Global leader in currency-hedged ETFs brings innovation and flexibility to its flagship strategies
- WisdomTree, issuer of the world’s largest currency-hedged ETFs, has added multiple share classes of its UCITS ETFs covering currency hedges in Europe’s major currencies of GBP, CHF and Euro.
- In addition to currency hedged classes, unhedged versions of WisdomTree’s most popular ETFs will also be offered.
- The three funds offering this new choice for investors include WisdomTree Japan Equity UCITS ETF (DXJ), WisdomTree Europe Equity UCITS ETF (HEDJ) and WisdomTree German Equity UCITS ETF (DXGP).
- Since their first launch in May 2015, these three funds have accumulated over $135m in assets with HEDJ becoming WisdomTree Europe’s fastest growing fund, which now stands at $79m.
London, Wednesday, 04 November 2015: WisdomTree, the exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor, and the world’s largest currency-hedged ETF issuer by AUM, today announced significant added flexibility and innovation to its suite of currency-hedged UCITS ETFs with the launch of multiple new share classes across a range of its existing hedged currency funds.
New share classes will be available for the existing ranges of WisdomTree Japan Equity UCITS ETF – USD Hedged (DXJ), WisdomTree Europe Equity UCITS ETF – USD Hedged (HEDJ) and WisdomTree German Equity UCITS ETF – GBP Hedged (DXGP) and will be listed on the London Stock Exchange (LSE).
In addition to the hedged share classes, unhedged share classes will also be offered. These ETFs will allow investors to access core export-oriented strategies relating to Japanese, Continental European and German equities in a new way.
“WisdomTree is pleased to bring additional benefits for investors through new share classes. Following the launch in May of these flagship currency hedged ETFs, investor demand has led us to bring increased choice and flexibility to European investors. This increased range of new currency hedges and unhedged share classes fit into the many ways that our clients manage their portfolio currency exposures. We are delighted to bring this greater flexibility and innovation to our core range of UCITS ETFs covering Japanese, Continental European and German equities,” said Hector McNeil, Co-CEO of WisdomTree Europe. “In addition investors will have the opportunity to switch efficiently between share classes, allowing them to maintain their core equity exposure whilst offering the flexibility to implement their view of currency movements”.
Viktor Nossek, WisdomTree Europe’s Director of Research said:
“Quantitative easing (QE) programs by the ECB and the BoJ remain a key theme dominating both Continental Europe and Japanese equity markets and investors approach to managing currency exposure and investments. These strategies deliver exposure to export oriented equities while offering protection from local currency movements. By hedging exposure to the potential currency weakness as a result of QE, investors may more fully benefit from the bullish sentiment in European and Japanese equity markets driven by a QE-led environment.”
With WisdomTree’s platform of currency-hedged ETFs now offering more choice to European investors, the potential to switch between share classes also brings multiple benefits to investors which include reduced costs when switching between share classes, increased liquidity as AUM in the underlying fund grows, greater choice for investors as WisdomTree indices are unique to WisdomTree, and investment efficiency when investing under the same umbrella and fund.
The share classes being made available on the London Stock Exchange are:
|Product Name||LSE code||ISIN||Listing Currency||Base Currency|
|WisdomTree Japan Equity UCITS ETF – GBP Hedged||DXJP||IE00BYQCZF74||GBP||GBP|
|WisdomTree Japan Equity UCITS ETF – JPY Acc||DXJZ
|WisdomTree Japan Equity UCITS ETF – JPY Acc||DXJG||IE00BYQCZN58||GBP||JPY|
|WisdomTree Europe Equity UCITS ETF – GBP Hedged||HEDP||IE00BYQCZQ89||GBP||GBP|
|WisdomTree Europe Equity UCITS ETF – EUR Acc||HEDF||IE00BYQCZX56||EUR||EUR|
|WisdomTree Europe Equity UCITS ETF – EUR Acc||HEDG||IE00BYQCZX56||GBP||EUR|
|WisdomTree Germany Equity UCITS ETF – USD Hedged||DXGE||IE00BYQCZ682||USD||USD|
|WisdomTree Germany Equity UCITS ETF – USD Hedged||DXGG||IE00BYQCZ682||GBP||USD|
|WisdomTree Germany Equity UCITS ETF – EUR Acc||DXGY||IE00BYQCZC44||EUR||EUR|
|WisdomTree Germany Equity UCITS ETF – EUR Acc||DXGZ||IE00BYQCZC44||GBP||EUR|
DXJ – WisdomTree Japan Equity UCITS ETF – USD Hedged
DXJ is designed to offer broad exposure to the Japanese equity market – with a tilt toward exporters, that may stand to benefit from a depreciating yen – while hedging the currency fluctuations between the value of the Japanese YEN (JPY) to the U.S. dollar.
