WisdomTree has launched two dividend growth ETFs on the London Stock Exchange aiming at tackling quality companies using a Warren Buffet approach.
The US Quality Dividend Growth Ucits and Global Quality Dividend Growth Ucits ETFs will use growth and quality as the main criteria when selecting companies.
The new ETFs will mainly focus on US and global equities.
WisdomTree Europe director of research Viktor Nossek says: “Investors are keen to explore more developed methodologies to gain access to dividend-related strategies.
“In building these new proprietary strategies, we employ the same ‘Buffett factors’ of return on equity and return on assets as a driving force for stock selection in our quality dividend growth strategies, tilting towards quality companies with low debt and high return on equity.”
Nizam Hamid, ETF Strategist at WisdomTree Europe says: “The WisdomTree Global Quality Dividend Growth Ucits ETF also represents our first global equity product to be launched on our Ucits platform.
“By creating innovative and transparent strategies we aim to bring to clients a breadth of dividend-oriented investment solutions that are critical in today’s low interest rate environment.”
Despite being one of the world’s most admired stock pickers, Buffett has previously gone on the record in favour of passive strategies.
In his 2014 letter to Berkshire Hathaway shareholders, Buffett says his advice to the eventual trustees of his estate would be to invest 90 per cent of his fortune in a low cost S&P index fund.