WisdomTree, Allspring Prepare for New ETF Launches

Two exchange-traded fund providers are launching new products Tuesday that will give investors more access to overseas companies, municipal bonds and more.

WisdomTree, which manages $86.1 billion and 85 ETFs per FactSet data, is launching the WisdomTree GeoAlpha Opportunities Fund (GEOA) on Tuesday. Meanwhile Allspring Global investments is set to debut three new funds: the Allspring SMID Core ETF (ASCE), Allspring Ultra Short Municipal ETF (AUSM) and Allspring LT Large Core ETF (ALRG).

“All three of these ETFs represent Allspring’s strategy to offer access to our more differentiated active investment strategies in a structure that advisors and their clients have been asking for,” Rick Genoni, global head of product development and innovation and leader of Allspring's ETF initiative, told etf.com via an emailed statement. 

WisdomTree's GEOA Tracks Geopolitical Shifts

GEOA will track the WisdomTree GeoAlpha Opportunities Index, which itself tracks the performance of companies that primarily benefit from geopolitical and global policy shifts, such as those that happen due to geopolitical events, technological innovation and changing consumer preferences.

Launched in April, the index’s total market capitalization is $6.4 trillion, per WisdomTree’s website. Its top components include Meta Platforms Inc. (META), Union Pacific Corp. (UNP), Deere & Co. (DE) and Intel Corp. (INTC). A little over half (54.2%) of the index is made up of U.S. companies, but investors also get exposure to businesses in Japan, India and Poland, among others.

The passive fund’s SEC filing from March didn’t include fees, and the firm didn’t immediately respond to etf.com’s request for comment.

Allspring Gets Active With New ETFs

For those looking for muni exposure, the Allspring Ultra Short Municipal ETF (AUSM) seeks to give investors current income exempt from federal income tax, consistent with capital preservation. At least 80% of the fund’s net assets will go to municipal securities that have their interest exempt from federal income tax—but not necessarily federal alternative minimum tax (AMT)—and up to 20% to securities whose interest is subject to federal AMT. The remaining up to 10% will be invested in below-investment-grade municipal securities. The management fee is 0.18%, per the filing.

“AUSM is one of only a handful of ultra short muni ETFs in the market and we believe will serve as an attractive cash alternative, focusing on the very front end of the curve—so low interest rate risk but coupled with compelling taxable equivalent yield through high-credit-quality municipal bonds,” Genoni said.

The Allspring SMID Core ETF (ASCE) seeks long-term appreciation by investing principally in equity securities of small and mid-sized U.S. companies, per the summary prospectus. The fund will invest at least 80% of its net assets in those small and medium-sized companies, which have market capitalizations within the range defined by the Russell 2500 Index. The other 20% will be invested in equity securities of issuers in developed markets, including through American depositary receipts and similar investments. The management fee is 0.38%.

The Allspring LT Large Core ETF (ALRG) seeks long-term capital appreciation for investors by investing at least 80% of the net assets in equity securities of large capitalization U.S. companies—those that fit within the market capitalization range outlined by the S&P 500 Index. The management fee is 0.28%.

“ASCE and ALRG are backed by two equity strategies with long track records and are being launched in ETF form at a time when many investors are expecting a broadening of the U.S. stock market that may allow active management to shine,” Genoni said.