THE WisdomTree BLOG
The last few months have certainly given the money and bond markets a lot of divergent news headlines to digest. Not surprisingly, the focus has been on negative rates abroad, geopolitical events and, a bit more recently, some better-than-expected employment news juxtaposed with a softer-than-expected GDP report.
Smart beta exchange-trade funds (ETFs) are rapidly proliferating and capturing assets a faster clip than the broader ETF industry. Dividend strategies are one of the primary drivers of smart beta ETF growth.
Looking around the globe today, with interest rates in Europe and Japan at depressed, even negative yields, global investors are seasrching near and far to achieve positive cash flows from their assets. This global hunt for yields had implications across a variety of asset classes, creating a surprising valuation discrepancy in the U.S. dividend-focus market.