WisdomTree Launches Korea Hedged Equity Fund (DXKW)

DXKW Seeks to Provide Exposure to Robust Korean Export Market and Help Reduce Overall Volatility of Local Currency

WisdomTree Expands Currency Hedged Equity Family of ETFs

NEW YORK, Nov. 7, 2013 (GLOBE NEWSWIRE) -- WisdomTree (Nasdaq:WETF), an exchange-traded fund ("ETF") sponsor and asset manager, today announced the launch of the WisdomTree Korea Hedged Equity Fund (DXKW) on the NASDAQ Stock Market. DXKW seeks to provide exposure to Korean equity markets while hedging exposure to the won and has an expense ratio of 0.58%.

'Abenomics' and a Weak Yen – Headwind for South Korean Exporters

South Korea is a flourishing emerging economy, known for its shipping industry and exporting prowess, supplying the world with advanced technologies and automobiles from global leaders. In 2012, South Korea's gross domestic production (GDP) 1 was nearly twice that of many developed nations including Switzerland, Sweden and Norway, and almost 60% of the country's GDP was from exports. 2

"For any exporter-focused country, a strengthening currency can be a competitive disadvantage in the global market place. In the last 12-months, as Japan's policy of 'Abenomics' has resulted in a depreciating Japanese yen, South Korea's won has appreciated significantly – 20% versus the yen. 3 As a result, South Korea's exporters have faced tougher competition from their revitalized Japanese counterparts," said Jeremy Schwartz, WisdomTree Director of Research. "Given their significant overlap in export products, we believe South Korea is the country most impacted by the yen's weakening. If the South Korean won declines relative to the yen – and for that matter, the U.S. Dollar – we believe this would be a boon for South Korea's equities."

Schwartz added, "We believe DXKW can offer exposure to the growth potential of South Korea's exporters while helping to protect U.S. investors from potential declines in the Korean won against the U.S. dollar."

Hedge Exposure to Won – One Way to Reduce Volatility

"Looking back over the last 20 years, there were two periods in which the Korean won experienced significant depreciation relative to the U.S. dollar. First during the Asian financial crisis and again during the global financial crisis, the won depreciated approximately 54% and 41%, respectively. 4 These episodes added considerable volatility to the local equity market," Schwartz said.

One way for U.S. investors to isolate the performance of Korean equities from the performance of the won is to hedge the currency exposure, thus, helping to reduce the overall volatility of investing in this market.

Expanding The WisdomTree Currency Hedged Equity Family

With the launch of DXKW, WisdomTree now offers six currency hedged equity strategies:
Ticker Fund Name Expense Ratio
DXJ WisdomTree Japan Hedged Equity Fund 0.48%
DXJS WisdomTree Japan Hedged SmallCap Equity Fund 0.58%
HEDJ WisdomTree Europe Hedged Equity Fund 0.58%
DXPS WisdomTree United Kingdom Hedged Equity Fund 0.48%
DXGE WisdomTree Germany Hedged Equity Fund 0.48%
DXKW WisdomTree Korea Hedged Equity Fund 0.58%

Investors should carefully consider the investment objectives, risks, charges and expenses of the Funds before investing. To obtain a prospectus containing this and other important information, call 866-909-9473 or visit wisdomtree.com. Read the prospectus carefully before investing.

This Fund is new and has limited operating history.

There are risks associated with investing, including possible loss of principal. Foreign investing involves special risks, such as risk of loss from currency fluctuation or political or economic uncertainty. Funds focusing their investments on certain sectors and/or smaller companies increase their vulnerability to any single economic or regulatory development. This may result in greater share price volatility. The Funds focus their investments in Germany, Japan, the United Kingdom, Korea or Europe, thereby increasing the impact of events and developments in Germany, Japan, the United Kingdom, Korea or Europe that can adversely affect performance. Investments in currency involve additional special risks, such as credit risk, interest rate fluctuations, derivative investments which can be volatile and may be less liquid than other securities, and more sensitive to the effect of varied economic conditions. As the Funds can have a high concentration in some issuers, the Funds can be adversely impacted by changes affecting those issuers. Due to the investment strategy of certain Fund's they may make higher capital gain distributions than other ETFs.  Please read each Fund's prospectus for specific details regarding the Funds' risk profiles.

WisdomTree Funds are distributed by ALPS Distributors, Inc. 

Jeremy Schwartz is a registered representative of ALPS Distributors, Inc.

WIS005979 (11/2014)

About WisdomTree

WisdomTree® is a New York-based exchange-traded fund ("ETF") sponsor and asset manager. WisdomTree currently offers 55 ETFs across Equities, Fixed Income, Currency Income and Alternatives asset classes. WisdomTree also licenses its indexes to third parties for proprietary products and promotes the use of WisdomTree ETFs in 401(k) plans. WisdomTree currently has approximately $32.5 billion in ETF assets under management. For more information, please visit www.wisdomtree.com or follow us on Twitter @WisdomTreeETFs.

WisdomTree is the marketing name for WisdomTree Investments, Inc. and its wholly owned subsidiary WisdomTree Asset Management, Inc. WisdomTree Asset Management, Inc. is a registered investment advisor and is the investment advisor to the WisdomTree Trust and the WisdomTree ETFs. The WisdomTree Trust is a registered open-end investment company. Each WisdomTree ETF is a series of the WisdomTree Trust. 

1 Gross Domestic Production (GDP): The sum total of all goods and services produced across an economy. 

2 Source: World Bank, 2012. 

3 Source: Bloomberg, as of 10/31/2013.

4 Source: Bloomberg. Asian financial crisis: 4/28/1995 to 2/27/1998; Global financial crisis:10/31/2007 to 2/27/2009.
CONTACT: WisdomTree Investments, Inc.         Stuart Bell / Jessica Zaloom         +1.917.267.3702 / +1.917.267.3735         sbell@wisdomtree.com / jzaloom@wisdomtree.com

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