WisdomTree Trust WisdomTree US Quality Dividend Growth Fund

DGRW

Market cap $16.1B

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.

Dividend investors seeking an S&P 500 replacement have many options. Three of the most popular are DGRO, DGRW, and VIG. All three ETFs present unique pros and cons, but which is the best?

AI-driven tech stocks dominate 2025 returns, leaving dividend and high-yield ETFs lagging due to limited AI exposure. REITs face mixed fortunes: ARE and DOC struggle with life science oversupply, while IVT, AMT, ADC, and VICI offer attractive dividend growth and value. My current buy list focuses on undervalued REITs and ETFs with strong dividend growth.

In 2025, speculative fervor has gripped markets as low-quality, unprofitable companies have significantly outperformed fundamentally strong peers across market caps. While the rally defies traditional investment logic, history shows that quality companies consistently outperform over full cycles and offer crucial downside protection. Investors seeking resilience amid volatility may consider the WisdomTree U.S. Quality Dividend Growth Fund (DGRW), which has demonstrated strong defensive characteristics in declining markets.

WisdomTree U.S. Quality Dividend Growth Fund ETF (DGRW) continues to underperform the broader market and peers, prompting a hold rating recommendation. DGRW's sluggish returns stem from low dividend growth, below-average yield, and sector allocations that lag the S&P 500, especially in technology and financials. The ETF's quant rating is weak, with lackluster price momentum and dividend factors, while its valuation appears expensive relative to other dividend-focused funds.

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

Dividend growth investing is often highlighted as a rewarding long-term strategy. With that in mind, equity income investors are right to question the now long-running laggard status of some dividend growth indexes against broader market counterparts.

In 2025, dividend growth strategies like the WisdomTree U.S. Quality Dividend Growth Fund have lagged the more tech-heavy S&P 500; yet, longer-term performance shows they remain highly competitive through full market cycles. While many dividend strategies rely on decades-long dividend growth records, DGRW takes a forward-looking approach — quickly adding quality companies like Meta or Alphabet when they initiate dividends. With exposure to mega-cap tech and disciplined quality screens, DGRW bridges modern growth dynamics and dividend investing, offering sector relevance without sacrificing strategy integrity.

NOBL and DGRW both provide exposure to a variety of high-quality dividend growers.

Advisors and investors poured an impressive $115 billion of new money into ETFs in July. That further proves the industry's relentless pace, even during summer months.