WisdomTree, the exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor today announced the listing of a GBP hedged accumulating share class for the WisdomTree US Equity Income UCITS ETF on the London Stock Exchange. This new share class combines the benefits of WisdomTree’s unique dividend weighting methodology applied to high yielding US equities and the management of currency risk through a monthly currency hedge.
Because the US makes up a large allocation of global benchmarks, European investors end up with a large exposure to US equities. Whilst plain beta exposures have been popular, there has been an increasing trend to focus on more sophisticated fundamentally weighted investment strategies. WisdomTree’s US Equity Income UCITS ETF has delivered higher risk adjusted returns relative to the S&P 500 over the past year. The index, which is uniquely positioned for an alternatively dividend weighted strategy, has a live track record of over 10 years and has delivered above average returns and lower risk compared to the S&P 500.
Recent macro events, ranging from Brexit, Quantitative Easing and the expected tightening of interest rates in the US, have reminded investors of the need to be able to efficiently hedge out currency risk. This share class provides investors with an effective solution and adds to the broad range of currency hedged share classes that WisdomTree provides investors in Europe.
“WisdomTree is well known for providing differentiated strategies and currency hedging and this new share class is a perfect example of WisdomTree’s ability to deliver client focused solutions,” said Nizam Hamid, ETF Strategist. “In addition to providing a hedge against currency risk, this accumulating share class allows investors to benefit from the compounded returns in dividend-based strategies.”
“Managing currency risk – as witnessed through recent moves in Sterling as well as delivering operational benefits means that this is an effective solution for the investment and macro challenges faced by our clients,” said Morgan Lee, Head of European Distribution. “This additional share class is also a reflection of the positive feedback we have had from clients wanting to benefit from the efficiency of the share class structure we can offer.”
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About WisdomTree Europe Ltd.
WisdomTree Investments, Inc., through its subsidiaries in the U.S., Europe, Japan and Canada (collectively, “WisdomTree”), is an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset manager. WisdomTree offers products covering equities, fixed income, currencies, commodities and alternative strategies. Through WisdomTree Europe Ltd, it sponsors WisdomTree UCITS ETFs and Boost short and leverage ETPs. WisdomTree currently has approximately $38.8bn (as of 31 October 2016) in assets under management globally. For more information, please visit www.wisdomtree.com.
WisdomTree® is the marketing name for WisdomTree Investments, Inc. and its subsidiaries worldwide.
WisdomTree Europe Ltd is an appointed representative of Mirabella Advisers LLP, which is authorised and regulated by the Financial Conduct Authority. View our Conflicts of Interest Policy and Inventory at www.wisdomtree.eu/cofi.
The products discussed in this document are issued by WisdomTree Issuer PLC (the “Issuer”), an umbrella investment company with variable capital having segregated liability between its funds and organised under the laws of Ireland as a public limited company. The Issuer has been authorised by the Central Bank of Ireland (the “CBI”) as a UCITS pursuant to the European Communities (Undertaking for Collective Investment in Transferable Securities) Regulations, 2003 (as amended) and shall issue a separate class of shares (“Shares”) representing each fund. Investors should read the prospectus of the Issuer (“Prospectus”) before investing and should refer to the section of the Prospectus entitled “Risk Factors” for further details of risks associated with an investment in the Shares. Any decision to invest should be based on the information contained in the Prospectus and after seeking independent investment, tax and legal advice.
The Shares are products involving a significant degree of risk and may not be suitable for all types of investor. Any decision to invest should be based on the information contained in the Prospectus. The price of any securities may go up or down and an investor may not get back the amount invested. Past performance is not a reliable indicator of future performance. Any historical performance included in this document may be based on back testing. Back testing is the process of evaluating an investment strategy by applying it to historical data to simulate what the performance of such strategy would have been. However, back tested performance is purely hypothetical and is provided in this document solely for informational purposes. Back tested data does not represent actual performance and should not be interpreted as an indication of actual or future performance.
This document may contain independent market commentary prepared by WTE based on publicly available information. WisdomTree Europe does not warrant, guarantee or otherwise confirm the accuracy or correctness of any information contained herein and any opinions related to product or market activity may change. This marketing information is intended for professional clients & sophisticated investors (as defined in the glossary of the FCA Handbook) only.
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