WisdomTree

Jeremy Schwartz / Earnings, Equity, U.S. Earnings Rebalance on 09 Feb 2015

How Rebalancing Can Help Improve Earnings Quality and Lower Multiples

A key process driving the WisdomTree earnings-weighted index approach is a rebalancing process that refreshes constituent weights based on changes in Earnings Stream® and relative value.

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Jeremy Schwartz / Earnings, Equity, U.S. Earnings Rebalance on 02 Feb 2015

What the Shifting Earnings Stream Tells Us About the Market

At WisdomTree, we believe strongly in relative value rebalancing. The act of rebalancing constituents of an index back to their fundamental values is important, given our belief that stocks often overshoot their underlying fundamentals.

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Christopher Gannatti / Earnings, Equity, U.S. Earnings Rebalance on 08 Jan 2014

How to Reposition in Less Expensive Stocks

We’ve seen in prior blog posts how two of our Indexes, WisdomTree MidCap Earnings Index (WTMEI) and WisdomTree SmallCap Earnings Index (WTSEI) have trimmed weight from some of their top-performing constituents and reallocated it to firms that did not perform as well. What we haven’t quite done as of yet is magnify the valuation impact of this rebalance.

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Christopher Gannatti / Earnings, Equity, U.S. Earnings Rebalance on 06 Jan 2014

Trimming Winning Stock Positions in U.S. Mid-Caps

Investors know that small caps may respond more quickly to positive changes in economic growth expectations or that long-established large-cap blue chips are a good choice to potentially mitigate portfolio volatility. But what about mid-caps—do they deserve special consideration in portfolio allocations?

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Christopher Gannatti / Earnings, Equity, U.S. Earnings Rebalance on 02 Jan 2014

Taking Some Chips Off the Small-Cap Table

Due to the futility of trying to time market tops and bottoms for individual stocks on a consistent basis, we believe that there are benefits to undertaking disciplined practices that take some weight away from particularly well-performing positions and reallocating toward areas that may not have kept up.

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