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Author: notehound Big gold star, 5000 posts Top Recommended Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 464959  
Subject: FYI: Not All Index ETFs are Equal Date: 2/11/2013 2:10 PM
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I have been comparing some of my WisdomTree index ETFs with their analogous iShares index ETFs. I noticed that some of the WisdomTree funds have slightly better dividends and/or capital appreciation, even though iShares funds tend to be more liquid (more shares traded daily).

In researching the difference, I found that WisdomTree appears to sometimes use "Fundamental Weighting" as opposed to "Market Cap Weighting." I don't know if this matters to most folks on the board, but it seemed interesting to me.

For anyone interested in index ETFs, the following links compare the various methods of weighting, their pros/cons and some examples of ETFs that utilize each method:

Market Cap Weighted Index

http://valueweightedindex.com/IndexComparison/MarketCapWeigh...

Equally-Weighted Index

http://valueweightedindex.com/IndexComparison/EquallyWeighte...

Fundamentally Weighted Index

http://valueweightedindex.com/IndexComparison/FundamentallyW...

Traditional Value Index

http://valueweightedindex.com/IndexComparison/TraditionalVal...

Value Weighted Index

http://valueweightedindex.com/IndexComparison/ValueWeighted/...
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