WisdomTree Launches US Floating Rate Treasury ETF

WisdomTree Launches US Floating Rate Treasury ETFUS Floating Rate Treasury ETF. Treasury bills that do not offer coupon payments and longer-maturity, fixed rate Treasury bonds.

Christopher Gannatti, WisdomTree Head of Research commented, “For investors who are looking for another government bond instrument to replace some of the low yield exposures present in many developed market treasuries, US Treasury FRNs could provide a yield enhancement, especially given the flatness of the US yield curve.”

Lidia Treiber, Fixed Income Research at WisdomTree, added, “US Treasury floating rate notes typically have a lower duration profile than floating rate corporate bonds (corporate FRNs) and can be used to help reduce corporate credit exposure within investor portfolios. Interest payments on corporate FRNs are exposed to corporate credit risk or risk that the borrower will default on its obligation.”

USFR: Under the Hood

Exposure: Invests in US Treasury Floating Rate Notes

Daily rate reset: The coupon rate is reset daily in reference to the highest accepted discount rate of the most recent 13-week Treasury Bill auction, plus or minus a fixed spread determined at the securities’ initial issuance.

Interest: Since auctions for new 13-week Treasury Bills occur once a week, the coupon rate effectively changes weekly. Interest is accrued daily and distributed quarterly.

Maturity: They are backed by the full faith and credit of the US government and have a 2-year final maturity.

Product information

TER: Total Expense Ratio

About WisdomTree UK Ltd.

WisdomTree Investments, Inc., through its subsidiaries in the US, Europe and Canada (collectively, ”WisdomTree”), is an exchange traded fund (”ETF”) and exchange traded product (”ETP”) sponsor. WisdomTree offers products covering equities, fixed income, currencies, commodities and alternative strategies. Through WisdomTree UK Limited, it sponsors WisdomTree UCITS ETFs and ETPs from ETF Securities and Boost, in a wide range of asset classes, including short and leverage ETPs. WisdomTree currently has approximately $58.3 billion (as of 13 March 2019) in assets under management globally. For more information, please visit www.wisdomtree.com.

WisdomTree® is the marketing name for WisdomTree Investments, Inc. and its subsidiaries worldwide.

IMPORTANT INFORMATION

Communications issued in the European Economic Area (“EEA”): This document has been issued and approved by WisdomTree Ireland Limited, which is authorised and regulated by the Central Bank of Ireland.

Communications issued in jurisdictions outside of the EEA: This document has been issued and approved by WisdomTree UK Limited, which is authorised and regulated by the United Kingdom Financial Conduct Authority.

WisdomTree Ireland Limited and WisdomTree UK Limited are each referred to as “WisdomTree” (as applicable). Our Conflicts of Interest Policy and Inventory are available on request.

WisdomTree lanserar Investor Solutions Program och Digital Portfolio Developer (DPD)

Digital Portfolio Developer DPD är en plattform med öppen arkitektur som gör det möjligt att jämföra investeringsportföljer

WisdomTree, en distributör för börshandlade fonder (”ETF”) och börshandlade produkter (”ETP”), tillkännager idag lanseringen av plattformen WisdomTree Investor Solutions, vars syfte är att hjälpa kapitalförvaltare att interagera mer effektivt med kunder och potentiella kunder, samt att modernisera portföljer för att möta investerarnas föränderliga behov.

Programmet omfattar det marknadsledande verktyget Digital Portfolio Developer (DPD), ett förbättrat portföljutvecklingsverktyg för investerare*. DPD är tillgängligt för företagskunder på WisdomTree-webbplatsen och fungerar som en resurs för att analysera en portföljs befintliga innehav, hjälpa till att identifiera möjligheter att potentiellt förbättra resultaten och att stresstesta portföljer i en mängd olika marknadsscenarier. Efter en framgångsrik lansering i USA och Kanada 2017 är DPD nu tillgängligt i Norden (Sverige, Norge, Danmark och Finland), Benelux, UK, Tyskland, Italien, Frankrike och Schweiz.

Frank Spiteri, europeisk distributionschef, kommenterar: ”En enorm förändring pågår inom kapitalförvaltningsbranschen, och vi anser att teknologi är det som kommer att göra det möjligt för kapitalförvaltare att driva en effektivare och konkurrenskraftigare verksamhet. Vi är övertygade om att det här verktyget ger kapitalförvaltare möjlighet att fatta bättre investeringsbeslut, vilket i sin tur ger dem mer tid att utforska nya sätt att interagera med sina kunder.”

Viktiga funktioner i DPD-verktyget:

  • Stresstest-scenarier: Med hjälp av analys på institutionsnivå som levereras av FinMason, ett bolag verksamt inom investeringsanalys och FinTech, kan investerare jämföra den hypotetiska avkastningen på en originalportfölj och en föreslagen portfölj i olika marknadsscenarier.
  • Jämföra portföljer: Investerare kan mata in och jämföra två portföljer, sida vid sida, baserat på viktiga faktorer, för att hjälpa dem att fastställa underliggande risker och hitta möjligheter att förbättra performance, inkomster och/eller avgifter.
  • Plattform med öppen arkitektur: Verktyget innehåller mer än 60 000 fonder och ETP:er med analys på innehavsnivå och med realtidsberäkningar.
  • Användbarhet: Investerare kan få tillgång till DPD på begäran och utan extra kostnad. Dessutom kan investerare spara sin analys och ladda ner rapporter baserade på resultatet.

