Treasury Floating-Rate Notes (FRNs) Designed to Pay Out More Interest as Market Rates Rise WisdomTree Bloomberg Floating Rate Treasury Fund (USFR) Provides Exposure to U.S. Treasury's Newest Security NEW YORK, Feb. 4, 2014 (GLOBE NEWSWIRE) -- WisdomTree (Nasdaq:WETF), an exchange-traded fund ("ETF") sponsor and asset manager, today announced the launch of the WisdomTree Bloomberg Floating Rate Treasury Fund (USFR) on the NYSE Arca. USFR seeks to provide exposure to floating rate notes issued by the United States Treasury. The Fund has a net expense ratio of 0.15%. 1 United States Treasury Issues Floating-Rate Notes (FRNs) For First Time In History As investors continue to assess their options for reducing interest rate risk, the United States Treasury is seeking to tap this growing demand by issuing FRNs for the first time in its history. "U.S. floating-rate debt can help bridge an important gap between short-maturity Treasury bills and longer-maturity, fixed rate Treasury bonds. As another means for the Treasury to fulfill growing investor demand and diversify its sources of funding, we believe that issuance and investor use of floating rate Treasuries are poised to grow over the next several years," said Rick Harper, WisdomTree's Head of Currency and Fixed Income. Expanding the WisdomTree Suite of Rising Rates ETF Solutions "With interest rate risk on the minds of many investors in 2014, we believe that floating-rate Treasury securities provide another tool for investors to manage interest rate risk while generating income payments that are backed by the full faith and credit of the U.S. government," Harper said. With the launch of the WisdomTree Bloomberg Floating Rate Treasury Fund (USFR), WisdomTree will offer an ETF to access FRNs, adding to its existing suite of rising rates ETF solutions.
|Ticker||Fund Name||Expense Ratio|
|USFR||WisdomTree Bloomberg Floating Rate Treasury Fund||0.15%|
|AGND||WisdomTree Barclays U.S. Aggregate Bond Negative Duration Fund||0.28%|
|AGZD||WisdomTree Barclays U.S. Aggregate Bond Zero Duration Fund||0.23%|
|HYND||WisdomTree BofA Merrill Lynch High Yield Bond Negative Duration Fund||0.48%|
|HYZD||WisdomTree BofA Merrill Lynch High Yield Zero Duration Fund||0.43%|
|JGBB||WisdomTree Japan Interest Rate Strategy Fund||0.50%|
|1The Fund's gross expense ratio of 0.20% and the net expense ratio of 0.15% reflect a contractual waiver of 0.05% through the Fund's first year of operations.|
There are risks associated with investing, including possible loss of principal. Securities with floating rates can be less sensitive to interest rate changes than securities with fixed interest rates, but may decline in value. The issuance of floating rate notes by the U.S. Treasury is new and the amount of supply will be limited. Fixed income securities will normally decline in value as interest rates rise and are subject to credit risk, the risk that the issuer of a bond will fail to pay interest and principal in a timely manner. The value of an investment in the USFR, AGND, AGZD, HYND and HYZD Funds may change quickly and without warning in response to issuer or counterparty defaults (if applicable) and changes in the credit ratings of the Fund's portfolio investments.Foreign investing involves special risks, such as risk of loss from currency fluctuation or political or economic uncertainty. The JGBB Fund focuses its investments in Japan, where the increasing the impact of events and developments in Japan, can adversely affect performance. Investments in currency involve additional special risks, such as credit risk and interest rate fluctuations. As this Fund can have a high concentration in some issuers, the Fund can be adversely impacted by changes affecting such issuers. This may result in greater share price volatility. Interest rate risk with respect to the JGBB Fund is the risk that fixed income securities will decline in value because of decreases in interest rates in Japan. High-yield or "junk" bonds have lower credit ratings and involve a greater risk to principal. The AGND, AGZD, HYND and HYZD Funds seek to mitigate interest rate risk by taking short positions in U.S. Treasuries, but there is no guarantee this will be achieved. These Funds may engage in "short sale" transactions where losses may be exaggerated, potentially losing more money than the actual cost of the investment and the third party to the short sale may fail to honor its contract terms, causing a loss to the Fund.
Derivative investments can be volatile, and these investments may be less liquid than other securities, and more sensitive to the effects of varied economic conditions. Due to the investment strategy of certain Fund's they may make higher capital gain distributions than other ETFs. Please read the Fund's prospectus for specific details regarding the Fund's risk profile.Floating-Rate Notes (FRNs): A debt instrument with a variable interest rate usually tied to a benchmark rate such as the U.S. Treasury Bill Rate of the London Interbank Offered Rate (LIBOR). Treasury bills: A debt obligation issued by the United States government that matures in less than one year. Treasury bonds: A debt obligation issued by the United States government that matures in more than one year. WisdomTree Funds are distributed by ALPS Distributors, Inc. ALPS Distributors, Inc. is not affiliated with Barclays, BofA Merrill Lynch and/or Bloomberg. Rick Harper is a registered representative of ALPS Distributors, Inc. WIS006274 (2/2015) About WisdomTree WisdomTree® is a New York-based exchange-traded fund ("ETF") sponsor and asset manager. WisdomTree currently offers 62 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 $33.2 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.
CONTACT: WisdomTree Investments, Inc. Stuart Bell / Jessica Zaloom +1.917.267.3702 / +1.917.267.3735 firstname.lastname@example.org / email@example.com