USMF: A Smarter Diversification Strategy
Discover how our U.S. Multifactor Fund, USMF, offers balanced exposure to key factors in the mid- and large-cap U.S. equity markets, providing a smarter solution to market concentration challenges.
In today's investment landscape, the challenge of market concentration cannot be ignored. With the top holdings of the S&P 500 Index accounting for an increasing percentage of its weight, we believe the benefits of diversification start to diminish, pushing investors to seek smarter solutions.
The WisdomTree U.S. Multifactor Fund, ticker USMF, offers balanced exposure to academically researched factors within the mid- and large- cap universes of U.S. equities, including value, quality, momentum, and low correlation. Each security within USMF is selected based on a multifactor score, with a weighting that emphasizes less volatile stocks, thus aiming to enhance potential risk-adjusted returns. Unlike traditional equal-weighted strategies, USMF seeks to maintain higher profitability characteristics and cheaper valuations compared to the broader market. It rebalances quarterly, adhering to a disciplined, rules-based approach that incorporates a momentum factor to help avoid the pitfalls of anti-momentum rebalancing. For those seeking a diversified yet focused strategy for portfolios, USMF provides a robust framework that balances risk and opportunity, ensuring exposure to stocks demonstrating positive exposure across a variety of robust factors.
For more information, visit WisdomTree.com/USMF.
