TSLA - Shaking Up The Mag 7: EPS Focuses On Earnings Not Size

2024-02-23 17:42:22 ET

Summary

• WisdomTree U.S. Earnings 500 Fund ETF is an earnings-focused fund that offers exposure to the domestic stock market and uses a rules-based approach.
• The EPS exchange-traded fund aims to choose companies based on positive earnings growth while avoiding overexposure to expensive and unprofitable niches.
• EPS has a solid uptrend, but recent momentum readings are not as impressive, making buying on a dip to $51 a reasonable play ahead of March.
• The EPS ETF has historically performed well from April through August.

Much ink has been spilled over the last several years regarding whether to employ a traditional market cap-weighted portfolio or to opt for an equal-weight construct. The difference is important, as the latter version generally offers a tilt toward more cyclical and value-oriented small and mid-sized companies, away from the U.S. mega caps. There are other approaches, though....

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