Industry Updates

WisdomTree’s global dividend ETF hits $1bn milestone

GGRA launched in 2016

Lauren Gibbons

Pierre wisdomtree

WisdomTree has seen its global quality dividend ETF reach the $1bn assets under management (AUM) landmark.

Inflows into the WisdomTree Global Quality Dividend Growth UCITS ETF (GGRA) have been driven by recession fears and a flight to quality stocks this year.

Self-indexed, GGRA tracks the WisdomTree Global Developed Quality Dividend Growth index and has a total expense ratio (TER) of 0.38%.

The index is rules-based, fundamentally weighted and comprised of high-quality dividend-paying companies from global developed markets.

It currently has a 19.9% weighting to technology, 18.8% to healthcare and 15.5% to consumer staples.

The index is risk-filtered using a composite risk score (CRS) screening, which is made up of two factors – quality and momentum – each carrying an equal weighting.

The physically replicating ETF also has an ESG screen, which was tightened in February to contain exclusionary metrics to areas including small arms, oil sands, arctic oil and gas exploration and shale energy.

Other ESG criteria also extend to companies involved in controversial weapons and those that violate accepted international norms and standards.

Pierre Debru (pictured), head of quantitative research and multi-asset solutions at WisdomTree, said: "By incorporating high-quality companies into a diversified portfolio, investors can enjoy the historical benefits of stability during turbulent times, capitalise on growth opportunities and aim to achieve steady returns and dividends."

"Our quality dividend growth ETFs aim to leverage those characteristics of high-quality companies."

Earlier this month, the US asset manager unveiled an ETF capturing 14 themes across three megatrends.

The WisdomTree Megatrends UCITS ETF (WGMT) is listed on both Deutsche Boerse and the London Stock Exchange with a total expense ratio (TER) of 0.50%.

WGMT becomes the firm’s eleventh thematic equity ETF and follows the launch of the WisdomTree Renewable Energy UCITS ETF (WRNW) in June.

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