Recently, WisdomTree Investments’ original set of dividend-based 20 exchange traded funds (ETFs) turned 1. The performance of these funds over the past 12 months helps give investors an indication as to how these ETFs actually perform in the market The Associated Press reports. WisdomTree is one of the pioneers to offer ETFs in fundamental indexing.

These returns are preliminary; investors should give it three to five years before judging. The WisdomTree basic, domestic ETFs dropped behind funds that track conventional indexes. WisdomTree attributes its underperformance to the current stock market climate that has favored growth over value and to a heavy lean toward financials, which have been affected by the subprime mortgage crisis. However, WisdomTree’s international funds fared better, outdoing other ETFs in this arena.

Out of the original 20 ETFs, 12 have outperformed their benchmarks, so far. The debate continues concerning which is the better indexing: market-weight or fundamental. Time will tell.