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By Matt Wagner, CFA
The Fed may not be pulling away the punch bowl just yet, but it’s also not adding more juice to it.
At the conclusion of last week’s FOMC meeting, Fed Chair Powell
High Dividends: Shortening Equity Duration
Summary
- Indications that the Fed will more seriously act to combat rampant inflation has led the policy-sensitive 2-Year yield to spike higher.
- A Fed hiking cycle is likely to favor value as shorter-duration/high yielders become more attractive with increases in short-term rates.
- Among WisdomTree’s family of domestic dividend Indexes, the WisdomTree U.S. High Dividend Index fits the bill as having the greatest value/income tilt with a yield advantage of nearly 280 bps relative to the S&P 500.
In 2006, WisdomTree launched with a big idea and an impressive mission — to create a better way to invest. We believed investors shouldn’t have to choose between cost efficiency and performance potential, so we developed the first family of ETFs designed to deliver both. Today, WisdomTree offers a leading product range that offers access to an unparalleled selection of unique and smart exposures.
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| Symbol | Last Price | % Chg |
|---|---|---|
| DHS | - | - |
| WisdomTree U.S. High Dividend Fund ETF | ||