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HEDJ Investment Strategy – Buying Historically Cheap European Stocks While Hedging Potential Declines in the Euro
Renamed WisdomTree Europe Hedged Equity Fund
NEW YORK, Aug. 27, 2012 (GLOBE NEWSWIRE) -- WisdomTree (Nasdaq:WETF), an exchange-traded fund ("ETF") sponsor and asset manager, today announced effective as of the close of business August 29, 2012, the WisdomTree International Hedged Equity Fund (HEDJ) will implement a more focused investment strategy: providing exposure to an export-oriented European portfolio of dividend-paying equities that hedges exposure to movements of a singular currency, the euro, relative to the U.S. dollar. Previously, the Fund provided exposure to equities across Europe, Australasia, and the Far East, while neutralizing the multiple currency movements in these regions versus the dollar. The Fund will be renamed the WisdomTree Europe Hedged Equity Fund (HEDJ) to reflect the new investment objective.
Luciano Siracusano, WisdomTree Chief Investment Strategist, commented, "Concerns over the future of the euro may cause investors to reevaluate their exposure to Europe, though current valuations for European stocks remain compelling based on historically low P/E ratios
1 and high dividend yield
2 differentials compared to the U.S.
3 In fact, even in a declining euro environment, we believe many global companies headquartered in Europe will continue to be competitive and have the potential to generate substantial profits. By providing exposure to European stocks while neutralizing the downside for U.S. investors that would be inflicted by a weakening euro, we believe HEDJ can present a precise and thoughtful alternative to un-hedged portfolios of European stocks."
Mr. Siracusano added, "For investors concerned about the impact that growing sovereign debt could have on the value of foreign currencies, we believe both The WisdomTree Japan Hedged Equity Fund (DXJ) and HEDJ provide unique ways to own Japanese or European equities in the ETF structure, while mitigating potentially unwanted currency risk."