Executing the Desired Exposures through WisdomTree’s Exchange-Traded Funds (ETFs)
WisdomTree has created five Japan Sector ETFs, each designed to track its respective Japan Sector Index after costs, fees and expenses.
Conclusion
I believe 2013 marked the start of a multi-year bull market in equities, and I think there is investor demand for more specific executions for Japanese equities. With these new sector ETFs, WisdomTree has expanded the Abenomics tool kit for Japanese investment themes such as reflation, Abe’s growth strategy and yen sensitivity.
1Float-adjusted market cap excludes shares held by control groups, public companies and government agencies.
2Securities of brokerage or financial firms that derive 15% or more of their revenue from securities-related activities (referred to as “12(d)(3) securities”) are capped at 4% at the annual rebalance in the WisdomTree Japan Hedged Financials Index.
Important Risks Related to this Article
There are risks associated with investing, including possible loss of principal. Foreign investing involves special risks, such as risk of loss from currency fluctuation or political or economic uncertainty. Funds focusing their investments on certain sectors increase their vulnerability to any single economic, regulatory or sector-specific development. This may result in greater share price volatility. The Funds focus their investments in Japan, thereby increasing the impact of events and developments in Japan, which can adversely affect performance.
The Funds use various strategies to attempt to minimize the impact of changes in the Japanese yen against the U.S. dollar, which may not be successful. Investments in derivative investments can be volatile, may be less liquid than securities and may be more sensitive to the effect of varied economic conditions. As these Funds can have a high concentration in some issuers, the Funds can be adversely impacted by changes affecting those issuers. Due to the investment strategy of the Funds, they may make higher capital gain distributions than other ETFs. Please read each Fund’s prospectus for specific details regarding each Fund’s risk profile.