2. $1.1 billion WisdomTree MidCap Dividend Fund (DON | A-69) YTD Return: 10 percent
DON is the elder statesman of the four newly minted $1 billion funds. It launched in June 2006, and tracks a dividend-weighted index of U.S. midcap stocks with an overweight in financials (particularly REITs) and utilities. Those are sectors that RiverFront’s CIO Michael Jones said equity investors should mine for because of their lower volatility features.
“One thing is to look into your equity portfolio and see where you can create lower downside risk, lower-volatility components of your portfolio strategy so that you can have more equity than you would normally have,” said Jones.
“Things like MLPs and REITs are very attractively priced based on our ‘Price Matters’ work. Look for opportunities like that within your equity strategies,” he noted.
DON has an expense ratio of 0.38 percent, or $38 for every $10,000, and had a distribution yield of 2.2 percent for the past 12 months.