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Market-leading ETF manager WisdomTree is now using our proprietary core earnings data to rebalance and weight constituents in WisdomTree’s Domestic Core Indexes, which have a combined $2.5 billion in assets.
Our CEO David Trainer commented, “We are thrilled WisdomTree has collaborated with us to further democratize access to differentiated investment products based on superior data. No other firms can match the diligence of our earnings distortion research because no other firms have the technology to handle the complexity of footnotes. New Constructs adjusts earnings so investors can see true profits free of creative accounting and reporting.”
WisdomTree’s Global Head of Research Jeremy Schwartz commented, “WisdomTree was a pioneer in fundamentally weighted indexing and launched an earnings weighted ETF family in 2007. We believe New Constructs earnings data will be value-added to these earnings weighted strategies by providing a cleaner measure of corporate profits.”
New Constructs technology brings critical and material footnotes research to the market for the first time ever, enabling analysts to measure and predict earnings more accurately and generate more alpha. The Earnings Distortion Scorecard captures all the proprietary adjustments featured in the recent Harvard Business School and MIT Sloan paper and provides daily updates to registered users of the system.
WisdomTree Investments, Inc., through its subsidiaries in the U.S., Europe and Canada (collectively, “WisdomTree”), is an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset manager headquartered in New York. WisdomTree offers products covering equities, fixed income, currencies, commodities and alternative strategies. WisdomTree currently has approximately $61.5 billion in assets under management globally. For more information, please visit www.wisdomtree.com or follow us on Twitter @WisdomTreeETFs. WisdomTree® is the marketing name for WisdomTree Investments, Inc. and its subsidiaries worldwide.
About New Constructs
New Constructs provides insights into the fundamentals and valuation of private and public businesses. Combining human expertise with natural language processing (NLP), machine learning (ML) and artificial intelligence (AI) technologies, the firm’s research shines a light in the dark corners (e.g. footnotes) of hundreds of thousands of corporate financial filings to unearth critical details that drive uniquely comprehensive and independent debt and equity investment ratings, valuation models and research tools. New Constructs technology brings critical and material footnotes research to the market for the first time ever, enabling analysts to measure and predict profits more accurately and deliver more alpha for clients. Elite money managers, advisors and institutions have relied on New Constructs to lower risk and improve performance since 2004. New Constructs and its research have been featured in national business news including CNBC, Wall Street Journal, Barron’s, Forbes, Seeking Alpha, Benzinga and more. Other strategic content partnerships with TD Ameritrade, E*TRADE, Refinitiv/Thomson Reuters, Interactive Brokers and EY enable New Constructs to deliver our investment ratings and research on over 10,000 stocks, ETFs and mutual funds to millions of self-directed investors, financial advisors and corporate executives.
This article originally published on December 17, 2019.
Disclosure: David Trainer, Kyle Guske II, and Sam McBride receive no compensation to write about any specific stock, style, or theme.