Daily ETF Watch: More ‘Dynamic’ Funds Filed

WisdomTree files for more 'Dynamic Currency Hedged' ETFs.

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Reviewed by: Heather Bell
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Edited by: Heather Bell

WisdomTree has filed for another pair of currency-hedged ETFs that will adjust their degree of hedging according to market conditions. Unlike ETFs that maintain a full and constant currency hedge, the WisdomTree Dynamic Currency Hedged Emerging Markets Equity Fund and the WisdomTree Dynamic Currency Hedged Global ex-U.S. Equity Fund will hedge each currency in their respective portfolios based on interest-rate differentials, valuations and price momentum against the U.S. dollar.

Each currency can have a hedge between 0% and 100%, according to the prospectus.

Both funds will track dividend-weighted indexes, but neither coincides with an existing WisdomTree ETF. The emerging market ETF will track a benchmark that selects its components from 17 developing markets, while the global ex.-U.S. fund will cover emerging and developed markets outside the U.S.

In October, WisdomTree filed for the first four funds in the “Dynamic” lineup. The funds, which will cover Europe, Japan and developed international markets, have not launched yet.

The most recent filings did not include tickers, expense ratios or listing exchanges.


Contact Heather Bell at [email protected].

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.