WisdomTree recently filed for a global version of its $419 million WisdomTree Yield Enhanced U.S. Aggregate Bond Fund (AGGY).
The proposed WisdomTree Yield Enhanced Global Aggregate Bond Fund will look to enhance yield while controlling risk and hedging away currency fluctuations, according to its prospectus.
The starting universe of the fund’s underlying index is the Bloomberg Barclays Global Aggregate Index, which covers investment-grade debt issued in Europe, Asia Pacific, the U.S., Canada and elsewhere.
The methodology will adjust the weights of subgroups of the parent index with the goal of achieving a higher yield. The subgroups are defined by such features as currency denomination, sector, exposure, interest rate risk, and credit risk, the document says. Yield can be manipulated by shifting degrees of exposure to the targeted risk dimensions.
Duration of the fund’s index should be within one year of that of the parent index, which typically has a duration between four to eight years.
The filing does not include a ticker, expense ratio or listing exchange.
Contact Heather Bell at [email protected]