WisdomTree, a leading currency-hedged exchange-traded fund issuer, has announced the launch of multiple new share classes across a range of its existing smart beta funds, adding increased flexibility and improving access for investors.

Hector McNeil, Co-CEO of WisdomTree Europe.

The new share classes will be listed on the London Stock Exchange and are available for the WisdomTree Japan Equity UCITS ETF – USD Hedged (DXJ LN), the WisdomTree Europe Equity UCITS ETF – USD Hedged (HEDJ LN) and the WisdomTree German Equity UCITS ETF – GBP Hedged (DXGP LN).

In addition to the hedged share classes, unhedged share classes will also now be offered.  These ETFs will allow investors to access export-oriented strategies relating to Japanese, Continental European and German equities while providing the option to tailor their currency exposure through a combination of hedged and unhedged funds.

“Following the launch in May of these flagship currency-hedged ETFs, investor demand has led us to bring increased choice and flexibility to European investors. This increased range of new currency hedged and unhedged share classes fit into the many ways that our clients manage their portfolio currency exposures,” said Hector McNeil, Co-CEO of WisdomTree Europe.  “In addition investors will have the opportunity to switch efficiently between share classes, allowing them to maintain their core equity exposure whilst offering the flexibility to implement their view of currency movements.”

The WisdomTree Japan, Europe and Germany ETFs are designed to offer broad exposure to their respective geographies with a tilt towards companies that derive significant revenues from exporting. Put another way, the underlying holdings earn a substantial part of their income outside their own currency markets. As such, the funds should benefit from falling home currencies which in turn make the underlying companies’ products and services more attractive to foreign customers.

Viktor Nossek, WisdomTree Europe’s Director of Research added: “Quantitative easing (QE) programs by the ECB and the BoJ remain a key theme dominating both Continental Europe and Japanese equity markets and investors’ approach to managing currency exposure and investments.

“These strategies deliver exposure to export-oriented equities while offering protection from local currency movements. By hedging exposure to the potential currency weakness as a result of QE, investors may more fully benefit from the bullish sentiment in European and Japanese equity markets driven by a QE-led environment.”

The new WisdomTree share classes are as follows:

WisdomTree Japan Equity UCITS ETF

• DXJP – hedging currency fluctuations between GBP and JPY (listed in GBP)
• DXJZ – unhedged (listed in USD)
• DXJG – unhedged (listed in GBP)

WisdomTree Europe Equity UCITS ETFs

• HEDP – hedging currency fluctuations between GBP and EUR (listed in GBP)
• HEDF – unhedged (listed in EUR)
• HEDG – unhedged (listed in GBP)

WisdomTree Germany Equity UCITS ETF

• DXGE – hedging currency fluctuations between USD and EUR (listed in USD)
• DXGG – hedging currency fluctuations between USD and EUR (listed in GBP)
• DXGY – unhedged (listed in EUR)
• DXGZ – unhedged (listed in GBP)