WisdomTree Trust WisdomTree US Quality Dividend Growth Fund

DGRW

Market cap $16.6B

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.

DGRW's rule-based strategy prioritizes quality stocks with strong dividend growth, offering a unique blend of quality, value, and dividend characteristics. The ETF's methodology emphasizes earnings growth, RoE, and RoA, resulting in a diversified sector allocation and meritocratic weighting, especially among top holdings. DGRW consistently delivers higher yields than quality peers and excels in drawdown mitigation, making it defensively robust while capturing large-cap rallies.

In an uncertain market, I stick to five core investing principles: stay the course, specialize, diversify, trust proven experts, and keep some cash. Dividend growth investing (DGI) remains my strategy, with a focus on reliable cash flow compounding and growing dividends to eventually replace labor income. I diversify beyond my real estate core by blending passive DGI ETFs and selecting active ETFs with proven outperformance.

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 ETFs like SCHD offer reliable, growing income, but tend to underperform indexes, due to low technology exposure. Covered call ETFs, such as GPIQ, provide higher yields by writing options, offering immediate income, but capping price appreciation. GPIQ stands out for its dynamic option strategy and Nasdaq-100 exposure, delivering a 10% yield and consistent payouts.