HDWM Targets International Dividend Payers While Hedging Foreign Currency Exposure
AGGY Offers Barclays U.S. Aggregate Index-Based Bond Strategy While Enhancing Income Potential
NEW YORK, July 09, 2015 (GLOBE NEWSWIRE) -- WisdomTree (NASDAQ:WETF), an exchange-traded product (“ETP”) sponsor and asset manager, today announced the launch of the WisdomTree International Hedged Equity Fund (HDWM), and the WisdomTree Barclays U.S. Aggregate Bond Enhanced Yield Fund (AGGY) on the NYSE Arca. HDWM seeks to provide exposure to dividend-paying companies in the developed world, excluding Canada and the United States, that pay regular cash dividends while neutralizing exposure to fluctuations of the foreign currencies relative to the U.S. dollar. AGGY seeks to provide broad exposure to the U.S. investment grade, fixed income securities market through the Barclays U.S. Aggregate Enhanced Yield Index while seeking to enhance yield within desired risk parameters and constraints. HDWM has an expense ratio of 0.35% and AGGY has a net expense ratio of 0.12%[1].
HDWM: The Power of International Dividends
Approximately half of the world’s investment opportunities are outside of the United States[2] —the majority of which are dividend-paying stocks within 21 developed markets. For the last nine years, The WisdomTree DEFA Fund (DWM) has provided investors with the opportunity to capitalize on international companies and help magnify the impact dividends have on performance. HDWM provides another tool for investors to access broad exposure to income generating stocks without the additional currency exposure.
“Income generating strategies are critical for many investors, and we believe investments like HDWM, are attractive ways to generate income, especially in a low-yielding, low-return environment characterized by volatility and uncertainty,” said Jeremy Schwartz, WisdomTree Director of Research.
HDWM offers access to the same stock selection and rebalancing methodology as DWM while hedging the foreign currency movements. “Currency exposure is a separate and distinct source of risk. For investors without an opinion on currency direction, HDWM provides the opportunity to reduce uncertainty over future currency moves and volatility by mitigating the impact of 12 distinct foreign currencies,” added Schwartz.
AGGY: Redefining Income Potential
The Barclays U.S. Aggregate Index[3] is the leading market benchmark for fixed income investors. However, it currently provides some of the lowest levels of income potential and highest levels of interest rate risk in its history[4].
AGGY allows investors the potential to enhance yield and remain within the constituents of the Barclays U.S. Aggregate Index, avoiding exposure to non-investment grade debt. AGGY targets a yield-enhanced approach, which retains the Barclays U.S. Aggregate’s key characteristics and broad volatility profile of a balanced fixed income portfolio.
“As investors increasingly look for ways to boost the income potential of their portfolios, AGGY provides the opportunity to do so within core fixed income, while continuing to benefit from the diversification of a multi-sector portfolio,” said Rick Harper, WisdomTree Head of Fixed Income & Currency.
The Funds HDWM and AGGY are new and have a limited operating history. Hedging can help returns when a foreign currency depreciates against the U.S. dollar, but can hurt when the foreign currency appreciates against the U.S. dollar.
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. To the extent the Fund invests 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 Fund’s exposure to certain sectors may increases its vulnerability to any single economic or regulatory development related to such sector. The Fund uses various strategies to attempt to minimize the impact of changes in foreign currency against the U.S. dollar, which may not be successful. 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.
Fixed income investments are subject to interest rate risk; their value will normally decline as interest rates rise. Fixed income investments are also subject to credit risk, the risk that the issuer of a bond will fail to pay interest and principal in a timely manner, or that negative perceptions of the issuer’s ability to make such payments will cause the price of that bond to decline. Investing in mortgage- and asset-backed securities involves interest rate, credit, valuation, extension and liquidity risks and the risk that payments on the underlying assets are delayed, prepaid, subordinated or defaulted on.
Due to the investment strategy of the Funds, they may make higher capital gain distributions than other ETFs. Please read the Funds’ prospectus for specific details regarding the Funds’ risk profile.
Jeremy Schwartz is a registered representative of Foreside Fund Services, LLC.
Rick Harper is a registered representative of Foreside Fund Services, LLC.
WisdomTree Funds are distributed by Foreside Fund Services, LLC.
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About WisdomTree
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 $61.5 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.
[1] The Fund's gross expense ratio of 0.20% and the net expense ratio of 0.12% reflect a contractual waiver of 0.08% through 12/31/16.
[2] Based on the MSCI ACWI Index, a broadly recognized global benchmark, universe, as of 3/31/15; Source: Bloomberg.
[3] Barclays U.S. Aggregate Index: Represents the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, as well as mortgage and asset backed securities.
[4] Source: Barclays, as of 5/31/15.