WisdomTree Announces AI Enhanced Value Funds (AIVL & AIVI)
January 18 2022 - 8:30AM
WisdomTree (NASDAQ: WETF), an exchange-traded fund (“ETF”) and
exchange-traded product (“ETP”) sponsor and asset manager, today
announced that WisdomTree’s U.S. Dividend ex-Financials Fund (DTN)
and International Dividend ex-Financials Fund (DOO) have been
restructured into WisdomTree’s U.S. AI Enhanced Value Fund (AIVL)
and International AI Enhanced Value Fund (AIVI). Both Funds are
available on the NYSE with expense ratios of 0.38% and 0.58%,
respectively. The WisdomTree AI Enhanced Value Funds utilize the
Equity Machine Intelligence (EMI) proprietary model of Voya
Investment Management Co., LLC (“Voya”), each Fund’s sub-adviser.
The EMI model applies data science and artificial intelligence (AI)
to fundamental value investing within a dynamic investment process.
“By leaning into AI enhanced strategies that offer dynamic value
exposure, we see an opportunity to go beyond traditional ‘smart
beta’ factor funds,” said Jeremy Schwartz, Global Chief Investment
Officer at WisdomTree. “We’re excited to be leveraging Voya’s EMI
model in the AI Enhanced Value Funds’ restructures as a way to
potentially overcome historical challenges of value investing.”
The AI Enhanced Value Family strategy focuses on companies with
attractive value characteristics and aims to deliver idiosyncratic
alpha1, performing best in a market driven by fundamentals. The
strategy seeks to avoid areas of the market that are overvalued or
crowded and is well-suited for mid and large cap value
mandates.
“Voya is an experienced equity manager with a strong heritage of
combining the best of fundamental and quantitative investment
techniques,” said Vincent Costa, co-chief investment officer,
Equities, Voya. “Our EMI team is a pioneer in applying artificial
intelligence to fundamental investing and has been managing AI
strategies since 2012. We look forward to bringing this expertise
to WisdomTree’s clients.”
AIVL and AIVI: What’s Under the Hood?
WisdomTree AI Enhanced Value Funds (AIVL and AIVI) have varying
exposures to both deep value and relative value measures and aim to
capture the value premium while avoiding drawdowns in deep/relative
value measures that may be out of favor. The investment process can
be broken down into five key factors:
- Data: Applying Rigor of Bottom Up
Research
- Features: Scaling Fundamental Research
- Stock Selection (AI): Removing Emotion from Decision
Making
- Portfolio Construction and Risk
Management
- Verifying & Executing Portfolio
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.
AI Model Risk. When Models and Data prove to be incorrect or
incomplete, any decisions made in reliance thereon may lead to the
inclusion or exclusion of securities that would have been excluded
or included had the Models and Data been correct and complete.
Errors in the Models and Data, calculations and/or the construction
of the AI model may occur from time to time and may not be
identified and/or corrected by the Sub-Adviser or other applicable
party for a period of time or at all, which may have an adverse
impact on the Fund and its shareholders.
Value Investing Risk. Value stocks, as a group, may be out of
favor with the market and unperformed growth stocks or the overall
equity market, in addition value stocks may not realize their
perceived intrinsic value for extended periods of time or may never
realize their perceived intrinsic value.
WisdomTree U.S. AI Enhanced Value Fund
There are risks associated with investing, including possible
loss of principal. Funds focusing their investments on certain
sectors increase their vulnerability to any single economic or
regulatory development. This may result in greater share price
volatility. While the Fund is actively managed, the Fund’s
investment process is expected to be heavily dependent on a
quantitative model and the model may not perform as intended.
Please read the Fund’s prospectus for specific details regarding
the Fund’s risk profile.
WisdomTree International AI Enhanced Value Fund
There are risks associated with investing, including possible
loss of principal. Investments in non-U.S. securities involve
political, regulatory, and economic risks that may not be present
in U.S. securities. For example, foreign securities may be subject
to risk of loss due to foreign currency fluctuations, political or
economic instability, or geographic events that adversely impact
issuers of foreign securities. Funds focusing their investments on
certain sectors increase their vulnerability to any single economic
or regulatory development. This may result in greater share price
volatility. While the Fund is actively managed, the Fund’s
investment process is expected to be heavily dependent on a
quantitative model and the model may not perform as intended.
Please read the Fund’s prospectus for specific details regarding
the Fund’s risk profile.
Please read each 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.
1 Idiosyncratic alpha: Company-specific outperformance vs. the
benchmark not attributed to any of the traditional Fama-French
factors
WTPR-20220113-0158
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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