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Investors seeking momentum may have WisdomTree US LargeCap Dividend ETF (LON:DLN) on radar now. The fund recently hit a new 52-week high. DLN’s shares are up approximately 15.7% from its 52-week low of $79.66/share.
But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.
DLN in Focus
DLN focuses on providing exposure to large-cap companies in the U.S. equity market which pay high dividends. The fund has key holdings in the Information Technology, Consumer Staples and Health Care sectors, with an allocation of 17.6%, 13.7% and 12.7%, respectively. DLN charges investors 28 basis points in fee per year. Its top holdings include Apple Inc (NASDAQ:AAPL) , Microsoft Corp (NASDAQ:MSFT) and Exxon Mobil Corp (NYSE:XOM) with almost 11% of the assets allocated to them (see all Large Cap ETFs here).
Why the move?
Of late, President Donald Trump’s tax reform has been in the spotlight. Optimism related to the success of the Republican tax reform bill had increased appeal of high risk investments. However, the GOP Senate majority slimmed to 51-49, as Roy Moore lost to Democrat Doug Jones in the Alabama Senate election. This could impose hurdles on the Republican agenda and has thus increased appeal of dividend investing.
More Gains Ahead?
Currently, DLN has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. So it is difficult to get a handle on its future returns one way or another. However, the fund has a weighted alpha of 16.0. So, there is a promising outlook ahead for those who want to ride this surging ETF a shade further.
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