As we’ve discussed previously, smart beta approaches, such as WisdomTree’s, have been growing in popularity. Perhaps this is due to the fact that they try to beat the market, rather than be it. But all smart beta approaches may not be created equal.
With more investors finally taking note of the sometimes significant impact that currency can have on their portfolios’ total returns, I sought to look at how the dollar has fared against other major currencies during the month of May over the last 10 years.
Our Capital Markets team has spent the last five years working with traders, market makers and liquidity providers across the entire ETF trading universe to make sure they understand how WisdomTree ETFs are structured and managed. As a result, the trading community feels more comfortable trading our products in the marketplace and providing block liquidity directly to our client base via the block ETF market.
ETFs can be used in many ways, but one of the most popular is the “core and explore” approach. Investors use ETFs to implement core positions, often with funds tracking capitalization-weighted indexes, and use tactical ETFs or active managers in the periphery of the portfolio to pursue alpha.
Though you may only recently have heard about smart beta indexes and exchange-traded funds (ETFs), they have actually been around for some time. In fact, in 2006, we launched one of the first families of alternatively weighted ETFs, weighting by dividends and calling them “fundamentally weighted.”