THE WisdomTree BLOG
At the risk of making a 34-year-old pop culture reference, growth stock fundamentals recall the question first posed by Wendy’s: “Where’s the beef?” As was the case in 1984, when war was declared on McDonald’s and Burger King, there appears to be a lot of “bun” in the U.S. growth stock story, but not a lot of “meat” in their valuations.
A measure of the relationship between active share and fees is the hurdle rate, the amount that active selections have to outperform to cover the MER. If you think about it, this is what really matters in picking a fund or ETF. How do you think about performance?