ETFs track smart beta index strategies……
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Six exchange-traded funds (ETFs) issued by WisdomTree Europe have been tradable on Xetra for the first time since Thursday. WisdomTree is one of the five largest ETF issuers on the US market and has been offering smart beta ETFs there since 2006. The Xetra listing now also enables European investors to participate in the performance of selected WisdomTree dividend strategy indices.
“We are pleased to welcome WisdomTree as a new ETF issuer on Xetra. Smart beta ETFs are increasingly popular among investors and are displaying dramatic growth rates on Xetra in terms of number of products as well as trading volume. The new ETFs from WisdomTree are thus a real asset to our offering,” said Michael Krogmann, Head of Market Development at Deutsche Börse.
Hector McNeil, Co-CEO WisdomTree Europe, added: “Exchange Traded Products are increasingly the investment product of choice for German investors. WisdomTree Europe boasts indices that have been intelligently compiled on the basis of research, as well as an impressive track record in innovations. In addition to the BOOST ETPs of our affiliated brand already traded in Germany, offering investors an array of products to hedge their portfolios or increase their returns, the new WisdomTree ETFs enable broad indices with a multi-year success story to be tracked. We are confident that our new UCITS ETFs will be as popular with German investors as the BOOST series”.
With the six new dividend strategy ETFs, WisdomTree is offering investors an alternative to traditional indices weighted by market capitalisation. The developed indices weight index securities by dividend distribution and apply this strategy to different investment universes. Europe, the US and emerging markets are available as underlying markets, with two strategies offered for each market: the Equity Income index family comprises stock corporations, which, in a pre-selection round, are among the top 30 percent of companies with the highest dividend yields and which have a market capitalisation of at least USD 200 million. The SmallCap Dividend index family, in contrast, comprises companies with lower market capitalisation from the relevant markets.
The product offering in Deutsche Börse’s XTF segment currently comprises a total of 1,061 exchange traded funds. This selection, together with an average monthly trading volume of around €11 billion, makes Xetra Europe’s leading trading venue for ETFs.