NEW YORK, April 7, 2014 (GLOBE NEWSWIRE) -- WisdomTree (Nasdaq:WETF), an exchange-traded fund ("ETF") sponsor and asset manager, today announced the WisdomTree Europe Hedged Equity Fund (HEDJ) recently surpassed $1 billion in assets. HEDJ is designed to provide exposure to European dividend-paying exporters, while hedging out the movements of the euro relative to the U.S. dollar.
Positioning For Future European Central Bank (ECB) Action and Exporters Tied to Global Growth
While the Eurozone's year-over-year gross domestic product (GDP)1 growth rate turned positive for the first time in two years,2 there are increasing calls for the ECB to take further actions to support the recovery in Europe. Inflation levels in Europe have been trending downwards3 and the ECB may feel compelled to help prevent declining inflation from turning into deflation, or declining price levels.
Targeting Pure European Equities by Hedging Out the Euro
When an unhedged investment is made in foreign securities, the investor is not only taking on the equity exposure but also the currency risk, potentially increasing the overall volatility of the investment.
"Investors who want to participate in Europe's economic recovery, but are concerned about the fluctuation of the currency should consider the WisdomTree Europe Hedged Equity Fund (HEDJ)," said Jeremy Schwartz, WisdomTree Director of Research. "Currency moves are difficult to predict. Investors should ask themselves: 'Do I want a secondary currency exposure on top of local equity returns?' If there is little cost to hedge, as is currently the case in Europe, we believe taking the risk unhedged should be left to investors with full-faith in the direction of the euro."
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, visit wisdomtree.com. Read the prospectus carefully before investing.
There are risks associated with investing, including possible loss of principal. Foreign investing involves special risks, such as risk of loss from currency fluctuation or political or economic uncertainty. Investments in currency involve additional special risks, such as credit risk and interest rate fluctuations. Derivative investments can be volatile and these investments may be less liquid than other securities, and more sensitive to the effect of varied economic conditions. As this Fund can have a high concentration in some issuers, the Fund can be adversely impacted by changes affecting those issuers. Due to the investment strategy of this Fund it may make higher capital gain distributions than other ETFs. Please read the Fund's prospectus for specific details regarding the Fund's risk profile.
Investments focused in Europe are increasing the impact of events and developments associated with the regions, which can adversely affect performance.
1 Gross domestic product (GDP): The sum total of all goods and services produced across an economy.
2 Source: Eurostat, as of 12/31/2013.
3 Source: Eurostat, 03/31/2013-03/31/2014.
Volatility: A measure of the dispersion of actual returns around a particular average level.
WisdomTree Funds are distributed by ALPS Distributors, Inc.
Jeremy Schwartz is a registered representative of ALPS Distributors, Inc.
WisdomTree® is a New York-based exchange-traded fund ("ETF") sponsor and asset manager. WisdomTree currently offers 62 ETFs across Equities, Fixed Income, Currency Income and Alternatives asset classes. WisdomTree also licenses its indexes to third parties for proprietary products and promotes the use of WisdomTree ETFs in 401(k) plans. WisdomTree currently has approximately $34.0 billion in ETF assets under management. 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 wholly owned subsidiary WisdomTree Asset Management, Inc. WisdomTree Asset Management, Inc. is a registered investment advisor and is the investment advisor to the WisdomTree Trust and the WisdomTree ETFs. The WisdomTree Trust is a registered open-end investment company. Each WisdomTree ETF is a series of the WisdomTree Trust.
Source:WisdomTree Investments, Inc.