Wednesday, July 13, 2011

AUSE looks good to me

AUSE was yielding 6.07% yesterday. I bought a hundred shares.

WisdomTree is an ETF provider with a unique take on investing and two very big names attached to the WisdomTree approach: Jeremy Siegel, professor of finance at The Wharton School, and well respected investor Michael Steinhardt.

I'd love to report that WisdomTree has gone great guns since its inception a few years ago, but it hasn't. When times were really rough in the markets, they waffled a bit and fudged their financial algorithms. One WisdomTree ETF based on U.S. stocks saw its investment strategy modified to eliminate all investment in American banks.

Some, of course, see this as reasonable and comforting; The managers react to reality and do not doggedly hold to failing theories. Others see these moves as revealing weaknesses in the basic WisdomTree approach.

Me? I'm a little looser in my demands. WisdomTree strives to deliver solid, dividend-producing companies wrapped up in a nice, tidy ETF bundle. I won't live forever but while I'm alive I need cash flow and WisdomTree is one of the companies I have been turning to.

Lately, I have been hearing and reading good stuff about Australia. When the WisdomTree ETF AUSE dropped yesterday to just under $59, I bought a hundred shares. I need a minimun of four percent yield to live and I'm betting that AUSE will deliver this and more. At the moment, it yields 6.07 percent.

Be aware that AUSE has a number of risks attached, currency risk for one, and I'd do some Internet searches before following my lead. But I like it and if it drops substantially in the coming weeks, I'll average down. If it climbs in value, I'll just smile and cash my dividend.

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