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DGRS - ETF AI Analysis

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DGRS

WisdomTree US Smallcap Quality Dividend Growth Fund (DGRS)

Rating:71Outperform
Price Target:
DGRS, the WisdomTree US Smallcap Quality Dividend Growth Fund, earns a solid overall rating thanks to several strong holdings like Cal-Maine Foods and Victory Capital, which bring robust financial performance, attractive valuations, and reliable dividend income to the portfolio. Positive contributors such as Archrock and LCI Industries further support the fund with healthy growth, cash flow, and reasonable valuations, though some positions like Avnet and Cohen & Steers, which face weaker price trends and cash flow pressures, slightly weigh on the rating. The main risk factor is that many top holdings are smaller companies whose results can be more volatile, especially in cyclical or commodity-linked industries.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains so far this year and in recent months, indicating positive momentum in its strategy.
Quality Dividend-Focused Small Caps
The fund targets smaller U.S. companies with a focus on dividend growth and quality, which can offer a balance of income and potential long-term growth.
Broad Sector Diversification
Holdings are spread across many sectors, with meaningful exposure to financials, industrials, consumer cyclical, energy, and others, helping reduce reliance on any single industry.
Negative Factors
High U.S.-Only Concentration
Almost all assets are invested in U.S. companies, so the fund offers little geographic diversification if the U.S. market struggles.
Moderate Expense Ratio
The fund’s fee is higher than many broad, low-cost index ETFs, which can slightly reduce net returns over time.
Exposure to Volatile Small-Cap and Cyclical Sectors
Its focus on small-cap stocks and heavier weights in cyclical areas like financials, consumer cyclical, and energy can make the fund more sensitive to economic downturns.

DGRS vs. SPDR S&P 500 ETF (SPY)

DGRS Summary

DGRS is an ETF that follows the WisdomTree U.S. SmallCap Quality Dividend Growth Index, focusing on smaller U.S. companies that have solid finances and a history of growing their dividends. It holds a wide mix of sectors like financials, industrials, consumer companies, and energy, with examples including Avnet and Bank of Hawaii. Someone might invest in DGRS to seek both long-term growth and a stream of dividend income, while spreading risk across many small companies. A key risk is that small-cap stocks can be more volatile, so the ETF’s price can move up and down more sharply than the overall market.
How much will it cost me?The expense ratio for the WisdomTree US Smallcap Quality Dividend Growth Fund (DGRS) is 0.58%, which means you’ll pay $5.80 per year for every $1,000 invested. This is higher than average because the fund is actively managed, focusing on selecting small-cap companies with strong dividend growth and quality fundamentals.
What would affect this ETF?The DGRS ETF, focused on U.S. small-cap companies with strong dividend growth, could benefit from a thriving U.S. economy, increased consumer spending, and potential growth in sectors like Industrials and Consumer Cyclical, which make up a significant portion of its holdings. However, it may face challenges from rising interest rates, which could pressure small-cap companies, and economic slowdowns that might impact dividend growth or profitability in key sectors like Financials and Materials.

DGRS Top 10 Holdings

DGRS leans heavily into U.S. small caps, with a clear tilt toward financials and energy rather than flashy Big Tech. Recent strength from Avnet has given the fund a helpful lift, while steady climbers like Victory Capital and Bank of Hawaii add a quieter backbone from the financial side. On the energy front, California Resources has been rising, but Magnolia Oil & Gas and Northern Oil and Gas have been more of a mixed bag, sometimes pushing, sometimes pulling. Cal-Maine Foods, meanwhile, has been losing steam, modestly weighing on overall returns.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Archrock2.71%$10.41M$6.54B53.05%
79
Outperform
California Resources Corp2.23%$8.54M$5.74B81.75%
71
Outperform
Avnet2.21%$8.47M$6.44B51.42%
67
Neutral
Victory Capital Holdings1.78%$6.84M$4.76B28.71%
80
Outperform
Buckle1.78%$6.84M$2.89B60.93%
72
Outperform
Magnolia Oil & Gas1.68%$6.46M$5.59B37.79%
65
Neutral
Cal-Maine Foods1.68%$6.45M$3.61B-19.59%
84
Outperform
Cohen & Steers1.57%$6.01M$3.48B-11.14%
60
Neutral
Northern Oil And Gas1.53%$5.87M$2.79B10.55%
72
Outperform
Bank Of Hawaii1.48%$5.66M$3.06B16.93%
71
Outperform

DGRS Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
54.35
Positive
100DMA
53.07
Positive
200DMA
50.87
Positive
Market Momentum
MACD
0.85
Negative
RSI
69.03
Neutral
STOCH
73.32
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For DGRS, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 54.91, equal to the 50-day MA of 54.35, and equal to the 200-day MA of 50.87, indicating a bullish trend. The MACD of 0.85 indicates Negative momentum. The RSI at 69.03 is Neutral, neither overbought nor oversold. The STOCH value of 73.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DGRS.

DGRS Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$383.01M0.38%
71
Outperform
$941.88M0.20%
66
Neutral
$906.93M0.48%
72
Outperform
$722.84M0.09%
64
Neutral
$699.38M0.42%
68
Neutral
$680.16M0.38%
67
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DGRS
WisdomTree US Smallcap Quality Dividend Growth Fund
56.93
14.42
33.92%
GSSC
Goldman Sachs Activebeta U.S. Small Cap Equity ETF
OUSM
OShares U.S. Small-Cap Quality Dividend ETF
BBSC
JPMorgan BetaBuilders U.S. Small Cap Equity ETF
JHSC
John Hancock Multifactor Small Cap ETF
EES
WisdomTree U.S. SmallCap Fund
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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