WisdomTree U.S. SmallCap Dividend Index, while WDIV follows the S&P Global Dividend Aristocrats Index. The differences in these indices influence the exposure of each ETF to different companies, regions, and sectors. As a result, investors can make informed decisions by evaluating the tracking methodologies and the exposure they provide.

Conclusion

DES and WDIV offer investors distinct avenues to tap into the potential of dividend-paying stocks, albeit with differing geographic scopes and strategies. For those seeking a deeper understanding of the nuances within these ETFs, ETF Insider stands as the ultimate tool. With its user-friendly app, ETF Insider empowers investors with comprehensive insights, including holdings, correlations, overlaps, and more, facilitating well-informed decisions.

Disclaimer: This article is intended for informational purposes only and does not provide investment advisory services.

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FAQ

  • Why is DES better than WDIV?

    DES may be considered better than WDIV for some investors due to its specific focus, offering diversification.

  • Does WDIV beat DES?

    WDIV's performance relative to DES will vary over time, depending on market conditions.

  • Should I invest in DES or WDIV?

    The choice between DES and WDIV should align with your investment goals, risk tolerance, and desired exposure.

  • Are DES and WDIV good investments?

    Both DES and WDIV can be suitable investments depending on individual investment strategies, goals, and risk profiles.

  • What is the correlation between DES and WDIV?

    The correlation between DES and WDIV can vary over time, reflecting differences in performance.