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Monday, September 30, 2013

Wisdom Tree Embraces the Emerging Consumer

Reported by Katie Lobosco

Wisdom Tree [profile] has launched the Wisdom Tree Emerging Markets Consumer Growth Fund on the NASDAQ. The fund will reportedly generate at least 60% of its revenue from the emerging markets, according to the company.

"One of the major themes we believe will drive much of the global economy over the coming years is the potential growth from the emerging market consumers," said Jeremy Schwartz, director of research at Wisdom Tree.

Here is the press release:
Company Press Release

WisdomTree Launches Emerging Markets Consumer Growth Fund (EMCG)

Exposure to Macro-Economic Theme With a Broadly Diversified Approach to Selection and Sensitivity to Valuation

NEW YORK, Sept. 27, 2013 -- WisdomTree (Nasdaq:WETF), an exchange-traded fund ("ETF") sponsor and asset manager, today announced the launch of the WisdomTree Emerging Markets Consumer Growth Fund (Nasdaq:EMCG) on the NASDAQ Stock Market. EMCG is designed to provide exposure to consumer growth stocks in the emerging markets and has an expense ratio of 0.63%.

Jeremy Schwartz, WisdomTree Director of Research, said, "One of the major themes we believe will drive much of the global economy over the coming years is the potential growth from the emerging market consumers. Despite short-term noise in the markets this year, the strong underlying fundamentals of emerging markets are demographic in nature (larger and younger populations compared to the developed world) and have not deteriorated, nor do they shift much year-to-year."

Combining Broadly Diversified Approach to Reflect Growing EM Consumption with Valuation Sensitivity

Mr. Schwartz continued, "Despite the importance of this theme, there are few options to access it beyond concentrated 'consumer' sector strategies which lack a mechanism to address the potential for elevated valuations, given high expectations for growth."

"We have designed EMCG to provide exposure to broad cross sections of the markets, beyond one or two sectors, in companies we believe are positioned to benefit from the growth of emerging market consumption. Additionally, we marry this stock selection with a rigorous, rules based framework to incorporate a sensitivity to valuations in our exposures," Mr. Schwartz concluded.

The WisdomTree Emerging Markets Consumer Growth Fund (EMCG) seeks to offer:

• A diversified basket of earnings-weighted securities, generating at least 60% of revenue from the emerging markets and no more than 25% of revenue from the U.S., Europe or Japan. •

• Exposure to stocks most sensitive to growth in local economies comprised of both consumer sector stocks,1 and non-consumer sector stocks with the best combined rank of growth, quality and valuation factors. •

• At annual index rebalance, single stock cap of 5%, country cap of 25%2, 60% allocation to specific consumer sectors and 40% allocation to other sectors. •

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.

Diversification does not eliminate the risk of experiencing investment losses.?This Fund is new and has limited operating history.

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 on a single sector and/or smaller companies generally experience greater 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 this Fund it 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.?WIS005733 (9/2014)

About WisdomTree

WisdomTree® is a New York-based exchange-traded fund ("ETF") sponsor and asset manager. WisdomTree currently offers 53 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 $31.5 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 financial professionals.  

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