Should You Consider Adding WisdomTree U.S. LargeCap Dividend ETF (DLN) to Your Investment Watchlist?

Explore the WisdomTree U.S. LargeCap Dividend ETF (DLN)

If you're seeking comprehensive access to the U.S. large-cap value equity market, the WisdomTree U.S. LargeCap Dividend ETF (DLN) is worth considering. This passively managed ETF, which began trading on June 16, 2006, offers investors a straightforward way to tap into this market segment.

Managed by WisdomTree, DLN has accumulated over $5.88 billion in assets, positioning it among the more sizable funds targeting large-cap value stocks in the United States.

Understanding Large Cap Value Investments

Large-cap companies are typically valued at more than $10 billion and are recognized for their stability and reliable cash flows. Compared to mid- and small-cap firms, these companies generally experience less price fluctuation.

Value stocks are characterized by lower price-to-earnings and price-to-book ratios, as well as slower sales and earnings growth. Historically, value stocks have outperformed growth stocks over the long term, though growth stocks tend to excel during strong bull markets.

Fees and Expenses

Expense ratios play a crucial role in ETF returns. Over time, funds with lower fees can deliver better performance than their higher-cost counterparts, assuming all other factors are equal.

DLN charges an annual expense ratio of 0.28%, which is competitive with similar ETFs in the market.

The fund currently offers a 12-month trailing dividend yield of 1.8%.

Sector Allocation and Leading Holdings

ETFs provide investors with diversified exposure, reducing the risk associated with individual stocks. Transparency is a hallmark of most ETFs, with daily updates on their holdings.

DLN allocates the largest portion of its assets—about 17.8%—to the Information Technology sector. Financials and Healthcare are also significant components of the portfolio.

Among its top holdings, Jpmorgan Chase & Co (JPM) represents roughly 3.46% of assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL).

The ten largest positions together account for approximately 24.66% of the fund’s total assets.

Performance and Risk Profile

DLN aims to replicate the performance of the WisdomTree U.S. LargeCap Dividend Index, which tracks dividend-paying large-cap U.S. companies using a fundamental weighting approach.

Year-to-date, the ETF has returned about 6.14%, and over the past year (as of 02/27/2026), it has gained around 17.18%. During the last 52 weeks, its price has ranged from $70.70 to $93.64.

With a beta of 0.79 and a three-year standard deviation of 11.61%, DLN is considered a moderate-risk investment. Its portfolio of roughly 311 holdings helps spread out company-specific risks.

Other ETF Options

DLN holds a Zacks ETF Rank of 2 (Buy), reflecting its favorable expense ratio, momentum, and expected returns. It’s a strong choice for those interested in large-cap value exposure, but there are alternative funds to consider as well.

For example, the Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value ETF (VTV) track similar indexes. SCHD manages $84.88 billion in assets with a 0.06% expense ratio, while VTV oversees $170.99 billion and charges just 0.03%.

Conclusion

Low-cost, passively managed ETFs like DLN are increasingly popular among both institutional and individual investors, thanks to their transparency, flexibility, and tax advantages. They are well-suited for those with a long-term investment horizon.