5-Star ETFs Poised to Pop: WisdomTree Dividend ex-Financials

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the WisdomTree Dividend ex-Financials Fund (NYS: DTN) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at WisdomTree Dividend ex-Financials and see what CAPS investors are saying about the ETF right now.

WisdomTree Dividend ex-Financials facts


June 2006

Total Assets

$772.7 million

Investment Approach

Seeks to measure the performance of high-dividend-yielding stocks outside the financial sector.

Expense Ratio


Dividend Yield


1-Year/ 3-Year / 5-Year Annualized Returns

15.8% / 19.5% / 1.7%

Top Holdings with High CAPS Rating (4 or 5 Stars) and Portfolio Weight

Altria Group (NYS: MO) (2%)

Verizon Communications (NYS: VZ) (1.9%)

Duke Energy (NYS: DUK) (1.9%)


iShares Dow Jones Select Dividend Index (NYS: DVY)

SPDR S&P Dividend (NYS: SDY)

Sources: Morningstar and Motley Fool CAPS.

On CAPS, all but one of the 54 members who have rated WisdomTree Dividend ex-Financials believe the ETF will outperform the S&P 500 going forward. These bulls include All-Star ganalon, who is ranked in the top 15% of our community, and acegdl007.

Just last week, ganalon tapped the ETF as a great pick for turbulent times: "Low volatility will become more desirable if choppy markets continue."

In fact, WisdomTree Dividend ex-Financials sports an annual turnover of just 5%. That's lower than that of other dividend ETF plays like iShares Dow Jones Select Dividend Index (18%) and SPDR S&P Dividend (52%).

CAPS member acegdl007 expands on the outperform argument:

I just completed reading Jeremy Siegel's "Stocks for the Long Run" (4th edition). His description and methodology of fundamental weighted funds makes fantastic sense and it holds its water based on back testing of stock returns. ... Over the long time frame, I have confidence that this methodology will continue to pay off well and outperform the market.

What do you think about WisdomTree Dividend ex-Financials, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track WisdomTree Dividend ex-Financials?Add it to your watchlist.

At the time thisarticle was published Fool contributorBrian Pacamparaowns no position in any of the companies mentioned. The Fool owns shares of Altria. Try any of our Foolish newsletter servicesfree for 30 days.We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.