ETF Launches: February 2019

WisdomTree debuted a smart-beta broad bond ETF.

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Reviewed by: Heather Bell
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Edited by: Heather Bell

 


FEATURED ETF
WisdomTree Yield Enhanced Global Aggregate Bond Fund (GLBY)
New product seeks to achieve higher yield while keeping a lid on risk

In December, WisdomTree expanded its lineup of “Enhanced” bond ETFs with the launch of a global product. The Wisdom- Tree Yield Enhanced Global Aggregate Bond Fund (GLBY) both offers higher yield than a cap-weighted strategy and hedges away currency risk.

GLBY comes with an expense ratio of 0.20% and lists on the NYSE Arca.

The fund pulls its components from the Bloomberg Barclays Global Aggregate Index, reweighting subgroups within the benchmark that are defined by their risk dimensions, like currency denomination, sector exposure, interest rate risk and credit risk. The methodology assigns higher weights to higher-yielding subgroups and uses an optimizer to align the index’s overall risk traits with the cap-weighted index.

The methodology targets a duration that is within one year of the underlying global aggregate universe, which covers the investment-grade debt of North America, Europe and the Asia-Pacific region. The universe typically has a duration range from four to eight years, the prospectus says.

WisdomTree has two other funds that rely on a similar methodology but target different slices of the U.S. market: the $390 million WisdomTree Yield Enhanced U.S. Aggregate Bond Fund (AGGY) and the $48 million WisdomTree Yield Enhanced U.S. Short-Term Aggregate Bond ETF (SHAG).

Source: ETF.com. Data and information as of 12/31/2018.
ETF Filings sidebar covers launches and filings for the month of December 2018.

 

 

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.