On Thursday, WisdomTree Investments, Inc. (NASDAQ: WETF), an trade traded fund (ETF) and exchange-traded product (ETP) sponsor and asset supervisor, introduced the launch of the WisdomTree U.S. Progress & Momentum Fund (WGRO) on the NASDAQ inventory trade. WGRO seeks to trace the value and yield efficiency, earlier than charges and bills, of the O’Neil Progress Index™, and has an expense ratio of 0.55%.
“An aggressive-growth funding technique might include considerably greater volatility,” defined Jeremy Schwartz, International Head of Analysis at WisdomTree. “The WisdomTree U.S. Progress & Momentum Fund goals to unravel this problem by in search of to seize the upside of an aggressive development portfolio whereas trying to restrict the draw back threat after the market tops and corrects, which is traditionally inherent with development investing. We wished to supply a technique constructed for investor allocations to mid- and large-capitalization U.S. development shares to construct their portfolios additional.”
WisdomTree is using a proprietary index created by O’Neil International Advisors, Inc. in its development of the WisdomTree U.S. Progress & Momentum Fund, which goals to enhance the timing of entry factors throughout small pullbacks and keep away from holding shares which are prolonged. In in search of to trace the O’Neil Progress Index, WGRO is anticipated to give attention to constructive relative energy and, in consequence, doesn’t plan to stay invested in sectors and industries which are considerably lagging the market. As an alternative, WGRO anticipates investing in sectors, industries, and shares that may be seen as market leaders.
“The important thing benefit of the O’Neil Progress Index is its use of proprietary technical elements, which seeks to keep away from shares which are prolonged and have been deemed by the elements as being prone to appropriate or fall in worth,” mentioned Randy Watts, Chief Funding Officer at O’Neil International Advisors. “We’re excited to be collaborating with WisdomTree to supply traders in search of an aggressive funding technique and supply traders an investable portfolio that accesses our revolutionary O’Neil Progress Index.”
WGRO: What’s Underneath the Hood?
WisdomTree’s U.S. Progress & Momentum Fund makes use of O’Neil’s Progress Index in its choice course of, which incorporates the highest 50 to 100 shares as decided by every firm’s rating, throughout the next 4 elements:
- The pullback issue seeks to extend publicity to steady development names with constructive current worth motion.
- The volatility issue seeks to decrease the long-term visibility of the portfolio and barely enhance the publicity to massive cap and worth shares.
- The Datagraph Score™ seeks to extend publicity to corporations with development traits and is a proprietary O’Neil ranking primarily based on a formulation that assigns weights to varied elements.
- The hotness issue seeks to lower publicity to corporations prone to have excessive speculative curiosity by measuring the shares’ current change in quantity in contrast with historic averages.
“For the final decade, momentum was synonymous with development investing, however as a consequence of worth inventory efficiency over the past six months, many momentum methods now have a major worth bent to their underlying portfolios, impacting traders who allocate to worth on a standalone foundation already.”
“WGRO is anticipated to have a constant development orientation in establishing its portfolio as a result of O’Neil proprietary elements included into its Progress Index, together with the Datagraph Score specifically,” Schwartz added.
For extra data, go to www.wisdomtree.com.
Learn extra on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.