Top holdings in EZM are LVNTA, AAL, MBI, JOY, and SNV, which look nothing like the top market cap weightings in the S&P 400 Index (AMG, HFC, XEC, TRMB, and SLG) and in the Small Cap space a similar premise is evident as EES’ top holdings are AXL, CTB, MDC, PDLI, and PBF while a benchmark index like the S&P SmallCap 600 is populated with QCOR, CNC, ARRS, TTC, and TDY.
A less popular earnings weighted approach, EXT (WisdomTree Total Earnings, Expense Ratio 0.28%) also exists with about $81 million in AUM, and this approach is structured just like EPS but allows for the ownership of more than 1,400 underlying stocks via the ETF as opposed to 500 (The Earnings 500 Index).
With all the given renewed focus on “Active” strategies as well as “Smart Beta,” these Earnings focused funds as well as other Fundamental/Quantitative ETF approaches that have been on the market for some time (some in excess of five years), also deserve a fresh look from those on the fence.
WisdomTree Earnings 500 Fund
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