Despite market volatility, 2016 looks to be a big year for WisdomTree (NASDAQ:WETF). The New Year's confetti had hardly been cleared when the firm announced it had completed its acquisition of GreenHaven Commodity Funds, the managing owner of the GreenHaven Continuous Commodity Index Fund (NYSEARCA:GCC) and GreenHaven Coal Services.
The news came on January 4, the first business day of 2016, and it was quickly followed up by another big announcement: the firm's launch of a four-fund suite of dynamic currency-hedged ETFs:
- WisdomTree Dynamic Currency Hedged Europe Equity Fund (BATS:DDEZ)
- WisdomTree Dynamic Currency Hedged Japan Equity Fund (BATS:DDJP)
- WisdomTree Dynamic Currency Hedged International Equity Fund (BATS:DDWM)
- WisdomTree Dynamic Currency Hedged International SmallCap Equity Fund (BATS:DDLS)
"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," said WisdomTree Director of Research Jeremy Schwartz, in a statement. "This offers the potential for an attractive strategic and baseline exposure for long-term portfolios."
Move Into Commodities
The GreenHaven acquisition also involves alternative investment funds. In addition to the GCC ETF, WisdomTree's acquisition of GreenHaven Coal Services also includes the GreenHaven Coal Fund (NYSEARCA:TONS), which GreenHaven Coal Services sponsors. GreenHaven has been retained by WisdomTree as the sub-advisor to both funds.
"The acquisition of these ETFs represents WisdomTree's first foray into the commodities space and exemplifies our commitment to growing an innovative, differentiated and diversified product platform," said WisdomTree CEO Jonathan Steinberg. "Today in the U.S. alone we offer 88 ETFs across traditional equities and currency-hedged equities, domestic and international fixed income, currencies, and alternatives strategies including commodities."
GCC returned -18.99% in 2015, a very tough year for commodities, ranking in the top 12% of its Morningstar category. TONS launched in February 2015 and returned -20.90% in the final six months of 2015, but that was good enough for it to rank in the top 1% of its category. The two funds have respective net-expense ratios of 0.85% and 1.23%.
Three of the new currency hedged equity ETFs - DDEZ, DDJP, and DDLS - have net-expense ratios of 0.43%. DDWM has a net-expense ratio of 0.35%.
Past performance does not necessarily predict future results.
Jason Seagraves contributed to this article.