O'Neil Global Advisors Launches Index Tracked by a WisdomTree ETF for Growth Investing

LOS ANGELES, July 7, 2021 /PRNewswire/ -- Innovative investment advisor O'Neil Global Advisors (OGA) announces the launch of the O'Neil Growth Index™, a systematic index based on proprietary growth factors and quantitative research, comprising a long-only portfolio of approximately 70 U.S. high-liquidity large- and mid-cap stocks (Bloomberg symbols OGITR for total return index and OGIPR for price return index).

The constituent weight of each stock in the index is determined by four factors:

• Pullback, a technical factor that measures a stock's long-term momentum versus its short-term mean reversion characteristics, which increases exposure to stable growth names with positive recent price action;
• Volatility, which measures the stock's standard deviation of returns over the past year, which helps lower the long-term volatility of the index while increasing exposure to large-cap and value stocks;
• Datagraph™ Rating, a proprietary O'Neil composite of numerous growth characteristics, including reported earnings, market cap, relative price strength, and others;
• Hotness, a measure of a stock's recent change versus its historical average, which seeks to minimize stocks that are subject to recent speculative action.

The primary challenges in constructing a growth portfolio are identifying early-stage growth and avoiding the inevitable drawdown that many growth stocks have after their run up, so the strategy utilizes these factors to improve the timing of entry points and avoid holding stocks that are extended. This allows investors to capture the upside of a growth portfolio while limiting the risk and volatility normally associated with this investing style. Because of the volatile nature of the growth universe, the index also employs a monthly rebalancing with equal weight to avoid idiosyncratic risk.

The O'Neil Growth Index is tracked by the recently launched WisdomTree U.S. Growth & Momentum Fund (WGRO). "We are excited that we launched one of our first growth index products with the true experts in growth investing," says Jeremy Schwartz, Global Head of Research at WisdomTree. "O'Neil's powerful index seeks to capture the upside of an aggressive growth portfolio while attempting to limit downside risk after the market tops and corrects, offering a potential solution for investors with high-risk portfolios."

"Our collaboration with WisdomTree is the ideal vehicle for us to showcase our growth investing expertise, developed over decades of quantitative research, through an index framework," adds OGA Chief Executive Officer Steven L. Birch. "We look forward to creating another avenue that supports our legacy of innovative strategies that help investors outperform the market."

Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund before investing. To obtain a prospectus containing this and other important information, call 866.909.9473 or visit wisdomtree.com. Read the prospectus carefully before you invest.

There are risks associated with investing, including possible loss of principal. The Fund invests in mid- and large-capitalization companies that provide exposure to a portfolio of high growth and momentum U.S. exchange-listed companies. Securities that exhibit momentum characteristics may be more volatile than the market as a whole. Growth stocks, as a group, may be out of favor with the market and underperform value stocks or the overall equity market. The Fund may experience high portfolio turnover in connection with the rebalancing or adjustment of its Index. The Fund invests in the securities included in, or representative of, its Index regardless of their investment merit. The Fund does not attempt to outperform its Index or take defensive positions in declining markets and the Index may not perform as intended. Please read the Fund's prospectus for specific details regarding the Fund's risk profile.

WisdomTree Funds are distributed by Foreside Fund Services LLC, in the U.S. only. Foreside Fund Services LLC is not affiliated with the other entities mentioned.

Jeremy Schwartz is a registered representative of Foreside Fund Services, LLC.

About O'Neil Global Advisors

O'Neil Global Advisors, Incorporated, a subsidiary of O'Neil Capital Management, Inc., is an SEC investment advisor that develops systematic equity trading strategies and indexes using quantitative modeling and algorithms. The company's data scientists and engineers utilize a database containing more than 100 years of stock market information to build proprietary strategies that employ unique factors to identify stocks poised to generate alpha. O'Neil Global Advisors manages the O'Neil Chameleon, Raven, and Timberwolf strategies in the United States and works with partner companies in India and China to develop strategies for their local equity markets.

Contact:

Paul Gin
+1 310.448.6879
[email protected]

SOURCE O'Neil Global Advisors (OGA)

Related Links

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