Talk about being ‘Big in Japan’. WisdomTree rolled out the Japan Dividend Growth ETF last month, the company’s tenth Japan-themed fund. ‘This particular ETF [JDG] focuses on growth and quality,’ said Christopher Gannatti, associate director of research at WisdomTree. ‘It’s a great way to capitalize on how companies are deploying cash, raising dividends, raising buybacks, taking advantage of that shareholder return theme.’ The JDG tracks the fundamentally weighted WisdomTree Japan Dividend Growth Index, which measures the performance of dividend-paying common stocks with growth characteristics selected from the WisdomTree DEFA Index. According to WisdomTree, ‘the growth factor ranking is based on long-term earnings growth expectations, the quality factor ranking is based on three year historical averages for return on equity and return on assets, and the valuation factor is based on the earnings yield. Companies are weighted in the Index based on annual cash dividends paid.’ Of the JDG’s 217 holdings, NTT DoCoMo is the highest weighted at 5.73%, followed by Nippon Telegraph and Telephone at 5.32% and Japan Tobacco at 4.53%. Only 9 of the fund’s holdings carry a weighting of more than 2% of total assets.
Subscribe to TheStreetTV on YouTube:
For more content from TheStreet visit:
Check out all our videos:
Follow TheStreet on Twitter:
Like TheStreet on Facebook:
Follow TheStreet on LinkedIn:
Follow TheStreet on Google+:
source
