WisdomTree U.S. Quality Dividend Growth Fund ETF Might Have "Dividend" in Its Name -- but That's Not Why You Should Buy It

WisdomTree U.S. Quality Dividend Growth Fund ETF (NASDAQ: DGRW) is an exchange-traded fund (ETF) that uses dividends as a main criterion for picking its holdings. But don't think that makes it a dividend-focused ETF.

This ETF highlights why it is so important to understand what an ETF is doing before you assume that its name accurately describes the purpose of the fund. Here's what you need to know before you buy this ETF for the wrong reason.

SPDR Portfolio S 500 High Dividend ETF (NYSEMKT: SPYD) has a yield of roughly 4.4%. WisdomTree U.S. Quality Dividend Growth ETF's yield is 1.5%. Very clearly, WisdomTree U.S. Quality Dividend Growth ETF isn't trying to maximize Dividend yield.

Source Fool.com