Daily ETF Watch: WisdomTree Targets Bonds

January 29, 2016

A recent set of filings from WisdomTree outlines the firm’s plans for a full family of fundamental corporate bond ETFs. The six funds range from very broad approaches to very narrow slices of the U.S. corporate bond space.

The basic methodology followed by the funds screens out bonds with unfavorable fundamental characteristics and then scores the remaining companies based on their valuation and income characteristics, with a higher score leading to a higher weighting in the index. Individual issuer weights in the underlying indexes are capped between 2% and 5%, depending on the fund.

The ETFs and their characteristics are as follows:

The filings did not include expense ratios or tickers, and there was no mention of the exchanges the ETFs will list on.

Contact Heather Bell at [email protected].

Find your next ETF

Reset All