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 Target Range
Fund (GTR) on NASDAQ with an expense ratio of 0.70%. GTR is an
actively managed ETF that seeks to provide capital appreciation,
with a secondary objective of hedging risk. In pursuing its
investment objectives, GTR aims to follow the methodology of the
TOPS® Global Equity Target RangeTM Index (the “Index”). The Index
was created by Valmark Advisers, a subsidiary of Valmark Financial
Group.
“Investors face a complex market environment with elevated stock
valuations and historically low interest rates. Fears of inflation
and rising rates have pushed some investors out on the risk curve1,
pushing up a traditional 60% equity/40% fixed income mix towards
75/25,” said Jeremy Schwartz, Global Head of Research at
WisdomTree. “WisdomTree’s Target Range Fund may help investors
increase their equity exposure and upside participation in markets,
but in a risk controlled manner.”
WisdomTree’s Target Range Fund (GTR) utilizes a call spread
strategy whose returns seek to be similar to the returns of the
Index but will not match the Index’s returns due to the amount and
timing of assets that flow in and out of GTR and GTR’s fees and
expenses. In seeking to follow the methodology of the Index, GTR’s
call spread strategy consists of (1) buying long call options and
selling short call options on a portfolio of four underlying ETFs
that track the performance of large- and mid-capitalization
companies in the United States, developed market countries and
emerging market countries; and (2) cash collateral. GTR’s target
exposure to the underlying ETFs may differ from time to time from
the Index due to the active management of the Fund, market
movements and cash flows in and out of the Fund.
“The TOPS ® Global Equity Target Range Index (TOPSGB) seeks to
manage downside risk yearly with potential monthly restrikes,” said
Michael McClary, Chief Investment Officer at Valmark Financial
Group and Portfolio Manager of the TOPS® ETF Portfolios.
“WisdomTree is the perfect firm to collaborate with, and we’re
excited for investors to have access to this new fund.”
WisdomTree’s target range strategy offers exposure to a
diversified portfolio of global equity ETFs, representing U.S
large-cap, U.S. small-cap, developed markets, and emerging
markets.
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.
There are risks associated with investing, including possible
loss of principal. The Fund is actively managed and implements a
strategy similar to the methodology of the TOPS® Global Equity
Target RangeTM Index (the “Index”), which seeks to track the
performance of a cash-secured call spread option strategy. There
can be no assurance that the Index or the Fund will achieve its
respective investment objectives, or that the Fund will
successfully implement its investment strategy. Moreover, while the
Fund seeks to target returns within a prescribed range thereby
minimizing downside investment loss, there can be no guarantee that
an investor in the Fund will experience limited downside
protection. The Fund’s options strategy will subject Fund returns
to an upside limitation on returns attributable to the assets
underlying the options. The Fund’s investments in options may be
subject to volatile swings in price influenced by changes in the
value of the underlying ETFs or other reference asset. The return
on an options contract may not correlate with the return of its
underlying reference asset. The Fund’s use of derivatives will give
rise to leverage and derivatives can be volatile and may be less
liquid than other securities. As a result, the value of an
investment in the 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.
Investing involves risks including possible loss of
principal.
Investment exposure to securities and instruments traded in
foreign or emerging markets, or that provide exposure to such
securities or markets, can involve additional risks relating to
political, economic, or regulatory conditions not associated with
investments in U.S. securities and instruments or investments in
more developed international markets.
Limited Upside Return Risk. By virtue of its cash-secured call
spread option strategy, Fund returns will be subject to an upside
limitation on returns attributable to an Underlying ETF or other
reference asset and the Fund will not participate in gains beyond
such upside limitation. In the event an investor purchases Fund
shares after the date on which the Fund implements the call spread
strategy and the share price of the relevant Underlying ETF or
other reference asset has risen in value to a level near the strike
price, there may be little or no ability for that investor to
experience an investment gain on an investment in Fund shares with
respect to that Underlying ETF or other reference asset.
Downside Loss Risk. There can be no guarantee that an investor
in the Fund will experience limited downside protection,
particularly short-term investors, investors that seek to time the
market and/or investors that invest over a period other than the
annual period. The Fund does not protect an investor against the
loss of principal, and an investor may experience significant
losses on its investment in the Fund, including the loss of his or
her entire investment.
FLEX Options may be less liquid than standard options and may
have difficulty closing out certain FLEX Options positions at
desired times and prices.
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.
1 Risk Curve: a graphical representation of risk and return
WTPR-20210929-0143
About WisdomTreeWisdomTree Investments, Inc.,
through its subsidiaries in the U.S. and Europe (collectively,
“WisdomTree”), is an ETF and 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 $73.5 billion in assets under management
globally.
WisdomTree® is the marketing name for WisdomTree Investments,
Inc. and its subsidiaries worldwide.
About Valmark Financial Group,
LLCValmark Financial Group is a holding company
of several subsidiaries, including Executive Insurance Agency,
Inc., a national producer group; Valmark Securities, Inc., a
broker-dealer and member of both FINRA and SIPC; Valmark Advisers,
Inc., a U.S. Securities and Exchange Commission registered
investment adviser; and the Valmark Policy Management Company, LLC.
Headquartered in Akron, Ohio, Valmark Advisers is the Index
Provider for the TOPS® Target Range™ Indexes. To learn more about
Valmark Financial Group, visit www.valmarkfg.com or
www.topsfunds.com
Securities offered through Valmark Securities, Inc. Member
FINRA/SIPC.
Contact Information
Media RelationsWisdomTree Investments, Inc.Jessica
Zaloom+1.917.267.3735jzaloom@wisdomtree.com /
wisdomtree@fullyvested.com
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