Listen to The ETF Store Show every Tuesday at 9am on ESPN 1510 as we cover everything you need to know about Exchange Traded Funds and the world of investing.
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On our most recent radio broadcast, Jeremy Schwartz, WisdomTree’s Director of Research, joined us to discuss WisdomTree’s unique approach to ETFs and the role of emerging market stocks in a well-diversified portfolio. Currently the fifth largest ETF provider with over $30 billion in assets and 53 ETFs covering asset classes around the world, WisdomTree pioneered fundamentally weighted ETFs. While many ETF investors are familiar with the more traditional market cap weighted approach where individual holdings are weighted based on their total market value, fundamentally weighted ETFs (which weight holdings based on factors such as cash dividends paid or company earnings) could offer a more objective way to determine a company’s weighting than stock price alone. On the show, we examined both sides of the debate – one that will only grow louder as more intelligent, or so-called “smart beta”, ETFs proliferate.
In our weekly market update, we continued our discussion on the US debt ceiling debate, examining the potential impact of a government default and outlining the most likely options to resolve this latest political quagmire. We also offered some thoughts on how investors might cope with the resulting market turmoil. In our ETF spotlight segment, we delved into the WisdomTree LargeCap Dividend ETF (ticker DLN). This ETF selects the 300 largest US stocks (by market cap) that pay regular cash dividends and then weights those stocks based on the proportionate share of cash dividends each company is projected to pay over the coming year. This approach can result in a higher quality tilt than you might find from other dividend focused ETFs simply looking at dividend yield. Learn more about DLN and other WisdomTree ETFs by visiting etfbuzz.com.
