WisdomTree Launches U.S. Growth & Momentum Fund (WGRO)
June 24 2021 - 8:30AM
WisdomTree Investments, Inc. (NASDAQ: WETF), an exchange-traded
fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset
manager, announced today the launch of the WisdomTree U.S. Growth
& Momentum Fund (WGRO) on the NASDAQ stock exchange. WGRO seeks
to track the price and yield performance, before fees and expenses,
of the O’Neil Growth Index™, and has an expense ratio of 0.55%.
“An aggressive-growth investment strategy may come with
significantly higher volatility,” explained Jeremy Schwartz, Global
Head of Research at WisdomTree. “The WisdomTree U.S. Growth &
Momentum Fund aims to solve this challenge by seeking to capture
the upside of an aggressive growth portfolio, while attempting to
limit the downside risk after the market tops and corrects, which
is historically inherent with growth investing. We wanted to offer
a strategy built for investor allocations to mid- and
large-capitalization U.S. growth stocks to further build their
portfolios.”
WisdomTree is utilizing a proprietary index created by O’Neil
Global Advisors, Inc. in its construction of the WisdomTree U.S.
Growth & Momentum Fund, which aims to improve the timing of
entry points during small pullbacks and avoid holding stocks that
are extended. In seeking to track the O’Neil Growth Index, WGRO is
anticipated to focus on positive relative strength and, as a
result, does not plan to remain invested in sectors and industries
that are significantly lagging the market. Instead, WGRO
anticipates investing in sectors, industries, and stocks that can
be viewed as market leaders.
“The key advantage of the O’Neil Growth Index is its use of
proprietary technical factors, which seeks to avoid stocks that are
extended and have been deemed by the factors as being likely to
correct or fall in price,” said Randy Watts, Chief Investment
Officer at O’Neil Global Advisors. “We’re excited to be
collaborating with WisdomTree to offer investors seeking an
aggressive investment strategy and offer investors an investable
portfolio that accesses our innovative O’Neil Growth Index."
WGRO: What’s Under the Hood?WisdomTree’s U.S.
Growth & Momentum Fund utilizes O’Neil’s Growth Index in its
selection process, which includes the top 50 to 100 stocks as
determined by each company’s score, across the following four
factors:
- The pullback factor seeks to increase exposure
to stable growth names with positive recent price action.
- The volatility factor seeks to lower the
long-term visibility of the portfolio and slightly increase the
exposure to large cap and value stocks.
- The Datagraph Rating™ seeks to increase
exposure to companies with growth characteristics and is a
proprietary O’Neil rating based on a formula that assigns weights
to various factors.
- The hotness factor seeks to decrease exposure
to companies likely to have high speculative interest by measuring
the stocks’ recent change in volume compared with historical
averages.
“For the last decade, momentum was synonymous with growth
investing, but due to value stock performance over the last six
months, many momentum strategies now have a significant value bent
to their underlying portfolios, impacting investors who allocate to
value on a standalone basis already.
WGRO is expected to have a consistent growth orientation in
constructing its portfolio due to the O’Neil proprietary factors
incorporated into its Growth Index, including the Datagraph Rating
in particular,” Schwartz added.
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, call 866.909.9473 or visit wisdomtree.com.
Read the prospectus carefully before you invest.
Important Fund InformationThere are risks associated with
investing, including possible loss of principal. The Fund invests
in mid- and large-capitalization companies that provide exposure to
a portfolio of high growth and momentum U.S. exchange-listed
companies. Securities that exhibit momentum characteristics may be
more volatile than the market as a whole. Growth stocks, as a
group, may be out of favor with the market and underperform value
stocks or the overall equity market. The Fund may experience high
portfolio turnover in connection with the rebalancing or adjustment
of its Index. The Fund invests in the securities included in, or
representative of, its Index regardless of their investment merit.
The Fund does not attempt to outperform its Index or take defensive
positions in declining markets and the Index may not perform as
intended. The Fund is not “actively” managed and seeks to track the
price and yield performance, before fees and expenses, of the
Index. The Fund currently invests a significant portion of its
assets in the information technology and consumer discretionary
sectors. The performance could be negatively impacted by events
affecting this sector. Please read the Fund’s prospectus for
specific details regarding the Fund’s risk profile.
WisdomTree Funds are distributed by Foreside Fund Services LLC,
in the U.S. only. Foreside Fund Services LLC is not affiliated with
the other entities mentioned.
Jeremy Schwartz is a registered representative of Foreside Fund
Services, LLC.
WTPR-20210618-0127
About
WisdomTreeWisdomTree 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 equity, commodity, fixed
income, leveraged and inverse, currency, cryptocurrency and
alternative strategies. WisdomTree currently has approximately
$69.3 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.
About O’Neil Global Advisors
About O’Neil Global
AdvisorsO’Neil Global Advisors, Inc. is an SEC
registered investment adviser that develops systematic equity
trading strategies using quantitative modeling and algorithms
including the factor-based strategy that drives the O’Neil Growth
Index. The company’s data scientists and engineers utilize a
database containing more than 100 years of stock market information
to build proprietary strategies that employ unique factors to
identify stocks poised to generate alpha.
Contact
Information:
Media RelationsWisdomTree Investments, Inc.Jessica
Zaloom+1.917.267.3735Jzaloom@wisdomtree.com /
wisdomtree@fullyvested.com
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