David Abner, chef för WisdomTree i Europa, kommenterar: ”WisdomTree har som målsättning att förse kapitalförvaltare med användbara digitala applikationer som stöds av högkvalitativ analys. Genom våra tusentals användare i USA och Kanada vet vi att Digital Portfolio Developer är ett användbart verktyg för att snabbt och enkelt analysera kunders befintliga och potentiella portföljer. Vi anser att denna tekniska lösning gör det möjligt för kapitalförvaltare att effektivt utvärdera en portföljs performance och att genomföra stresstester, vilket underlättar för dem att driva sin verksamhet.”

Investor Solutions-programmet erbjuder även forskning från, och tillgång till, ledande experter inom makroekonomi, pensioner och rekrytering, bestående av:

  • Jeremy J. Siegel, Senior Investment Strategy Advisor på WisdomTree
  • Joseph F. Coughlin fil. dr, grundare och chef för Massachusetts Institute of Technology AgeLab
  • Randy Street, Managing Partner på ghSMART och bästsäljande författare

Läs mer om WisdomTrees Investor Solutions på WisdomTree.eu/sv-se/investor-solutions

*Investerare som är registrerade som företagskunder hos WisdomTree.

About WisdomTree UK Ltd.

WisdomTree Investments, Inc., through its subsidiaries in the US, Europe and Canada (collectively, ”WisdomTree”), is an exchange traded fund (”ETF”) and exchange traded product (”ETP”) sponsor. WisdomTree offers products covering equities, fixed income, currencies, commodities and alternative strategies. Through WisdomTree UK Limited, it sponsors WisdomTree UCITS ETFs and ETPs from ETF Securities and Boost, in a wide range of asset classes, including short and leverage ETPs. WisdomTree currently has approximately $58.7 billion (as of 28 February 2019) in assets under management globally. For more information, please visit www.wisdomtree.com.

WisdomTree® is the marketing name for WisdomTree Investments, Inc. and its subsidiaries worldwide.

Indiens börser stärks på ekonomiska data och valförhoppningar

De landsspecifika ETFer som investerar i Indien ökade i tisdags. Det var de mindre indiska företagen som ledde uppgången, eftersom investerare utöver handelsförhandlingarna såg till en möjlig andra period för statsminister Narendra Modi i det kommande valet. Indiens börser stärks på ekonomiska data och valförhoppningar.

Bland de ledande aktörerna var iShares MSCI India Small Cap ETF (NYSEArca: SMIN) 3,9%, VanEck Vectors India Small Cap Index ETF (NYSEArca: SCIF) 6,2%, WisdomTree India Earnings ETF (NYSE: EPI) 3,5% och iShares India 50 ETF (NasdaqGM: INDY) 2,9%. Både EPI och INDY bröt också tillbaka över deras långsiktiga motstånd vid det 200-dagars enkla glidande medelvärde.

En ökad optimism

En ökad optimism på de indiska marknaderna efter det att många såg en möjlighet till det potentiella omvalet av premiärminister Modi under kommande valperioden rapporterar från Economic Times.

Top Dalal Street är säkra på att förtroendet för Modi kommer att återvända i det kommande valet efter gränstvisterna med Pakistan. Gränstvisterna mellan Indien och Pakistan stärkte populariteten hos PM Modi som ses som en stabiliserande ledare.

”En hård hållning mot hot från Pakistan-baserade terrorister har gjort att premiärminister Narendra Modi vunnit den indiska allmänheten, som enligt vår uppfattning skulle kunna omsättas till valvinster för honom och hans Bharatiya Janata Party i de nationella valen i maj”, enligt Abhishek Gupta, en ekonom hos Bloomberg Intelligence.

Den indiska rupien stärks

Vidare stärktes den indiska rupien mot den amerikanska dollarn. USD sjönk 0,6% mot INR till INR70,49. Investerare tror att den starkare valutan kan locka till sig fler utländska privata investeringar. Ett dopp i råoljepriset stärkte också den haussefulla känslan.

Samtidigt stärktes marknadsperspektivet i Indiens tjänste- och tillverkningsverksamhet, som båda fick fart i februari, drivna av stigande nya arbetsorder som ledde till en ökning av produktionen och skapandet av arbetstillfällen.

”Medan dagens vinster kan sträcka sig under de kommande mötena föredrar vi att vara försiktiga på aktier på högre nivåer. Inhemskt kommer omfattningen av geopolitisk risk mellan Indien och Pakistan att övervakas noggrant. Eventuell re-eskalering under de kommande dagarna kan vara negativ för aktierna. Globalt kommer investerarna aktivt att följa utvecklingen på handelsfronten mellan USA och Kina. Framsteg på Brexit och rörligheten för råoljepris och valuta.

