EZR Offers Exposure to European Companies Likely to Benefit from Europe’s Local Recovery
EMSD Applies WisdomTree’s Strong Dollar Equity Approach to Emerging Markets
HDRW Targets Global Dividend-Paying Real Estate Companies While Hedging Exposure to Foreign Currencies
NEW YORK, Oct. 29, 2015 (GLOBE NEWSWIRE) -- WisdomTree (NASDAQ:WETF), an exchange-traded product (“ETP”) sponsor and asset manager, today announced the launch of the WisdomTree Europe Local Recovery Fund (EZR), the WisdomTree Strong Dollar Emerging Markets Equity Fund (EMSD) and the WisdomTree Global ex-U.S. Hedged Real Estate Fund (HDRW) on the BATS Exchange. EZR has a net expense ratio of 0.48%1, EMSD has an expense ratio of 0.58% and HDRW has a net expense ratio of 0.43%2.
EZR: Positioning for a European Economic Recovery
EZR seeks to provide exposure to European companies with significant European revenue that are best positioned to benefit from increased growth in Europe.
Jeremy Schwartz, WisdomTree Director of Research, said. “Currently, the sector leading growth in the European economy is local consumption and local demand, not global trade. EZR provides more direct exposure to these European focused businesses. Moreover, typically cyclical sectors3 have exhibited stronger performance during economic recoveries than their defensive counterparts. EZR is designed with this in mind, including exposure to the six sectors most tied to the cyclical growth potential of the European economy. WisdomTree also employs a unique and innovative weighting process—tied to an economic factor exposure-- that tilts weight towards companies that are more sensitive to European economic prospects.”4
EMSD: WisdomTree Takes its Strong Dollar Equity Approach to Emerging Markets
EMSD seeks to provide broad exposure to emerging markets companies that are relatively best positioned for a strengthening U.S. dollar environment. EMSD is designed to avoid commodity centric sectors that are often hurt by a strengthening U.S. dollar, as well as companies in sectors that typically issue the most debt (financials, telecommunications, and utilities). These highly indebted sectors often issue their debt in U.S. dollars and a strengthening U.S. dollar makes the debt harder to pay back, weighing on equity performance. The result is more exposure to emerging market technology and consumer oriented companies, particularly those companies that have a meaningful amount of revenue exposure in the U.S. markets.
Schwartz said, “Knowing that emerging markets currencies can be both volatile and expensive to hedge, WisdomTree strived to create an alternative solution that would focus on stock selection and weighting, and have the potential to perform relatively well in a strong U.S. dollar environment. Like EZR, the innovative weighting methodology in EMSD is tied to an economic factor exposure—in this case the U.S. dollar—that tilts weight towards emerging market companies relatively better positioned for a strengthening U.S. dollar environment.”
EMSD enables investors to focus on the emerging markets sectors and companies expected to perform better in strong U.S. dollar environments while maintaining diversification.
HDRW: New Option in the Search for Income-Generating Solutions
HDRW seeks to provide exposure to global ex-U.S. real estate, dividend-paying companies, while at the same time neutralizing exposure to fluctuations of the value of foreign currencies relative to the U.S. dollar.
Schwartz said, “In the current low interest rate environment, companies focused on real estate activities have the potential to provide attractive income streams and differentiated exposure, relative to broader equities. HDRW offers exposure to these dividend-paying companies, sensitive to real estate activities in both developed and emerging markets, while neutralizing the impact of currency movements against the U.S. dollar."
This is WisdomTree’s first listings on the BATS Exchange.
David Abner, WisdomTree Head of Capital Markets, said, “We are pleased with the innovative exchange-traded fund (ETF) approach and support offered by the BATS Exchange, and we are excited for our first ETF-listings with the exchange.”
1 The Fund's gross expense ratio of 0.58% and the net expense ratio of 0.48% reflect a contractual waiver of 0.10% through 10/31/17.
2 The Fund's gross expense ratio of 0.58% and the net expense ratio of 0.43% reflect a contractual waiver of 0.15% through 7/31/17.
3 Cyclical sectors: Industrials, Materials, Consumer Discretionary, Information Technology, Financials and Energy.
4 The specific economic factor utilized is how closely stocks respond to the European Commission Economic Sentiment Indicator- a forward looking measure of growth in the economy.
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. Foreign investing involves special risks, such as risk of loss from currency fluctuation or political or economic uncertainty. Investments in emerging, offshore or frontier markets are generally less liquid and less efficient than investments in developed markets and are subject to additional risks, such as risks of adverse governmental regulation and intervention or political developments. Investments in real estate involve additional special risks, such as credit risk, interest rate fluctuations and the effect of varied economic conditions. Investments in derivative investments can be volatile, may be less liquid than securities and may be more sensitive to the effect of varied economic conditions. To the extent the Funds invest a significant portion of its assets in the securities of companies of a single country or region, it is likely to be impacted by the events or conditions affecting that country or region. The Funds’ exposure to certain sectors may increases its vulnerability to any single economic or regulatory development related to such sector. The Funds’ invest in the securities included in, or representative of, its Index regardless of their investment merit and the Funds do not attempt to outperform its Index or take defensive positions in declining markets.
Due to the investment strategy of the Funds, they may make higher capital gain distributions than other ETFs. Please read each Fund’s prospectus for specific details regarding each Fund’s risk profile.
Diversification does not eliminate the risk of experiencing investment losses.
Jeremy Schwartz is a registered representative of Foreside Fund Services, LLC.
David Abner 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 $57.6 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.