Investors that are looking to simplify their investing strategies can often benefit from using ETFs. And if you’re looking for a way to diversify, collect a dividend and not take too much risk on, it’s not hard to do with the WisdomTree U.S. LargeCap Dividend Fund (NYSEArca:DLN).
The fund gives investors a bit of everything all rolled into one investment. With a focus on income and growth, there are many ways that this ETF can help your portfolio grow in value.
By holding large cap stocks, there’s also not going to be lots of big movements in the fund as well. Tech stocks make up the biggest of the ETF’s holdings, but at 18%, it’s not overly exposed to the sector.
Blue-chip stocks Microsoft Corporation (NASDAQ:MSFT) and Apple Inc (NASDAQ:AAPL) are two of the biggest holdings, at 3.77% and 3.59%, respectively.
Financials, consumer staples and health care are the other segments that make up more than 10% of the ETF’s holdings. However, there are several others in the fund that give it a lot of balance overall.
The fund has averaged a distribution yield of 2.3% and while it’s not terribly high, it makes up for that with some pretty good returns overall.
Over the past five years, the ETF has climbed more than 30%. It’s a bit worse than even the S&P has managed over this time, but the fund has generally followed a similar path.
With both dividends and some decent returns over the years, this ETF could be a good option for investors looking for a good mix of income and growth.
