NEW YORK, July 21, 2015 (GLOBE NEWSWIRE) -- WisdomTree (NASDAQ:WETF), an exchange-traded product (“ETP”) sponsor and asset manager, today announced the launch of the WisdomTree Strong Dollar U.S. Equity Fund (USSD) and WisdomTree Weak Dollar U.S. Equity Fund (USWD) on the NYSE Arca. USSD seeks to minimize exposure to companies with significant revenue from exports that are vulnerable to a strengthening U.S. dollar. USWD seeks to maximize exposure to companies with significant revenue from exports that may benefit from a weakening U.S. dollar. USSD and USWD each has an expense ratio of 0.33%.
The U.S. Dollar Performance Impacts Domestic Equities
Diverging global monetary policies brought currency-hedged strategies into focus for many investors as they took note of how currency fluctuations affected their international investments. However, currency fluctuations are also important to the U.S. market, as movements of the U.S. dollar can impact the results of domestic companies.
“Not all U.S. equities are the same and the degree their operating results are affected by changes in the U.S. dollar largely depends on if their revenues are derived domestically or internationally. USSD and USWD enable investors to focus on the sectors and companies expected to perform better in strong and weak dollar environments, respectively, while maintaining broad diversification,” said Jeremy Schwartz, WisdomTree Director of Research.
Currency Sensitivity: The Newest Smart Beta Factor
WisdomTree has been a pioneer in the smart beta space since launching its first family of fundamentally weighted ETFs in 2006. USSD and USWD introduce a new smart beta category that provides unique U.S. equity factor exposures related to currency sensitivity.
Schwartz added, “Currency sensitivity is an important factor that helps explain portfolio returns. The new Funds are more responsive to the U.S. dollar’s currency movements, providing investors a way to implement a tactical view on the direction of the dollar within U.S. equity exposures.”
The Funds USSD and USWD are new and have a limited operating history.
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, please call 866.909.WISE (9473), or visit wisdomtree.com to view or download a prospectus. Read the prospectus carefully before you invest.
There are risks associated with investing, including possible loss of principal. Stocks that previously exhibited a positive correlation in equity performance to a weak U.S. dollar may not do so in the future, which could negatively impact Fund performance. Stocks that previously exhibited a positive correlation in equity performance to a strong U.S. dollar may not do so in the future, which could negatively impact Fund performance. A Fund that has exposure to one or more sectors may increase the Fund’s vulnerability to any single economic or regulatory development. This may result in greater share price volatility. Please read the Funds’ prospectus for specific details regarding the Funds’ risk profile.
Jeremy Schwartz is a registered representative of Foreside Fund Services, LLC.
WisdomTree Funds are distributed by Foreside Fund Services, LLC.
WisdomTree Investments, Inc., through its subsidiaries in the U.S. and Europe (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 $63.9 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.
Source:WisdomTree Investments, Inc.