Robert Coleman

Concerns With the New Wisdom Tree ETFs

Theory is missing from the data-driven analysis of fundamental indexation. The fatal problems with dividends and certain other so-called fundamental metrics for either selecting stocks or weighting stocks in a portfolio have been analyzed with theory in mind. To avoid excessive repetition here, the full analysis can be found at the following webpage.

At numeraire.com/download... there are documents about the fatal fallacy of dividends and other factors: WSJ letter; WSJ article; WSJ.com article, and blogs. The WSJ letter to the editor is a response to the WSJ Op-Ed article, which in turn is a response to the WSJ.com Commentary article. These documents are supported by two published articles also available at the numeraire.com webpage: IJEB in June, 2005; and AEF in May, 2006.

To facilitate fair, open discussion about this matter among interested persons, one of the linked documents (labeled "blogs") at the numeraire.com webpage includes comments by bloggers. I trust this conforms to fair use pursuant to The Chicago Manual of Style, 14/e.