WisdomTree, a leading global provider of exchange-traded funds, has cross-listed its European product range on Deutsche Börse’s Xetra platform.
Jonathan Steinberg, CEO and President of WisdomTree Investments. (file image)
The range, which currently comprises six UCITS ETFs (see below), enables investors to access large- and small-cap dividend-paying stocks in Europe, the US and emerging markets.
The funds were first listed on the London Stock Exchange in October 2014, followed by the Borsa Italiana in January 2015.
The funds are all smart beta products, each tracking a proprietary dividend-weighted index designed to overcome the perceived weakness of conventional market capitalisation-weighted indices; namely that by weighting by market capitalisation an index overweights overvalued stocks and underweights undervalued stocks.
As well as overcoming this inherent weakness of cap-weighted indices, weighting by dividends potentially offers many other advantages. Historically, dividends have provided a majority of the stock market’s real return over time and, unlike other factors, dividends are an objective measure which is not affected by accounting treatments. Indeed, dividends are a major factor in determining stock price and a useful measure in assessing company profitability and value. Additionally, an alternative weighting methodology brings potential diversification benefits to a portfolio when held alongside market cap-weighted assets, by potentially reducing risk, increasing returns, or both.
Commenting on the launch, Jonathan Steinberg, CEO and President of WisdomTree Investments, said: “WisdomTree is a proven ETF innovator and a passionate ETF industry advocate. We are excited to bring our unique ETF focus and experience to this important market, where we seek to offer differentiated investment solutions backed by a veteran management team.”
Hector McNeil, Co-CEO of WisdomTree Europe, added: “We are extremely proud to be launching WisdomTree’s first smart beta UCITS ETFs on the Deutsche Börse. WisdomTree is founded on well-built indices, insightful research and a track record of innovation.”
WisdomTree unveiled its first funds in 2006 and is currently the fifth largest ETF provider in the US, with approximately $48 billion in assets under management. Globally, WisdomTree is currently the eighth largest ETP provider with strategies spanning a wide range of asset classes and countries around the world. WisdomTree Europe was established in April 2014 upon the acquisition of Boost ETP.
