WisdomTree begun trading of 3 new ETFs, the WisdomTree Europe Local Recovery Fund (BATS: EZR), the WisdomTree Strong Dollar Emerging Markets Equity Fund (BATS: EMSD) and the WisdomTree Global ex-U.S. Hedged Real Estate Fund (BATS: HDRW) on Thursday, October 29, 2015.
1.
FUND INFORMATION:
| Symbol: EZR | Exchange: BATS |
| Name: WisdomTree Europe Local Recovery Fund | Net Expense Ratio: 0.48% |
FUND OBJECTIVE:
The WisdomTree Europe Local Recovery Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Europe Local Recovery Index.
REFERENCE INDEX:
The WisdomTree Europe Local Recovery Index consists of common stocks of European companies that derive more than 50% of their revenue from Europe.
The Index is designed with a goal of maximizing exposure to European companies with significant European revenue that may benefit from Europe’s economic recovery and Europeans’ increased buying power. Companies in the Index must be traded in euros and be incorporated and list their shares on the stock exchange in one of the following European countries: Germany, France, the Netherlands, Spain, Belgium, Finland, Italy, Portugal, Austria, and Ireland.
To be eligible for inclusion in the Index, a company must meet the following criteria:
(i) market capitalization of at least $1 billion as of the Index screening date;
(ii) average daily dollar trading volume of at least $200,000 for the 3 months preceding the Index screening date; and
(iii) trading of at least 250,000 shares per month for each of the 6 months preceding the Index screening date.
Companies from the following sectors are not eligible for inclusion in the Index: consumer staples, health care, telecommunications, and utilities. The Index is a modified market capitalization weighted index designed to increase weight to companies that have the highest positive correlation in equity performance to the European Commission Economic Sentiment Indicator -an indicator of Europe’s economic strength. Securities are weighted in the Index based on a composite weighting of 2 individual weighting factors:
(i) float-adjusted market capitalization (25% of weight); and
(ii) a correlation rank factor (75% of weight). To derive the first factor, divide a company’s float-adjusted market capitalization by the total float-adjusted market capitalization of all Index components.
“Float-adjusted” means that the share amounts used in calculating the first factor reflect only shares available to investors. Shares held by control groups, public companies and government agencies are excluded. To derive the second factor, each company is ranked, relative to the other Index components, based on its monthly correlation to the European Commission Economic Sentiment Indicator over the last 5 years. Each company’s correlation rank factor is determined by dividing its rank by the total number of Index components. For ranking purposes, the rank of the company with the highest correlation is equal to the total number of Index components,and the rank of the company with the lowest correlation is 1. Each security’s initial weight is the sum of the float adjusted market capitalization factor multiplied by 0.25 and the correlation rank factor multiplied by 0.75. The maximum weight of any one sector or country in the Index, at the time of the Index’s annual screening date, is capped at 33%; however, sector and country weights may fluctuate above the specified cap in response to market conditions and/or the application of volume factor adjustments. In addition, the Index methodology includes volume factor adjustments such that if a component security does not meet certain trading volume thresholds, the security will either be eliminated from inclusion in the Index or its weight in the Index will be reduced and reallocated pro rata among the other securities.
Top Holdings (10/28/15):
| Total SA | 2.14% |
| BASF SE | 1.62% |
| Allianz SE | 1.53% |
| BNP Paribas | 1.37% |
| Axa SA | 1.10% |
| Vinci SA | 1.03% |
| Intesa Sanpaolo SpA | 1.03% |
| Societe Generale | 1.00% |
| Inditex SA | 0.99% |
| ENI SpA | 0.96% |
Sector Allocation (10/28/15):
| Financials | 32.98% |
| Industrials | 24.30% |
| Consumer Discretionary | 21.28% |
| Materials | 8.88% |
| Information Technology | 6.42% |
| Energy | 5.39% |
Country Allocation (10/28/15):
| France | 26.54% |
| Germany | 24.72% |
| Italy | 16.12% |
| Spain | 9.41% |
| Finland | 4.70% |
| Netherlands | 4.69% |
| Austria | 4.54% |
| Belgium | 4.51% |
| Portugal | 2.29% |
| Ireland | 2.09% |
Useful Links:
EZR Home Page
Category: Equities> Regions> Europe> Broad Europe> European Strategy
2.
