WisdomTree Europe has launched two exchange-traded funds (ETFs) Ucits with a leaning towards quality and dividend growth stocks.
The two ETFs will focus on US and global equities.
WisdomTree said its quality dividend growth methodology meant the ETFs leant towards companies with “fundamental metrics” that show dividend growth potential.
The constituents of WisdomTree’s own Quality Dividend Growth indices show “consistently higher median” dividend growth when compared to market-cap weighted peers, according to the firm.
It also used average return on equity and return on assets to determine how efficiently firms generate profits.
The WisdomTree US Quality Dividend Growth Ucits ETF and Global Quality Dividend Growth Ucits ETF will be available on the London Stock Exchange, listed in both sterling and US dollar. The funds will have a total expense ratio of 0.33 and 0.38 per cent, respectively.
Director of research Viktor Nossek, said: “In building these new strategies, we employ the same ’Buffett factors’ of return on equity and return on assets as a driving force for stock selection in our quality dividend growth strategies, tilting towards quality companies with low debt and high return on equity.”
