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The Markets September 8, 2010
Advisors Asset Management Expands ETF Offerings
By collaborating with WisdomTree Investments, Advisors Asset Management (AAM) will now offer advisers a wider array of exchange-traded funds (ETFs) as part of their investment solutions.
Reported by Nicole Bliman
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.”