WisdomTree adds share classes to currency-hedged ETFs


ETF provider WisdomTree has added new share classes to three of its existing currency-hedged ETFs.

The firm will add sterling, Swiss Franc and Euro currencies to its US dollar-hedged Japan Equity UCITS ETF and Europe Equity UCITS ETF, which has currently the largest portion of assets at $79m.

The firm will add new share classes to its GBP-hedged German Equity UCITS ETF and will also list it on the London Stock Exchange.

The three ETFs have more than $135m assets in total.

WisdomTree Europe co-chief executive Hector McNeil says: “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 hedges and unhedged share classes fit into the many ways that our clients manage their portfolio currency exposures.

“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 Japan Equity UCITS ETF is exposed to the Japanese equity market, especially exporters, and is looking to benefit from a depreciating yen.

Similarly the German ETF is exposed to companies with a strong global reach and would target a weaker Euro to generate returns.

The Europe ETF, which is exposed to Eurozone equities, will be exposed to the same index as the firm’s US-listed ETF, currently at $19.9bn in assets.

WisdomTree Europe director of research Viktor Nossek says: “Quantitative easing 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.”