WisdomTree, the ETF company known for its funds that screen securities based on dividends and earnings, shifted dividend payments on four more of its ETFs to a monthly schedule from a quarterly one, such that all its U.S.-focused dividend strategies will now make payouts each month.
The four ETFs that will now make monthly distributions, and their assets under management are:
- WisdomTree Total Dividend Fund (NYSEArca: DTD), $297.3 million
- WisdomTree LargeCap Dividend Fund (NYSEArca: DLN), $1.26 billion
- WisdomTree MidCap Dividend Fund (NYSEArca: DON), $386.5 million
- WisdomTree SmallCap Dividend Fund (NYSEArca: DES), $396.6 million
"We believe the new payment schedule will be well received by fund shareholders, particularly by those investors seeking more frequent income distributions from our dividend-focused funds," WisdomTree Chief Executive Officer Jonathan Steinberg said today in a press release.
WisdomTree was able to oblige investors because payment dates of underlying stocks in domestic equity funds vary enough to create a fairly stable—if not identical—monthly income stream, according to WisdomTree Director of Research Jeremy Schwartz.
The changes bring to 11 the total number of WisdomTree funds that make monthly payouts—a number that includes the $571.1 million WisdomTree Equity Income Fund (NYSEArca: DHS) and the $1.18 billion WisdomTree Dividend ex-Financials Fund (NYSEArca: DTN).
The New York-based company still has 31 funds that make quarterly distributions and seven that make annual payments. Payment schedules for those funds aren’t likely to change, as many of the 31 with quarterly payments are foreign funds with payout schedules that would render uneven monthly payouts. The seven others are currency strategies that use currency forwards, all but making annual payments a necessity, Schwartz told IndexUniverse.
This week, the NYSE expects to hear from the SEC. What will it mean for ETF investors?
Our annual fixed-income conference is coming up in a little more than a week and I can’t wait.
When it comes to reinvesting dividends, mutual funds have ETFs beat.
With VIX spiking, it’s tempting to pile in or bet against it. Both are a bad idea.