WisdomTree Launches Two Transparent Actively Managed Multifactor ETFs
August 10 2018 - 8:30AM
Firm Continues to Grow Multifactor ETF Suite,
Adding International and Emerging Market Offerings
WisdomTree (NASDAQ: WETF), an exchange-traded fund (“ETF”) and
exchange-traded product (“ETP”) sponsor and asset manager, today
announced the launch of two transparent actively managed
multifactor ETFs, the WisdomTree Emerging Markets Multifactor Fund
(EMMF) and the WisdomTree International Multifactor Fund (DWMF),
both listed on the NYSE Arca.
- The WisdomTree Emerging Markets Multifactor Fund
(EMMF) seeks to achieve capital appreciation through a
transparent actively managed strategy, investing in emerging market
equity securities that have the highest potential for returns,
based on proprietary measures of valuation, quality, momentum and
volatility reduction factors. Currency risk is managed through
dynamic currency hedging. EMMF has a net expense ratio of
0.48%.
- The WisdomTree International Multifactor Fund
(DWMF) seeks to achieve capital appreciation through a
transparent actively managed strategy, investing in developed
market equity securities, excluding the U.S. and Canada, that have
the highest potential for returns based on proprietary measures of
valuation, quality, momentum and volatility reduction factors.
Currency risk is managed through dynamic currency hedging. DWMF has
a net expense ratio of 0.38%.
“Actively managed strategies are an exciting new frontier for
ETFs,” said Jeremy Schwartz, WisdomTree Director of Research. “We
believe our Modern Alpha approach represents a new breed of
strategies that incorporate the pursuit of outperformance with the
benefits of the ETF structure.”
EMMF and DWMF: What’s Under the Hood?
Like the WisdomTree U.S. Multifactor Fund (USMF), which launched
in 2017, EMMF and DWMF utilize a
proprietary investment strategy which includes blending fundamental
and technical factors to create a proprietary stock selection and
weighting model. This approach includes screening a broad universe
of stocks based on a composite multifactor score, a volatility
score, and sector and country overweight and underweight bands,
creating a high active share portfolio in pursuit of
outperformance.
Schwartz added, “There are many higher-cost actively managed
funds that tend to hug the benchmark with modest tilts toward
active picks. In contrast, EMMF and DWMF are expected to have an
active share greater than 80%, and we believe these differentials,
combined with our multifactor model, create an opportunity to add
value over time.”
Because developed and emerging market currencies exhibit
different liquidity, risk and hedging costs, both EMMF and DWMF
will also incorporate a dynamic currency overlay, building upon the
dynamic currency hedging strategies already utilized by other
WisdomTree ETFs, but with an active approach to evaluating and
implementing currency hedge ratios.
Learn more about the WisdomTree Emerging Markets Multifactor
Fund (EMMF) here and the WisdomTree International Multifactor Fund
(DWMF) here.
Active Share: Active share is a measure of the
percentage of holdings in a fund’s portfolio that differs from the
benchmark index.
These Funds are new and have limited operating history. Past
performance is not indicative of future results.
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 emerging or offshore markets are
generally less liquid and less efficient than investments in
developed markets and are subject to additional risks, such as
risks of adverse governmental regulation and intervention or
political developments. Funds focusing their investments on certain
sectors increase their vulnerability to any single economic or
regulatory development. While the Funds are actively managed, each
Fund’s investment process is expected to be heavily dependent on
quantitative models and the models may not perform as
intended. Each Fund invests in derivatives to offset exposure
to foreign currencies. The return on a derivative instrument may
not correlate with the return of its underlying reference asset.
Derivatives can be volatile and may be less liquid than other
securities. As a result, the value of an investment in a Fund may
change quickly and without warning and you may lose money. Please
read the Fund’s prospectus for specific details regarding the
Fund’s risk profile.
Investors should carefully consider the investment
objectives, risks, charges and expenses of the Funds before
investing. To obtain a prospectus containing this and other
important information, call 866.909.9473 or visit wisdomtree.com.
Read the prospectus carefully before you invest.
WisdomTree Funds are distributed by Foreside Fund Services, LLC,
in the U.S. only.
Jeremy Schwartz is a registered representative of Foreside Fund
Services, LLC.
WTPR-20180808-0026
About WisdomTreeWisdomTree 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
headquartered in New York. WisdomTree offers products
covering equities, fixed income, currencies, commodities and
alternative strategies. WisdomTree currently has
approximately $59.9 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.
Contact Information:
Media RelationsWisdomTree Investments, Inc.Jessica Zaloom /
Kylie Scott+1.917.267.3735 / +1.917.267.3860jzaloom@wisdomtree.com
/ kscott@wisdomtree.com
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