WisdomTree Lists Two Emerging Markets UCITS ETFs on London Stock Exchange
Wednesday 19th November '14
Nik Bienkowski, Co-CEO
Launch includes Europe’s first small-cap dividend-weighted emerging markets equity ETF
- WisdomTree Emerging Markets Equity Income UCITS ETF (DEM)
- WisdomTree Emerging Markets SmallCap Dividend UCITS ETF (DGSE)
- WisdomTree smart beta platform now totals six dividend-weighted UCITS ETFs offering broad equity exposures with potential for higher dividend income
London, 19 November 2014: WisdomTree, an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor, and pioneer of dividend-weighted ETFs, today announced the launch of two UCITS ETFs listed on the London Stock Exchange (LSE). This brings the total to six ETFs listed on the LSE within the past four weeks. Due to increasing global demand for exposure to ‘smart beta’ and emerging markets, WisdomTree is pleased to list two innovative investment strategies providing access to these themes.
WisdomTree’s two new ETFs are:
|Fund Name|| LSE
|WisdomTree Emerging Markets Equity Income UCITS ETF||DEM||0.46%||5.5%|
|WisdomTree Emerging Markets SmallCap Dividend UCITS ETF||DGSE||0.54%||4.1%|
|Fund Name||LSE Ticker||TER (p.a.)|| Index
|WisdomTree Europe Equity Income UCITS ETF||EEI||0.29%||5.7%|
|WisdomTree Europe SmallCap Dividend UCITS ETF||DFE||0.38%||3.9%|
|WisdomTree US Equity Income UCITS ETF||DHS||0.29%||3.6%|
|WisdomTree US SmallCap Dividend UCITS ETF||DESE||0.38%||3.6%|
The establishment of WisdomTree’s European business marks a number of firsts for the European ETF industry. WisdomTree becomes Europe’s first ETF provider focused on dividend-weighted ETFs and Europe’s first issuer of dividend-weighted small-cap ETFs.
WisdomTree is Europe’s first ETF provider focused on dividend-weighted ETFs and Europe’s first issuer of dividend-weighted small-cap ETFs including Europe’s first emerging markets small-cap dividend-weighted ETF.
As with the first four WisdomTree ETFs listed on 24 October 2014, the ETFs are Irish-domiciled and physically replicated, with underlying shares held with State Street, a global leading custodian and administrator. One of the world’s leading ETF market makers, KCG Europe, will act as market maker for the products.
WisdomTree ‘Smart Beta’ Dividend Indices
The two new emerging markets funds track proprietary WisdomTree indices which have been live since 2007. The indices are designed to be an alternative to market capitalisation-weighted indices, which weight stocks on price alone. We believe the major flaw with market capitalisation-weighted indices is that as stocks increase in price, their weight in the index increases and vice versa, as stocks decrease in price, their weight in the index decreases.
Learn more about Our Dividend Approach to Equities.
Built on a Compelling Track-Record
A smart beta innovator, WisdomTree pioneered the concepts of fundamentally weighted ETFs and active ETFs, and is currently an industry leader in both categories. WisdomTree launched its first funds in 2006 and is currently the eighth largest ETP provider globally with strategies spanning a wide range of asset classes and countries around the world. WisdomTree is the only independent, publicly traded asset manager focused exclusively on the ETP market. WisdomTree is headquartered in New York and its common stock is listed on the Nasdaq Global Select Market (symbol: WETF). WisdomTree approaches Europe with the same core focus: bringing innovation and differentiated investment solutions to the ETF market.
Nik Bienkowski, Co-CEO of WisdomTree Europe commented:
“We are extremely proud to expand WisdomTree’s platform of UCITS ETFs with two new ETFs providing exposure to emerging market small caps and emerging market equity income. WisdomTree’s dividend-weighted Smart Beta ETFs now cover the three major regions of Europe, the US and Emerging Markets. Over the long-term, dividend-weighted indices have the potential to improve risk-adjusted returns.”
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 $39.0 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 two new ETFs:
The WisdomTree Emerging Markets Equity Income UCITS ETF tracks the WisdomTree Emerging Markets Equity Income Index, a fundamentally weighted index that measures the performance of the highest dividend yielding stocks selected from the WisdomTree Emerging Markets Dividend Index. At the index measurement date, companies within the WisdomTree Emerging Markets Dividend Index are ranked by dividend yield. Securities ranking in the highest 30% by dividend yield are selected for inclusion. Companies are weighted in the Index based on annual cash dividends paid.
The WisdomTree Emerging Markets SmallCap Dividend UCITS ETF tracks the WisdomTree Emerging Markets SmallCap Dividend Index, a fundamentally weighted index that measures the performance of primarily small cap stocks selected from the WisdomTree Emerging Markets Dividend Index. Companies included in the Index fall within the bottom 10% of total market capitalisation of the WisdomTree Emerging Markets Dividend Index as of the annual index measurement date. Companies are weighted in the Index based on annual cash dividends paid.
(1) Source: WisdomTree, S&P, as of 30 September 2014. Dividend yields are based on the last 12 months dividends per share.
(2) Source: WisdomTree, Bloomberg, as of 30 September 2014. Dividend yields are based on last 12 months for all four of the underlying indices.