WisdomTree launches currency-hedged ETFs

Ridhima Sharma
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WisdomTree has expanded its product offering with new currency-hedged ETFs for the WisdomTree AT1 CoCo Bond Ucits ETF and the WisdomTree Enhanced Commodity Ucits ETF which are listed on the London Stock Exchange, Deutsche Börse Xetra and Borsa Italiana.

The currency-hedged ETFs of the funds provide exposure to foreign assets and at the same time provide investors with protection against the impact of adverse currency fluctuations, thereby raising exposure to the underlying assets.

The hedged share classes of the WisdomTree Enhanced Commodity Ucits ETF will provide exposure to enhanced broad commodities while providing greater investor protection against the impact of adverse currency movements.

It also uses an innovative dynamic roll process, with a view to minimising roll costs in contango, and to maximising roll return in backwardation, ultimately aiming to reduce the long-term costs of holding commodity exposures.

Rafi Aviav, WisdomTree head of Product Development in Europe said, “The CoCo Bond ETF offers uniquely broad and diversified exposure to CoCos and the index tracks 95% of the liquid developed AT1 CoCo bond universe across Euro, pound and dollar denominations. For those investors that wish to mitigate currency risk in their portfolios the fund now offers EUR-hedged, GBP-hedged and USD-hedged share classes of the underlying, diversified strategy.”