NEW YORK--(BUSINESS WIRE)--WisdomTree (Pink Sheets: WSDT - News), an exchange-traded fund (“ETF”) sponsor and asset manager, announced today the launch of the WisdomTree Global Real Return Fund (RRF) on the NYSE Arca with an expense ratio of 0.60%. RRF combines inflation-linked bond exposure from around the world with disciplined commodity strategies designed to provide a managed solution to global inflation.
“Economies around the world are experiencing inflation at different speeds but U.S. investors should be aware that inflation around the globe can directly impact them. We believe investing in U.S. TIPS1 alone is simply an incomplete inflation fighting strategy. We have designed the Global Real Return Fund (RRF) as a diversified, multi-asset class approach to combating inflation,” said Bruce Lavine, WisdomTree President & COO.
RRF is an actively managed ETF utilizing a structured, rules-based investment approach. The Fund seeks to:
- Generate streams of income which should rise with increases in inflation and commodity prices
- Offer diversification benefits within overall portfolio strategy
- Participate in commodity upside while mitigating downside risk of commodity investing through long/short exposure
- Counter the erosion of value from a declining U.S. dollar.
1 TIPS are Treasury securities that are indexed to Consumer Price Index inflation in order to protect investors from the negative effects of inflation.
There are risks associated with investing, including possible loss of principal. Fixed income investments are subject to interest rate risk; their value will normally decline as interest rates rise. In addition when interest rates fall income may decline. Fixed income investments are also subject to credit risk, the risk that the issuer of a bond will fail to pay interest and principal in a timely manner, or that negative perceptions of the issuers ability to make such payments will cause the price of that bond to decline. Inflation protected securities do not eliminate risks associated with inflation or deflation.
Foreign investing involves special risks, such as risk of loss from currency fluctuation or political or economic uncertainty. 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 and intervention or political developments. One of the risks associated with the Fund is the complexity of the different factors that contribute to the Fund’s performance, as well as its correlation (or non-correlation) to other asset classes. These factors include use of various types of fixed income investments, commodity contracts, swaps and other derivatives.
Derivative investments can be volatile and these investments may be less liquid than other securities, and more sensitive to the effects of varied economic conditions. Unlike typical exchange-traded funds, there is no index that the Fund attempts to track or replicate. Thus, the ability of the Fund to achieve its objective will depend on the effectiveness of the portfolio manager. Please read the Fund’s prospectus for specific details regarding the Fund’s risk profile.
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.
WisdomTree Funds are distributed by ALPS Distributors, Inc.
Bruce Lavine is a registered representative of ALPS Distributors, Inc.
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About WisdomTree
WisdomTree® is a New York-based exchange-traded fund (“ETF”) sponsor and asset manager. WisdomTree currently offers 47 ETFs across Equities, Currency Income, Fixed Income and Alternatives asset classes. WisdomTree also licenses its indexes to third parties for proprietary products and offers a platform to promote the use of WisdomTree ETFs in 401(k) plans. WisdomTree currently has approximately $13.2 billion in ETF assets under management. For more information, please visit www.wisdomtree.com.
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.