WisdomTree launched two more exchange traded funds Thursday, one to help investors target China’s larger companies across the full range of various Chinese share types and another fund-of-fund type strategy focused on income generation.
On Thursday, WisdomTree rolled out the WisdomTree ICBCCS S&P China 500 Fund (NYSEArca: WCHN) and WisdomTree Balanced Income Fund (NYSEArca: WBAL), which have a 0.55% and 0.35% expense ratio, respectively.
The ICBCCS S&P China 500 Fund will try to reflect the performance of the S&P China 500 Index, a group of 500 of the largest, most liquid Chinese companies by market capitalization and one of the only broad-based indices with exposure to all Chinese equity share classes, listed both in mainland China and internationally.
“WisdomTree’s established presence in the ETF space complements ICBCCS’s in-depth understanding of the Chinese markets,” Vincent Chen, Head of Index and Quantitative Investment at ICBC Credit Suite Asset Management (International), said in a note.
Due to its more diversified exposure to Chinese equity share classes, the fund’s sector weights may also be more diverse, compared to other China-related indices and funds. Specifically, WCHN top sector weights include information technology 32.0%, financials 24.2% and consumer discretionary 12.3%.
“The WisdomTree ICBCCS S&P China 500 Fund provides investors with the broadest exposure to a fast-growing economy in the early stages of liberalizing their capital markets. In addition, investors can gain exposure to Chinese equities without the concentration risk of competing indexes,” Jeremy Schwartz, WisdomTree Director of Research, said in a note.
Meanwhile, the Balanced Income Fund tries to reflect the performance of the WisdomTree Balanced Income Index, a fund-of-funds type index that provides a balanced exposure to global equities and fixed income. The ETFs that make up the underlying index holdings, which may include WisdomTree ETFs and non-WisdomTree ETFs, are reconstituted and rebalanced annually to 60% equity exposure and 40% fixed income exposure.
“The WisdomTree Balanced Income Fund (WBAL) offers investors access to income-generating asset classes across the globe,” Luciano Siracusano, WisdomTree Chief Investment Strategist, said. “WBAL incorporates WisdomTree strategies that have proven themselves in the marketplace over the past decade, while also incorporating some of the firm’s more recent products into one integrated solution.”
WBAL’s top holdings include WisdomTree High Dividend Fund (NYSEArca: DHS) 20.1%, WisdomTree Barclays U.S. Aggregate Bond Enhanced Yield Fund (NYSEArca: AGGY) 19.9% and WisdomTree DEFA Equity Income Fund (NYSEArca: DTH) 12.7%.
For more information on new fund products, visit our new ETFs category.