Firm Continues to Grow Multifactor ETF Suite, Adding International and Emerging Market Offerings
WisdomTree’s Modern Alpha™ Approach Combines Pursuit of Outperformance
with Benefits of the ETF Structure
NEW YORK, Aug. 10, 2018 (GLOBE NEWSWIRE) — WisdomTree (NASDAQ: WETF), an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset manager, today announced the launch of two transparent actively managed multifactor ETFs, the WisdomTree Emerging Markets Multifactor Fund (EMMF) and the WisdomTree International Multifactor Fund (DWMF), both listed on the NYSE Arca.
- The WisdomTree Emerging Markets Multifactor Fund (EMMF) seeks to achieve capital appreciation through a transparent actively managed strategy, investing in emerging market equity securities that have the highest potential for returns, based on proprietary measures of valuation, quality, momentum and volatility reduction factors. Currency risk is managed through dynamic currency hedging. EMMF has a net expense ratio of 0.48%.
- The WisdomTree International Multifactor Fund (DWMF) seeks to achieve capital appreciation through a transparent actively managed strategy, investing in developed market equity securities, excluding the U.S. and Canada, that have the highest potential for returns based on proprietary measures of valuation, quality, momentum and volatility reduction factors. Currency risk is managed through dynamic currency hedging. DWMF has a net expense ratio of 0.38%.
“Actively managed strategies are an exciting new frontier for ETFs,” said Jeremy Schwartz, WisdomTree Director of Research. “We believe our Modern Alpha approach represents a new breed of strategies that incorporate the pursuit of outperformance with the benefits of the ETF structure.”
EMMF and DWMF: What’s Under the Hood?
Like the WisdomTree U.S. Multifactor Fund (USMF), which launched in 2017, EMMF and DWMF utilize a proprietary investment strategy which includes blending fundamental and technical factors to create a proprietary stock selection and weighting model. This approach includes screening a broad universe of stocks based on a composite multifactor score, a volatility score, and sector and country overweight and underweight bands, creating a high active share portfolio in pursuit of outperformance.
Schwartz added, “There are many higher-cost actively managed funds that tend to hug the benchmark with modest tilts toward active picks. In contrast, EMMF and DWMF are expected to have an active share greater than 80%, and we believe these differentials, combined with our multifactor model, create an opportunity to add value over time.”
Because developed and emerging market currencies exhibit different liquidity, risk and hedging costs, both EMMF and DWMF will also incorporate a dynamic currency overlay, building upon the dynamic currency hedging strategies already utilized by other WisdomTree ETFs, but with an active approach to evaluating and implementing currency hedge ratios.
Active Share: Active share is a measure of the percentage of holdings in a fund’s portfolio that differs from the benchmark index.
These Funds are new and have limited operating history. Past performance is not indicative of future results.
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 or offshore 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 increase their vulnerability to any single economic or regulatory development. While the Funds are actively managed, each Fund’s investment process is expected to be heavily dependent on quantitative models and the models may not perform as intended. Each Fund invests in derivatives to offset exposure to foreign currencies. The return on a derivative instrument may not correlate with the return of its underlying reference asset. Derivatives can be volatile and may be less liquid than other securities. As a result, the value of an investment in a Fund may change quickly and without warning and you may lose money. Please read the Fund’s prospectus for specific details regarding the Fund’s risk profile.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Funds 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 you invest.
WisdomTree Funds are distributed by Foreside Fund Services, LLC, in the U.S. only.
Jeremy Schwartz is a registered representative of Foreside Fund Services, LLC.
WisdomTree Investments, Inc., through its subsidiaries in the U.S., Europe, Japan and Canada (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 $59.9 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.