WisdomTree has launched another ETF as part of its Quality Dividend Growth range, as its Eurozone Quality Dividend Growth Ucits ETF has listed on the London Stock Exchange.
This product joins the US Quality Dividend Growth Ucits ETF and the Global Quality Dividend Growth Ucits ETF – both on the LSE.
The focus of the range is what WisdomTree sees as shifting trends in dividends, with an eye to fundamental metrics that it says are “associated with future dividend growth potential”. The strategies are looking for companies that are expected to grow their earnings faster, suggesting greater future potential to pay dividends. The ‘quality’ focus is on metrics such as return on equity and return on assets, to gauge how efficient firms are on generating profits.
WisdomTree cites academic resarch supporting the strategy, including Kenneth French and Eugene Fama’s, “A Five-Factor Asset Pricing Model”, and research by MSCI for the Norwegian Ministry of Finance