WisdomTree Fund Family

WisdomTree launched in 2006. They now offer 78 ETFs with AUM totaling $39B. I first learned of them through Jeremy Schwartz, whom I met briefly thanks to Wesley Gray at one of AlphaArchitect’s Democratizing Quant conferences and again at #MFTF last year. Jeremy’s title is Executive Vice President, Global Head of Research. I’ve always found him thoughtful, down-to-earth and very approachable. He’s a Wharton grad, which is probably one reason the firm maintains a close relationship with famed Professor Jeremy Siegel.

The firm espouses a strategy called “Modern Alpha,” which combines “the outperformance potential of active management with all of the advantages of passive management to create ETFs designed to perform.”


Through July nearly 2/3rds of WisdomTree funds have beaten their peers since launch, by 1% annualized on average. As such, WidsomTree earns an “Upper” rating on MFO’s Fund Family Scorecard. It helps that its average ER is just 0.43% annual.

Its family of funds is outperforming numerous other fund families, including AllianceBernstein, BNY Mellon, Brighthouse, Deutchse, Eaton Vance, Federated, First Trust, Global X, Goldman Sachs, Ivy, Mainstay, NorthernTrust, Proshare, Prudential, SunAmerca, Van Eck, Voya, Wells Fargo, Aberdeen, AQR, Guggenheim, ProFunds, Putnam, Russell, and Transamerica.


Below are risk and return metrics on all its funds (3 months or older), since launch through July. You’ll find eight MFO Great Owls, meaning these funds have returned top quintile risk adjusted returns (based on Martin) the past 3, 5, and lifetime years (less than 10 in WisdomTree’s case). The list is sorted first by risk (volatility), lowest to highest, and then by annualized return versus peer, highest to lowest.

Some of its most popular funds by AUM are also the best performing, including WisdomTree US MidCap Dividend (DON), Europe Hedged Equity (HEDJ), US Quality Dividend Growth (DGRW), International SmallCap Dividend (DLS), US MidCap (EZM), International Equity (DWM), US SmallCap (EES), Europe SmallCap Dividend (DFE), and International Hedged Quality Dividend Growth (IHDG).


MFO Ratings Updated Through July 2019

All fund risk and return metrics, ratings, and analytics were uploaded yesterday, reflecting performance through July 2019.

Some highlights and lowlights:

  • Deutsche rebranded from Deutsche Asset Management to DWS, following a similar rebranding to DBX Advisors, the fund family’s advisor. It’s a trend. Why do you think that is? DWS begins its value statement with: “Openness, transparency and accountability …”
  • Some funds actually don’t even bear their company name, like Stock Dividend (SDIVX) and High Income Securities (PCF). No brand whatsoever. Why is that? MFO maintains its own fundname master list in a small attempt at transparency. Our name for PCF is Bulldog High Income Securities, after its advisor, and we preface iShares with BlackRock. We still call Deutsche Deutsche.
  • Our Fund Family Scorecard shows 25 families with 100% records, meaning every fund in those families have beaten their peers since launch. They include perennially good (if not perfect, except in this case) families, like Dodge & Cox, and others that may surprise you.
  • The same tool shows 29 families with 0% records … every fund has underperformed since launch. As a fund company, it’s a designation I would generally not want to advertise. As an investor or financial advisor, I would definitely want to know. The scorecard tracks more than 400 fund families.
  • Speaking of brands: USAA fund family is no more.

As promised, we successfully migrated to a new homepage and user portal. If you have not yet logged-in (not required for Blog page), you can do so via resetting your password here.

As always, if you see anything amiss or have suggestions for improvement, let us know and we will respond soonest.

Please enjoy the latest data and site features!

US Market Over The Long Run

I’ve been thinking a lot lately about how long is long enough to give a strategy the opportunity to prove successful.

Roy Weitz used five years. He founded our predecessor site Fund Alarm. If a fund was in the basement the past 1, 3, and 5 years, he sounded the alarm … designating the fund a “Three Alarm” fund.

If you’re a fund manager that time frame is driven by how long your investors believe in your strategy … how long they stick with you. Setting expectations is key here.

Our US market history, back nearly 100 years, suggests much success in a buy & hold overall market strategy. In fact, based on geometric history, investors in the S&P index can expect a “ten-bagger” every 23 years.

Can you believe that?


Which is why smart folks like Warren Buffett invest for the long run … “in companies you want to hold forever.” Such advice is music to the ears of mutual fund companies.

While it’s very, very hard of make lots of money in the short term, making it over the long haul seems quite achievable given the history of the US market.

But through some 10-plus year stretches (long), the market returned nothing but volatility.

Which means, despite its beautiful long-term climb, investors may not be positively rewarded for their risk if they are unlucky (or unwise) enough to get in at wrong time. But, alas, no one knows ex ante when the wrong time is.

And if you have a more concentrated strategy than say the S&P500, I suspect, the periods could be longer. “Out-of-favor” has become quant-speak for under-performing.

Starting to think that with any long-only equity strategy, the fund (or index) manager in fairness needs probably 10 years. And that’s the time frame they should tell prospective investors.

It seems like a lot to ask, but anything less is probably unrealistic, if not misleading.

Introducing MFO Premium’s New Home Page

Our MFO Premium site has moved!

Well, actually, that’s not the biggest news.

The biggest news is that we’ve adopted several new features that will make our search tools site more friendly and support its growth.

The new website location is: member.mfopremium.com. Shortly, we will simply redirect visitors of current location to make the move transparent.

