New strategy ETF from WisdomTree on Xetra: access to companies worldwide with volatility protection through exposure to bond futures
New strategy ETF from WisdomTree on Xetra: access to companies worldwide with volatility protection through exposure to bond futures
Since Tuesday, a new exchange-traded fund issued by WisdomTree has been tradable on Xetra and Börse Frankfurt.
The WisdomTree Global Efficient Core UCITS ETF (Acc) invests in a broad range of large-cap companies from developed markets to allocate 90 per cent exposure to equities. In addition, the ETF indirectly invests in futures contracts on global government bonds from the US, Germany and the UK with maturities of 2 to 30 years, to allocate 60 per cent of the funds to bonds. 10 per cent is held in cash in the currencies US$, €, GBP and JPY, which serve as collateral for the futures contracts on global government bonds.
The additional diversification provided by the bond futures contracts has the potential to reduce portfolio volatility and improve the return of a traditional 60/40 portfolio.
Name | Asset class | ISIN | Ongoing charges | Distribution policy | Reference index |
WisdomTree Global Efficient Core UCITS ETF - USD Acc | Multi Asset ETF | 0.25 per cent | Accumulating | WisdomTree Global Efficient Core Index |
The product offering in Deutsche Börse's XTF segment currently comprises a total of 2,292 ETFs. With this selection and an average monthly trading volume of around €16 billion, Xetra is the leading trading venue for ETFs in Europe.