NEW YORK, Nov. 19, 2015 (GLOBE NEWSWIRE) -- WisdomTree (NASDAQ:WETF), an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset manager, today announced the launch of the WisdomTree Global Hedged SmallCap Dividend Fund (HGSD) on the BATS Exchange. HGSD seeks to provide exposure to dividend-paying, small-capitalization companies in the U.S., developed and emerging markets while neutralizing exposure to fluctuations of foreign currency movements relative to the U.S. dollar. HGSD has an expense ratio of 0.43%.
Capturing Global Small-Cap Dividends
Approximately 50% of the world’s investment opportunities are outside the U.S.—for investors seeking income, international investments in dividend-paying companies offer a new horizon. Leading the way are global small-cap companies that have outperformed their larger counterparts in major time periods for the past twenty years.1 Small caps are often tied to local economic prospects and therefore, more responsive to shifts in local economic cycles and incremental changes in growth expectations.
Currency Adds Risk, Not Returns
“Global dividend-paying equities can offer investors income and growth potential and downside support, but currency is typically a source of added volatility. For investors without an opinion on currency direction, currency-hedged strategies may serve as a better strategic baseline exposure for global equities. HGSD offers investors the opportunity to benefit from a broad array of global small-cap dividend payers while neutralizing exposure to currency,” said Jeremy Schwartz, WisdomTree Director of Research.
WisdomTree: a Leading Innovator in Currency-Hedged & International Small-Cap ETFs
WisdomTree is a pioneer in both international small-cap and currency-hedged equities. With the recent launch of the WisdomTree Global SmallCap Dividend Fund (GSD), investors now have the option to accept or hedge currency exposure when investing in dividend funds focused on global small-cap companies.
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.
To learn more about global small-caps, listen to our podcast, Is It Time for Small Caps?
1 Source: WisdomTree, Bloomberg, 1/31/95-9/30/15. Referencing the return difference between the MSCI ACWI Small Cap Index and the MSCI ACWI Large Cap Index.
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. Funds focusing their investments on certain sectors, regions and/or smaller companies increase their vulnerability to any single economic or regulatory development. The Fund invests in the securities included in, or representative of, its Index regardless of their investment merit and the Fund does not attempt to outperform its Index or take defensive positions in declining markets. A Fund that has exposure to one or more sectors may increase the Fund’s vulnerability to any single economic or regulatory development. Please read the Fund’s prospectus for specific details regarding the Fund’s risk profile.
Dividends are not guaranteed and a company currently paying dividends may cease paying dividends at any time.
You cannot invest directly in an index. Index performance does not represent actual fund or portfolio performance. A fund or portfolio may differ significantly from the securities included in the index. Index performance assumes reinvestment of dividends but does not reflect any management fees, transaction costs or other expenses that would be incurred by a portfolio or fund, or brokerage commissions on transactions in fund shares. Such fees, expenses and commissions could reduce returns. WisdomTree, its affiliates and their independent providers are not liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.
Additional Index information is available at www.wisdomtree.com.
Jeremy Schwartz 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 $58.7 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.