WisdomTree US Earnings 500 ETF’s management team is rated Average, but a solid investment process still helps this strategy retain its Morningstar Medalist Rating of Silver. The portfolio maintains a cost advantage over competitors, priced within the least expensive fee quintile among peers.  

 The strategy's sensible investment philosophy merits an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an overweight in liquidity exposure and volatility exposure compared with category peers. High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And high volatility exposure is rooted in stocks that have a higher standard deviation of returns. The strategy’s management team earns an Average People Pillar rating. The strategy's parent organization earns the firm a Below Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Microsoft

Alphabet

Apple

Amazon

JPMorgan Chase & Co

NVIDIA

Exxon Mobil

Berkshire Hathaway Inc. - Ordinary Shares - Class B

Bank of America

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. WisdomTree US Earnings 500 Fund earns an Above Average Process Pillar rating. 

The leading factor in the rating is that this fund tracks an index. Historical data, like Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. The parent firm's impressive risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 3.4 stars, also contributes to the process. Lastly, the process is limited by the experience of the management team, which averages five years at this fund.

 This strategy skews toward smaller, more value-oriented companies than its average peer in the Large Blend Morningstar Category. Looking at additional factor exposure, this strategy has held more highly liquid stocks compared to Morningstar Category Peers in the past few years. Such stocks may have less potential upside than illiquid holdings, but they are easier to trade during market downturns. In recent months, the strategy was more exposed to the Liquidity factor compared with its Morningstar Category peers as well. This strategy has also exhibited a tilt toward high-volatility stocks over these years, meaning it has invested in companies that have a higher historical standard deviation of returns. This is a higher-risk, higher-reward approach. Compared with category peers, the strategy also had more exposure to the Volatility factor in the most recent month. Additionally, this strategy's portfolio has held more stocks with high dividend or buyback yields than peers over recent years. Higher-yield stocks can provide steady income, but also have their risks. Dividend payers may cut payouts, for instance, if their earnings fall. In this month, the strategy also had more exposure to the Yield factor over its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section. 

 The portfolio is overweight in communication services and energy relative to the category average by 4.4 and 3.3 percentage points, respectively. The sectors with low exposure compared to category peers are industrials and technology, underweight the average by 2.7 and 2.5 percentage points of assets, respectively. The portfolio is composed of 500 holdings and its assets are more dispersed than peers in the category. In particular, 32.5% of the strategy's assets are concentrated in the top 10 fund holdings, compared to the category’s 48.8% average. And finally, in terms of portfolio turnover, on a year-over-year basis, 102% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Above Average

Process

WisdomTree’s equity  team is comparable to peers, resulting in an Average People Pillar rating. There’s a deep bench of five managers listed on the fund. Together, they manage a total of 113 strategies, with a Bronze asset-weighted average Morningstar Medalist Rating, demonstrating their potential to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Average

People

WisdomTree is improving, but its shaky global fund lineup and uncertain trajectory hold its rating to Below Average. 

WisdomTree’s research organization has long been a strength. Under CIO Jeremy Schwartz, the team has generated creative, economically sound ideas and evolved them into investable products, like the efficient core series. A recent focus on investor education spawned the Portfolio Analysis Tools Hub, an online platform that taps the team’s brainpower to help investors make better investment decisions.

The firm’s product lineup is a mixed bag. To complement its core lineup of fundamentally weighted strategies, WisdomTree has recently launched funds targeting established factors instead of trendy themes—an encouraging reorientation. Yet the shutdown of WisdomTree U.S. Growth and Momentum ETF calls WisdomTree’s commitment to these funds into question, and vestiges from its laxer product-development era look ripe for closure. Its European lineup features risky trading tools that are hard for investors to use well. 

WisdomTree’s future may hinge on WisdomTree Prime, its blockchain-based digital wallet. The launch reflects founder and CEO Jonathan Steinberg’s conviction in the disruptive potential of the blockchain. Prime shouldn’t hurt WisdomTree fund investors (most funds on the platform are zero-fee), but it may distract the firm from shoring up its core offering.

Below Average

Parent

WisdomTree U.S. Earnings 500 Fund

EPS tracks an earnings-weighted index of the 500 largest US companies that have generated positive earnings in the past calendar year.

A smart beta exchange traded fund, the WisdomTree U.S. LargeCap ETF (EPS) debuted on 02/23/2007, and offers broad exposure to the Style Box - Large Cap Value category of the market.

Is WisdomTree U.S. LargeCap ETF (EPS) a Strong ETF Right Now?

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Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the WisdomTree U.S. LargeCap ETF (EPS), a passively managed exchange traded fund launched on 02/23/2007.

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WisdomTree U.S. Earnings 500 Fund ETF is an earnings-focused fund that offers exposure to the domestic stock market and uses a rules-based approach. The EPS exchange-traded fund aims to choose companies based on positive earnings growth while avoiding overexposure to expensive and unprofitable niches. EPS has a solid uptrend, but recent momentum readings are not as impressive, making buying on a dip to $51 a reasonable play ahead of March.

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By Alejandro Saltiel, CFA, Head of Indexes, U.S.   The current valuation of the S&P 500 Index is at 20 times forward earnings. The below chart, taken from WisdomTree's Daily Market Snapshot, shows this is above the 30-year median but still within 1 standard deviation.

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WisdomTree U.S. Earnings 500 Fund ETF invests in the 500 largest companies in the U.S. stock market, weighted based on earnings. The EPS ETF is less concentrated than the S&P 500 in the technology sector and shows more attractive valuation and quality metrics. EPS has outperformed other value ETFs, but it looks like a watered-down value fund.

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Good morning, VettaFi Voices! Third-quarter earnings announcements have almost come and gone, with yesterday being the last big burst of companies.

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By Brian Manby, CFA, Associate, Investment Strategy To the casual equity market observer, 2023 has been an excellent year. The S&P 500 is up 13.07% through September, while the technology-heavy NASDAQ surged 35%.

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Few market challenges may pose as intriguing a one right now as concentration risk. While inflation and rising rates earn the most media attention and headlines, many portfolios have relied on just 10 or so stocks from the S&P 500, particularly in tech, for their growth.

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Hi VettaFi Voices, we are heading toward the last week of the Q2 earnings season. Now seems like a good time to assess how things have gone so far and what we can expect from next week.

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There were some developments in July that are equally relevant in August. These developments include Q2 earnings release, cooling inflation, upbeat U.S. economic indicators, chances of an upbeat oil market and softer greenback.

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The WisdomTree U.S. LargeCap Fund offers broad U.S. Large Cap equity exposure to profitable companies. The fund's sector allocation is similar to that of the broad market, but with slightly less in the high-growth Information Technology sector and more in the Energy sector. Despite recent underperformance compared to the S&P 500, the fund's technical trends are robust, with a long-term 200-day moving average beginning to turn upward sloping.

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News for WisdomTree U.S. Earnings 500 Fund ETF (EPS)