ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Modern Alpha Channel – ETF Database
  2. DHS Could Be The Right Dividend ETF for 2023
Modern Alpha Channel - ETF Database
Share

DHS Could Be The Right Dividend ETF for 2023

Nick Peters-GoldenJan 18, 2023
2023-01-18

Dividends have been one of the hottest investing themes in town over the last several weeks, going back to the Fed’s regular, and aggressive, rate hikes in the fall. Dividend ETFs added hundreds of billions in net inflows through the end of 2022, but with a possible earnings-driven recession looming, investors may be wondering which strategy is the right dividend ETF for 2023. One strategy that could fit the bill may be the WisdomTree US High Dividend Fund (DHS A) and its tilt toward safer, larger cap value firms.

Dividends’ ability to provide current income for investors had already been an appealing attribute given the Fed’s rate hikes, and that uncertainty remains as Fed watchers are still uncertain as to when the central bank will stop its hikes. Not only is the timing of the Fed’s final hike of this period relevant, but so is the question of how long the central bank plans to maintain higher rates.

With both factors relevant to investors, having current income to back up their portfolios can be a big help – even despite a recession. While analysts are still debating whether a recession is coming in the first or second half of 2023, many expect that big hits to earnings will create a recession, most likely a smaller one.

Even a small recession may concern investors interested in dividends, but those same investors may want to go back to past recessions and look to how dividends performed for some comfort. In past recessions, stock prices have proven much more volatile than dividend payouts given that larger, more mature firms tend to be the most consistent dividend payers.

That bodes well for a dividend ETF like DHS that expresses a value-oriented, large-cap view via its WisdomTree U.S. High Dividend Index. The strategy, which charges 38 basis points, has outperformed its Factset Segment Average over the last three months, returning 13.2% in that time. It’s added $56 million in net inflows over the last month, while also offering investors a 3.8% annual dividend yield.

Investors have several interesting options looking for the right dividend ETF for 2023. In an environment like this, that is a big help – especially with a strategy like DHS available, and one to watch in the weeks ahead as markets await the next big move from the Fed.

For more news, information, and analysis, visit the Modern Alpha Channel.

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X