WisdomTree begun trading of 4 new ETFs, the WisdomTree Dynamic Currency Hedged Europe Equity Fund (BATS: DDEZ), the WisdomTree Dynamic Currency Hedged Japan Equity Fund (BATS: DDJP), the WisdomTree Dynamic Currency Hedged International Equity Fund (BATS: DDWM) and the WisdomTree Dynamic Currency Hedged International Small Cap Equity Fund (BATS: DDLS) on Thursday, January 07, 2015. Here is a synopsis of the new ETFs:
1.
FUND INFORMATION:
| Symbol: DDEZ | Exchange: BATS |
| Name: WisdomTree Dynamic Currency Hedged Europe Equity Fund | Net Expense Ratio: 0.43% |
FUND OBJECTIVE:
The WisdomTree Dynamic Currency Hedged Europe Equity Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Dynamic Currency Hedged Europe Equity Index.
REFERENCE INDEX:
The WisdomTree Dynamic Currency Hedged Europe Equity Index is a dividend weighted index designed to provide exposure to European equity securities while at the same time dynamically hedging currency exposure to fluctuations between the value of the euro and the U.S.dollar. The Index consists of the equity securities of the dividend-paying companies within the WisdomTree International Equity Index, which defines the dividend-paying universe of companies in the industrialized world, excluding Canada and the United States, that are organized under the laws of a European country,tradedin euros, and have at least $1 billion in market capitalization.
Countries historically represented in the Index include: 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) listed for trading on a major stock exchange in one of the aforementioned European countries;
(ii) payment of at least $5 million in cash dividends on shares of common stock in the annual cycle prior to the annual Index screening date;
(iii) average daily dollar trading volume of at least $100,000 for the three months preceding the Index screening date; and
(iv) trading of at least 250,000 shares per month for each of the six months preceding the Index screening date.
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;
(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.
At the time of the Index’s annual screening date,the maximum weight of any single security in the Index is capped at 5% and the maximum weight of any one sector and any one country in the Index, is capped at 25%. In response to market conditions and/or the application of volume factor adjustments, sector, country and security weights may fluctuate above their specified caps between annual Index screening dates. 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.
The Index dynamically hedges currency fluctuations in the relative value of the euro against the U.S. dollar, ranging from a 0% to 100% hedge. The Index determines and adjusts the hedge ratio on the euro on a monthly basis using 3 equally-weighted, quantitative signals: interest rate differentials, momentum, and value.
Fund’s Top Holdings (01/07/2016):
| Anheuser-Busch InBev NV | 4.23% |
| Banco Santander SA | 4.06% |
| Total SA | 3.07% |
| ENI SpA | 2.86% |
| Allianz SE | 2.68% |
| Telefonica SA | 2.31% |
| Siemens AG | 2.08% |
| Sanofi-Aventis SA | 2.00% |
| Deutsche Telekom AG | 1.87% |
| Daimler AG | 1.76% |
Fund Country Allocation (01/07/2016):
| Germany | 25.17% |
| France | 24.63% |
| Spain | 15.84% |
| Italy | 11.36% |
| Netherlands | 7.96% |
| Belgium | 7.32% |
| Finland | 4.64% |
| Portugal | 1.29% |
| Austria | 1.04% |
| Ireland | 0.74% |
Fund Sector Breakdown (01/07/2016):
| Financials | 23.50% |
| Industrials | 13.49% |
| Consumer Discretionary | 12.61% |
| Consumer Staples | 10.98% |
| Utilities | 10.34% |
| Energy | 7.66% |
| Telecommunication Services | 7.16% |
| Materials | 5.78% |
| Health Care | 5.02% |
| Information Technology | 3.45% |
Useful Links:
DDEZ Home Page
Category: Equities> Regions> Europe> Broad Europe> European Dividends
2.
FUND INFORMATION:
| Symbol: DDJP | Exchange: BATS |
| Name: WisdomTree Dynamic Currency Hedged Japan Equity Fund | Net Expense Ratio: 0.43% |
FUND OBJECTIVE:
The WisdomTree Dynamic Currency Hedged Japan Equity Fund eeks to track the price and yield performance, before fees and expenses, of the WisdomTree Dynamic Currency Hedged Japan Equity Index.
REFERENCE INDEX:
The WisdomTree Dynamic Currency Hedged Japan Equity Index is a dividend weighted index designed to provide exposure to Japanese equity securities while at the same time dynamically hedging currency exposure to fluctuations between the value of the Japanese yen and the U.S. dollar. The Index consists of the equity securities of dividend-paying companies within the WisdomTree International Equity Index, which defines the dividend paying universe of companies in the industrialized world, excluding Canada and the United States, that are incorporated in Japan and traded on the Tokyo Stock Exchange.
