Wisdom Tree [profile] continues to grow, now expanding its branch of currency hedged equity ETFs.
The New York-based exchange-traded fund sponsor and asset manager has launched the Wisdom Tree Germany Hedged Equity Fund, its fifth product that enables investors to hedge against international currency fluctuations. Wisdom Tree also recently launched a Japan Hedged SmallCap Equity Fund and a United Kingdom Hedged Equity Fund.
The newest product will reportedly provide exposure to German equity markets while hedging exposure to the Euro, according to the firm.
"We believe DXGE provides investors with a unique way to capitalize on the growth potential of German exporters while hedging exposure to an often volatile and unpredictable currency -- the euro," said Jeremy Schwartz, Wisdom Tree's director of research.
MFWire reported in September that Wisdom Tree is doubling the size of its New York office by moving to a new space on Park Avenue.
Here is the press release:
Company Press Release
WisdomTree Launches Germany Hedged Equity Fund (DXGE)
DXGE to Provide Exposure to Largest Exporter Nation and Largest Economy in European Monetary Union
WisdomTree Expands Currency Hedged Equity Family of ETFs
NEW YORK, Oct. 17, 2013 - WisdomTree (Nasdaq:WETF), an exchange-traded fund ("ETF") sponsor and asset manager, today announced the launch of the WisdomTree Germany Hedged Equity Fund (DXGE) on the NASDAQ Stock Market. DXGE is designed to provide exposure to German equity markets while hedging exposure to the euro and has an expense ratio of 0.48%.
German Economy Resilient -- Exports Important
Germany is the largest economy within the European Monetary Union, comprising approximately 30%.1 Moreover, German exports constitute a large portion of Germany's economic growth profile, with over 50% of Germany's gross domestic production (GDP)2 driven by exports.3 Since the euro started declining in 2008, Germany's exports -- as a percent of GDP -- grew from 42% to 52%4, illustrating how a weaker euro can provide support to the German export machine.
"Germany is one of the engines of European growth and has proven its resilience amid the European crisis. With the Eurozone exiting recession5 in the second quarter of this year, and developed market growth charting an upward trajectory, we believe Germany's export-based economy is well positioned to benefit from a broader recovery," said
Jeremy Schwartz, WisdomTree Director of Research.
Hedge Exposure to Euro -- One Way to Lower Currency Risk
One way for U.S. investors to isolate the performance of German equities from the performance of the euro is to hedge the currency exposure, thus, mitigating one element of risk.
"We believe DXGE provides investors with a unique way to capitalize on the growth potential of German exporters while hedging exposure to an often volatile and unpredictable currency -- the euro," Schwartz said. "Due to Germany's historical tendency to display negative correlations between its equities and the euro, and a recent decline in those
correlations, DXGE offers investors a way to take preemptive action by isolating their German equity exposure," Schwartz added.
Expanding The WisdomTree Currency Hedged Equity Family
With the launch of DXGE, WisdomTree now offers five currency hedged
equity strategies for the developed world.
WisdomTree Japan Hedged Equity Fund (DXJ): Expense Ratio 0.48%
WisdomTree Japan Hedged SmallCap Equity Fund (DXJS): Expense Ratio 0.58%
WisdomTree Europe Hedged Equity Fund (HEDJ): Expense Ratio 0.58%
WisdomTree United Kingdom Hedged Equity Fund (DXPS): Expense Ratio 0.48%
WisdomTree Germany Hedged Equity Fund (DXGE): Expense Ratio 0.48%
1 Source: International Monetary Fund, World Economic Outlook Database, October 2013.
2 Gross Domestic Production (GDP): The sum total of all goods and services produced across an economy.
3 German Federal Statistical Office, July 2013.
4 Source: WisdomTree, Eurostat, as of 12/31/2012.
5 Recession: A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.
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 carefullybefore investing.
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 certain sectors and/or smaller companies increase their vulnerability to any single economic or regulatory development. This may result in greater share price volatility. The Funds focus their investments in Germany, Japan, the United Kingdom or Europe, thereby increasing the impact of events and developments in Germany, Japan, the United Kingdom or Europe that can adversely affect performance. Investments in currency involve additional special risks, such as credit risk, interest rate fluctuations, derivative investments which can be volatile and may be less liquid than other securities, and more sensitive to the effect of varied economic conditions. As the Funds can have a high concentration in some issuers, the Funds can be adversely impacted by changes affecting those issuers. Due to the investment strategy of certain Fund's they may make higher capital gain distributions than other ETFs. Please read each Fund's prospectus for specific details regarding the Funds' risk profiles.
WisdomTree Funds are distributed by ALPS Distributors, Inc.
Jeremy Schwartz is a registered representative of ALPS Distributors,
WisdomTree(R) is a New York-based exchange-traded fund ("ETF") sponsor and asset manager. WisdomTree currently offers 54 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 $32.3 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 subsidiary WisdomTree Asset Management, 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.