Investors were caught off guard by the sudden reversal of factor performance at the beginning of September, leading many investors to ask: “Does this rally really have legs, and is now the time to tilt into value or small-caps?”
WisdomTree was the first to package an ex-state-owned enterprises approach into rules-based ETFs. But we were far from the first to identify the negative impact of the state-ownership structure on shareholders. Matt Wagner discusses the recent commentary.
For many of us, there is one great solace to the end of summer and passage to colder weather: Football is BACK. But, while your friends are reaching for this year’s potential rookie sensation, a few under-loved and undervalued veterans might just do the trick. Matt Wagner uses the fantasy football metaphor to make the case for our rules-based ETF, the WisdomTree U.S. LargeCap Fund.
Valuing companies based on dividends is well-documented and understood. In practice, though, this theory has been stressed over the last decade. Matt Wagner illustrates the impact on fundamentals from an approach that combines dividends and profitability.
A well-known anomaly among investment professionals, the “size premium,” suggests a portfolio of small-cap companies—particularly small-value companies—would be expected to outperform a portfolio of larger companies over the long run. Matt Wagner examines an additional factor that can complement size: quality.
Due to the strong performance of quality strategies—and the resilience of the factor during times of market volatility—capital has flowed into quality-focused funds this year. A lot of factor discussions are U.S.-centric, but quality has had a significant performance advantage in developed international markets. Matt Wagner discusses our International Hedged Quality Dividend Growth strategy.