Fund provides investors simple way to access diversified global fixed income
NEW YORK, Dec. 13, 2018 (GLOBE NEWSWIRE) -- WisdomTree (WETF), an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset manager, today announced the launch of the WisdomTree Yield Enhanced Global Aggregate Bond Fund (GLBY) on the NYSE Arca Exchange. GLBY seeks to track the price and yield performance, before fees and expenses, of the Bloomberg Barclays Global Aggregate Enhanced Yield Index (USD Hedged) and has an expense ratio of 0.20%.
“GLBY provides investors a simple and cost-effective way to access multiple economies, interest rates and yield curves with the prospect of higher return potential and lower absolute risk than domestic bond markets alone. This fund is ideal for investors looking to enhance yield or seeking diversification through global fixed income,” said Rick Harper, WisdomTree Head of Fixed Income.
What’s Under the Hood?
The WisdomTree Yield Enhanced Global Aggregate Bond Fund tracks the underlying index which employs a systematic methodology to enhance potential yield at the sector and global level by taking advantage of opportunities that exist between currency blocks and abiding by disciplined risk constraints.
- Deconstructs the Bloomberg Barclays Global Aggregate Index into distinctive maturity and sector investment buckets for each of the major currency exposures;
- Re-weights sector and maturity buckets within each currency block to enhance yield, while adhering to disciplined risk constraints on tracking error, duration and sector exposure;
- Re-weights currency blocks to enhance net yield, while adhering to a set of disciplined constraints on tracking error and risk;
- And hedges the bond cash flows back to U.S. dollars to mitigate currency risk.
This process results in distinct potential benefits when compared to market-capitalization weighted indexes, such as a greater balance between corporate and government debt exposures globally and an enhanced tradeoff between yield potential and interest rate risks.
This launch is an extension of WisdomTree’s yield enhanced fixed income offerings, which includes the WisdomTree Yield Enhanced U.S. Aggregate Bond Fund (AGGY) and WisdomTree Yield Enhanced U.S. Short-Term Aggregate Bond Fund (SHAG). Learn more about the WisdomTree Yield Enhanced Global Aggregate Bond Fund (GLBY) here.
This Fund is new and has limited operating history. You cannot invest directly in an index.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund before investing. To obtain a prospectus containing this and other important information, call 866.909.9473 or visit WisdomTree.com. Investors should read the prospectus carefully before investing.
Diversification does not eliminate the risk of experiencing investment losses.
There are risks associated with investing, including possible loss of principal. Fixed income investments are subject to interest rate risk; their value will normally decline as interest rates rise. Fixed income investments are also subject to credit risk, the risk that the issuer of a bond will fail to pay interest and principal in a timely manner, or that negative perceptions of the issuer’s ability to make such payments will cause the price of that bond to decline. Investing in mortgage- and asset-backed securities involves interest rate, credit, valuation, extension and liquidity risks and the risk that payments on the underlying assets are delayed, prepaid, subordinated or defaulted on. The Fund invests in the securities included in, or representative of, its Index regardless of their investment merit and the Fund does not attempt to outperform its Index or take defensive positions in declining markets. Due to the investment strategy of the Fund, it may make higher capital gain distributions than other ETFs. The Fund uses various strategies to attempt to minimize the impact of changes in the value of the non-U.S. currencies against the U.S. dollar. These strategies may not be successful. Derivatives used by the Fund to offset its exposure to foreign currencies represented in the Index may not perform as intended. There can be no assurance that the Fund’s hedging transactions will be effective. Please read the Fund’s prospectus for specific details regarding the Fund’s risk profile.
BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays is affiliated with WisdomTree, and neither approves, endorses, reviews or recommends the WisdomTree Yield Enhanced Global Aggregate Bond Fund (GLBY). Neither Bloomberg nor Barclays guarantees the timeliness, accurateness or completeness of any data or information relating to the Bloomberg Barclays Global Aggregate Index, and neither shall be liable in any way to WisdomTree, investors in WisdomTree Yield Enhanced Global Aggregate Bond Fund (GLBY) or other third parties in respect of the use or accuracy of the Bloomberg Barclays Global Aggregate Index or any data included therein.
WisdomTree Funds are distributed by Foreside Fund Services, LLC, in the U.S. only.
Rick Harper is a registered representative of Foreside Fund Services, LLC.
WisdomTree Investments, Inc., through its subsidiaries in the U.S., Europe and Canada (collectively, “WisdomTree”), is an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset manager headquartered in New York. WisdomTree offers products covering equities, fixed income, currencies, commodities and alternative strategies. WisdomTree currently has approximately $55.5 billion in assets under management globally. For more information, please visit www.wisdomtree.com or follow us on Twitter @WisdomTreeETFs.
WisdomTree® is the marketing name for WisdomTree Investments, Inc. and its subsidiaries worldwide.