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.