WisdomTree DEFA High-Yldg Eqty Fd (ETF) (AMEX:DTH)

DangerMoguls (63.32) Submitted: 3/1/2007 3:15:03 PM : Start Price: $48.51 DTH Score: -28.74

I read about Jeremy Seigel's research on the Noisy Market Hypothesis last year. He clearly has the horsepower and knowledge to come up with new ideas like using fundamentals as a way to weight stocks in an index.

I've looked at other types of index weighting in the past -- Rydex Equal Weighted S&P500 comes to mind. But that was just another form of market cap weighting, which struck me as not much of an improvement.

In the case of fundamentals weighting, I think WisdomTree and Seigel have found an idea that will improve returns over traditional indexes/ETFs -- your investment will be weighted into those companies that have a history of performing. As any dividend yield play is, DTS will be somewhat defensive.

Lastly, any international investment is a play on the fall of the US Dollar, which I believe will fall over the next couple of years.