Evolving U.S. Fed and Central Bank Policies in Japan and United Kingdom Highlight Efficacy of Currency Hedged Exposure
DXJS Targets Japanese Small Caps for Domestic Demand
DXPS in Focus as Governor Mark Carney Assumes Leadership of Bank of England
NEW YORK, June 28, 2013 (GLOBE NEWSWIRE) -- WisdomTree (Nasdaq:WETF), an exchange-traded fund ("ETF") sponsor and asset manager, today announced the launch of the WisdomTree Japan Hedged SmallCap Equity Fund (DXJS) and the United Kingdom (U.K.) Hedged Equity Fund (DXPS) on the NASDAQ Stock Market. DXJS is designed to provide exposure to small capitalization stocks within Japanese equity markets while hedging exposure to the yen. DXPS is designed to provide exposure to United Kingdom equity markets while hedging exposure to the British pound.
Following U.S. Federal Reserve Chairman Ben Bernanke's June 19 statements on potential Fed tapering purchases of U.S. bonds, interest rates rose and the U.S. dollar strengthened on expectations of an improving U.S. economy. Bernanke seems to have signaled the period of extraordinary monetary accommodation in the U.S. is coming to an end.
A rising U.S. economy should prove supportive for global markets, but may create headwinds for foreign currencies relative to the dollar. WisdomTree believes investors should consider how volatility in foreign exchange rates may impact their international investments. With today's launch, WisdomTree now offers currency hedged strategies for three of the world's most important currencies: the euro, yen and pound.
Accessing "Abenomics" – A Small Cap Consumer Growth Strategy
Thus far in 2013, the depreciating Japanese yen has been a boon to the country's large exporters, a trend the WisdomTree Japan Hedged Equity Fund (DXJ) is designed to target. More broadly, the three-pronged strategy of fiscal stimulus, monetary stimulus and structural reforms commonly referred to as "Abenomics" is intended to spur economic growth within Japan and strengthen the Japanese consumer base.
"To expand our coverage of Japanese stocks beyond just the exporters, we have designed DXJS to capture the small cap portion of the equity markets that we believe are more levered to local Japan consumption and revenue," said Jeremy Schwartz, WisdomTree Director of Research.
Expanding Currency Hedged Equity Family – New Bank of England Governor Signals Change
The United Kingdom is the third largest market in the MSCI AC World Index1 following the United States and Japan, representing another global market where investors may consider equity exposure without taking on local currency risk.
Schwartz said, "We believe DXPS offers investors a unique way to capitalize on the growth potential of leading global companies in the U.K while hedging exposure to the British pound. Moreover, we believe the upcoming appointment of Mark Carney as Governor of the Bank of England (BOE) represents a potential near-term catalyst, with Carney's reputation as a forward thinking Governor who may enact bold policies to reinvigorate the U.K economy."
|1 The MSCI AC World Index is weighted by market capitalization (share price x number of shares outstanding) and the 3rd largest country exposure would mean that constituents within the United Kingdom represented the third largest total market capitalization relative to the other included countries. As of 5/31/2013. It is not possible to invest directly in an index.|
WisdomTree Currency Hedged Equity Family
With the launch of DXJS and DXPS, WisdomTree now offers four currency hedged equity strategies for the developed world.
|Ticker||Fund Name||Expense Ratio|
|DXJ||WisdomTree Japan Hedged Equity Fund||0.48%|
|DXJS||WisdomTree Japan Hedged SmallCap Equity Fund||0.58%|
|HEDJ||WisdomTree Europe Hedged Equity Fund||0.58%|
|DXPS||WisdomTree United Kingdom Hedged Equity Fund||0.48%|
Investors should carefully consider the investment objectives, risks, charges and expenses of the Funds 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 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. Funds focusing their investments on certain sectors and/or smaller companies increase their vulnerability to any single economic or regulatory development. This may result in greater share price volatility. The Funds focus their investments in Japan, the United Kingdom or Europe, thereby increasing the impact of events and developments in Japan or the United Kingdom that can adversely affect performance. Investments in currency involve additional special risks, such as credit risk, interest rate fluctuations, derivative investments which can be volatile and may be less liquid than other securities, and more sensitive to the effect of varied economic conditions. As the Funds can have a high concentration in some issuers, the Funds can be adversely impacted by changes affecting those issuers. Due to the investment strategy of certain Fund's they may make higher capital gain distributions than other ETFs. The Europe Hedged Equity Fund invests in derivative which can be volatile and these investments may be less liquid than other securities, and more sensitive to the effect of varied economic conditions. Please read the Funds' prospectus for specific details regarding the Funds' risk profiles.
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 50 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 $27.7 billion in ETF assets under management. For more information, please visit www.wisdomtree.com or follow us on Twitter @WisdomTreeETFs.
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Source:WisdomTree Investments, Inc.