FUND INFORMATION: CLOSED 16/03/2018
| Symbol: EMSD | Exchange: BATS |
| Name: WisdomTree Strong Dollar Emerging Markets Equity Fund | Net Expense Ratio: 0.58% |
FUND OBJECTIVE:
The WisdomTree Strong Dollar Emerging Markets Equity Fund seeks to track the price and yield performance,before fees and expenses, of the WisdomTree Strong Dollar Emerging Markets Equity Index.
REFERENCE INDEX:
The WisdomTree Strong Dollar Emerging Markets Equity Index consists of equity securities of emerging markets companies that derive more than 15% of their revenue from the United States. The Index is designed with a goal of maximizing exposure to emerging markets companies with significant revenue from exports to the United States that may benefit from a strengthening U.S. dollar. A strengthening U.S. dollar generally causes emerging markets companies’ exports to the United States to be relatively less expensive in the U.S. market and, therefore, may result in greater demand for such exports in the United States. Furthermore, when the U.S. dollar is strengthening, an emerging market company’s revenue and profits earned in the U.S. market may appreciate when being converted back into local currencies. Companies in the Index are incorporated or domiciled and list their shares on the stock exchange in one of the following emerging market countries: Brazil, Chile, China, Czech Republic, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, the Philippines, Poland, Russia, South Africa, Taiwan, Thailand, or Turkey.
To be eligible for inclusion in the Index a company must meet the following criteria:
(i) market capitalization of at least $200 million as of the Index screening date; and
(ii) average daily dollar trading volume of at least $250,000 for 6 months preceding the Index screening date. The following sectors are not eligible for inclusion in the Index: energy, materials,financials, telecommunication services, and utilities. The Index is a modified market capitalization weighted index designed to increase weight to companies that have the highest positive correlation in equity performance to a strong U.S. dollar. Each stock’s correlation
with the U.S. dollar is measured and correlations can range from -1.0 to 1.0. Those stocks with the highest (or most positive) correlations to the U.S. dollar receive higher weights in the Index. The stock’s weight is composed of two factors: 25% is determined by its market capitalization relative to other Index constituents and the other 75% is based on the rank of each stock’s correlation to the U.S. dollar as described above. The maximum weight of any one
sector and any one country in the Index, at the time of the Index’s annual screening date, is capped at 33%; however, sector and country weights may fluctuate above the specified cap in response to market conditions and/or the application of volume factor adjustments, as described below. In addition, the Index methodology includes volume factor adjustments such that if a component security does not meet certain trading volume thresholds, the security will either be eliminated from inclusion in the Index or its weight in the Index will be reduced and reallocated prorata among the other securities.
Top Holdings (10/28/15):
| Samsung Electronics Co Ltd | 5.85% |
| IPATH MSCI India Index ETN | 4.63% |
| Infosys Ltd ADR | 3.90% |
| Taiwan Semiconductor Manufactu | 3.10% |
| Hyundai Motor Co | 2.54% |
| Kia Motors Corp | 2.38% |
| Hyundai Mobis | 2.23% |
| Alfa SAB de CV | 1.79% |
| LG Electronics Inc | 1.64% |
| Marfrig Alimentos SA | 1.56% |
Top Sector Allocation (10/28/15):
| Information Technology | 35.79% |
| Consumer Discretionary | 24.42% |
| Industrials | 17.73% |
| Health Care | 8.72% |
| Consumer Staples | 8.71% |
Country Allocation (10/28/15):
| South Korea | 35.98% |
| Taiwan | 35.95% |
| India | 9.89% |
| Brazil | 6.82% |
| Mexico | 6.11% |
| Thailand | 1.95% |
| Malaysia | 1.65% |
| Philippines | 0.85% |
| Poland | 0.49% |
| Chile | 0.32% |
Useful Links:
EMSD Home Page
Category: Equities> Emerging Equity Markets> Emerging Markets Equity Strategy
3.
