In a statement, AAM said it has decided to work with WisdomTree, an ETF sponsor and index developer, because of its unique, rules-based methodology to weight companies chosen for their ETFs by a measure of fundamental value, instead of stock price alone. WisdomTree ETFs track indexes designed to deliver the return of stock markets weighted by income streams – either the cash dividends companies pay or the earnings they have produced. The company believes this approach to investing corrects a flaw in capitalization weighting that plagues most of today’s ETFs – and offers investors the potential for higher returns, with less risk.
“We’re very pleased to partner with WisdomTree, a highly respected leader in the ETF investment space,” said Andrew S. Williams, President of AAM. “WisdomTree continues to be a major innovative force in the ETF industry and we believe they will offer immense value to our platform and our clients.”