WisdomTree lists the Global High Dividend UCITS ETF on the LSE

The new ETF tracks the price and yield performance, gross of fees and expenses, of the WisdomTree Global High Dividend UCITS Index. The total expense ratio (TER) is set at 0.35%.

The strategy: dividends as a measure of value

Unlike traditional market-capitalisation-weighted indices, the WDIV selects companies based on dividend yield and weights them according to the dividends paid out. The aim is to increase exposure to the High Dividend and Value factors, whilst maintaining diversification and valuation discipline.

The selection process is transparent and systematic, based on academic research. Eligible companies must meet liquidity, dividend and ESG requirements before being ranked by dividend yield. A proprietary composite risk score is then applied, incorporating parameters relating to Quality and Momentum. This allows the exclusion of higher-risk companies and potential value traps, favouring those with stronger fundamentals.

The 300 companies with the highest yields are selected, weighted according to their adjusted dividend flow, with diversification controls applied at the level of individual securities, sectors and countries.

Pierre Debru, Head of Research Europe at WisdomTree, said: “High-dividend strategies have long been recognised as an effective way to access both income and value characteristics in the equity markets. By combining dividend yield with selection criteria based on Quality and Momentum, this strategy aims to provide investors with a more disciplined approach to high-dividend investing, helping to avoid some of the risks associated with simply chasing the highest yields”.

Alexis Marinof, CEO for Europe at WisdomTree, added: “Investors continue to seek strategies capable of delivering attractive returns whilst maintaining exposure to global equity markets. Through the WisdomTree Global High Dividend UCITS ETF, investors can gain access to a diversified portfolio of high-dividend-yielding companies, whilst benefiting from the disciplined, research-driven approach that has distinguished WisdomTree for over two decades.”

Marinof has been CEO Europe at WisdomTree since February 2025, having led the European ETF and ETP business since 2019. Before joining WisdomTree in 2017, he held senior roles at State Street Global Advisors, including EMEA Head of SPDR ETFs.

Background: WisdomTree’s High Dividend family

The WDIV forms part of the existing range of High Dividend ETFs in Europe, which includes exposure to European, US and emerging markets. WisdomTree has been a pioneer in the field of fundamentals-weighted ETFs since its foundation, developing proprietary methodologies that base portfolios on corporate fundamentals rather than market prices.

The existing range includes:

WisdomTree Europe Equity Income UCITS ETF (EEI): TER 0.29%, launched in October 2014, with assets under management of approximately €167 million. Distributes dividends half-yearly.

WisdomTree Europe SmallCap Dividend UCITS ETF (DFE): TER 0.38%, launched in October 2014. Exposure to high-dividend European small-caps.

WisdomTree US Equity Income UCITS ETF (DHS): TER 0.29%, launched in October 2014. Pays out quarterly.

WisdomTree Emerging Markets Equity Income UCITS ETF (DEM): TER 0.46%, launched in November 2014. Pays out dividends half-yearly.

Features of the new ETF

The WDIV is available in various share classes and across multiple markets

Both the distribution and accumulation classes are offered with an identical TER of 0.35%. The accumulation class automatically reinvests dividends, whilst the distribution class pays them out periodically to investors.

Market considerations

The launch of the WDIV comes against a backdrop of growing demand for fixed-income strategies amongst European investors. Companies that pay sustainable dividends often demonstrate greater discipline in managing free cash flow and a genuine commitment to returning capital to shareholders. Dividend-paying shares offer investors a tangible source of return, helping to enhance portfolio performance through a combination of income generation and capital appreciation.

The TER of 0.35% places the WDIV in line with competing products in the global dividend ETF segment, although there are alternatives with slightly lower costs. WisdomTree’s differentiation lies in its proprietary dividend-weighting methodology combined with Quality and Momentum screening, which sets the product apart from simple high-dividend-yield indices.