Asset manager WisdomTree has announced the launch its new UK Quality Dividend Growth UCITS ETF on the London Stock Exchange.
The new ETF expands WisdomTree’s equity exchange-traded fund (ETF) range, which now includes a UK-focused option for investors seeking exposure to high-quality, dividend-paying companies.
The fund tracks the WisdomTree UK Quality Dividend Growth Index, which is designed to identify and invest in companies with strong fundamentals including high return on equity, high return on assets, and high medium-term earnings growth.
The index also excludes companies that do not meet WisdomTree’s environmental, social, and governance (ESG)criteria.
With a total expense ratio of 0.29%, the WisdomTree UK Quality Dividend Growth UCITS ETF offers investors a cheaper way to gain exposure to a portfolio of high-quality UK dividend-paying companies than through an active fund.
Pierre Debru, head of quantitative research & multi asset solutions at WisdomTree said: “High-quality companies are known for their stability and resilience, even amid market volatility and economic downturns. These companies tend to have strong balance sheets, low debt levels, and robust cash flows.
“A quality-focused investment can make portfolios more resilient, helping investors build wealth over the long term and weather the inevitable storms along the way.”