WisdomTree Launches Germany Currency Hedged Equity UCITS ETF on the London Stock Exchange
Thursday 14th May '15
Hector McNeil, Co-CEO
- WisdomTree Germany Equity UCITS ETF – GBP Hedged (DXGP) is the first German currency hedged equity ETF in Europe
- DXGP provides exposure to German equities while hedging currency fluctuations between the euro and GBP
- DXGP is tilted towards exporters in Germany which may benefit from periods of euro currency weakness
London, 14 May 2015: WisdomTree, an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor, today announced the launch of the WisdomTree Germany Equity UCITS ETF – GBP Hedged (DXGP) on the London Stock Exchange (LSE).
DXGP is a unique ETF, designed to offer broad exposure to the German equity market, while hedging the currency fluctuations between sterling and the euro. This is the first German hedged equity ETF to be listed in Europe. DXGP includes dividend paying companies, which derive less than 80% of their revenue from within Germany, thereby tilting toward exporters. Germany is generally considered a strong exporting country, and exposure to companies with more of a global revenue base should be favourable during periods of Euro currency weakness, as exporting organisations become more competitive overseas.
Hector McNeil, Co-CEO of WisdomTree Europe commented:
“We are really pleased to be listing our first currency hedged ETF on the London Stock Exchange. The WisdomTree Germany Equity UCITS ETF – GBP Hedged (DXGP) is the first German hedged equity ETF in Europe. We also have more than $16m of client seed capital in DXGP, indicating the early interest and demand for the strategy.”
Viktor Nossek, WisdomTree Europe’s Director of Research said:
“The German equity market offers investors a cyclical and high beta play on Europe and the global macro backdrop. DXGP seeks to exploit this investment proposition by focussing on Germany’s export oriented companies. With monetary policy divergences – from the ECB’s quantitative easing policy which is expected to last until 2016, to the BOE likely to follow the Fed in hiking interest rates-the risk of the euro weakening relative to the pound remains high.
Of particular relevance to this strategy, German equities have historically performed better during periods of euro weakness. However, the declining currency can be a drag on total returns for U.K. investors when converting back to the British pound. By hedging its exposure to the euro, DXGP offers a way to more fully access the return potential of German equities in a weakening euro environment.”
With the launch of WisdomTree Germany Equity UCITS ETF – GBP Hedged (DXGP), WisdomTree Europe now has a total of eight physical UCITS ETFs listed on the LSE. WisdomTree specialises in unique ETFs and has $61.1 billion (as of 08 May 2015) of assets under management globally.
|Fund Name||TER (p.a.)|
|DXGP||WisdomTree Germany Equity UCITS ETF - GBP Hedged||0.35%|
|DEM||WisdomTree Emerging Markets Equity Income UCITS ETF
|DGSE||WisdomTree Emerging Markets SmallCap Dividend UCITS ETF||0.54%|
|EEI||WisdomTree Europe Equity Income UCITS ETF
|DFE||WisdomTree Europe SmallCap Dividend UCITS ETF
|DHS||WisdomTree U.S. Equity Income UCITS ETF||0.29|
|DESE||WisdomTree U.S. SmallCap Dividend UCITS ETF
|ISEQ||WisdomTree ISEQ20® UCITS ETF
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 (as at 08 May 2015) 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 ETF:
The WisdomTree Germany Equity UCITS ETF – GBP Hedged (DXGP) tracks the WisdomTree Germany Hedged Equity Index
The WisdomTree Germany Hedged Equity Index is designed to provide exposure to Germany equity markets while at the same time neutralising exposure to fluctuations of the Euro movements relative to the British pound. In this sense, the Index "hedges" against fluctuations in the relative value of the Euro against the British pound. The Index is designed to have higher returns than an equivalent non-currency hedged investment when the Euro is weakening relative to the British pound. Conversely, the Index is designed to have lower returns than an equivalent unhedged investment when the Euro is rising relative to the British pound. The Index consists of dividend-paying companies incorporated in Germany and traded on German Stock Exchanges that derive less than 80% of their revenue from sources in Germany. By excluding companies that derive 80% or more of their revenue from Germany, the Index is tilted towards companies with a more significant global revenue base. The Index was established with a base value of 200 on 30 April 2013 and is calculated in British pounds.
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.