WisdomTree also recently filed with SEC to offer a fund of funds product. Olivier Ludwig for Index Universe reports that the ETF will be designed to make monthly cash payouts while providing returns that correspond to the price and yield of an index of large-capitalization equity securities listed on U.S. securities exchanges, according to the filing. [ETFs for a Greek Tragedy.]
The fund of funds theory is that they invest in whole funds rather than investing directly in stocks, bonds, cash or other investments. The initial fund will charge for its own direct expenses, in addition to bearing a proportionate share of the expenses charged by the underlying funds in which it invests. [Mutual Fund to ETF Conversions Explained.]
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Tisha Guerrero contributed to this article.