WisdomTree ETFs Under Scrutiny

February 28th at 1:19pm by Tom Lydon

Earnings John Spence of Dow Jones Newswires reports WisdomTree Investments newest exchange traded funds (ETFs) look for companies with solid earnings, but the true test will be whether this attention-grabbing firm can itself deliver steady profits.

The company has a market-capitalization of $700 million and has seen its shares march higher along with ETFs popularity. WisomTree has a "pure play" on ETFs and boasts a lineup of a few dozen specialty funds.  The main concern are the pink-sheet listed stocks which are highly liquid as well as volatile and companies aren’t required to list much financial information. With a total of 36 ETFs sponsored, they have captured $2.4 billion in assets since June 2006, and are weighted by dividends as an alternative to traditional indexes. Time will tell.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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