What Is Modern Alpha™?
At WisdomTree, we believe investors shouldn’t have to choose between cost efficiency and performance potential. Modern Alpha™ combines the outperformance potential of active management with the benefits of passive management—to offer investors cost-effective funds that are built to perform.
The traditional active management, or “legacy alpha” can often carry higher cost, less transparency in your portfolio and the risk of human judgment. But it can also mean an outperformance potential. The traditional passive investing, or “legacy beta” usually offers lower cost, and more transparency and objectivity. But it doesn’t give investors the opportunity to potentially outperform the market. Modern Alpha™ combines the positives of each of the legacy investment approaches to enhance the investment experience.
*Ordinary brokerage commissions apply. Low cost represents lower expense ratio compared to higher priced investment options and ETFs.
In Their Own Words
Professor Jeremy Siegel
WisdomTree Asset Management
Global Head of Distribution
WisdomTree Asset Management
The Benefits of Modern Alpha™
In an environment where investors demand more value for their money, where regulations increasingly concern investors best interests, and where fee pressure is growing, ETFs offer a number of advantages including lower fees, zero investments minimums, greater transparency, and more. Of course, all ETFs are not created equal.
Our Modern Alpha™ Family
Our Modern Alpha™ family of ETFs provides the potential to outperform in many ways.
Dividend-weighted ETFs magnify the effects dividends have on performance, providing the potential for more income, for strength during down markets, for enhanced returns and reduced risk, and for improved overall portfolio returns.
Learn More about Dividends
Earnings-weighted ETFs provide the potential to benefit from only profitable companies (many ETFs invest in unprofitable companies) and to lower the P/E ratio for the given market, helping to manage valuation risk and magnify the effects that earnings have on risk and return characteristics.
Learn More about Domestic Core Equity
Factor ETFs provide the potential to benefit from exposure to specific factors (risk premiums) that have been proven to drive returns.
Currency-hedged ETFs provide the potential to reduce portfolio volatility and risk by either hedging currency risk altogether or hedging it dynamically—to avoid it when it might hurt returns and to capitalize on it when it might help returns.
Learn More about Currency Hedged Equity
Ex-State-Owned Enterprise ETFs help avoid the state-owned companies in emerging markets that may not always have investor interests in mind, providing the potential to reduce risk and enhance returns.
Fixed income ETFs provide the potential to enhance yields, to reduce risk and to capitalize on local currency debt as well as the ability to manage risk, and more.
Alternative ETFs enable investors to access sophisticated institutional strategies in the ETF format, providing the potential for enhanced returns, reduced risk and increased diversification.
Asset Allocation ETFs provide investors with one trade access to a diversified portfolio of equities and bonds. By gaining exposure via an ETF, investors can use these strategies as a core holding or as a complement to other diversifying assets. In addition to having no investment minimums, our asset allocation ETFs provide low fees, full transparency and daily liquidity*.
Large Cap Core
|EXT||U.S. Total Market|
|DGRW||U.S. Quality Dividend Growth|
|QSY||U.S.Quality Shareholder Yield|
Large Cap Value
|DLN||U.S. LargeCap Dividend|
|DTD||U.S. Total Dividend|
|DHS||U.S. High Dividend|
|DTN||U.S. Dividend ex-Financials|
EMERGING MARKETS EQUITY ETFs
|DVEM||Emerging Markets Dividend|
|DEM||Emerging Markets High Dividend|
|DGRE||Emerging Markets Quality Dividend Growth|
|EMMF||Emerging Markets Multifactor|
|EMCG||Emerging Markets Consumer Growth|
|DGS||Emerging Markets SmallCap Dividend|
|XSOE||Emerging Markets ex-State-Owned Enterprises|
|DDWM||Dynamic Currency Hedged Intl. Equity|
||Intl. LargeCap Dividend|
|DOO||Intl. Dividend ex-Financials|
|DTH||Intl. High Dividend|
|DHDG||Dynamic Currency Hedged International Quality Dividend Growth|
|IHDG||Intl. Hedged Quality Dividend Growth|
|IQDG||Intl. Quality Dividend Growth|
International Mid & Small Cap
|DLS||Intl. Smallcap Dividend|
|DDLS||Dynamic Currency Hedged Intl. SmallCap|
|DIM||Intl. MidCap Dividend|
|DNL||Global ex-U.S. Quality Dividend Growth|
|DEW||Global High Dividend|
|DRW||Global ex-U.S. Real Estate|
|XMX||Global ex-Mexico Equity|
|DXJ||Japan Hedged Equity|
|AXJL||Asia Pacific ex-Japan|
|HEDJ||Europe Hedged Equity|
|EUDG||Europe Quality Dividend Growth|
|DXGE||Germany Hedged Equity|
|AGGY||Yield Enhanced U.S. Aggregate Bond
|SHAG||Yield Enhanced U.S. Short-Term Aggregate Bond
|GLBY||Yield Enhanced Global Aggregate Bond|
Short Term Government
|USFR||Floating Rate Treasury
|WFIG||Fundamental U.S. Corporate Bond|
|SFIG||Fundamental U.S. Short-Term Corporate Bond|
|WFHY||Fundamental U.S. High Yield Corporate Bond|
|SFHY||Fundamental U.S. Short-Term High Yield Corporate Bond|
The Rules of Modern Alpha™
At WisdomTree, we believe in following rules—just not those set by others. We make our own rules and develop both our own Indexes and our own ETFs. But we do not innovate simply for innovation’s sake. For example, when considering whether to develop a new investment, we always ask three questions:
If the answer to at least two of these criteria is not yes, we will not pursue the investment idea.