Though they weren’t immune to the March sell-off, value stocks are proving durable on a relative basis this year. Entering the March 31st trading session, the S&P 500 Value Index was off less than 1% year-to-date while its growth counterpart and the parent gauge were lower by almost 9% and 5.22%, respectively. However, one notable value ETF has entered the chat and holding up better than the S&P 500 Value Index.
The WisdomTree U.S. LargeCap Dividend Fund (DLN ), which turns 20 years old in June, is up 1% this year. While it may not be not a thrilling gain, it confirms the sturdiness of the DLN methodology — one rooted in projected payouts.
DLN’s plumbing is relevant for equity income investors regardless of the broader market climate. By not focusing on yield, the value ETF steers market participants away from potential yield traps. Likewise, by not emphasizing dividend increase streaks, DLN doesn’t look backwards. It avoids heavy reliance on defensive, slower growth sectors to drive returns.
DLN an Interesting Balancing Act
Many competing ETFs focus on dividend increase streaks and weighting components by yield. However, DLN does an admirable of job of balancing the scales. As a value ETF, it provides investors with the exposure needed to capitalize on a value resurgence while ensuring they aren’t left out in the cold when technology stocks lead.
“DLN does include those Mag-7 companies that pay dividends, excluding, as of March 24, 2026 only Amazon.com and Tesla because these firms have not yet declared an annual dividend policy,” noted WisdomTree’s Christopher Gannatti. “When we look at the longer-term track record in Figure 3a versus IWD, DLN does appear to be the stronger competitor, which makes sense because we know that these stocks have done well and DLN’s approach has not systematically avoided them for extended periods.”
DLN isn’t a “tech ETF” as its weight to that sector is just 17.39%. However, rather than diminishing the fund’s value traits, it’s proven to be a positive. Since its inception and over the past decade, DLN has continually beat the Russell 1000 Value Index by approximately 200 basis points. While past performance never guarantees future results, value stocks are indeed showing signs of life and prompting investors to examine value-oriented ETFs like DLN.
“What is clear, however, is that investors who maintain diversified exposure across styles, and who remain attentive to valuation, income generation and sector leadership, may be better positioned for whatever phase of the market cycle comes next. If history is any guide, the pendulum does not stop swinging; it simply moves from one side of the market to the other,” concluded Gannatti.
Disclosures
This article was prepared as part of WisdomTree’s general paid sponsorship of VettaFi | ETF Trends. This specific content within and any opinions expressed therein belong solely to VettaFi and do not reflect the opinion or analysis of WisdomTree, its employees, or its affiliates. Content published on VettaFi | ETF Trends is provided for educational purposes only and should not be considered investment or tax advice. For investment or tax advice, please consult a financial professional.
WisdomTree is an independent company, unaffiliated with VettaFi | ETF Trends. WisdomTree has not been involved with the preparation of the content supplied by VettaFi | ETF Trends. It does not guarantee, or assume any responsibility for its content.
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