WisdomTree Launches Efficient Gold Plus Equity Strategy Fund (GDE)
March 17 2022 - 9:00AM
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 Equity Strategy Fund (GDE), an actively managed ETF with
an expense ratio of 0.20%. GDE provides exposure to a basket of
U.S. equity securities of large-capitalization companies, generally
weighted by market capitalization, with capital
efficient¹ exposure to gold futures added on top.
Investors seeking to diversify their equity exposure will often
allocate to fixed income or alternative assets, like gold, in
separate trades – requiring two separate outlays of capital.
WisdomTree believes that GDE is an innovative and capital efficient
alternative for large cap U.S. equity, multi-asset, or alternative
ETFs.
“We are anticipating sustained elevated inflation over the next
three to five years, and with historically low global interest
rates and high inflation comes the need for diversification to
hedge macro risks,” said Jeremy Schwartz, Global Chief Investment
Officer at WisdomTree. “We believe gold exposure is an important
strategic diversifier for equity portfolios, but the challenge for
long-term equity bulls has been a lack of desire to reduce core
allocations to stocks to fund positions in gold. With GDE,
investors can now add gold exposure on top of a traditional core
stock allocation. In addition, GDE provides further leverage to our
capital efficient suite of funds that started with stock and bond
efficient combinations.”
GDE: What’s under the Hood?To help magnify the
potential benefits of the asset allocation, the strategy layers
gold futures exposure on top of U.S. equities.
- Large-Cap U.S. Equity Basket – For every
$100 invested, $90 is invested in U.S. equity securities of
large-capitalization companies generally weighted by market
capitalization
- Gold Futures – $90 of U.S. listed gold
futures contracts overlay the $90 of equity exposure and $10 of
cash collateral
- Cash Collateral – $10 is kept in
high-quality, short-term U.S. money market securities that earn
returns comparable to U.S. Treasury bills
- Leverage – Based on this structure, the
total accounting leverage of the strategy is enhanced to 1.8x, as
for every $100 invested there is $180 of total exposure to equities
and gold futures
For more information on GDE, visit:
https://www.wisdomtree.com/etfs/capital-efficient/gde
Accounting leverage refers to the fact that the total asset
exposure of the strategy is enhanced to 1.8x. Enhancing or
magnifying gains and losses and causes the Fund to be more volatile
than if it had not been leveraged and entails a heightened risk of
loss.
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 U.S. equity securities. 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. U.S. equity securities, such
as common stocks, are subject to market, economic and business
risks that may cause their prices to fluctuate. 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.
Diversification does not eliminate the risk of experiencing
investment losses.
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 $78 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
___________________________¹ Capital efficiency: The ability for
an investment strategy to gain exposure to a particular market
while using fewer assets.
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