(EPS) WisdomTree U.S. Earnings - Ratings and Ratios

The WisdomTree U.S. Earnings 500 Fund (EPS) is designed to track the performance of 500 of the largest U.S. companies, focusing specifically on those that generate earnings. The fund invests at least 95% of its assets in securities that are part of its underlying index or in investments that mimic the economic characteristics of those securities. This approach ensures that the fund stays closely aligned with the performance of the index it follows.

The underlying index is a fundamentally weighted index, meaning it doesnt just rely on market capitalization to determine the weight of each company. Instead, it focuses on the earnings generated by these companies. The index is composed of the 500 largest companies by market capitalization from the WisdomTree U.S. Total Market Index, which itself is a broad measure of the U.S. stock market. This fund, however, narrows the focus to earnings-generating companies, making it a targeted play on the large-cap segment of the U.S. market.

Its important to note that this fund is non-diversified, which means it can invest a larger portion of its assets in a smaller number of companies compared to a diversified fund. This can lead to higher volatility but also allows for the potential of higher returns if the selected companies perform well. The fund falls under the large value ETF category, appealing to investors who are looking for exposure to established companies with strong earnings at potentially undervalued prices.

With an assets under management (AUM) of approximately $1.098 billion, the fund has a significant presence in the ETF market. However, its notable that the fund does not report key valuation metrics such as P/E, P/B, or P/S. This could be because the funds focus is more on the earnings generation of its holdings rather than traditional valuation metrics, which might be less relevant for a fundamentally weighted index.