WisdomTree U.S. Quality Dividend Growth Fund (DGRW)

Dividend growth investing is often highlighted as a rewarding long-term strategy. With that in mind, equity income investors are right to question the now long-running laggard status of some dividend growth indexes against broader market counterparts.

In 2025, dividend growth strategies like the WisdomTree U.S. Quality Dividend Growth Fund have lagged the more tech-heavy S&P 500; yet, longer-term performance shows they remain highly competitive through full market cycles. While many dividend strategies rely on decades-long dividend growth records, DGRW takes a forward-looking approach — quickly adding quality companies like Meta or Alphabet when they initiate dividends. With exposure to mega-cap tech and disciplined quality screens, DGRW bridges modern growth dynamics and dividend investing, offering sector relevance without sacrificing strategy integrity.

NOBL and DGRW both provide exposure to a variety of high-quality dividend growers.

Advisors and investors poured an impressive $115 billion of new money into ETFs in July. That further proves the industry's relentless pace, even during summer months.

DGRW's rule-based strategy prioritizes quality stocks with strong dividend growth, offering a unique blend of quality, value, and dividend characteristics. The ETF's methodology emphasizes earnings growth, RoE, and RoA, resulting in a diversified sector allocation and meritocratic weighting, especially among top holdings. DGRW consistently delivers higher yields than quality peers and excels in drawdown mitigation, making it defensively robust while capturing large-cap rallies.

In an uncertain market, I stick to five core investing principles: stay the course, specialize, diversify, trust proven experts, and keep some cash. Dividend growth investing (DGI) remains my strategy, with a focus on reliable cash flow compounding and growing dividends to eventually replace labor income. I diversify beyond my real estate core by blending passive DGI ETFs and selecting active ETFs with proven outperformance.

Designed to provide broad exposure to the Style Box - Large Cap Value category of the market, the WisdomTree U.S. Quality Dividend Growth ETF (DGRW) is a smart beta exchange traded fund launched on 05/22/2013.

Dividend growth ETFs like SCHD offer reliable, growing income, but tend to underperform indexes, due to low technology exposure. Covered call ETFs, such as GPIQ, provide higher yields by writing options, offering immediate income, but capping price appreciation. GPIQ stands out for its dynamic option strategy and Nasdaq-100 exposure, delivering a 10% yield and consistent payouts.

For investors looking for meaningful and sustained dividend income today or in retirement, there are plenty of options to choose from.

The WisdomTree U.S. Quality Dividend Growth Fund (DGRW 0.17%) is one of several exchange-traded funds (ETFs) focused on dividend-paying stocks. That dividend emphasis has made it popular among investors seeking to generate passive income.

DGRW offers a low-cost, diversified way to access high-quality dividend growth stocks, making it ideal for long-term, patient investors seeking stability and income. The ETF stands out with its balanced sector allocation, especially its meaningful technology exposure, and has demonstrated resilience during market downturns. While DGRW's starting yield is low, its historical dividend growth and tax efficiency make it attractive for those willing to wait for compounding returns.

Fears of an impending recession may be fading, but economists are still expecting tepid GDP growth for the year. The rhetorical tariff tug-of-war isn't helping sentiment or certainty.

Holding a bunch of stocks from the same sector doesn't mean you're diversified. In fact, it could make your portfolio more vulnerable. Small positions (

Making its debut on 05/22/2013, smart beta exchange traded fund WisdomTree U.S. Quality Dividend Growth ETF (DGRW) provides investors broad exposure to the Style Box - Large Cap Value category of the market.

The WisdomTree U.S. Quality Dividend Growth Fund exemplifies strong dividend strategies, offering reliable income and compounding benefits, making it ideal for long-term equity portfolios. Despite tax inefficiencies and potential underperformance compared to the S&P 500, DGRW's monthly dividends provide comfort, encouraging investors to stay invested through market volatility. DGRW's diversified top holdings, low expense ratio, and consistent dividend growth make it a solid core holding.

Investing strategies must evolve with changing market conditions, emphasizing flexibility in capital allocation for better success. Index-focused investing, particularly in the S&P 500 and Nasdaq, has yielded double-digit returns over the past decade. The WisdomTree U.S. Quality Dividend Growth Fund ETF offers a value-oriented investment option based on the S&P 500.