WisdomTree (WETF), the fifth-largest U.S. ETF sponsor, could further capitalize on the success of the WisdomTree Japan Hedged Equity Fund (DXJ) by possibly introducing five sector equivalents of the second-largest Japan ETF.
According to filings with the Securities and Exchange Commission, New York-based WisdomTree could introduce the following yen-hedged sector plays: The WisdomTree Japan Hedged, Tech Media and Telecom Fund, the WisdomTree Japan Hedged Financials Fund, the WisdomTree Japan Hedged Real Estate Fund, the WisdomTree Japan Hedged Capital Goods Fund and the WisdomTree Japan Hedged Health Care Fund.
Year-to-date, DXJ is the top asset-gathering ETF with inflows of nearly $8.5 billion, almost 31% more than the inflows to the iShares Core S&P 500 ETF (IVV) , the second-best ETF in terms of 2013 inflows. [Ten ETFs That Doubled in Size This Year]
WisdomTree’s Japan sector plays would track some sectors and industries that are not heavily represented in DXJ. For example, financials and health care combine for less than 18% of DXJ’s weight.
Industrials, consumer discretionary and technology are DXJ’s three largest sector allocations combining for over 63% of the fund’s weight.
WisdomTree also sponsors the WisdomTree Japan Hedged SmallCap Equity Fund (DXJS) , the more domestically-focused, small-cap answer to DXJ. DXJS debuted in late June and now has over $28.3 million in assets under management. [More to Come for Yen Hedged ETFs]
WisdomTree Japan Hedged Equity Fund
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of DXJ.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.