Zurich, Monday, 12 December 2016: WisdomTree, the exchange-traded fund ("ETF") and exchange-traded product ("ETP") sponsor today announced the listing of accumulating share classes for its popular and broadly diversified equity income and smallcap strategies on the SIX Swiss Exchange. Income and dividend related strategies have proven popular with Swiss investors as they tackle the demands of a low return investment environment.
The power of dividends and dividend-related strategies typically emanates from the benefits of compounded returns over longer investment time horizons. Research by MSCI into total returns has shown that over ten years to December 2014, dividend growth and dividend yields have contributed to 78.6% of total returns for the MSCI ACWI index.
WisdomTree’s strategies are uniquely dividend weighted, and we believe they are suitable for investors who are seeking the potential for enhanced risk adjusted total returns. The annual rebalance of the dividend weighted strategies also places an emphasis on reweighting back to fundamental value. The new share classes cover equity income strategies for the US, Europe and Emerging Markets as well as European small caps.
“Investors appreciate that dividend reinvestment can provide substantial benefits to long-term investment strategies and this is especially the case for WisdomTree’s unique dividend weighted approach. These new share classes provide investors with flexibility, as well as adding to operational and fiscal efficiency,” said Nizam Hamid, ETF Strategist. “We believe that providing a choice of both distributing and accumulating share classes allows sophisticated Swiss investors to tailor their investment and income profile.”
“WisdomTree is delighted to evolve our product offering and provide additional solutions for investors that reflect feedback we have received across our Swiss client base,” said Morgan Lee, Head of European Distribution. “We believe these share classes offer a more streamlined and efficient approach to long-term investing, combined with the transparency, liquidity and efficiency of the UCITS ETF structure.”