WTV ETF

Shareholder yield refers to the amount of cash a company gives back to its investors through buybacks, cash dividends, and paying off debt. Because of this, it's understandable that Warren Buffett values shareholder yield as a way to find solid long-term investments.

As a foundation for index construction and securities selection, shareholder yield is getting more attention. That implies some degree of novelty.

Value over growth style investing is recommended due to crowded Tech sector trade. WisdomTree U.S. Value Fund focuses on shareholder yield through active management for value investing. The portfolio holds diverse positions in sectors like utilities, energy, technology, and financials with high overall shareholder yield.

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.

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.

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.

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.

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.