QGRW Profile
The WisdomTree U.S. Quality Growth Fund is designed to track the performance of a market-capitalization weighted index that identifies leading U.S. large-cap and mid-cap companies based on their fundamental growth and quality attributes. The underlying index consists of 100 companies selected for their high composite scores, derived equally from two key factors: growth potential and quality metrics. Growth is assessed through factors such as revenue and earnings growth rates, while quality is evaluated based on profitability, return on equity, and other measures of financial health.
This index employs a systematic approach to capture exposure to high-quality growth stocks, ensuring that selected companies exhibit strong financial performance and robust growth prospects. By focusing on these criteria, the fund aims to provide investors with a portfolio of firms that are expected to deliver superior long-term capital appreciation compared to the broader market. The equal weighting of growth and quality factors ensures a balanced representation of companies that meet both criteria, avoiding a singular emphasis on either factor.
The fund's investment strategy reflects the characteristics of the underlying index, including any industry or sector concentrations. If the index exhibits a significant concentration in specific industries or groups of industries, the fund will mirror this concentration to a similar degree. This approach aims to maintain the index's exposure profile and performance characteristics, providing investors with a portfolio aligned with the index's focus on high-quality growth stocks.
The WisdomTree U.S. Quality Growth Fund is non-diversified, which means that its investments are concentrated in a specific segment of the market, namely U.S. large-cap and mid-cap growth stocks with high quality scores. This concentration can lead to higher volatility and potential risks associated with sector-specific downturns but is intended to offer investors a targeted exposure to premium growth companies. Investors should consider the implications of this concentration and the fund's growth-oriented focus when evaluating its suitability for their investment objectives.
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