The second ETF released hones in on a global allocation WisdomTree is high on.
“We believe in a European recovery and the policies Mario Draghi of the ECB is implementing and are going on the offensive with our allocations to capture the growth” Mr. Gannatti said of The WisdomTree Europe Local Recovery Fund (NYSEarca: EZR). The new ETF seeks to track European companies that are sensitive to growth prospects in the eurozone and derive more than 50% of their revenue from Europe and focuses on companies that may benefit from the economic recovery and the increase in Europeans’ buying power.
To accomplish this the fund looks to limit exposure in defensive positions like consumer staples and telecom while gaining exposure to cyclical sectors that reflect highly on the ECB Sentiment Indicator. Financials, Industrials, and Consumer Discretionary make up over 75% of the ETF’s positions. The expense ratio is 0.48%.
Last but not least the WisdomTree Global ex-U.S. Hedged Real Estate Fund (NYSEarca: HDRW) looks to apply a more traditional currency-hedged approach to dividend-paying companies in the real estate sector.
Mr. Gannatti pointed out that over two-thirds of the global real estate investment opportunities lie outside of the U.S. and this ETF looks to capture the best of them. The fund comes to market with 0.43% expense ratio.