- DXJP is designed to offer broad exposure to the Japanese equity market while hedging the currency fluctuations between the value of GBP to JPY.
- DXJZ, listed in USD and DXJG, listed in GBP are designed to offer unhedged broad exposure to the Japanese equity market
DXJ provides exposure to the same Index as the Company’s flagship U.S.- listed ETF with more approximately $16.4 billion in assets under management. (23.10.15)
HEDJ – WisdomTree Europe Equity UCITS ETFs – USD Hedged
HEDJ is designed to offer broad exposure to Euro-zone equities, while hedging the currency fluctuations between the value of the Euro to the U.S. dollar.
- HEDP is designed to offer broad exposure to the Euro-zone equity market while hedging the currency fluctuations between the value of GBP to EUR.
- HEDF, listed in Euros and HEDG, listed in GBP, are designed to offer broad unhedged exposure to the Euro-zone equities.
HEDJ provides exposure to the same Index as the Company’s flagship U.S.- listed ETF with approximately $19.9 billion in assets under management. (23.10.15)
DXGP WisdomTree Germany Equity UCITS ETF – GBP Hedged
DXGP is designed to offer broad exposure to the German equity market, while hedging the currency fluctuations between sterling and the euro. This was the first hedged German equity ETF to be listed in Europe.
- DXGE listed in USD and DXGG listed in EUR provide exposure to German equities while hedging currency fluctuations between USD and EUR.
- DXGY, listed in Euros and DXGZ, listed in GBP, provide unhedged exposure to German equ
Germany is generally considered a strong exporting country, and exposure to companies with more of a global revenue base may be attractive during periods of Euro currency weakness, as exporting organisations become more competitive overseas.
Notes to Editors
About WisdomTree Europe Ltd.
WisdomTree Investments, Inc., through its subsidiaries in the U.S. and Europe, including WisdomTree Europe Ltd based in London, 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 $57.6 billion (as of 29 October 2015) 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.
The investment objective of WisdomTree’s new ETF currency hedged and unhedged share classes is based on the following main funds:
The WisdomTree Japan Hedged Equity UCITS ETF – USD Hedged tracks the WisdomTree Japan Hedged Equity Index, the Index is designed to provide exposure to Japanese equity markets while at the same time neutralizing exposure to fluctuations of the Japanese Yen movements relative to the U.S. dollar. In this sense, the Index “hedges” against fluctuations in the relative value of the yen against the U.S. dollar. The Index is designed to have higher returns than an equivalent non-currency hedged investment when the yen is weakening relative to the U.S. dollar. Conversely, the Index is designed to have lower returns than an equivalent unhedged investment when the yen is rising relative to the U.S. dollar. The Index consists of dividend-paying companies incorporated in Japan and traded on the Tokyo Stock Exchange that derive less than 80% of their revenue from sources in Japan. By excluding companies that derive 80% or more of their revenue from Japan, the Index is tilted towards companies with a more significant global revenue base.
The WisdomTree Europe Equity UCITS ETF – USD Hedged tracks the WisdomTree Europe Hedged Equity Index. The Index is designed to provide exposure to European equities while at the same time neutralizing exposure to fluctuations between the Euro and the U.S. dollar. In this sense, the Index “hedges” against fluctuations in the relative value of the Euro against the U.S. dollar. The Index is based on dividend paying companies in the WisdomTree DEFA Index that are domiciled in Europe and are traded in Euros, have at least $1 billion market capitalization, and derive at least 50% of their revenue in the latest fiscal year from countries outside of Europe. The component securities are weighted in the Index based on annual cash dividends paid with the following caps: maximum individual position capped at 5%, maximum sector weight capped at 25%, and maximum country weight capped at 25%.
The WisdomTree Germany Hedged Equity Index is designed to provide exposure to Germany equity markets while at the same time neutralising exposure to fluctuations of the Euro movements relative to the British pound. In this sense, the Index “hedges” against fluctuations in the relative value of the Euro against the British pound. The Index is designed to have higher returns than an equivalent non-currency hedged investment when the Euro is weakening relative to the British pound. Conversely, the Index is designed to have lower returns than an equivalent unhedged investment when the Euro is rising relative to the British pound. The Index consists of dividend-paying companies incorporated in Germany and traded on German Stock Exchanges that derive less than 80% of their revenue from sources in Germany. By excluding companies that derive 80% or more of their revenue from Germany, the Index is tilted towards companies with a more significant global revenue base. The Index was established with a base value of 200 on 30 April 2013 and is calculated in British pounds.
WisdomTree Europe Ltd is an appointed representative of Mirabella Financial Services LLP which is authorised and regulated by the Financial Conduct Authority.
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.
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.