WisdomTree’s Latest ETF Targets Large Cap Quality Growth

Global asset manager WisdomTree Inc. launched its latest U.S. exchange-traded fund Thursday, a large cap quality growth ETF that provides investors with a portfolio of companies it says have the potential for profitability. 

The WisdomTree U.S. Quality Growth Fund (QGRW) attempts to capitalize on both growth and quality, with the ETF's investment strategy targeting companies that have rising stock prices to support future profitability. Companies that exhibit poor performance and low profitability are excluded. 

“QGRW aims to provide exposure to the growth factor by avoiding the worst profitability growth stocks that have historically had the worst returns,” WisdomTree associate director of research Matt Wagner told ETF.com.  

QGRW comes with an expense ratio of 0.28%. WisdomTree currently manages $56.5 billion in assets in the U.S., according to a company release. 

The launch is part of a growing list of funds for the company, which started with funds tracking dividend strategies and dividend-weighted indexes. 

The ETF tracks the firm’s WisdomTree U.S. Quality Growth Index, which consists of the top 100 U.S. companies measured by market cap and ranked on a composite score that equally weighs their quality and growth. Investors can gain exposure to companies that operate on high profitability, which is determined by an estimate of future earnings and trailing sales growth, according to the firm.  

Currently, the fund’s biggest holdings include Apple Inc., Microsoft Corp. and Alphabet Inc., which make up 12.58%, 11.07% and 7.11%, respectively, of QGRW’s portfolio. 

The fund lists on the NYSE Arca and brings the firm’s U.S.-based ETF lineup to 79. 

Disclaimer: ETF.com’s parent company ETFS Capital, in partnership with Lion Point Capital, owns 13.5% of WisdomTree’s common stock. 

Contact Zoya Mirza at [email protected]