WisdomTree launches GBP and EUR hedged share classes of US Equity Income UCITS ETF
Thursday 08th December '16
Zurich, Thursday, 8 December 2016: WisdomTree, the exchange-traded fund ("ETF") and exchange-traded product ("ETP") sponsor today announced the listing of GBP and EUR hedged accumulating share classes for the WisdomTree US Equity Income UCITS ETF on the SIX Swiss Exchange. These new share classes combine the benefits of WisdomTree’s unique dividend weighting methodology applied to high yielding US equities and the management of currency risk through a monthly currency hedge.
Because the US makes up a large allocation of global benchmarks, European investors end up with a large exposure to US equities. Whilst plain beta exposures have been popular, there has been an increasing trend to focus on more sophisticated fundamentally weighted investment strategies. WisdomTree’s US Equity Income UCITS ETF has delivered higher risk adjusted returns relative to the S&P 500 over the past year. The index, which is uniquely positioned for an alternatively dividend weighted strategy, has a live track record of over 10 years and has delivered above average returns and lower risk compared to the S&P 500.
Recent macro events, ranging from Brexit, Quantitative Easing and the expected increase of interest rates in the US, have reminded investors of the importance of managing currency exposure and the ability to efficiently hedge out currency risk. These share classes provide sophisticated Swiss investors with an effective solution and add to the broad range of currency hedged share classes that WisdomTree provides investors in Switzerland.
“WisdomTree is well known for providing differentiated strategies in the currency hedging space. These new share classes are a perfect example of WisdomTree’s ability to deliver client-focused solutions in the current market environment,” said Nizam Hamid, ETF Strategist. “In addition to providing a hedge against currency risk, these accumulating share classes allow investors to benefit from the compounded returns in dividend-based strategies.”
&lldquo;Managing currency risk – as witnessed through recent moves in the Sterling and Euro – and delivering operational benefits is WisdomTree’s focus for investors,” said Morgan Lee, Head of European Distribution. “These additional share classes are also a reflection of the positive feedback we’ve heard from investors who want effective solutions and efficient share class structures in the current challenging market environment.”
|Fund||Ticker||ISIN||Listing Currency||Base Currency|
|WisdomTree US Equity Income UCITS ETF - GBP Hedged Acc||DHSG||IE00BD6RZZ53||GBP||GBP|
|WisdomTree US Equity Income UCITS ETF - EUR Hedged Acc||DHSF||IE00BD6RZW23||EUR||EUR|
About WisdomTree Europe Ltd.
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. 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 $38.8bn (as of 31 October 2016) 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.
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