To be eligible for inclusion in the Index, a company must meet the following criteria:
(i) payment of at least $5 million in cash dividends on shares of common stock in the annual cycle prior to the annual Index screening date;
(ii) market capitalization of at least $100 million as of the Index screening date;
(iii) average daily dollar trading volume of at least $100,000 for the three months preceding the Index screening date; and
(iv) trading of at least 250,000 shares per month for each of the six months preceding the Index screening date.
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;
(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.
At the time of the Index’s annual screening date,the maximum weight of any single security in the Index is capped at 5% and the maximum weight of any one sector and any one country in the Index, is capped at 25%. In response to market conditions and/or the application of volume factor adjustments, sector, country and security weights may fluctuate above their specified caps between annual Index screening dates. 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.
The Index dynamically hedges currency fluctuations in the relative value of the Japanese yen against the U.S. dollar, ranging from a 0% to 100% hedge. The Index determines and adjusts the hedge ratio on the Japanese yen on a monthly basis using 3 equally-weighted, quantitative signals: interest rate differentials, momentum, and value.
Fund’s Top Holdings (01/07/2016):
| Toyota Motor Corp | 4.57% |
| NTT DoCoMo Inc | 3.83% |
| Nippon Telegraph & Telephone Co | 2.84% |
| Mitsubishi UFJ Financial Group | 2.64% |
| Japan Tobacco Inc | 2.52% |
| Sumitomo Mitsui Financial Group | 2.12% |
| KDDI Corp | 2.10% |
| Mizuho Financial Group Inc | 2.06% |
| Canon Inc | 2.04% |
| Takeda Pharmaceutical Co Ltd | 1.84% |
Fund Sector Breakdown (01/07/2016):
| Consumer Discretionary | 20.84% |
| Industrials | 19.59% |
| Financials | 16.53% |
| Information Technology | 9.80% |
| Telecommunication Services | 9.17% |
| Consumer Staples | 8.54% |
| Health Care | 7.36% |
| Materials | 5.75% |
| Utilities | 1.30% |
| Energy | 1.11% |
Useful Links:
DDJP Home Page
Category: Equities> Regions> Asia> Developed Asia Equities> Japan
3.
FUND INFORMATION:
| Symbol: DDWM | Exchange: BATS |
| Name: WisdomTree Dynamic Currency Hedged International Equity Fund | Net Expense Ratio: 0.35% |
FUND OBJECTIVE:
The WisdomTree Dynamic Currency Hedged International Equity Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Dynamic Currency Hedged International Equity Index.
REFERENCE INDEX:
The WisdomTree Dynamic Currency Hedged International Equity Index is a dividend weighted index designed to provide exposure to equity securities in the industrialized world, excluding Canada and the United States, that pay regular cash dividends on shares of common stock, while at the same time dynamically hedging currency exposure to fluctuations between the value of the applicable foreign currencies and the U.S. dollar. The Index consists of equity securities of dividend-paying companies.
To be eligible for inclusion in the Index, a company must meet the following criteria:
(i) incorporation and have their shares listed for trading on one of the major stock exchanges in one of 15 developed European countries (Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, or the United Kingdom), Israel, Japan, Australia, New Zealand, Hong Kong or Singapore;
(ii) payment of at least $5 million in cash dividends on shares of common stock in the annual cycle prior to the annual Index screening date;
(iii) market capitalization of at least $100 million as of the Index screening date;
(iv) average daily dollar trading volume of at least $100,000 for the three months preceding the Index screening date; and
(v) trading of at least 250,000 shares per month for each of the six months preceding the Index screening date.
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;
(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.
At the time of the Index’s annual screening date, the maximum weight of any one sector and any one country is capped at 25%. In response to market conditions and/or the application of volume factor adjustments, sector and country weights may fluctuate above the specified cap between annual Index screening dates. 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.
The Index dynamically hedges currency fluctuations in the relative value of the applicable foreign currencies against the U.S. dollar, ranging from a 0% to 100% hedge. The Index determines and adjusts the hedge ratios on such foreign currencies on a monthly basis using 3 equally-weighted, quantitative signals: interest rate differentials, momentum, and value.
