WisdomTree US Value ETF's Average Process Pillar and People Pillar ratings result in a Morningstar Medalist Rating of Neutral. The portfolio maintains a sizable cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy gets an Average Process Pillar. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position 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

Vistra Energy

AppLovin Corp

Valero Energy

Marathon Petroleum

Synchrony Financial

Builders FirstSource

Discover

Evercore

AXA Equitable Holdings Inc

Marathon Oil

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 Value ETF earns an Average Process Pillar rating. 

The leading factor in 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. Excellent risk-adjusted performance also supports the rating. This can be seen in the fund's five-year alpha calculated relative to the category index, which suggests that the managers have shown skill in their allocation of risk. Lastly, the process is limited by the parent firm's five-year retention rate of 77%, which suggests it could do more to retain its portfolio managers.

 This strategy tends to pick smaller market-cap companies compared with the average fund in its peer group, the Large Value Morningstar Category.  But in terms of style (value/growth) exposure, it does not have much of a bias and resembles the category's typical portfolio. Examining additional factor exposure, this strategy has consistently tilted toward companies with relatively higher trading volumes in the last few years. This gives the managers more flexibility during bear markets to sell without adversely affecting prices. In recent months, the strategy was more exposed to the Liquidity factor compared with its Morningstar Category peers as well. This strategy also has had an overweight bias to the volatility factor over these years, meaning it has owned companies that have a higher historical standard deviation of returns. 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. Compared with category peers, the strategy also had more exposure to the Volatility factor in the most recent month. In addition, this strategy's holdings have included more companies with high dividend or buyback yields than peers over these years. Stocks with high yields can be more stable, mature companies, but at times extreme market pressure or fundamental deterioration may prompt them to cut their dividends, which tends to hurt stock performance. 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 consumer cyclical and energy relative to the category average by 10.2 and 3.2 percentage points, respectively. The sectors with low exposure compared to category peers are healthcare and consumer defensive, underweight the average by 6.7 and 5.4 percentage points of assets, respectively. The portfolio is positioned across 162 holdings and its assets are more dispersed than peers in the category. In particular, 11.2% of the fund’s assets are concentrated in the top 10 fund holdings, compared to the category average's 27.4%.

Average

Process

WisdomTree US Value ETF earns an Average People Pillar rating. Marlene Walker-Smith, the longest-tenured manager on the strategy, provides strong guidance, bringing forward 12 years of listed portfolio management experience. The average Morningstar Rating of the strategies they manage is 3.5 stars, demonstrating above-average risk-adjusted performance compared to category peers. Marlene Walker-Smith draws on a supporting cast of four additional listed managers. Together they average five years of listed portfolio management experience. As a team, they manage 114 investment vehicles together, with a Bronze asset-weighted average Morningstar Medalist Rating, indicating the potential to deliver positive alpha in aggregate. The fund has had about average portfolio manager turnover compared to other teams. Long-term stability strengthens a team's rating as it tends to support positive results. The most recent documented departure was within the past two years. None of the portfolio managers here invest in this fund. This hurts the rating because manager investment would align their interests with the strategy's investors.

 Note: The People Pillar rating is indirectly assigned by an analyst. The longest-tenured manager of the fund also manages a different product rated by an analyst. Their analyst-assigned People Pillar rating is combined here with the People scores (algorithmic or analyst-assigned) for the fund’s other managers on a tenure-weighted basis.

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. Value Fund

WTV is actively managed using a model-based selection process. It aims to identify US large- and mid-cap stocks that provide a high total shareholder yield with quality characteristics.

The WisdomTree U.S. Value Fund seeks to provide investors with above-average income and capital appreciation. The fundamental emphasis on shareholder yield demonstrates WisdomTree's belief that it is one of the most effective measures of value. WTV was rebranded in January 2022 from WisdomTree U.S. Quality Shareholder Yield Fund.

WTV: Value Focused Dividends

By Matt Wagner, CFA, Associate Director, Research   WisdomTree pioneered fundamental weighting as a novel approach to rules-based value investing. Instead of using market capitalization, a company's weight in indexes is based on dividends or earnings.

