ETF Watch: WisdomTree Plans Short Term Bond Fund

February 27, 2017

A recent filing from WisdomTree provides details on a short-term U.S. bond fund. The WisdomTree Barclays Yield Enhanced U.S. Short-Term Aggregate Bond Fund targets investment-grade fixed-income securities that are reweighted in the underlying index with the goal of maximizing the fund’s yield.

Components must have effective maturities of five years or less and an original deal size of at least $500 million, as well as a par amount outstanding of at least $300 million. The index covers corporate and government-related debt in addition to commercial mortgage-backed securities and asset-backed securities.

The index is subject to monthly rebalancing and has risk constraints designed to limit volatility and turnover.

The proposed ETF appears to be designed as a complement to the broadly focused WisdomTree Barclays Yield Enhanced U.S. Aggregate Bond Fund (AGGY), which launched in 2015 and has $124 million in assets under management.

The fund looks to reweight subgroups of its components to maximize the index’s yield-to-worst. The filing doesn’t include a ticker, expense ratio or listing exchange.

Contact Heather Bell at [email protected].

 

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