NEW YORK, Dec. 18, 2013 (GLOBE NEWSWIRE) -- WisdomTree (Nasdaq:WETF), an exchange-traded fund ("ETF") sponsor and asset manager today announced the launch of the WisdomTree Bloomberg U.S. Dollar Bullish Fund (USDU). USDU, which is benchmarked to the Bloomberg Dollar Total Return Index, seeks to provide exposure to the U.S. dollar against a broad basket of developed and emerging market currencies based on global trade flows and liquidity1 measures. USDU is listed on the NYSE Arca and has an expense ratio of 0.50%.
Bloomberg's Index measures the U.S. dollar's performance against a diversified, relevant basket of ten developed world and emerging market currencies with the most liquidity and the largest U.S. trade flows. The Index is adjusted annually to provide a dynamic representation of today's global markets.
"The U.S dollar's value continues to evolve with new economic relationships and changing market dynamics. We believe both trade flows and market liquidity define the value and role of the U.S. dollar in the global economy," said Luciano Siracusano, WisdomTree Chief Investment Strategist. "By benchmarking our fund to Bloomberg's Index, USDU provides investors with a tool to participate in an environment where the U.S. dollar is rising relative to other currencies."
Traditional U.S. dollar benchmarks are based on weighted averages that have remained unchanged for more than 30 years, except for the replacement of legacy currencies with the introduction of the Euro in 1999.2
"Our dollar Index provides investors a new, accurate way to assess, trade or invest in the value of the greenback against major global currencies," said Srikant Dash, Head of Bloomberg Indexes. "By including major U.S. trading partners such as China, South Korea and Mexico, and the highly liquid Australian dollar, our Index represents today's underlying markets. We are pleased that WisdomTree's ETF now offers investors a way to gain this exposure with the launch of USDU."
USDU is packaged into the ETF structure – registered under the Investment Company Act of 19403 with no K-1s4 – to provide an innovative, structural benefit for investors.
1 Liquidity is characterized by the high level of trading activity.
2 Source: Intercontinental Exchange, June 2012.
3 Source: SEC, http://www.sec.gov/about/laws/ica40.pdf.
4 K-1: a tax document that is used to report the incomes, losses and dividends of a business's partners or corporation's shareholders and which is prepared for individuals.
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, call 866-909-9473 or visit wisdomtree.com. Read the prospectus carefully before investing.
This Fund is new and has limited operating history. You cannot invest directly in an index.
For important disclaimers regarding Bloomberg Indexes, please visit http://www.bloombergindexes.com/files/2013/05/Bloomberg-Indexes-Disclaimer.pdf
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. The Fund focuses its investments in specific regions or countries, thereby increasing the impact of events and developments associated with the region or country, which can adversely affect performance. Investments in emerging, offshore or frontier markets are generally less liquid and less efficient than developed markets and are subject to additional risks, such as risks of adverse governmental regulation and intervention or political developments.
Investments in currency involve additional special risks, such as credit risk and interest rate fluctuations. Derivative investments can be volatile and these investments may be less liquid than other securities, and more sensitive to the effect of varied economic conditions. As this Fund can have a high concentration in some issuers, the Fund can be adversely impacted by changes affecting such issuers. Unlike typical exchange-traded funds, there are no indexes that the Fund attempts to track or replicate. Thus, the ability of the Fund to achieve its objectives will depend on the effectiveness of portfolio management. Due to the investment strategy of the Fund, it may make higher capital gain distributions than other ETFs. Although the Fund invests in very short-term, investment grade instruments, the Fund is not a "money market" Fund, and it is not the objective of the Fund to maintain a constant share price. Please read the Fund's prospectus for specific details regarding the Fund's risk profile.
WisdomTree Funds are distributed by ALPS Distributors, Inc. ALPS Distributors, Inc. is not affiliated with Bloomberg.
Luciano Siracusano is a registered representative of ALPS Distributors, Inc.
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About WisdomTree
WisdomTree® is a New York-based exchange-traded fund ("ETF") sponsor and asset manager. WisdomTree currently offers 61 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 $33.6 billion in ETF assets under management. 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 wholly owned subsidiary WisdomTree Asset Management, Inc. WisdomTree Asset Management, Inc. is a registered investment advisor and is the investment advisor to the WisdomTree Trust and the WisdomTree ETFs. The WisdomTree Trust is a registered open-end investment company. Each WisdomTree ETF is a series of the WisdomTree Trust.