Fund’s Top Holdings (01/07/2016):
| HSBC Holdings PLC | 1.72% |
| Nestle SA | 1.60% |
| Roche Holding AG | 1.49% |
| GlaxoSmithKline PLC | 1.48% |
| BP PLC | 1.47% |
| Novartis AG | 1.38% |
| Royal Dutch Shell PLC | 1.29% |
| China Mobile Ltd | 1.29% |
| Anheuser-Busch InBev NV | 1.21% |
| Toyota Motor Corp | 1.21% |
Fund Top Country Allocation (01/07/2016):
| United Kingdom | 22.46% |
| Japan | 15.21% |
| France | 9.58% |
| Switzerland | 8.67% |
| Australia | 7.75% |
| Germany | 7.49% |
| Hong Kong | 5.18% |
| Spain | 4.34% |
| Sweden | 3.51% |
| Italy | 3.18% |
Fund Sector Breakdown (01/07/2016):
| Financials | 23.84% |
| Industrials | 12.21% |
| Consumer Staples | 11.76% |
| Consumer Discretionary | 11.45% |
| Health Care | 9.67% |
| Telecommunication Services | 8.58% |
| Energy | 8.01% |
| Utilities | 5.59% |
| Materials | 5.50% |
| Information Technology | 3.40% |
Useful Links:
DDWM Home Page
Category: Equities> International Equities> International Dividends
4.
FUND INFORMATION:
| Symbol: DDLS | Exchange: BATS |
| Name: WisdomTree Dynamic Currency Hedged International SmallCap Equity Fund | Net Expense Ratio: 0.43% |
FUND OBJECTIVE:
The WisdomTree Dynamic Currency Hedged International SmallCap Equity Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Dynamic Currency Hedged International SmallCap Equity Index.
REFERENCE INDEX:
The WisdomTree Dynamic Currency Hedged International SmallCap Equity Index is a dividend weighted index designed to provide exposure to small-capitalization equity securities in the industrialized world, excluding Canada and the United States, that pay regular cash dividends on shares of common stock, while at the same time dynamically hedging currency exposure to fluctuations between the value of foreign currencies and the U.S. dollar. The Index consists of the equity securities of companies that comprise the bottom 25% of the market capitalization of the WisdomTree International Equity Index, as of the annual Index screening date, after the 300 largest companies have been removed. As of December 31, 2015, the Index had a market capitalization range from $37.63 million to $7.07 billion, with an average market capitalization of $993 million.
To be eligible for inclusion in the Index, a company must meet the following criteria:
(i) incorporation and have their shares listed for trading on one of the major stock exchanges in one of 15 developed European countries (Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, or the United Kingdom), Israel, Japan, Australia, New Zealand, Hong Kong or Singapore;
(ii) payment of at least $5 million in cash dividends on shares of common stock in the annual cycle prior to the annual Index screening date;
(iii) market capitalization of at least $100 million as of the Index screening date;
(iv) average daily dollar trading volume of at least $100,000 for the three months preceding the Index screening date; and
(v) trading of at least 250,000 shares per month for each of the six months preceding the Index screening date
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;
(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.
At the time of the Index’s annual screening date, the maximum weight of any one sector and any one country is capped at 25%. In response to market conditions and/or the application of volume factor adjustments, sector and country weights may fluctuate above their specified caps between annual Index screening dates. 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.
The Index dynamically hedges currency fluctuations in the relative value of the applicable foreign currencies against the U.S. dollar, ranging from a 0% to 100% hedge. The Index determines and adjusts the hedge ratios on such foreign currencies on a monthly basis using 3 equally-weighted, quantitative signals: interest rate differentials, momentum, and value.
Fund’s Top Holdings (01/07/2016):
| Salmar ASA | 0.56% |
| Cofinimmo | 0.49% |
| Meridian Energy Ltd | 0.48% |
| Genesis Energy Ltd | 0.47% |
| Air New Zealand Ltd | 0.47% |
| Ladbrokes PLC | 0.47% |
| Nexity | 0.44% |
| Venture Corp Ltd | 0.41% |
| NCC AB | 0.38% |
| TrustPower Ltd | 0.38% |
Fund Top Country Allocation (01/07/2016):
| Japan | 28.04% |
| United Kingdom | 16.27% |
| Australia | 10.81% |
| Sweden | 6.17% |
| New Zealand | 4.72% |
| Italy | 4.39% |
| Germany | 4.15% |
| Norway | 3.64% |
| Finland | 3.35% |
| Singapore | 3.24% |
Fund Sector Breakdown (01/07/2016):
| Industrials | 24.38% |
| Consumer Discretionary | 20.60% |
| Financials | 18.25% |
| Information Technology | 9.87% |
| Consumer Staples | 7.55% |
| Materials | 6.93% |
| Health Care | 4.80% |
| Energy | 3.30% |
| Utilities | 2.95% |
| Telecommunication Services | 1.38% |
Useful Links:
DDLS Home Page
Category: Equities> International Equities> International Dividends
ETFtrack comment:
Here is a comment from Jeremy Schwartz, WisdomTree Director of Research:
“WisdomTree’s dynamic currency hedged strategy limits the need to make a call on currency by utilizing a data-driven, rules-based approach that assesses the picture of developed market currencies relative to the U.S. dollar on a monthly basis. This offers the potential for an attractive strategic and baseline exposure for long-term portfolios.”