Stock Strategist (ETF Edition): An Outstanding Option for Exposure to U.S. Dividend-Paying Stocks

[Morningstar Logo]( [Company Site]( [Company News]( [Membership]( [Portfolio]( [Stocks]( [Options]( [Funds]( [ETFs]( [Markets]( [Tools]( [Personal Finance]( [Discuss]( Stock Strategist (ETF Edition) An Outstanding Option for Exposure to U.S. Dividend-Paying Stocks A broadly diversified portfolio and a contrarian rebalancing approach should give the fund an edge. [tab_bar] by Venkata Sai Uppaluri | 5/20/2020 2:30:00 PM WisdomTree U.S. LargeCap Dividend ETF DLN is an outstanding option for exposure to U.S. large-cap stocks. Its cost advantage relative to category peers in combination with its contrarian rebalancing approach should help it outperform the Russell 1000 Value Index over the long term. Because of its cost advantage relative to peers, under our enhanced ratings framework, we are upgrading its Morningstar Analyst Rating to Silver from Bronze. The fund fully replicates the WisdomTree U.S. LargeCap Dividend Index. The index is designed to provide exposure to large-cap dividend-paying U.S. stocks. The index screens the top 300 largest stocks by market cap from the WisdomTree Dividend Index, which includes most U.S.-listed dividend-paying stocks. Qualifying stocks must have an expected regular cash dividend, a market capitalization greater than $100 million and meet trading liquidity requirements. The strategy weights each constituent by the value of dividends it expects to pay over the next year, relative to the aggregate value of all expected dividends for stocks in the portfolio. The portfolio is made up of about 283 stocks. The cumulative weighting of stocks with weights greater than 5% is capped at 50% of the total portfolio. Sector weightings are capped at 25% of the portfolio. The result is a well-diversified portfolio of large-cap, dividend-paying companies. Click [here]( to read more. Sponsored Links [Buy a Link Now]( Podcast: Investing Insights From Morningstar.com Listen to a roundup of the latest videos featured on Morningstar.com [in this podcast]( available through iTunes. Free Issue | Morningstar's Stock Newsletter >> Morningstar StockInvestor is celebrating more than 10 successful years of high-quality stock investing. Its two real-money portfolios have outperformed the S&P 500 since 2001. [Get new ideas for the core of your stock portfolio](. Search Most Recent Articles [Why You Should Still Care About Inflation]( [Will Stock and Bond Performance Converge?]( [3 Buys in Berkshire Hathaway's Portfolio]( Latest Analyst Reports [Telecom Italia SpA]( [Baidu Inc]( [Curaleaf Holdings Inc]( [Norfolk Southern Corp]( [TD Ameritrade Holding Corp]( ABOUT OUR EMAIL TO UNSUBSCRIBE this email address to the Stock Strategist newsletter, please click "reply" and then click "send." This will unsubscribe only this email address to this specific newsletter. All subscription changes will take effect within one business day. Replies are not read by individuals, so please do not use this for queries about Morningstar.com. If you have questions about Morningstar.com or your membership, send a note to [joe@morningstar.com](mailto:%20joe@morningstar.com). ABOUT OUR PRIVACY POLICY Please [click here]( to learn about Morningstar's privacy policy. (c) Copyright 2020. Morningstar, Inc. 22 West Washington Chicago, Illinois, 60602 All rights reserved.