WisdomTree [profile] announced it plans to launch its fourth dividend growth ETF, WisdomTree Emerging Markets Dividend Growth Fund on the NASDAQ. The ETF is structured to expose investors to dividend-paying stocks with growth in emerging markets. it's expense ratio is 63 bp.
The ETF will be different than other emerging market equity strategies because it has heavy exposure to consumer sectors, both staples and discretionary, as well as defensive sectors that have lower volatility. The ETF is underweight in Brazil, Russia, India and China, holding most of its weights in Mexico, Indonesia and Thailand.
New Exposure to Emerging Markets Dividend Growth Leaders; Emerging Market Region Expected to Drive
Future Global Growth Over Long Term1
NEW YORK, Aug. 1, 2013 (GLOBE NEWSWIRE) -- WisdomTree (Nasdaq:WETF), an exchange-traded fund ("ETF") sponsor and asset manager, today announced the launch of the WisdomTree Emerging Markets Dividend Growth Fund (DGRE) on the NASDAQ Stock Market. DGRE is designed to provide exposure to dividend-paying stocks with growth characteristics in the emerging markets and has an expense ratio of 0.63%.
Jeremy Schwartz, WisdomTree Director of Research, said, "While many dividend-focused indexes in emerging markets focus on yield and valuation, there is a dearth of options that focus on dividend growth. We believe that DGRE offers the investment flexibility to respond to dividend growth potential rather than historical dividend behavior, aligning nicely with dividend behavior of emerging market companies. And similar to our other dividend growth funds, we believe DGRE can provide access to some of the most attractive dividend growth opportunities available in the market."
Focus on Dividend Growth Stocks with Unique Exposures:
Mr. Schwartz added, "In contrast to many popular emerging markets equity strategies, DGRE has heavy exposure to the consumer sectors (staples and discretionary) - which tend to be more closely tied to the economic growth potential of domestic markets, as well as defensive sectors2 - which have historically lower volatility. Moreover, DGRE is underweight the 'BRIC' countries - Brazil, Russia, India, China - and holds some of its largest weights in the 'MIT' countries - Mexico, Indonesia and Thailand - again, which differs from traditional, comparable investments."
The WisdomTree Emerging Markets Dividend Growth Fund (DGRE) seeks to offer:
A diversified basket of dividend-paying securities with growth characteristics in the emerging markets
Exposure to stocks with strong growth characteristics,3 high quality rankings, and lower leverage4
At annual index rebalance, single stock cap of 5%, sector cap of 20%5
DGRE is WisdomTree's fourth Dividend Growth ETF, following the WisdomTree U.S. Dividend Growth Fund (DGRW), the WisdomTree U.S. SmallCap Dividend Growth Fund (DGRS) and the WisdomTree Global ex-U.S. Growth Fund (DNL).
1 Source: International Monetary Fund (IMF) World Economic Outlook, April 2013.
2 Defensive sectors: Consumer Staples, Health Care, Utilities and Telecommunications sectors.
3 Growth ranking characteristics defined by expected earnings growth while quality ranking characteristics defined by 3-year average historical return on equity and 3-year historical return on assets.
4 Leverage: Total assets dividend by equity. Higher numbers indicate greater borrowing to finance asset purchases; leverage may make positive performance more positive and negative performance more negative.
5 Between annual rebalances, single stock weights and sector weights may fluctuate above the 5% and 20% marks, respectively, due to market movement.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Funds 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 investing.
Dividends are not guaranteed and a company's future abilities to pay dividends may be limited. A company currently paying dividends may cease paying dividends at any time.
Diversification does not eliminate the risk of experiencing investment losses.
There are risks associated with investing, including possible loss of principal. Foreign investing involves special risks, such as risk of loss from currency fluctuation or political or economic uncertainty. Funds focusing their investments on single sectors/and or small companies increase their vulnerability to any single economic or regulatory development. This may result in greater share price volatility. Investments in emerging, offshore or frontier markets are generally less liquid and less efficient than investments in developed markets and are subject to additional risks, such as risks of adverse governmental regulation, intervention and political developments. Due to the investment strategy of certain Fund's they may make higher capital gain distributions than other ETFs. Please read the Fund's prospectus for specific details regarding the Fund's risk profile.
WisdomTree Funds are distributed by ALPS Distributors, Inc.
Jeremy Schwartz is a registered representative of ALPS Distributors, Inc.
WisdomTreeŽ is a New York-based exchange-traded fund ("ETF") sponsor and asset manager. WisdomTree currently offers 52 ETFs across Equities, Fixed Income, Currency Income and Alternatives asset classes. WisdomTree also licenses its indexes to third parties for proprietary products and promotes the use of WisdomTree ETFs in 401(k) plans. WisdomTree currently has approximately $30.4 billion in ETF assets under management. For more information, please visit www.wisdomtree.com or follow us on Twitter @WisdomTreeETFs.
WisdomTree is the marketing name for WisdomTree Investments, Inc. and its wholly owned subsidiaries WisdomTree Asset Management, Inc. and WisdomTree Retirement Services, Inc.WisdomTree Asset Management, Inc. is a registered investment advisor and is the investment advisor to the WisdomTree Trust and the WisdomTree ETFs. The WisdomTree Trust is a registered open-end investment company. Each WisdomTree ETF is a series of the WisdomTree Trust. WisdomTree Retirement Services, Inc. supports the use of the WisdomTree ETFs in retirement plans by financialprofessionals.