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

 The strategy's investment process inspires confidence and earns a High Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in volatility exposure and liquidity exposure compared with category peers. High volatility exposure is attributed to companies with a higher standard deviation of returns. And a high liquidity exposure is rooted in stocks with higher trading volumes, lending managers more flexibility. 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

Toll Brothers

American Airlines

Unum

PBF Energy

Dick's Sporting Goods

Ally Financial

East West Bancorp

AutoNation

SYNNEX

United States Steel

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. WisdomTree U.S. MidCap Earnings Fund earns a High Process Pillar rating. 

The largest contributor to the rating is its parent firm's impressive long-term risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 3.3 stars. This fund tracks an index, which also increases its process rating. Historical data, such as Morningstar's Active/Passive Barometer, shows that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. The parent firm's five-year risk-adjusted success ratio of 54% strengthens the process. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. Their noteworthy success ratio suggests that this firm does well for investors and that this fund may benefit from that.

 This strategy leans toward smaller, higher-growth companies than its average peer in the Mid-Cap Value Morningstar Category. Analyzing additional factors, the managers have continually exhibited a willingness to take risks over the last few years, demonstrated by the portfolio's high volatility exposure. Such stocks tend to rise faster and fall harder than the broad market. High-volatility exposure contributes to stronger performance during bull markets, but often at the cost of losing more during downturns. In recent months, the strategy was more exposed to the Volatility factor compared with its Morningstar Category peers as well. Given the high trading volume of holdings, this strategy has been exposed to liquid assets during these years. Such stocks may have less potential upside than illiquid holdings, but they are easier to trade during market downturns. Compared with category peers, the strategy also had more exposure to the Liquidity factor in the most recent month. In addition, this strategy has favored high-quality stocks compared to peers over the years, which could be a good option for downside risk protection. Though it may trail peers during an economic boom, this orientation contributes to helping it weather periods of economic stress better. In this month, the strategy also had more exposure to the Quality 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 consumer cyclical by 9.0 percentage points in terms of assets compared with the category average, and its energy allocation is similar to the category. The sectors with low exposure compared to category peers are utilities and consumer defensive, underweight the average by 4.4 and 4.2 percentage points of assets, respectively. The portfolio is positioned across 548 holdings and its assets are more dispersed than peers in the category. In particular, 7.2% of the fund’s assets are concentrated in the top 10 fund holdings, compared to the category average's 17.7%.

High

Process

WisdomTree’s equity team is valuable but does not stand out as one of the industry's best, warranting an Average People Pillar rating. There’s a deep bench of five managers listed on the fund. Together, they manage a total of 114 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. MidCap Earnings Fund

EZM tracks an earnings-focused index of US mid-cap stocks.

The WisdomTree U.S. MidCap ETF (EZM) made its debut on 02/23/2007, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Mid Cap Value category of the market.

Is WisdomTree U.S. MidCap ETF (EZM) a Strong ETF Right Now?

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WisdomTree's U.S. Mid-Cap Fund EZM Avoids Peloton Pitfall

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By Brian Manby, Senior Analyst, Research Teenagers can be a handful, but your U.S. mid-cap equity allocation doesn't have to be. On February 23, WisdomTree celebrated the 14th birthday of its U.S. core equity ETF family, and the WisdomTree U.S. MidCap Fund (EZM) got to blow out the candle.

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For the WisdomTree U.S. MidCap Fund ETF, we found that the implied analyst target price for the ETF based upon its underlying holdings is $44.03 per unit.

Surprising Analyst 12-Month Target For EZM The WisdomTree U.S. MidCap Fund ETF

For the WisdomTree U.S. MidCap Fund ETF, we found that the implied analyst target price for the ETF based upon its underlying holdings is $45.09 per unit.

Implied WisdomTree U.S. MidCap Fund ETF Analyst Target Price: $45

For the WisdomTree U.S. MidCap Fund ETF, we found that the implied analyst target price for the ETF based upon its underlying holdings is $45.32 per unit.

Analysts Predict 17% Upside For The Holdings Of The WisdomTree U.S. MidCap Fund ETF

For the WisdomTree U.S. MidCap Earnings Fund ETF, we found that the implied analyst target price for the ETF based upon its underlying holdings is $44.93 per unit.

News for WisdomTree U.S. MidCap Earnings Fund ETF (EZM)