NEW YORK, Feb. 17, 2015 (GLOBE NEWSWIRE) -- WisdomTree (Nasdaq:WETF), an exchange-traded fund ("ETF") and exchange-traded product ("ETP") sponsor and asset manager, today announced the WisdomTree Europe Hedged Equity Fund (HEDJ) recently surpassed $10 billion in assets. HEDJ is designed to provide exposure to European dividend-paying exporters, while hedging out the movements of the euro relative to the U.S. dollar.
Quantitative Easing (QE) — Encouraging a Weaker Euro
The recent formal announcement of the European Central Bank's (ECB) aggressive monetary policy is continuing the weakening trend in the euro, potentially helping exporters who stand to benefit from a depreciating currency.
Earlier this year the euro hit 11-year lows1 relative to the U.S. dollar and since 2014, the euro and local European equities have started to increasingly show negative correlation.2
Luciano Siracusano, WisdomTree Chief Investment Strategist, commented, "There is uncertainty about the future of the euro and there could be more volatility to come. We believe this makes Europe an attractive place to neutralize currency exposure. A weakening euro may help boost the competitiveness of European exports, an element HEDJ seeks to take advantage of through its exporter tilt."
HEDJ: Case Study for Currency Hedging in International Developed World
HEDJ experienced record inflows of $5 billion3 last year with $2.8 billion4 of that coming in last few months of 2014. The Fund's powerful value proposition has helped continue momentous flows into 2015, with another $2.99 billion of inflows in January, more than any other ETF during that time period.5
Jeremy Schwartz, WisdomTree Director of Research added, "When thinking about international equity exposure, it's important to remember there are two components of returns: equity movement, plus the currency movement, relative to the U.S. dollar. So, if an investor does not have strong conviction on a currency's future performance – the baseline allocation should not be 100% unhedged."
1 Source: Bloomberg, 1/22/15
2 Source: WisdomTree, Bloomberg, as of 12/31/14
3 Source: WisdomTree, as of 12/31/14
4 Source: WisdomTree, 09/30/14-12/31/14
5 Source: WisdomTree, 12/31/14-01/31/15
View standardized performance for HEDJ here.
Performance is historical and does not guarantee future results. Current performance may be lower or higher than quoted. Investment returns and principal value of an investment will fluctuate so that an investors shares, when redeemed, may be worth more or less than their original cost. Performance data for the most recent month-end is available at www.wisdomtree.com.
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.WISE (9473) or visit wisdomtree.com. Read the prospectus carefully before you invest.
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. Investments in currency involve additional special risks, such as credit risk and interest rate fluctuations. Derivative investments can be volatile and these investments may be less liquid than other securities, and more sensitive to the effect of varied economic conditions. As this Fund can have a high concentration in some issuers, the Fund can be adversely impacted by changes affecting those issuers. 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.
Investments focused in Europe are increasing the impact of events and developments associated with the regions, which can adversely affect performance.
WisdomTree Funds are distributed by Foreside Fund Services, LLC.
Luciano Siracusano is a registered representative of Foreside Fund Services, LLC.
Jeremy Schwartz is a registered representative of Foreside Fund Services, LLC.
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About WisdomTree
WisdomTree Investments, Inc., through its subsidiaries in the U.S. and Europe (collectively, "WisdomTree"), is an exchange-traded fund ("ETF") and exchange-traded product ("ETP") sponsor and asset manager headquartered in New York. WisdomTree offers products covering equities, fixed income, currencies, commodities and alternative strategies. WisdomTree currently has approximately $46.2 billion in assets under management globally. 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 subsidiaries worldwide.