WisdomTree Seeks To Offer Fund-Of-Funds ETFs

By
ETF.com Staff
June 30, 2010
Share:

WisdomTree wants to start offering fund-of-funds ETFs, and the first one it is contemplating would be based on large-cap equities.

WisdomTree, the New York-based fund company known for its exchange-traded funds that are based on fundamentally weighted indexes focusing on dividend and income, filed papers with the Securities and Exchange Commission that would extend its ETF franchise into the fund-of-funds realm.

The initial fund-of-funds the firm plans once its “exemptive relief” filing is approved by the SEC, will be designed to make monthly cash payout while providing returns that correspond to the price and yield of an index of large-capitalization equity securities listed on U.S. securities exchanges, the filing said.

Funds-of-funds invest in whole funds rather than investing directly in stocks, bonds, cash or other investments. The initial fund will charge for its own direct expenses, in addition to bearing a proportionate share of the expenses charged by the underlying funds in which it invests, the filing said.

An exemptive relief order from the SEC grants ETF firms exception to sections of the Investment Act of 1940, and is just the first step in the path to launching ETFs. It often takes at least six to 12 months from the date of the initial filing for a company’s first ETF to hit the market.

ETF.COM CHANNELS

Want to learn more about smart-beta ETFs? Check out our smart-beta guide, essentials library and ETF screener!

ETF DAILY DATA

The AlphaDex financial fund 'FXO' led inflows on Tuesday, May 26, but net outflows and falling stocks pulled total U.S.-listed ETF assets down to $2.152 trillion.

A slew of redemptions from a number of iShares bond funds helped fuel that firm's issuer-leading outflows on Tuesday, May 26. Meanwhile, net outflows and a falling market dragged down total U.S.-listed ETF assets to $2.152 trillion.

ETF.COM ANALYST BLOGS

By Olly Ludwig

Yields will one day head higher, so is it time to get bond exposure outside the U.S.?

By Rachael Revesz

Stop dancing around the subject, call women ‘women’ and let’s be a more visible part of this industry.

By Olly Ludwig

It’s no secret that hedge funds love ETFs, but what’s less appreciated is that their love of ETFs will likely spell their demise.

By Olly Ludwig

Yes, bond yields are ticking higher these days, but it’s important to keep the whole yield-curve picture in mind.

ETF INDUSTRY PERSPECTIVE

By Nasdaq Global Indexes

Bond exposure or bond performance? Only defined maturity indexes provide the latter.

By Invesco PowerShares

Invesco PowerShares and Market Strategies International’s second annual survey provides vital insights about smart beta and ETFs overall.

By Invesco PowerShares

Investors are implementing smart-beta exchange-traded funds (ETFs) in their portfolios in a variety of ways and for different reasons.