WisdomTree has announced the launch of two ETFs based on multiple factors and managed transparently. These are the WisdomTree Emerging Markets Multifactor Fund and the WisdomTree International Multifactor Fund, both listed on the NYSE Arca.
As explained by the manager, the WisdomTree Emerging Markets Multifactor Fund aims to revalue its capital by following an actively managed transparent strategy, investing in equities of emerging markets with the greatest potential for profitability, according to valuation, quality, momentum factors. and volatility. In addition, the exchange risk of the fund is managed through a dynamic currency hedge. EMMF has a net expense ratio of 0.48%.
With regard to the WisdomTree International Multifactor Fund, which is also active and transparent, it focuses its strategy on equity securities of developed markets, excluding the United States and Canada. It is also based on the factors of valuation, quality, momentum, and volatility and exchange risk are also managed through a dynamic currency hedge. DWMF has a net expense ratio of 0.38%.
According to Jeremy Schwartz, director of analysis at WisdomTree, "actively managed strategies are a new and exciting frontier for ETFs. We believe that our modern alpha approach represents a new class of strategies that incorporate the pursuit of superior performance but with the benefits of the structure of ETFs."
Both funds, like the WisdomTree US Multifactor Fund (USMF) launched in 2017, use a patented investment strategy that includes fundamental and technical factors to create a proprietary weighting and selection model. "This approach includes the selection of a broad universe of actions based on a multifactor score, the volatility score, and overweight bands by sectors and countries, which creates a very active management portfolio to achieve superior performance," he explains. the manager.<
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