A Decade Of Out-Performance: Inside WisdomTree's Dividend-Weighted Strategies
A decade ago, WisdomTree changed passive investing with the introduction of a sweeping series of dividend-weighted indexes.
WisdomTree Chief Investment Strategist Luciano Siracusano discusses our approach to dividends and how several WisdomTree
strategies outperformed traditional beta benchmarks over the past 10 years.
Below you will find links to our latest whitepapers, investment cases and current research.
You can also read economic and market commentary from our thought leaders and connect with us on social media.
October 2, 2014
Rates may be on the cusp of a directional shift. What can investors do to help safeguard
their portfolio? Find out in our latest podcast.
Luciano Siracusano, III
Executive Vice President–Head of Sales and Chief Investment Strategist
Fixed Income Strategist
Recorded September 22, 2014
Past performance is not indicative of future results. You cannot invest directly
in an index.
Barclays U.S. Aggregate Index ("Barclays Agg," "Agg"): Represents the investment-grade,
U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related
and corporate securities, as well as mortgage and asset backed securities.
Duration: A measure of a bond’s sensitivity to changes in interest rates. The weighted
average accounts for the various durations of the bonds purchased as well as the
proportion of the total government bond portfolio that they make up.
Asset purchases: The Fed purchases longer-term securities issued by the U.S. government
and longer-term securities issued or guaranteed by government-sponsored agencies
such as Fannie Mae or Freddie Mac.
Basis point: 1/100th of 1 percent.
Quantitative Easing (QE): A government monetary policy occasionally used to increase
the money supply by buying government securities or other securities from the market.
Quantitative easing increases the money supply by flooding financial institutions
with capital, in an effort to promote increased lending and liquidity.
Tapering: A shift in monetary policy by which the Federal Reserve would begin decreasing
the amount of bonds it purchases.
Mortgage-backed securities: Fixed income securities that are composed of multiple
Tightening: a decline in the amount of compensation bond holders require to lend
to risky borrowers. When spreads tighten, the market is implying that borrowers
pose less risk to lenders.
Liquidity: The degree to which an asset or security can be bought or sold in the
market without affecting the asset’s price. Liquidity is characterized by a high
level of trading activity. Assets that can be easily bought or sold are known as
Volatility: A measure of the dispersion of actual returns around a particular average
Yield curve: Graphical Depiction of interest rates on government bonds, with the
current yield on the vertical axis and the years to maturity on the horizontal axis.
Inflation: Characterized by rising price levels.
"ECB": European Central Bank
Hedge: Apply strategies meant to mitigate the impact of currency movements on equity
Credit spread: The portion of a bond’s yield that compensates investors for taking
Federal Funds Rate: the rate that banks that are members of the Federal Reserve
system charge on overnight loans to one another. The Federal Open Market Committee
sets this rate. Also referred to as the "policy rate" of the U.S. Federal Reserve.
Deflation: The opposite of inflation, characterized by falling price levels.
Escape velocity: the degree of economic health that the Federal Reserve believes
is required for the economy to function independent of accommodative policy.
Investors should carefully consider the investment objectives, risks, charges
and expenses of the Funds before investing. U.S. investors only: to obtain a prospectus
containing this and other important information, please call 1-866-909-WISE (9473)
or click here to view or download a prospectus online. Read
the prospectus carefully before you invest. There are risks involved with investing
including the possible loss of principal. Past performance does not guarantee future
RISKS: There are risks associated with investing, including possible
loss of principal. Fixed income investments are subject to interest rate risk; their
value will normally decline as interest rates rise. Derivative investments can be
volatile and these investments may be less liquid than other securities, and more
sensitive to the effects of varied economic conditions. Investments that are focused
in Japan and/or Europe are increased by the impact of events and developments in
those regions that can adversely affect performance. Investments in currency involve
additional special risks, such as credit risk, interest rate fluctuations, derivative
investments which can be volatile and may be less liquid than other securities,
and more sensitive to the effect of varied economic conditions. Investing in mortgage-
and asset-backed securities involves interest rate, credit, valuation, extension
and liquidity risks and the risk that payments on the underlying assets are delayed,
prepaid, subordinated or defaulted on. Due to the investment strategy of certain
Funds they may make higher capital gain distributions than other ETFs. Please read
each Fund’s prospectus for specific details regarding each Fund’s risk profile.
Luciano Siracusano and Bradley Krom are Registered Representatives of Foreside Fund
WisdomTree Funds are distributed by Foreside Fund Services, LLC in the U.S. only.
The sources, opinions and forecasts expressed by the investment strategists are
subject to change and should not be considered or interpreted as a recommendation
to participate in any particular trading strategy, or deemed to be an offer or sale
of any investment product, and they should not be relied on as such. The user of
this information assumes the entire risk of any use made of the information provided
herein. Unless expressly stated otherwise the opinion, interpretations or findings
expressed herein do not necessarily represent the views of WisdomTree or any of