The fund selects US stocks with a high "total shareholder yield," which combines dividend yield and share buyback yield. It then applies an additional quality filter based on profitability (return on equity and return on assets), holding roughly 100 to 200 stocks.

It suits investors who want exposure to undervalued value stocks but would rather weigh actual shareholder returns and profitability than rely on a simple low price-to-book approach.

It is an actively managed ETF launched by WisdomTree in 2007.

The fund first screens US large and mid cap stocks with a high total shareholder yield (dividend yield plus buyback yield), then applies a profitability filter based on return on equity and return on assets to determine the final holdings. Rather than a simple valuation screen, it verifies both the ability to return cash flow to shareholders and the quality of earnings.

• Stock selection based on total shareholder yield, combining dividends and share buybacks
• Dual filter using profitability quality indicators (return on equity and return on assets)

Assets under management (AUM) stand at $3.3B, and the expense ratio is 0.12% per year.

Fees are somewhat higher than those of passive ETFs in similar categories. However, unlike simple market cap weighting or low valuation screening, the fund seeks to differentiate itself through stock selection centered on shareholder returns.

US large cap value stocks tend to hold up relatively well against growth stocks when interest rates are rising. Because a portfolio built around shareholder yield carries heavy weights in defensive sectors, financials, and energy, it can also serve as a buffer during periods of market volatility.

Fund flows into value strategy ETFs are highly sensitive to the interest rate environment and the economic cycle. Inflows into value ETFs tend to stand out when concerns about growth stock overvaluation come to the fore or when demand for dividend income rises.

Its main strength is a differentiated strategy that double-checks shareholder returns and profitability, while its main weakness is that, as an actively managed fund, its fees are higher than those of passive funds.

ETFs in the same value category that can be compared include CGDV (Capital Group Dividend Value ETF), DFAT (Dimensional U.S. Value ETF), FVD (First Trust Value Line Dividend ETF), DFSV, and DSTL, as shown in the table, and each differs in expense ratio, strategy, and manager. As direct substitutes, VTV and IVE, which passively track broader US value stocks, are also worth considering, and VBR or IJS are options for those who want to include small cap value stocks as well.

Here are the items to review before investing in WTV. As an active value ETF based on shareholder yield, it is important to check the fee level, the distinctiveness of the strategy, and sector concentration in advance.

Short-term performance gaps can arise during periods when the value style lags the broader market. In addition, changes in the effectiveness of the active management model itself and the cumulative burden of fees should be reviewed when holding for the long term.

By verifying total shareholder yield and profitability at the same time, the fund differentiates itself from a simple low valuation approach. For investors interested in value strategies, it is reasonable to choose after comparing the fee level and strategic fit against passive alternatives.