Shareholder Yield Shines among Value Factors

WisdomTree U.S. Value Fund is an actively managed ETF with a strategy based on shareholder yield and quality metrics. The fund has a well-diversified portfolio with a tilt towards mid-cap companies, consumer discretionary and financials. WTV has attractive valuation and dividend growth metrics, but its quality is average and it has lagged its main competitor in total return since 2017.

WTV: Good Value, But Average Quality And Performance

Experienced advisors and investors know that there are many factor combinations to consider. ETFs amplify this proposition, as there are a slew of dedicated multifactor funds on the market today.

Why Quality and Value Work Well Together

WTV, a shareholder yield-centered actively managed ETF, has been mostly a disappointment since my previous coverage in February 2023. Since the previous article, the portfolio has seen only minor changes, yet there were notable metamorphoses regarding factor story under the surface. I downgrade WTV to a Hold, but not because of its sluggish performance; the culprit is the current market environment and the fund's too-small value exposure.

WTV: Too Small Value Exposure Does Not Justify A Bullish Outlook (Rating Downgrade)

Growth stocks are getting the better of their value rivals this year. Still, that doesn't mean exchange traded funds dedicated to value stocks are delivering losses.

Value ETFs Could Be Worth Revisiting

By Christopher Gannatti, CFA Global Head of Research The first eight months of 2023 have been, in a word, surprising. After a difficult 2022 performance year, across multiple asset classes, growth equities are suddenly back in favor.

It's Time to Look at Value Strategies!

WisdomTree U.S. Value Fund ETF is an actively managed fund focused on dividends, buybacks and quality. It is well-diversified across sectors and holdings.

WTV: A Shareholder Yield ETF With Great Valuation

WTV offers exposure to a carefully calibrated cohort of U.S. stocks sporting substantial shareholder yields backed by robust quality. WTV changed its strategy in the past, abandoning the WisdomTree U.S. LargeCap Value Index in December 2017 and opting for an active approach with a focus on the shareholder yield.

WTV: Excellent Shareholder Yield Fund That Would Appeal To Quality Investors

WisdomTree Europe SmallCap Dividend Fund

WisdomTree Bloomberg Floating Rate Treasury Fund

Investors have a lot on their plate to start a complicated 2023, with conflicting narratives surrounding the Fed, growth, value, and a potential recession in the mix.

WisdomTree Distribution Exec Talks Advisors, Value, Dividends

The Fed has given clear messaging that it's not backing down from interest rate increases any time soon while inflation persists and the jobs market remains robust. As recently as today, Federal Governor Christopher Waller spoke in support of a potential 0.75% increase at the Fed meeting later this month, according to CNBC.

WTV Captures the Companies Aggressively Growing Their Dividends

Sometimes, assessing the market landscape isn't as difficult as it's made out to be. For example, rising interest rates can benefit value stocks while weighing on growth equities.

Weigh In With WTV for Challenging Rate Environment

Volatility has been the name of the game in markets since the end of 2021, and with geopolitical tensions and effects only adding to pandemic constraints on the supply chain and global economy, advisors and investors are feeling the squeeze. Speculative investments have taken an enormous hit in the pivot from growth to value, with [.

Why Buybacks and WTV Work in Bear Markets

Share buybacks among S&P 500 companies surged last year, and more of the same is expected in 2022, with some market observers forecasting record levels of repurchases this year. Some exchange traded funds are dedicated to that theme.

How to Win With Buybacks and Quality

Navigating 2022 has been an exercise in managing volatility.

Stock Buybacks Can Battle The Bear

There are plenty of exchange traded funds offering investors exposure to value stocks while a smaller number are dedicated to the theme of share buybacks. The WisdomTree U.S. Value Fund (WTV) is an example of an ETF that marries both concepts.

WTV: Where to Go for Value, Buybacks

Buybacks reached near peak levels in 2021. Share repurchase programs are opportunistic and anti-dilutive, meaning that buybacks are done at discounted valuations and result in a significant reduction to the number of shares outstanding.

WisdomTree U.S. Value Fund: High Value Buybacks

The exchange traded fund previously known as the WisdomTree U.S. Quality Shareholder Yield Fund (QSY) is no more. WisdomTree overhauled that fund, rebranding it as the WisdomTree U.S. Value Fund (WTV) at the start of this year.

News for WisdomTree U.S. Value Fund ETF (WTV)