May 17, 2008 at 1:00 pm by Tom Lydon
Fundamentally weighted exchange traded funds (ETFs) tend to be tilted toward the value end of the spectrum.
But WisdomTree has filed for two growth funds, since demand for growth is picking up after having outperformed value in recent months.
The funds will use a new indexing methodology, taking dividend and earnings weightings with a novel growth screen to create the first fundamentally weighted growth funds on the market, says Heather Bell on Index Universe.
The strategy will take a multi-faceted approach considering annual
earnings per share growth, annual sales per share growth, and annual
stock price growth. Out of the top 1,000 qualifying companies, the top
30% will be included in the index.
The two funds are the WisdomTree Large-Cap Growth Fund that will cover the United States, while the
WisdomTree International Large-Cap Growth Fund will cover emerging and
developed markets, excluding the United States.
WisdomTree has also launched four new currency ETFs that are classified as actively managed by the Securities and Exchange Commission (SEC). The funds seek to earn current income reflective of money market rates available to U.S. investors.
The four funds are:
- WisdomTree Dreyfus Chinese Yuan Fund (CYB)
- WisdomTree Dreyfus Indian Rupee Fund (ICN)
- WisdomTree Dreyfus Brazilian Real Fund (BZF)
- WisdomTree Dreyfus Euro Fund (EU)
Tags | Asia, Brazil, China, Emerging Markets, Europe, India, Large Caps, Latin America
May 18th, 2008 at 12:18 am
How about oil and natural gas ETF?
As oil rises higher and higher, many people are pointing to the issue that a bubble is created. Is there really a bubble? Or is oil high price a reflection of its tight supply?
In my view, high oil price is just a reflection of its tight supply. And there are 4 main factors pointing that oil price is going to move higher:
1) Growth in Emerging Economies –> Rising Oil Consumption –> Higher oil price
2) OPEC –> Government depend on oil income –> Cartel restricts supply –> Higher Oil price
3) Geopolitical Issues –> Cause disruption / thread of oil production –> Lower global spare capacity –> Higher Oil price
4) Peak Oil Theory –> Declining Oil production –> Less Supply –> Higher oil price
I believe oil price is going maintain its uptrend in the mid-term. I’m predicting oil price to reach $250 in 2 years’ time.