People buy quality products for a reason—and this consumer affinity for quality is the basis of many investment approaches. Higher-quality companies and issuers have consistently performed well across a range of market cycles, especially during times of economic deterioration and recovery. Finding companies with proven track records, sustainable free cash flows and strong balance sheets can help provide downside protection potential and reduce insolvency risks.
WisdomTree QUALITY AND INCOME FAMILY
In today’s world, the economic realities of COVID pandemic have presented current, and potentially future, challenges for many companies. We advocate strongly for a fundamental quality approach throughout all asset classes and believe focusing on quality characteristics such as return on equity (ROE) and return on assets (ROA) can potentially lead to outperformance. Additionally, with Treasury interest rates hovering at all-time lows, investors will need to supplement their income through avenues such as corporate bonds and dividend-playing stocks.
That’s why now may be the time to consider WisdomTree’s family of Quality and Income ETFs.
By focusing on quality characteristics, the WisdomTree U.S. Quality Dividend Growth Fund provides a portfolio of the leading American dividend growers.
Commentaries from Our Thought Leaders
As we head into 2022, many investors are preparing for expected volatility in the latter part of the economic recovery. Against this backdrop, Alejandro Saltiel discusses a potential solution for investors seeking to improve risk-adjust returns in their portfolios.
At WisdomTree, we believe that quality stocks are the cornerstone of equity portfolios, acting as the “all-weather” factor. Pierre Debru explains how quality stocks seek to help investors build wealth for the long term while withstanding the inevitable storms along the way.