A CYCLICAL ROTATION TO VALUE
WisdomTree VALUE Proposition

Why Value Strategies Now?

Growth has been outperforming since before the Global Financial Crisis, though its dominance has been wobbly of late. The chart below shows the rolling 10-year performance of the stock market’s highest price-to-earnings (P/E) quintile of US stocks against the lowest P/E quintile. In the decade to February 2021, the most expensive stocks beat the cheapest by 2.5% a year, a differential akin to what was observed at the apex of the Dot-Com bubble


10-Year Annualized Outperformance, High P/E Stocks vs. Low P/E, 7/31/1951 – 1/31/2021

Cumulative Growth Chart

Source: Ken French Data Library, CRSP database, 07/31/1951 – 1/31/2021, with data through 02/26/2021 using WisdomTree's attribution software on the S&P 500 for the final month. Past performance is not indicative of future results.

 

Annualized Performances by Decade

Growth and Value come in and out of fashion. In recent decades, high P/E Growth stocks have tended to get the better of Low P/E Value peers. However, cyclical stocks – those most sensitive to economic activity – may begin to outperform as the world emerges from the Covid-19 recession. If so, Value stocks may be primed for newfound market leadership, as was the case for most of the last 70 years

Cumulative Growth Chart

Sources: Ken French Database, CRSP, from 6/30/1951 - 1/31/2021, with WisdomTree database using S&P 500 for February 2021. *1950s commences with beginning of data (6/30/1951).

Our Value Proposition

Our dividend and core Modern Alpha® ETFs naturally tilt toward Value.

While most ETFs weight stocks by market capitalization, WisdomTree believes fundamentals like dividends and earnings offer a more objective measure of company health. Our core and dividend-oriented Modern Alpha® ETFs weight by fundamentals, providing a natural tilt toward Value that could be beneficial in a post-Covid cyclical recovery.


DES
U.S. SmallCap Dividend Fund
The WisdomTree U.S. SmallCap Dividend Fund provides investors with the growth potential of small companies and the downside risk mitigation dividends can provide.
Details  
2.14%
12-Month Dividend Yield
(As of 03/31/2021)
0.38%
Expense Ratio
06/16/2006
Inception date
DON
U.S. MidCap Dividend Fund
By focusing on dividend payers, the WisdomTree U.S. MidCap Dividend Fund helps investors leverage the outsized growth potential of mid-caps with less downside risk.
Details  
2.06%
12-Month Dividend Yield
(As of 03/31/2021)
0.38%
Expense Ratio
06/16/2006
Inception date
EES
U.S. SmallCap Fund
WisdomTree U.S. SmallCap Fund seeks to track the investment results of earnings-generating small-cap companies in the U.S. equity market
Details  
0.93%
12-Month Dividend Yield
(As of 03/31/2021)
0.38%
Expense Ratio
02/23/2007
Inception date
EPS
U.S. LargeCap Fund
WisdomTree U.S. LargeCap Fund seeks to track the investment results of earnings-generating large-cap companies in the U.S. equity market.
Details  
1.70%
12-Month Dividend Yield
(As of 03/31/2021)
0.08%
Expense Ratio
02/23/2007
Inception date
EZM
U.S. MidCap Fund
WisdomTree U.S. MidCap Fund seeks to track the investment results of earnings-generating mid-cap companies in the U.S. equity market.
Details  
1.15%
12-Month Dividend Yield
(As of 03/31/2021)
0.38%
Expense Ratio
02/23/2007
Inception date
QSY
U.S. Quality Shareholder Yield Fund
The WisdomTree U.S. Quality Shareholder Yield Fund seeks income and capital appreciation by investing primarily in U.S. equity securities that provide a high total shareholder yield with favorable relative quality characteristics.
Details  
1.57%
12-Month Dividend Yield
(As of 03/31/2021)
0.38%
Expense Ratio
02/23/2007
Inception date
Performance is historical and does not guarantee future results. Current performance may be lower or higher than quoted. Investment returns and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.
12-month yield is calculated using the weighted average trailing 12-month distribution yields of the constituents. Funds incepted less than 12 months do not have a trailing 12-month dividend yield.

Please click on a Fund and see the Performance tab for fund standardized performance, and see the Details tab for fund-specifc links for yield, most recent month-end performance and a prospectus.

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