WisdomTree (Nasdaq:WETF), an exchange-traded fund ("ETF") and
exchange-traded product ("ETP") sponsor and asset manager, today
announced the WisdomTree Europe Hedged Equity Fund (HEDJ) recently
surpassed $5 billion in assets. HEDJ is designed to provide
exposure to European dividend-paying exporters, while hedging out
the movements of the euro relative to the U.S. dollar.
Divergent Monetary Policy in Europe – Potential for
Currency Weakness
The European Central Bank (ECB) President Mario Draghi is
readying even further monetary policy accommodation in early 2015
to support its fledging growth, while the U.S. economy is gaining
momentum and the U.S. Federal Reserve prepares to hike interest
rates for the first time since rates have been pegged near zero
ever since 2008.
Jeremy Schwartz, WisdomTree Director of Research, said, "As the
Fed begins to tighten its policy stance next year and the ECB
continues to discuss further monetary easing, the euro is poised to
weaken further, versus the U.S. dollar. Yet for investors in Euro
area, this accommodation can provide support to risk assets like
equities."
Currency Hedging Becoming a More Important
Consideration
A greater degree of monetary easing could lead to a greater
degree of currency weakness for the euro and the yen compared to
the U.S. dollar. For example, the difference between MSCI EAFE in
local currency and MSCI EAFE in U.S. dollars has been widening,
starting from July 2014 when the euro depreciated (-8.5%) against
the U.S. dollar.1
Schwartz added, "One of the most important market trends in 2014
has been the rise of the U.S. dollar and the weakening of the euro.
We believe many investors are utilizing hedged equity strategies to
isolate international equity markets without adding the layer of
euro exchange rate risk. We believe the exchange rate risk to be a
critical factor influencing returns and think investors should
concentrate on the local equity opportunities in these regions
without the currency volatility."
The WisdomTree Europe Hedged Equity Fund (HEDJ) - Alone
at the Top
The WisdomTree Europe Hedged Equity Fund (HEDJ) experienced
record November inflows of $1.17 billion,2 and has outperformed a
comparable non-hedged fund by approx. 12.0% over the past
year.3
As of October 31, 2014, HEDJ was ranked the number one fund, by
Morningstar, out of 109 Europe-focused open-ended (OE) mutual funds
and ETFs over the past year based on total return.4 "HEDJ is alone
at the top—in our view illustrating the impact that a depreciating
euro has had on unhedged investment options within this category,"
Schwartz added.
View standardized performance for HEDJ here.
Performance is historical and does not guarantee future results.
Current performance may be lower or higher than quoted. Investment
returns and principal value of an investment will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than
their original cost. Performance data for the most recent month-end
is available at www.wisdomtree.com.
Investors should carefully consider the investment
objectives, risks, charges and expenses of the Fund before
investing. To obtain a prospectus containing this and other
important information, visit wisdomtree.com. Read the prospectus
carefully before investing.
There are risks associated with investing, including possible
loss of principal. Foreign investing involves special risks, such
as risk of loss from currency fluctuation or political or economic
uncertainty. Investments in currency involve additional special
risks, such as credit risk and interest rate fluctuations.
Derivative investments can be volatile and these investments may be
less liquid than other securities, and more sensitive to the effect
of varied economic conditions. As this Fund can have a high
concentration in some issuers, the Fund can be adversely impacted
by changes affecting those issuers. Due to the investment strategy
of this Fund it may make higher capital gain distributions than
other ETFs. Please read the Fund's prospectus for specific details
regarding the Fund's risk profile.
Investments focused in Europe are increasing the impact of
events and developments associated with the regions, which can
adversely affect performance.
The MSCI EAFE Index is a market cap-weighted index composed of
companies representative of the developed market structure of
developed countries in Europe, Australasia and Japan. You cannot
invest directly in an index.
WisdomTree Funds are distributed by ALPS Distributors, Inc.
Jeremy Schwartz is a registered representative of ALPS
Distributors, Inc.
WIS007070 (12/2015)
About WisdomTree
WisdomTree Investments, Inc., through its subsidiaries in the
U.S. and Europe (collectively, "WisdomTree"), is an exchange-traded
fund ("ETF") and exchange-traded product ("ETP") sponsor and asset
manager headquartered in New York. WisdomTree offers products
covering equities, fixed income, currencies, commodities and
alternative strategies. WisdomTree currently has approximately
$39.1 billion in assets under management globally. For more
information, please visit www.wisdomtree.com or follow us on
Twitter @WisdomTreeETFs.
WisdomTree® is the marketing name for WisdomTree Investments,
Inc. and its subsidiaries worldwide.
1 Source: WisdomTree, Bloomberg, with depreciation versus U.S.
dollar measured from 7/31/2014-11/30/2014.
2 Source: WisdomTree, ETF.com from
11/1/2014-11/30/2014.
3 Source: WisdomTree, Bloomberg from 12/31/2013-11/30/2014.
Based on largest unhedged ETF by AUM in comparable asset
class.
4 Universe: Morningstar Europe Stock category of ETFs and
open-ended mutual funds based on the performance of each eligible
competitor within this category with full performance from
10/31/2013 to 10/31/2014.
CONTACT: WisdomTree Investments, Inc.
Stuart Bell / Jessica Zaloom
+1.917.267.3702 / +1.917.267.3735
sbell@wisdomtree.com / jzaloom@wisdomtree.com
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