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 9, 2014
Traditional approaches to rising rates are facing new challenges. What are they and what are your alternatives? Find out in our podcast.
Luciano Siracusano, III
Executive Vice President–Head of Sales and Chief Investment Strategist
Fixed Income Strategist
Recorded September 25, 2014.
Past performance is not indicative of future results. You cannot invest directly in an index.
Interest rate data: Bureau of Labor Statistics, as of 9/17/14.
Retail inflow data: Bloomberg, as of 8/31/14.
Coupon: The annual interest rate stated on a bond when it's issued. The coupon is typically paid semiannually. This is also referred to as the "coupon rate" or "coupon percent rate."
Basis point: 1/100th of 1 percent.
Floating Rate Security: A debt instrument with a variable interest rate usually tied to a benchmark rate such as the US Treasury Bill Rate or the London Interbank Offered Rate.
"ETFs": Exchange-traded funds
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 liquid assets.
"Fed": Federal Reserve
Tapering: A shift in monetary policy by which the Federal Reserve would begin decreasing the amount of bonds it purchases.
Tightening: Refers to the Federal Reserve enacting monetary policies that have the overall impact of reducing the availability of credit, which is widely thought to have the potential to slow economic growth.
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.
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.
Federal Funds Rate Data: Bloomberg.
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.
Hedge: Apply strategies meant to mitigate the impact of currency movements on equity returns.
Futures/Futures Contract: Reflects the expected future value of a commodity, currency or Treasury security.
Barclays U.S. Aggregate Index: 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.
Active manager: Portfolio managers who run funds that attempt to outperform the market by selecting those securities they believe to be the best.
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.
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 Services, LLC.
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 its affiliates.