WisdomTree International Hedged Equity Fund (HEDJ) to Provide More Focused Exposure to European Exporters While Hedging Against Euro
HEDJ Investment Strategy Buying Historically Cheap European Stocks While Hedging Potential Declines in the Euro
Renamed WisdomTree Europe Hedged Equity Fund
NEW YORK, Aug. 27, 2012 (GLOBE NEWSWIRE) -- WisdomTree (BZF) (Nasdaq:WETF), an exchange-traded fund ("ETF") sponsor and asset manager, today announced effective as of the close of business August 29, 2012, the WisdomTree International Hedged Equity Fund (HEDJ) will implement a more focused investment strategy: providing exposure to an export-oriented European portfolio of dividend-paying equities that hedges exposure to movements of a singular currency, the euro, relative to the U.S. dollar. Previously, the Fund provided exposure to equities across Europe, Australasia, and the Far East, while neutralizing the multiple currency movements in these regions versus the dollar. The Fund will be renamed the WisdomTree Europe Hedged Equity Fund (HEDJ) to reflect the new investment objective.
Luciano Siracusano, WisdomTree Chief Investment Strategist, commented, "Concerns over the future of the euro may cause investors to reevaluate their exposure to Europe, though current valuations for European stocks remain compelling based on historically low P/E ratios1 and high dividend yield2 differentials compared to the U.S.3 In fact, even in a declining euro environment, we believe many global companies headquartered in Europe will continue to be competitive and have the potential to generate substantial profits. By providing exposure to European stocks while neutralizing the downside for U.S. investors that would be inflicted by a weakening euro, we believe HEDJ can present a precise and thoughtful alternative to un-hedged portfolios of European stocks."
Mr. Siracusano added, "For investors concerned about the impact that growing sovereign debt could have on the value of foreign currencies, we believe both The WisdomTree Japan Hedged Equity Fund (DXJ) and HEDJ provide unique ways to own Japanese or European equities in the ETF structure, while mitigating potentially unwanted currency risk."
To read WisdomTree's latest Market Insights, Why Investors Might Want to Hedge the Euro, Click Here.
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.
1 Source: Bloomberg, WisdomTree. As of July 2, 2012. Price to earnings (P/E) ratio: Stock price divided by earnings per share. Lower numbers indicate investors are paying less for a dollar of earnings, thereby indicating that the equity itself may be relatively cheap.
2 Dividend yield: A financial ratio that shows how much a company pays out in dividends each year relative to its share price.
3 Source: MSCI, S&P.
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 HEDJ can have a high concentration in some issuers, the Fund can be adversely impacted by changes affecting those issuers. DXJ focuses its investments in Japan, thereby increasing the impact of events and developments in Japan that can adversely affect performance. Please read the Fund's prospectus for specific details regarding the Fund's risk profile.
WisdomTree Funds are distributed by ALPS Distributors, Inc.
Luciano Siracusano is a registered representative of ALPS Distributors, Inc.
WisdomTree® is a New York-based exchange-traded fund ("ETF") sponsor and asset manager. WisdomTree currently offers 48 ETFs across Equities, Currency Income, Fixed Income and Alternatives asset classes. WisdomTree also licenses its indexes to third parties for proprietary products and promotes the use of WisdomTree ETFs in 401(k) plans. WisdomTree currently has approximately $16.0 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.
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Source: WisdomTree Investments, Inc. 2012 GlobeNewswire, Inc.