Tomorrow I am scheduled to chat with one of the executives at WisdomTree about their most recent listing which the WisdomTree International Hedged Equity Fund (HEDJ) which is a fund of funds meant to be a broad foreign proxy that is currency hedged.
If the dollar goes up in a meaningful way then the fund will should do much better than other broad based foreign funds and if the dollar goes down in a meaningful way then the fund will likely lag the other broad based foreign funds.
The reason for this post is to ask for your input as to what sorts of things you, as the end user of their product, want them to know. Keep in mind they do a lot with fundamental weighting and also currency products so asking them about a 130/30 fund may not be very fruitful.
I am not trying to create a list of questions so much as relay some sort of consensus concern or question should there be a consensus in the comments I hope you will leave on this post. Companies do take feedback. I used to complain about WisdomTree's funds only paying dividends annually, they soon switched to quarterly and I was given the impression I contributed to the change. While I cannot rule out flattery here, chances are I was not the only one talking about this and they did make a constructive change.
Proud Member Of
Random Roger
© 2009 | Gadget Theme Blogger Template
Original WPtheme By Blogger Template | Converted By Gadget Lover
| Distributed by eFree Blogger Help
Original WPtheme By Blogger Template | Converted By Gadget Lover
| Distributed by eFree Blogger Help
9 comments:
Quarterly payment is important for their new funds as the number of new share holders messes up their payments in the early years.
1 What are the total expense ratio for a fund of funds. This seems very negative to me as I think I would be better off buying the underlying funds.
2. Hedging can be great over the short run, but over the long run this seems like wasted insurance I do not need. dividend funds are long term investments and this seem like another negative to me.
Down the road I think good dividend yielding investments will be absolutely necessary as taxes will become confiscatory. I am very interested in high dividend yield which probably sounds rather odd based on my comments over the last couple of years, but now is not a few years down the road.
SEG
I'm was a very big fan of Wisdom Tree when they first came on the scene, but I wonder now if their fundamental weighting model is living up to its historical precedent. Jeremy Siegel took some body blows for his data analysis last year. Do their etfs in fact deliver higher returns with less risk?
I would like to see 2 ETF's:
MLP ETF with a moderate expense ratio. Their is currently an ETN which is lousy and too expensive.
Preferred ETF that is light on financials.
How about suggesting there is a market for a Norway country fund?
The reason there is an MLP ETN is because partnerships can't be more than 25% of an ETF or open ended mutual fund. They might be able to use the institutional shares of Kinder Morgan and Enbridge to make up for some of the partnership counterparts and use corporations that are MLPs in a different structure. An odd example would be the Oklahoma fund (OOK) which is 60+% energy and lots of them own pipelines.
Preferred stocks are 80% financial. I'd settle for a REIT preferred ETF fund. The tax requirement that ETFs have to pay out 90% of their earnings as "protects" the preferred stock since its paid first.
Roger,
I'd like to see a "tax advantaged" dividend fund made up of some MLPs, corporate pipeline owners and timber companies. The idea is use the tax structure return of capital for timber and pipeline depreciation to make the dividend tax advantaged.
A true frontier fund with NO emerging marekts in it. WisdomTree already has a Gulf fund which is part of the frontier markets. Throw in parts of Africa, Asia, Eastern Europe, "The Stans", Viet Nam, and some small Central American countries etc.
If Van Eck can do a Viet Nam fund and Africa fuds this ought to work.
Global Small Cap with US & Intl stocks: DES + DFE + DFJ + extras from DLS + DGS.
Or ex-US small cap: DFE + DFJ + extras from DLS + DGS.
Odd enough DFE + DFJ has more stocks than DLS even though DLS covers more geography such as Australia and Canada.
A Fabozzi style fixed income fund in short and longer terms:
40% hedged developed market sovereigns
40% unhedged developed market sovereigns
20% USD issued EM bonds
Your link to Abnormal Returns isn't working properly.
Just sayin'.
Post a Comment