Through our partnership with Western, we have packaged two distinct approaches to active portfolio management in corporate bonds: the WisdomTree Strategic Corporate Bond Fund (CRDT) and the WisdomTree Emerging Markets Corporate Bond Fund (EMCB). CRDT provides a broad-based approach to corporate bond investments, strategically investing in corporate bonds across the credit spectrum and across the world. EMCB takes a more targeted approach, investing in one of the world’s fastest-growing bond markets, U.S. dollar-denominated bonds issued by EM corporations. Both processes integrate top-down macro analysis with bottom-up fundamental credit analysis.
While the debate over approaches to active management will undoubtedly continue to rage, we believe that transparency is one of the core characteristics advisors look for when investing in ETFs. In our view, the ETF’s daily transparency provides investors with valuable information to help manage risk across their portfolio.
Important Risks Related to this Article
Foreign investing involves special risks, such as risk of loss from currency fluctuation or political or economic uncertainty. Investments in emerging, offshore or frontier markets are generally less liquid and less efficient than investments in developed markets and are subject to additional risks, such as risks of adverse governmental regulation and intervention or political developments. Derivative investments can be volatile, and these investments may be less liquid than other securities, and more sensitive to the effects of varied economic conditions.
Fixed income investments are subject to interest rate risk; their value will normally decline as interest rates rise. In addition, when interest rates fall, income may decline. 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. Unlike typical exchange-traded funds, there is no index that these Funds attempt to track or replicate. Thus, the ability of the Funds to achieve their objective will depend on the effectiveness of the portfolio manager. Please read each Fund’s prospectus for specific details regarding each Fund’s risk profile.