You should have received an email, entitled “Set Your New Password” from MFO Premium (admin@mfopremium.com). You may need to check your junk mail folder, unless you’ve added us to your “Safe Senders List.” (You can also just go to the site’s Account tab and request a new password.)

You should not notice much difference in our appearance, but behind the curtain, a lot has changed. Principally, we’ve adopted the WordPress website management system platform, which powers more than a third of the websites across the world and offers numerous features to enhance user experience.

The first such feature is a new user portal, which should make it easier for users to subscribe (including corporate accounts with up to 10 sub-accounts), renew/extend, and reset passwords.

Please note that we’ve also adopted a new policy to make all subscriptions non-recurring, but you can extend your subscription at any time and you will receive a renewal email reminder a month before expiration. We find the practice of automatically recurring subscriptions presumptuous.

Finally, to help compensate for any inconvenience our transition may cause, we’ve extended all subscriptions by two months, including expired ones (which will be reactivated for two months).

As always, if you see anything amiss or have suggestions for improvement, let us know and we will respond soonest.

MFO Ratings Updated Through June 2019

All fund risk and return metrics, ratings, and analytics have been uploaded, reflecting performance through June 2019.

Some highlights:

  • markets rebounded in June, S&P 500 up 7.0% and 18.5% year-to-date (YTD); in fact, S&P 500 is up 14.7% annualized the past 10 years, helping make-up for previous lost decade … core bonds also up 6.1% YTD
  • the following funds have smaller assets under management ($250M or less), dual MFO Great Owl and Honor Roll designations, and delivered 20-30% YTD: DF Dent Premier Growth (DFDPX), DF Dent MidCap Growth Inv (DFDMX), YCG Enhanced R (YCGEX), Wasatch Global Opportunities Inv (WAGOX), which Robert Gardiner once managed, and Sarofim Equity (SRFMX), which David profiled in 2014
  • Hodges Capital of Dallas, TX remains in the bottom quintile of MFO’s Fund Family Scorecard … 4 of 5 Hodges’ funds are on MFO’s Three Alarm list
  • added 6, 8, and 9-yr evaluation periods to MultiSearch, bringing total to 42

Plus, encore reminder that we will be introducing a new user portal, which will make it easier for users to subscribe (including corporate accounts with up to 10 users), renew/extend, and reset passwords. It should roll-out this month. Once live, we will be stopping the auto-renewal feature, which we believe has become a presumptive practice.

As always, if you see anything amiss or have suggestions for improvement, let us know and we will respond soonest.

Please enjoy the latest data.

Barron’s Best Mutual Funds You’ve Never Heard Of

Recently, I subscribed to Barron’s, thanks to recommendations from folks on MFO Discussion Board.

Here’s link to sweet piece by Daren Fonda, entitled “The Best Mutual Funds You’ve Never Heard Of.”

The five funds are: Bernzott US Small Cap Value (BSCVX), DF Dent Premier Growth (DFDPX), Conestoga SMid Cap Inv (CCSMX), YCG Enhanced R (YCGEX), and Homestead Value (HOVLX).

Four are MFO Honor Roll funds, two are MFO Great Owls.

Here’s how they look in MultiSearch, launch through May 2019:

Fairholme Rebounding

As this decade comes to a close, legendary investor Bruce Berkowitz appears to be getting things right again. After making ill-timed bets on bank in 2011 and ill-advised bets on Edward Lambert and Sears in the years since, Fairholme is enjoying a resurgence. Much of the turnaround likely do to his speculation in Fannie and Freddie, which have tripled this year. (Story in WSJ today about regulators pressing to turn Fannie and Freddie private again.) Below are the YTD risk and performance numbers of his three funds: FAIRX, FOCIX, and FAAFX. Today’s AUM of $1.4B is perhaps 5% of its peak, when Mr. Berkowitz won Morningstar’s Fund Manager of the Decade in 2010.

The 25-Largest Funds

The 25-largest fund by AUM as of 31 May 2019, shown below along with YTD performance. The top 3 spots are Vanguard, as are 10 of the 25. What were the top 20 in 1999? See post here on Twitter by Morningstar’s Ben Johnson.

MFO Ratings Updated Through May 2019

All fund risk and return metrics, ratings, and analytics have been uploaded, reflecting performance through May 2019.

Some highlights:

  • all 11 sector ETFs retracted in May, most between 7 and 11%, but gains remain strong year-to-date … all positive, most between 7 and 16%
  • 7 of 17 Timothy Plan funds on MFO’s Three Alarm list
  • Dreyfus fund family rebranded to BNY Mellon
  • added 4-year evaluation period to MultiSearch (thank you David)
  • Lipper added several new fund categories, including Emerging Markets Mixed Asset, Frontier Markets, Global High Yield, Short High Yield, Absolute Return Bond, and Real Return … see Definitions/Categories

As always, if you see anything amiss or have suggestions for improvement, let us know and we will respond soonest.

Please enjoy the latest data.

MFO Premium Site Webinar Charts & Video – Wednesday, 15 May 2019

We enjoyed our best webinar day yet with about 50 participants.

I actually wore a tie (ha!) and displayed our new MFO Coffee Mug (thank you David) to mark the progress we’ve made on the site.

Can’t thank you enough for your continued support!

Please find link to charts here.

Please find link to conference video here.

Please feel free to reach-out at any time with questions and suggestions via email (charles@mutualfundobserver.com). We can even schedule a Zoom teleconference at your convenience.