Market Insights

Jeremy Schwartz
Director of Research


WisdomTree 2015 Annual Global Rebalance

Each year, the rebalancing process refreshes the constituent weights of WisdomTree Indexes, moving them back toward a measure of relative value. The Global Dividend Index rebalance has refreshed constituents and reweighted securities across various indexes, to emphasize weights for those companies that have grown their dividends compared to their prices over the prior year.

  • 10/14/2015 India Stands Out from Emerging Market Peers

    The India Earnings Index rebalance has refreshed its constituents and reweighted securities to emphasize weights for those companies that have grown their earnings compared to their prices over the prior 12 months. Despite the volatility of emerging market equities, for investors who share our belief in India’s long-term growth prospects, we think this recent rebalance could be an entry point.

  • 09/28/2015 The Dividends of a Quality and Growth Factor Approach

    There is a reason people always say to buy quality. In furnishings and retail goods, you tend to get what you pay for, and higher-quality goods, though they may cost more up front, last longer and ultimately may provide a better value down the road. These lessons can be applied to investing as well. Focusing on quality characteristics may actually lead to outperformance. And while it may not sound as familiar as focusing on growth or value, it is, in fact, the cornerstone of many investment approaches, including that of Warren Buffett.

  • 05/26/2015 Disproving the Naysayers on Currency Hedging

    Recently, the naysayers on currency hedging have come out in full force, advising investors not to hedge currency risk. Some of these naysayers are with reputable firms. Even so, I believe their negativity toward currency hedging is misleading.

  • 04/27/2015 South Korea at a Crossroads

    As we have seen recently, with actions from the Bank of Japan and the European Central Bank, the preferred way to stimulate the economy these days has been through aggressive monetary easing policies, and one beneficial impact is a weaker currency. If South Korea follows in their footsteps, we think it will be positive for corporate profitability of exporters and the equity markets, but not for the currency, so we would advocate for a currency-hedged equity vehicle.

  • 03/06/2015 Engineering Gains for German Equities and Losses for the Euro

    Europe has been one of the primary risks for the global economy—with sluggish growth, over-leveraged countries and banks being prime concerns for many investors. We believe that tides are changing due to shifting policy winds among central banks. We believe that the European Central Bank's expanded asset-purchase program will continue to weaken the euro against the dollar and provide support for local equity markets.

  • 02/05/2015 Analysis of the 2014 Earnings Index Family Rebalance

    The market environment is always changing, and the rebalance process plays an important role in ensuring that an Index weights back to its fundamentals. In this piece, we have attempted to showcase how the rebalance process forces the discipline of reweighting back to the fundamentals and the beneficial impact the process has on valuation ratios.

  • 01/12/2015 Dividends: Fifth Consecutive Year of Double-Digit Growth

    The WisdomTree annual rebalance is a key element of the added value of WisdomTree’s Index methodology. We interpret another year of double-digit dividend growth as a very positive indicator of underlying market fundamentals and believe it helps provide a notable foundation for potential future gains.

  • 12/02/2014 Emerging Markets and State-Owned Enterprises

    We’ve seen growing interest in the degree of exposure to state owned enterprises (SOE) in various investment strategies. State owned enterprises are typically defined as companies that are either wholly or partially owned or operated by a government. Some investors feel government ownership can negatively impact the operational aspect of a company because government owned companies can be potentially influenced by a broader set of interests beyond generating profits for shareholders.