NEW YORK, Dec. 23, 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 Dynamic Long/Short U.S. Equity Fund (DYLS) and WisdomTree Dynamic Bearish U.S. Equity Fund (DYB) on the BATS Exchange. DYLS offers a stock selection strategy designed to add alpha[1] in the core long stock portfolio, while hedging market drawdowns with a dynamic hedge on the market. DYB also offers a stock selection strategy designed to add alpha in the core long stock portfolio, but is designed to provide “more bearish” net positioning. DYLS and DYB each have a net expense ratio of 0.48%.[2]
Institutional Caliber Alternative Investment Strategies for All Investors
As markets have become more correlated and more volatile, non-traditional alternative investments have become an increasingly popular way to add return potential, while mitigating risk. But the majority of alternative investments typically require substantial investment minimums, have limited liquidity, have higher fees, are structured as partnerships that issue K-1s and are typically only available to institutional or high net worth investors.
Jeremy Schwartz, WisdomTree Director of Research, said, “Data shows that blending a long/short index with traditional equity and bond allocations has improved risk-adjusted returns[3].”
Introducing Liquid Hedge Fund Alternatives in ETF Structure: DYLS and DYB
WisdomTree now offers smart alternative strategies in the ETF structure. These liquid alternative solutions follow rules-based passive indexes, are available to all investors, and provide daily liquidity, lower fees[4], transparency, and potentially more favorable tax treatment.
Schwartz said, “WisdomTree’s strategies challenge the traditional long/short and hedge fund community with systematic, liquid long/short index-based ETFs. DYLS and DYB are designed to generate alpha at the core through quantitative and fundamental stock selection – while also having the ability to hedge market risk dynamically.”
The launch of DYLS and DYB give investors the opportunity to invest in dynamic long/short U.S. equity strategies. DYLS and DYB offer investors:
- Diversification to traditional long only asset classes
- Access to alternative investments with no investment minimums, no sales loads, no lock up periods or redemption fees (ordinary brokerage commissions apply)
- Clear, rules-based strategy
- Full daily transparency of holdings
- Intra-day liquidity
- No K-1 filing[5]—and all the other benefits of ETFs
1 Alpha: Measure of risk-adjusted performance that compares how the constituents move relative to a benchmark.
2 The Fund's gross expense ratio of 0.53% and the net expense ratio of 0.48% reflect a contractual waiver of 0.05% through 12/10/16.
3 Risk-adjusted returns: Returns measured in relation to their own variability. High returns with a high level of risk indicate a lower probability that actual returns were close to average returns. High returns with a low level of risk would be more desirable, as they indicate a higher probability that actual returns were close to average returns.
4 Lower fees compared to median net fee of the Morningstar long/short mutual fund category.
5 Schedule K-1: a tax document issued for an investment in partnership interests.
The Funds DYLS and DYB are new and have a limited operating history. Diversification does not eliminate the risk of experiencing investment losses.
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. The Fund invests in derivatives, including as a substitute to gain short exposure to equity securities. Derivative investments can be volatile, and these investments may be less liquid than other securities, and more sensitive to the effects of varied economic conditions. Derivatives used by the Fund to offset its exposure to market volatility may not perform as intended. The Fund may engage in “short sale” transactions and will lose value if the security or instrument that is the subject of a short sale increases in value. A Fund that has exposure to one or more sectors may increase the Fund’s vulnerability to any single economic or regulatory development. This may result in greater share price volatility. The composition of the respective Index underlying each Fund is heavily dependent on quantitative models and data from one or more third parties and the Index may not perform as intended. 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. Please read the Fund’s prospectus for specific details regarding the Fund’s risk profile.
Neither WisdomTree Investments, Inc., nor its affiliates, nor Foreside Fund Services, LLC, and its affiliates, provide tax advice. Information provided herein should not be considered tax advice. Investors seeking tax advice should consult an independent tax advisor.
Jeremy Schwartz is a registered representative of Foreside Fund Services, LLC.
WisdomTree Funds are distributed by Foreside Fund Services, LLC in the U.S. only.
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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 $55.3 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.