FUND INFORMATION:
| Symbol: HDRW | Exchange: ΒΑΤS |
| Name: WisdomTree Global ex-U.S. Hedged Real Estate Fund | Net Expense Ratio: 0.43% |
FUND OBJECTIVE:
The WisdomTree Global ex-U.S. Hedged Real Estate Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Global ex-U.S. Hedged Real Estate Index.
REFERENCE INDEX:
The WisdomTree Global ex-U.S. Hedged Real Estate Index is designed to provide exposure to global ex-U.S. real estate companies, while at the same time neutralizing exposure to fluctuations of the value of foreign currencies relative to the U.S. dollar. The Index is a fundamentally weighted index that consists of companies from developed and emerging markets outside of the United States that are classified as being part of the “Global Real Estate”
sector. Constituents will be among the following types of companies: real estate operating companies, real estate developing companies, and diversified real estate investment trusts (REITs). Companies are selected from the WisdomTree Global ex-U.S. Dividend Index, which defines the dividend-paying universe of companies in developed countries and emerging markets throughout the world, excluding the United States. To be eligible for inclusion in the Index, a company must meet the following criteria:
(i) incorporated and lists its shares on a stock exchange in Europe (i.e., Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Portugal, Spain,Sweden, Switzerland, and the United Kingdom), Australia, Canada, Hong Kong, Israel, Japan, New Zealand, and Singapore (collectively, the “developed countries”) or Brazil, Chile, China, Czech Republic, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Philippines, Poland, Russia, South Africa, Taiwan, Thailand or Turkey (collectively, the “emerging market countries”);
(ii) payment of at least $5 million in cash dividends paid on common shares in the annual cycle prior to the annual Index screening date;
(iii) market capitalization must be greater than $1 billion as of the Index screening date;
(iv) with respect to companies incorporated and listed in developed countries, average daily dollar trading volume of at least $100,000 for 3 months preceding the Index screening,
(v) with respect to companies incorporated and listed in emerging market countries, an average daily dollar trading volume of at least $200,000 for 6 months preceding the Index screening date; and
(vi) trading of at least 250,000 shares for each of the 6 months preceding the Index screening date. The Index also includes companies that may be classified as Passive Foreign Investment Companies. Securities are weighted in the Index based on dividends paid over the prior annual cycle.
Companies that pay a greater total dollar amount of dividends are more heavily weighted. To derive a company’s initial Index weight,
(i) multiply the U.S. dollar value of the company’s annual gross dividend per share by the number of common shares outstanding for that company (the “Cash Dividend Factor”);
(ii) calculate the Cash Dividend Factor for each company;
(iii) add together all of the companies’ Cash Dividend Factors; and
(iv) divide the company’s Cash Dividend Factor by the sum of all Cash Dividend Factors. The maximum weight of any one sector or country in the Index, at the time of the Index’s annual screening date, is capped at 25%; however, sector and country weights may fluctuate above the specified cap in response to market conditions and/or the application of volume factor adjustments, as described below. In addition, the Index methodology includes volume factor adjustments such that if a component security does not meet certain trading volume thresholds, the security will either be eliminated from inclusion in the Index or its weight in the Index will be reduced and reallocated prorata among the other securities.
Top Holdings (10/28/15):
| Sun Hung Kai Properties Ltd | 3.86% |
| Evergrande Real Estate Group Ltd. | 3.58% |
| Unibail-Rodamco SE | 3.42% |
| Scentre Group | 2.40% |
| Wharf Holdings Ltd | 2.19% |
| Country Garden Holdings Co. Ltd. | 2.12% |
| China Overseas Land & Investment | 2.11% |
| Link REIT | 1.81% |
| New World Development Ltd | 1.62% |
| Henderson Land Development Co | 1.59% |
Top Country Allocation (10/28/15):
| Hong Kong | 24.49% |
| Australia | 11.67% |
| China | 10.85% |
| France | 8.54% |
| Singapore | 8.05% |
| United Kingdom | 6.95% |
| Canada | 6.80% |
| Japan | 4.44% |
| Germany | 2.59% |
| South Africa | 2.48% |
Useful Links:
HDRW Home Page
Category: Real Estate> International R.E.