Offers Access to Quality Dividend Growth Stocks in Japan Without Yen Exposure
Expanding Suite of Japan-Focused Funds
NEW YORK, April 9, 2015 (GLOBE NEWSWIRE) -- WisdomTree (Nasdaq:WETF), an exchange-traded fund ("ETF") and exchange-traded product ("ETP") sponsor and asset manager, today announced the launch of the WisdomTree Japan Hedged Dividend Growth Fund (JHDG) on the NYSE Arca. JHDG seeks to provide exposure to dividend-paying stocks of companies with growth characteristics that are incorporated in Japan, while neutralizing exposure to fluctuations between the yen and the U.S. dollar. The Fund has a net expense ratio of 0.43%.1
Japan's Economy Proving Resilient
Japan is showing signs of renewed economic vitality, much to the credit of Prime Minister Shinzo Abe's aggressive fiscal and monetary policies, commonly referred to as Abenomics.2 One key to Japan's revitalization lies in Abe's third arrow – structural reform, which is still in its early stages of being implemented across the private sector.
"As Abenomics continues to gain traction, we see companies becoming more profitable and are becoming better stewards of their financial capital, returning more of it to shareholders through dividends and stock buybacks to achieve higher returns on equity (ROE).3 We believe that JHDG captures the intersection of these trends with a beneficial marriage of growth and quality characteristics without the added exposure to the risk of the yen," said Jeremy Schwartz, WisdomTree Director of Research.
Accessing Japan's Dividend Growers, Eliminating Japan's Currency Exposure
Japanese equities have been one of the best-performing equity markets in the world since late 2012.4 Since then, two major themes have been evident: the depreciation of the yen and the rise in equity prices, and the improvement of Japanese firms' fundamentals – evident in rising corporate profits and dividends.
Schwartz added, "We see evidence that companies are responding to the reform initiatives designed to encourage better and more efficient allocation of capital. We believe companies are becoming increasingly focused on delivering higher ROE and that this goal may support above-average dividend growth over the coming years. JHDG allows investors to access high quality companies growing their dividends (at record rates), without having to assume a secondary 'currency bet' by being exposed to the yen."
Expanding the WisdomTree Toolkit For Exposure to Japan
With the launch of JHDG, WisdomTree now offers nine Japan-focused ETFs.
| Ticker | Fund Name | Expense Ratio |
| JHDG | WisdomTree Japan Hedged Dividend Growth Fund | 0.43%1 |
| DXJ | WisdomTree Japan Hedged Equity Fund | 0.48% |
| DXJS | WisdomTree Japan Hedged SmallCap Equity Fund | 0.58% |
| DXJF | WisdomTree Japan Hedged Financials Fund | 0.43%5 |
| DXJR | WisdomTree Japan Hedged Real Estate Fund | 0.43%5 |
| DXJC | WisdomTree Japan Hedged Capital Goods Fund | 0.43%5 |
| DXJH | WisdomTree Japan Hedged Health Care Fund | 0.43%5 |
| DXJT | WisdomTree Japan Hedged Tech, Media and Telecom Fund | 0.43%5 |
| DFJ | WisdomTree Japan SmallCap Dividend Fund | 0.58% |
This JHDG Fund is new and has a limited operating history.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund before investing. To obtain a prospectus containing this and other important information, please call 866.909.WISE (9473), or visit wisdomtree.com to view or download a prospectus. 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. Funds focusing their investments on certain sectors increase their vulnerability to any single economic, regulatory or sector-specific development. This may result in greater share price volatility. The Fund focuses its investments in Japan, which can be impacted by the events and developments in Japan that can adversely affect performance. Dividends are not guaranteed and a company currently paying dividends may cease paying dividends at any time. The Fund uses various strategies to attempt to minimize the impact of changes in the Japanese yen against the U.S. dollar, which may not be successful. Investments in derivative investments can be volatile, may be less liquid than securities and may be 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. The Fund invests in the securities included in, or representative of, its Index regardless of their investment merit and the Fund does not attempt to outperform its Index or take defensive positions in declining markets. 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.
Jeremy Schwartz is a registered representative of Foreside Fund Services, LLC.
WisdomTree Funds are distributed by Foreside Fund Services, LLC.
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1 The Fund's gross expense ratio of 0.48% and the net expense ratio of 0.43% reflect a contractual waiver of 0.05% through 7/31/16.
2 Abenomics: Series of policies enacted after the election of Japanese Prime Minister Shinzo Abe on December 16, 2012 aimed at stimulating Japan's economic growth.
3 Return on Equity (ROE): Measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.
4 Source: Bloomberg. Measured from 11/30/12 to 2/28/15.
5 The Net Expense Ratio reflects a contractual waiver of 0.05% through July 31, 2015. Gross Expense Ratio is 0.48%.
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 $58.4 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.