WisdomTree Launches Efficient Gold Plus Gold Miners Strategy Fund (GDMN)
December 16 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 Efficient
Gold Plus Gold Miners Strategy Fund (GDMN), an actively managed ETF
with an expense ratio of 0.45%. GDMN invests in a portfolio
comprised of global equity securities issued by companies in the
gold mining business, generally weighted by modified market
capitalization, and U.S.-listed gold futures contracts. GDMN uses
the gold futures in an effort to enhance its capital efficiency.
WisdomTree believes that GDMN is an innovative and capital
efficient alternative to traditional gold miner ETFs or leveraged
gold miner ETFs.
“With low global interest rates and inflation at the top of many
investors’ minds, we believe gold is a commodity that can provide a
valuable inflation hedge -- it’s not just a ‘doomsday asset’ and it
has the potential to perform well in cyclical markets,” said Jeremy
Schwartz, Global Chief Investment Officer at WisdomTree. “We’re
constantly finding new ways to offer investors opportunities to
invest in a variety of market conditions – in a rising interest
rate environment, gold miners can have a potential attractive
dividend yield. Blending gold futures and gold miners can extract
positive traits from both, and we believe that the Fund is built
for investors seeking portfolio diversifiers to hedge macroeconomic
risks.”
GDMN: What’s Under the Hood?GDMN provides
exposure to a modified market capitalization weighted basket of
global gold miners with an overlay providing exposure to gold via
investments in gold futures.
- Structure - For every $100 invested in GDMN,
the fund seeks to invest approximately $90 in gold miners and $90
in gold futures for $180 of total gold-oriented exposures.
- Return Stacking - Investors bullish on gold
often will allocate to both the physical precious metal and the
equities of miners in separate trades, which requires double the
investment capital.
Using leverage and a ‘return stacking’ framework that layer gold
futures on top of gold miners, GDMN seeks to provide these two
exposures while enhancing capital efficiency.
For more information on GDMN, an innovative capital efficient
alternative to traditional gold miner ETFs or leveraged gold miner
ETFs, visit
https://wisdomtree.com/-/media/us-media-files/documents/resource-library/investment-case/the-case-for-efficient-gold-plus-gold-miners-strategy-fund-gdmn.pdf
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, please 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 invests in
U.S.-listed gold futures and global equity securities issued by
companies that derive at least 50% of their revenue from the gold
mining business (“Gold Miners”). The Fund’s use of U.S.-listed gold
futures contracts will give rise to leverage, magnifying gains and
losses and causing the Fund to be more volatile than if it had not
been leveraged. Moreover, the price movements in gold and gold
futures contracts may fluctuate quickly and dramatically, and have
a historically low correlation with the returns of the stock and
bond markets. By investing in the equity securities of Gold Miners,
the Fund may be susceptible to financial, economic, political, or
market events that impact the gold mining sub-industry, including
commodity prices and the success of exploration projects. The Fund
may invest a significant portion of its assets in the securities of
companies of a single country or region, including emerging
markets, and thus, the Fund is more likely to be impacted by events
and political, economic, or regulatory conditions affecting that
country or region, or emerging markets generally. The Fund’s
investment strategy will also require it to redeem shares for cash
or to otherwise include cash as part of its redemption proceeds,
which may cause the Fund to recognize capital gains. 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.
Jeremy Schwartz is a registered representative of Foreside Fund
Services, LLC.
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.
Contact Information
Media RelationsWisdomTree Investments, Inc.Jessica
Zaloom+1.917.267.3735jzaloom@wisdomtree.com /
wisdomtree@fullyvested.com
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