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%|
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.
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