WisdomTree High-Yielding Equity Fd (ETF) (AMEX:DHS)

Buffettosky (< 20) Submitted: 11/22/2006 10:42:37 AM : Start Price: $47.89 DHS Score: -7.65

Index Back Testing: Annualized Historical Return of 14.69% for past 10 years vs. 11.20% for S&P (as of 9/30/06). Fund relies on new investment approach: dividend weighted indexing. Jeremy Siegel and others argue that market cap weighting is a thing of the past (relies on efficient markets theory). Backtesting research demonstrates dividend weighted indexes outperform market cap-weighted indexes (as experience has shown us, stocks become overvalued all the time, disproving the efficient markets hypothesis). The tech and dot.com bubble of the 90s is a recent example of this. For more info on this very interesting indexing approach, see: wisdomtree.com