1 ETF I Wouldn't Touch With a 10-Foot Pole

Exchange-traded funds (ETFs) are products that Wall Street developed, in part, as a new way to earn management fees from customers. That's an important dynamic to remember because sometimes ETFs can be deceiving, especially if you buy them based solely on their names.

This is the case with the WisdomTree U.S. Quality Dividend Growth Fund ETF (NASDAQ: DGRW). If you want an ETF filled with quality dividend stocks, you'll be better off with the Schwab US Dividend Equity ETF (NYSEMKT: SCHD). Here's why.

The WisdomTree U.S. Quality Dividend Growth Fund ETF starts its selection process by looking at the WisdomTree U.S. Dividend Index. That's a fancy name, but it is just a list of U.S. stocks that pay dividends. After that point, the ETF looks at a combination of growth (based on long-term earnings growth expectations) and quality (three-year historical averages for return on equity and return on assets) factors to create a list of 300 stocks.

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Source Fool.com