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)
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.