DTD Profile
The WisdomTree U.S. Total Dividend Fund aims to provide investors with exposure to a broad range of U.S. companies that are distinguished by their regular dividend payments. Under normal market conditions, the fund will invest at least 95% of its total assets, excluding any collateral from securities lending, in the securities that constitute the underlying index. This includes investments with economic characteristics substantially similar to those of the index's component securities.
The index tracked by the fund is fundamentally weighted and comprises U.S. companies listed on major U.S. stock exchanges that consistently pay cash dividends. This approach prioritizes firms with a strong track record of dividend payments, reflecting their financial stability and commitment to returning value to shareholders. By focusing on dividend-paying companies, the fund seeks to offer a steady income stream along with potential capital appreciation.
The investment strategy of the fund involves a substantial commitment to dividend-paying equities, aligning its portfolio closely with the index's composition. As a fundamentally weighted index, it emphasizes companies based on their total dividends paid rather than traditional market capitalization. This methodology aims to capture a diverse array of dividend-paying stocks while minimizing exposure to firms that do not meet the fund's dividend criteria.
As a non-diversified fund, the WisdomTree U.S. Total Dividend Fund may have significant concentrations in certain sectors or industries, depending on the distribution of dividend payments among its component securities. This concentration can lead to higher exposure to specific market segments, which could impact the fund's performance based on sector-specific economic conditions. Investors should be aware of the potential for increased volatility and sector risk associated with the fund’s focus on dividend-paying stocks.
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