WisdomTree Launches Flagship Currency-Hedged ETFs on the London Stock Exchange, Borsa Italiana and Xetra
Wednesday 20th May '15
Hector McNeil, Co-CEO
WisdomTree Launches Flagship Currency-Hedged ETFs
on the London Stock Exchange, Borsa Italiana and Xetra
Thought leader in currency-hedged ETFs brings flagship strategies to European Investors
- WisdomTree, issuer of the world’s largest currency-hedged ETFs, lists its flagship currency-hedged strategies in Europe
- WisdomTree Japan Equity UCITS ETF – USD Hedged (DXJ) provides exposure to Japanese equities while hedging the currency fluctuations between the value of the Japanese yen to the U.S. dollar
- WisdomTree Europe Equity UCITS ETF – USD Hedged (HEDJ) provides exposure to Continental European equities while hedging the currency fluctuations between the value of the euro and the U.S. dollar
London, Milan & Frankfurt, 20 May 2015: WisdomTree, an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor, and the world’s largest currency hedged ETF issuer by AUM, today announced the launch of the WisdomTree Japan Equity UCITS ETF – USD Hedged (DXJ) and the WisdomTree Europe Equity UCITS ETF – USD Hedged (HEDJ) listed on the London Stock Exchange (LSE).
“WisdomTree, the world’s largest currency-hedged ETF issuer, is pleased to make two of WisdomTree’s most successful strategies available to European investors with the listing of two new UCITS ETFs - DXJ and HEDJ,” said Hector McNeil, Co-CEO of WisdomTree Europe. “Moreover, our research shows developed world equities such as Japan and Europe tended to perform better during periods of weakening currency.”
For the first time, WisdomTree Europe will be listing these ETFs within the UK, Italy and Germany on the same day:
N.B we listed DXGP on 14 May 2015, only on the London Stock Exchange
Viktor Nossek, WisdomTree Europe’s Director of Research said:
“Continental European and Japanese equity markets continue to benefit from the ECB’s and BoJ’s quantitative easing program, which has triggered the devaluation of the euro and the yen and is playing into the hands of export oriented companies whose stock prices have risen on the back of it. HEDJ and DXJ are designed to offer investors exposure to European and Japanese exporters respectively, while seeking to offer protection against downside risk from the euro and yen depreciating relative to the U.S. dollar. By hedging the potential for currency weakness as a result of QE, investors may more fully benefit from the bullish sentiment in European and Japanese equity markets driven by a QE-led environment.
DXJ – WisdomTree Japan Equity UCITS ETF – USD Hedged
DXJ is designed to offer broad exposure to the Japanese equity market – with a tilt toward exporters, that may stand to benefit from a depreciating yen – while hedging the currency fluctuations between the value of the Japanese yen to the U.S. dollar.
DXJ is based on the same Index as the Company’s flagship U.S.- listed ETF with more than $17.2 billion in assets under management tracked against it.
HEDJ – WisdomTree Europe Equity UCITS ETFs – USD Hedged
HEDJ is designed to offer broad exposure to Euro-zone equities, while hedging the currency fluctuations between the value of the euro to the U.S. dollar.
HEDJ is based on the same Index as the Company’s flagship U.S.- listed ETF with more than $19.5 billion in assets under management tracked against it.
WisdomTree is the world’s largest provider of currency-hedged ETFs, with approx. $38 billion in assets under management in currency-hedged ETFs.
With the launch of DXJ and HEDJ, WisdomTree Europe now has a total of ten UCITS ETFs listed on the LSE. There are eight UCITS ETFs listed on Borsa Italiana and the Deutsche Börse Xetra platform.
 DXJ is designed to track the WisdomTree Japan Hedged Equity Index. Assets Under Management, as of 14 May 2015
 HEDJ is designed to track the WisdomTree European Hedged Equity Index. Assets Under Management, as of 14 May 2015
Notes to Editors
About WisdomTree Europe Ltd.
WisdomTree Investments, Inc., through its subsidiaries in the U.S. and Europe, including WisdomTree Europe Ltd based in London, is an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset manager. WisdomTree offers products covering equities, fixed income, currencies, commodities and alternative strategies. Through WisdomTree Europe Ltd, it sponsors WisdomTree UCITS ETFs and BOOST short and leverage ETPs. WisdomTree currently has approximately $61.1 billion in assets under management globally. For more information, please visit www.wisdomtree.com.
WisdomTree® is the marketing name for WisdomTree Investments, Inc. and its subsidiaries worldwide.
Investment objective of WisdomTree’s new ETFs:
The WisdomTree Japan Hedged Equity UCITS ETF – USD Hedged tracks the WisdomTree Japan Hedged Equity Index, the Index is designed to provide exposure to Japanese equity markets while at the same time neutralizing exposure to fluctuations of the Japanese Yen movements relative to the U.S. dollar. In this sense, the Index "hedges" against fluctuations in the relative value of the yen against the U.S. dollar. The Index is designed to have higher returns than an equivalent non-currency hedged investment when the yen is weakening relative to the U.S. dollar. Conversely, the Index is designed to have lower returns than an equivalent unhedged investment when the yen is rising relative to the U.S. dollar. The Index consists of dividend-paying companies incorporated in Japan and traded on the Tokyo Stock Exchange that derive less than 80% of their revenue from sources in Japan. By excluding companies that derive 80% or more of their revenue from Japan, the Index is tilted towards companies with a more significant global revenue base.
The WisdomTree Europe Equity UCITS ETF – USD Hedged tracks the WisdomTree Europe Hedged Equity Index. The Index is designed to provide exposure to European equities while at the same time neutralizing exposure to fluctuations between the Euro and the U.S. dollar. In this sense, the Index "hedges" against fluctuations in the relative value of the Euro against the U.S. dollar. The Index is based on dividend paying companies in the WisdomTree DEFA Index that are domiciled in Europe and are traded in Euros, have at least $1 billion market capitalization, and derive at least 50% of their revenue in the latest fiscal year from countries outside of Europe. The component securities are weighted in the Index based on annual cash dividends paid with the following caps: maximum individual position capped at 5%, maximum sector weight capped at 25%, and maximum country weight capped at 25%.
WisdomTree Europe Ltd is an appointed representative of Mirabella Financial Services LLP which is authorised and regulated by the Financial Conduct Authority.
The products discussed in this document are issued by WisdomTree Issuer PLC (the “Issuer”), an umbrella investment company with variable capital having segregated liability between its funds and organised under the laws of Ireland as a public limited company. The Issuer has been authorised by the Central Bank of Ireland (the “CBI”) as a UCITS pursuant to the European Communities (Undertaking for Collective Investment in Transferable Securities) Regulations, 2003 (as amended) and shall issue a separate class of shares ("Shares”) representing each fund.
The Shares are products involving a significant degree of risk and may not be suitable for all types of investor. Any decision to invest should be based on the information contained in the Prospectus. The price of any securities may go up or down and an investor may not get back the amount invested. Past performance is not a reliable indicator of future performance. Any historical performance included in this document may be based on back testing. Back testing is the process of evaluating an investment strategy by applying it to historical data to simulate what the performance of such strategy would have been. However, back tested performance is purely hypothetical and is provided in this document solely for informational purposes. Back tested data does not represent actual performance and should not be interpreted as an indication of actual or future performance.
This document may contain independent market commentary prepared by WTE based on publicly available information. WTE does not warrant, guarantee or otherwise confirm the accuracy or correctness of any information contained herein and any opinions related to product or market activity may change. This marketing information is intended for professional clients & sophisticated investors (as defined in the glossary of the FCA Handbook) only.