WisdomTree is betting that when it comes to fundamental indexing for exchange traded funds (ETFs), the simpler, the better. David Hoffman of Investment News reports this is one reason why last month they launched six ETF groups that follow earnings-weighted indexes. These ETFs complement their dividend-weighted ETFs by following the company philosophy that the best fundamental indexes are those that follow a single factor. WisdomTree believes the approach of using a multifactor index intervenes into active management. WisdomTree thinks its investors will see in time the benefits of its ETFs.
As these ETFs establish a track record, time will tell how the different styled indexes perform.
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.