The New Year Reset: The WisdomTree U.S. Value Fund

One of WisdomTree’s flagship value Funds made some notable changes at the start of the new year.

The WisdomTree U.S. Quality Shareholder Yield Fund (QSY) was rebranded as the WisdomTree U.S. Value Fund (WTV). In addition, its expense ratio was reduced by 26 basis points (bps), to 12 bps.

While the name of the Fund has changed, its investment objective remains intact and continues to provide exposure to high-quality companies that are cheaply valued relative to their fundamental characteristics.

WTV is currently valued at a steep discount to the Russell 1000 Value and S&P 500 indexes across almost every measure of value, including a more than 30% discount to the value benchmarks on price-to-earnings.

In our view, WTV uses one of the most effective measures of value to select its constituents—shareholder yield. The companies in WTV are returning significant levels of capital, through dividend and buybacks, relative to their market capitalization.

For definitions of terms in the chart above, please visit the glossary.

Just prior to the WTV rebrand, the strategy was reconstituted and rebalanced. This process identifies companies generating excess capital and returning it to shareholders, all while exhibiting superior quality characteristics, like high return on equity as well as attractive profit and cash flow margins.