ETFs: Saviors in Crises, Treated Like Pariahs
In the conclusion to our series addressing common misconceptions about ETFs and smart beta, we touch on the myth of ETFs causing systematic issues due to their illiquidity.
Read the article
WisdomTree Insights
View all WisdomTree insights in the Smart Beta category.
What Global Correlations Mean for Portfolio Construction & Smart Beta
Quantitative easing liquidity world average correlations have been dropping in the U.S., and we see similar patterns globally, especially in Europe and Japan. How should investors account for this when constructing their portfolios?
Read the article
When “Data Mining” Dates to the Eisenhower Administration
The third part of our four-part series addressing common misconceptions about ETFs and smart beta covers supposed data mining in smart beta.
Read the article
Defense Mechanisms: Calling Quarter-Century Trends a Fad
This is part two of a four-part blog series addressing the attacks on smart beta and ETFs . Today we touch on the faulty argument that ETFs are a fad that creates herding, bubbles and dangerous...
Read the article
Debunking Myths about Smart Beta and ETFs
In the first part of our series addressing common misconceptions about ETFs and smart beta, we discuss the supposed academic consensus that the only recourse for investors frustrated with active management is to turn to market capitalization-weighted index funds.
Read the article
Are Factors Losing Their Edge?
I’ve recently read several articles from a variety of sources that caught my eye. The common thread of these articles was that return factors—those that have shown a propensity to outperform the market over time—have been losing their ability to outperform. Does the data back this up?
Read the article
Strong Buy Signal: EM Valuation Gap vs. S&P 500
Given several years of diverging returns between U.S. and emerging market equities, it should come as no surprise that EM equities currently trade at a discount to U.S. equities. The size of that discount, however, is something that we feel is not being fully appreciated by many investors.
Read the article
Fixed Income Smart Beta: An Evolutionary Tale
The emergence of what is called “smart beta” in the equity arena has certainly garnered its share of headlines, but this movement in fixed income is just gaining momentum and promises to be the next step in the evolution of solutions for bond market investing.
Read the article
WisdomTree’s New U.S. Multifactor Index: The Quest for Alpha
Over 10 years ago, WisdomTree pioneered an income-tilted indexing strategy designed to provide broad beta exposure with alpha potential. Today we believe that it may be possible to generate greater excess return over time by taking on greater active risk and concentrating index holdings in stocks that have greater exposure to the factors that have historically been associated with excess return.
Read the article
Don’t Overlook Developed International Small Caps
Why don’t more investors utilize the full market capitalization size spectrum (large cap, mid-cap and small cap) when looking at international opportunities? Many may believe the risk/return trade-offs simply aren’t beneficial.
Read the article
Is the “Trump Trade” Finished?
Compared to the start of 2017, developed international markets are shifting from negative to more positive expectations. U.S. expectations were very positive and may be shifting to become more negative. Tapping into this shift with developed international small caps could bring helpful diversification into your small-cap allocation.
Read the article
What Is the Beta for Smart Beta?
The terms “smart beta” and “factor investing” have taken the industry by storm of late. At the same time, recent fiduciary pressures and the serial underperformance of actively managed strategies versus beta have been shepherding investors away from active management and into passively managed ETFs.
Read the article