The WisdomTree/Dreyfus Partnership is bringing its first products to market. The first five WisdomTree Dreyfus Currency Income ETFs are set to launch on the NYSE Arca on Tuesday, May 13, 2008. Expense ratios are between 35 and 45 bps.
Company Press Release
NEW YORK - (Business Wire) WisdomTree Investments, Inc. (Pink Sheets: WSDT) and The Dreyfus Corporation, a BNY Mellon Asset Management Company, announced today the intended launch of five WisdomTree Dreyfus Currency Income ETFs on the NYSE Arca on Tuesday, May 13, 2008.
WisdomTree Dreyfus Chinese Yuan Fund 0.45%
WisdomTree Dreyfus Indian Rupee Fund 0.45%
WisdomTree Dreyfus Brazilian Real Fund 0.45%
WisdomTree Dreyfus Japanese Yen Fund 0.35%
WisdomTree Dreyfus Euro Fund
The ETFs will seek to earn current income reflective of money market rates available to foreign investors in the specified country or region. The funds will also seek to provide exposure to changes in the value of a designated non-U.S. currency relative to the U.S. dollar. These funds are classified as Actively Managed ETFs by the SEC. While still maintaining the full transparency of ETFs, the ability for active portfolio management should allow for greater investment flexibility. Although each fund invests in very short-term, investment grade instruments, the funds are not "money market" funds and it is not the objective of the funds to maintain a constant share price.
“For the first time, we are bringing the ETF structure to an increasingly important asset class. Investors can now have exposure to non-U.S. money market yields and their associated currency movements through a fully transparent, low fee ETF structure,” said Bruce Lavine, WisdomTree President & COO.1 “Currency as an asset class may offer potential diversification benefits when added to a portfolio due to its historically low correlation to equities and fixed income. The WisdomTree Dreyfus Currency Income ETFs give investors the ability to further diversify their cash holdings internationally.
“We think there is a growing awareness among investors to view their holdings from a global viewpoint instead of just a dollar viewpoint. When investors do that, they frequently look for alternatives to the low yields and the depreciating purchasing power that they have seen with the dollar lately,” Lavine said.
Learn more about the WisdomTree Dreyfus collaboration in our original press release issued in January.
There are risks associated with investing including possible loss of principal. In addition to the normal risks of investing, foreign investing involves special risks, such as risk of loss from currency fluctuation or political or economic uncertainty. The funds focus their investments in specific regions or countries, thereby increasing the impact of events and developments associated with the region or country which can adversely affect performance. Investments in emerging markets are generally less liquid and less efficient than developed markets. Investments in currency involve additional special risks, such as credit risk, interest rate fluctuations, derivative investment risk and the effect of varied economic conditions. As these funds can have a high concentration in some issuers the funds can be adversely affected by changes of those issuers. Please read the funds prospectus for specific details regarding the fund’s risk profile.
Investors should consider the objectives, risks, charges and expenses of the Funds carefully before investing. A prospectus containing this and other information is available by calling 1-866-909-WISE (9473) or by visiting www.wisdomtree.com. Please read the prospectus carefully before investing.
WisdomTree Funds are distributed by ALPS Distributors, Inc.
Bruce Lavine is a registered representative of ALPS Distributors, Inc.
ALPS Distributors, Inc. is not affiliated with Dreyfus or BNY Mellon.