{"id":59372,"date":"2023-09-11T00:27:22","date_gmt":"2023-09-11T04:27:22","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/dtd-etf-almost-identical-to-dln-and-no-specific-edge-nysearcadtd\/"},"modified":"2023-09-11T00:27:27","modified_gmt":"2023-09-11T04:27:27","slug":"dtd-etf-almost-identical-to-dln-and-no-specific-edge-nysearcadtd","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=59372","title":{"rendered":"DTD ETF: Almost Identical To DLN, And No Specific Edge (NYSEARCA:DTD)"},"content":{"rendered":"
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This article series aims at evaluating ETFs (exchange-traded funds) regarding past performance and portfolio metrics. Reviews with updated data are posted when necessary.<\/em><\/p>\n

DTD strategy and portfolio<\/strong><\/h2>\n

WisdomTree Total U.S. Dividend Fund (NYSEARCA:DTD<\/span>) started investing operations on 06\/16\/2006 and tracks the WisdomTree U.S. Dividend Index. It has a portfolio of 817 stocks, a distribution yield of 2.71%, and a total expense ratio of 0.28%. Distributions are paid monthly.<\/span><\/p>\n

As described by WisdomTree,<\/p>\n

The Index measures the performance of U.S. companies, listed on a U.S. stock exchange, that pay regular cash dividends and meet other liquidity and capitalization requirements established by WisdomTree. The index is dividend weighted at the annual reconstitution in December to reflect the proportionate share of the aggregate cash dividends each component company is projected to pay in the coming year<\/em>.<\/em><\/p>\n

Eligible companies must be incorporated and headquartered in the U.S., have a market capitalization of at least $100 million and a 3-month median daily dollar volume of at least $100,000. Limited Partnerships (in particular MLPs) and Business Development Companies are excluded. A risk score is calculated based on profitability metrics and momentum. Companies in the bottom decile are excluded, as well as those in the bottom half <\/span>and<\/em> in the top 5% in dividend yield. Constituents are weighted annually based on total dividends, which is in favor of mega-cap companies. Capping rules are applied to limit the weight of constituents and sectors.<\/span><\/p>\n

DTD invests mostly in large capitalization companies (71% of asset value). Information technology is the heaviest sector, but with a lower weight than in the S&P 500 (SPY): 17.1% vs. 28.2%. Compared to the large cap benchmark, DLN significantly overweights consumer staples, energy, utilities and real estate. It underweights technology, consumer discretionary and communication. As a result, the portfolio is more balanced across sectors than the S&P 500.<\/p>\n

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\"DTD<\/span>
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DTD sector breakdown (Chart: author; data: WisdomTree, SSGA)<\/p>\n<\/figcaption><\/figure>\n<\/p>\n

The top 10 holdings, listed below with weights and fundamental ratios, represent 22.7% of asset value. The largest holding weighs 3.72%, so risks related to individual companies are moderate.<\/p>\n

<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

Ticker<\/p>\n<\/td>\n

\n

Name<\/p>\n<\/td>\n

\n

Weight<\/p>\n<\/td>\n

\n

EPS growth %TTM<\/p>\n<\/td>\n

\n

P\/E TTM<\/p>\n<\/td>\n

\n

P\/E fwd<\/p>\n<\/td>\n

\n

Yield%<\/p>\n<\/td>\n<\/tr>\n

\n

MSFT<\/p>\n<\/td>\n

\n

Microsoft Corp.<\/p>\n<\/td>\n

\n

3.72%<\/p>\n<\/td>\n

\n

0.42<\/p>\n<\/td>\n

\n

34.07<\/p>\n<\/td>\n

\n

30.02<\/p>\n<\/td>\n

\n

0.82<\/p>\n<\/td>\n<\/tr>\n

\n

AAPL<\/p>\n<\/td>\n

\n

Apple, Inc.<\/p>\n<\/td>\n

\n

3.70%<\/p>\n<\/td>\n

\n

-1.68<\/p>\n<\/td>\n

\n

29.84<\/p>\n<\/td>\n

\n

29.33<\/p>\n<\/td>\n

\n

0.54<\/p>\n<\/td>\n<\/tr>\n

\n

XOM<\/p>\n<\/td>\n

\n

Exxon Mobil Corp.<\/p>\n<\/td>\n

\n

3.35%<\/p>\n<\/td>\n

\n

36.57<\/p>\n<\/td>\n

\n

9.11<\/p>\n<\/td>\n

\n

12.41<\/p>\n<\/td>\n

\n

3.19<\/p>\n<\/td>\n<\/tr>\n

\n

CVX<\/p>\n<\/td>\n

\n

Chevron Corp.<\/p>\n<\/td>\n

\n

2.19%<\/p>\n<\/td>\n

\n

5.30<\/p>\n<\/td>\n

\n

10.57<\/p>\n<\/td>\n

\n

12.43<\/p>\n<\/td>\n

\n

3.62<\/p>\n<\/td>\n<\/tr>\n

\n

ABBV<\/p>\n<\/td>\n

\n

AbbVie, Inc.<\/p>\n<\/td>\n

\n

1.98%<\/p>\n<\/td>\n

\n

-31.10<\/p>\n<\/td>\n

\n

30.58<\/p>\n<\/td>\n

\n

13.48<\/p>\n<\/td>\n

\n

3.98<\/p>\n<\/td>\n<\/tr>\n

\n

JPM<\/p>\n<\/td>\n

\n

JPMorgan Chase & Co.<\/p>\n<\/td>\n

\n

1.78%<\/p>\n<\/td>\n

\n

24.77<\/p>\n<\/td>\n

\n

9.24<\/p>\n<\/td>\n

\n

9.06<\/p>\n<\/td>\n

\n

2.78<\/p>\n<\/td>\n<\/tr>\n

\n

MRK<\/p>\n<\/td>\n

\n

Merck & Co., Inc.<\/p>\n<\/td>\n

\n

1.52%<\/p>\n<\/td>\n

\n

-81.42<\/p>\n<\/td>\n

\n

88.89<\/p>\n<\/td>\n

\n

35.80<\/p>\n<\/td>\n

\n

2.71<\/p>\n<\/td>\n<\/tr>\n

\n

AVGO<\/p>\n<\/td>\n

\n

Broadcom Inc.<\/p>\n<\/td>\n

\n

1.50%<\/p>\n<\/td>\n

\n

41.21<\/p>\n<\/td>\n

\n

26.45<\/p>\n<\/td>\n

\n

20.35<\/p>\n<\/td>\n

\n

2.15<\/p>\n<\/td>\n<\/tr>\n

\n

CSCO<\/p>\n<\/td>\n

\n

Cisco Systems, Inc.<\/p>\n<\/td>\n

\n

1.50%<\/p>\n<\/td>\n

\n

9.02<\/p>\n<\/td>\n

\n

18.47<\/p>\n<\/td>\n

\n

13.98<\/p>\n<\/td>\n

\n

2.75<\/p>\n<\/td>\n<\/tr>\n

\n

JNJ<\/p>\n<\/td>\n

\n

Johnson & Johnson<\/p>\n<\/td>\n

\n

1.48%<\/p>\n<\/td>\n

\n

-28.25<\/p>\n<\/td>\n

\n

32.42<\/p>\n<\/td>\n

\n

15.56<\/p>\n<\/td>\n

\n

2.97<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

<\/span><\/span>