Investerare bör fortsätta att ackumulera fundamentalt sunda företag med starka tillväxtmöjligheter. Med tanke på hög volatilitet bör handlare undvika att ta några riskfyllda hävstångspositioner, säger Jayant Manglik, president – Retail Distribution, Religare Broking, till Economic Times.

Why the gold price rally may continue

We often write about the different market developments that can impact the returns of gold within investor portfolios. The primary factors that we consider are:

• Policy of the US Federal Reserve (Fed)
• Consumer Price Index (CPI) measures of inflation
• Behaviour of the US Dollar
• Levels of interest rates—particularly the US 10-Year Treasury Note
• Gold futures speculative positioning

While we believe that these are among the most important factors that explain movements in the gold price, we couldn’t say that they are the sole determinants as to why the price moves. Technical factors, such as the ratios of gold to US equities, gold to US government bonds, and gold to the US Dollar are also certainly worth considering. Below, we look at these ratios and explore the implications for the gold price.

Gold technicals: the gold price to US equities ratio

Since the end of 2009, there have been two dominant trends within the relationship between the price of gold and US equities, as shown through the performance of the S&P 500.

• From 31 December 2009 to 22 August 2011, the price of gold appreciated by nearly 40% annualised while the S&P 500 only gained about 1% per year
• From 22 August 2011 to 8 February 2019, the S&P 500 gained about 14% per year, while the price of gold lost nearly 5% per year

At the risk of stating the obvious, US equities have been the star performers at the expense of most other asset classes since 2011, gold included. But we’d note that in Figure 1, which shows the ratio of the gold price to the S&P 500, we see a falling wedge pattern. The performance of US equities was strong enough recently to push the line—designed such that it declines when US equities are outperforming gold—outside the lower boundary of the falling wedge. This move was short-lived, and technicians have noted that when moves like this fail to establish a trend, the reverse move may occur quite quickly. This suggests that gold could potentially outperform US equities in the near term.

Figure 1: The relationship between gold and US equities may be changing

Source: Bloomberg, with period from 31 December 2009 to 8 February 2019. Concept for chart from blog post by JC Parets on 6 February 2019. Historical performance is not an indication of future performance and any investments may go down in value. You cannot invest directly in an index.

Gold technicals: the gold price to long-maturity US government bonds ratio

One of the big debates among investors today is in relation to where US interest rates—particularly long-term US interest rates—may go to from current levels. From the early 1980s to the present, the trend has clearly been down, leading to massive price appreciation for bond investors. Now, however, with interest rates near historic lows, many hypothesise that the next 10 or 20 years could look very different to the last 30 to 40 years.

In Figure 2, we show the ratio of longer-dated US government bond cumulative returns against the price of gold, using the ICE US Treasury 20+ Year Index as a measure of the returns from US government bonds. The chart shows:

• From 2004 to 2011, the price of gold outperformed longer-maturity US government bonds, resulting in an upward trend in the ratio
• From 2011 to about 2014, longer-maturity US government bonds outperformed gold, resulting in a downward trend in the ratio
• From 2014 onwards, we have observed a strong multi-year basing process, and it looks like the price of gold is again starting to outperform long-maturity US government bonds

While this ratio cannot guarantee that the price of gold will outperform longer-maturity US government bonds going forward, we think that the ratio is an interesting way to consider a longer-term historical context and relationship between the two assets.

Figure 2: Gold may be poised to outperform US government bonds

Source: Bloomberg, with period from 31 December 2004 to 8 February 2019. Concept for chart from blog post by JC Parets on 6 February 2019. Historical performance is not an indication of future performance and any investments may go down in value. You cannot invest directly in an index.

Gold technicals: major trends in the relationship between the US Dollar and the gold price

Gold (and many other commodities) is priced in US Dollars, leading to a natural tendency of the price of gold to rise as the value of the US Dollar falls. Figure 3 indicates that since the late 1960s, the US Dollar has had four regimes of significant depreciation. It is clear that the price of gold responded during these periods by moving significantly higher.

On the right-hand side of Figure 3, we indicate that a pattern has developed recently that looks similar to patterns that we have seen in the past prior to a big US Dollar move down and a subsequent upward move in the price of gold. While this pattern is by no means a guarantee of future performance, we do believe that analysing the long-term relationship between the US Dollar and gold is helpful in stepping outside the minute-by-minute, hour-by-hour, and day-by-day short-term analysis that the world has become accustomed to.

Figure 3: The US Dollar versus gold price relationship since the late 1960s

Source: Bloomberg. Periods of the US dollar are defined as Sept. 1969 to June 1973 (Period 1), June 1976 to June 1980 (Period 2), December 1984 to December 1987 (Period 3) and June 2001 to March 2008 (Period 4). Periods of the gold price are December 1969 to December 1974 (Period 1), Sept. 1976 to Sept. 1980 (Period 2), December 1984 to December 1987 (Period 3) and March 2001 to Sept. 2012 (Period 4). Concept for chart from blog post by JC Parets on 6 February 2019. Historical performance is not an indication of future performance and any investments may go down in value. You cannot invest directly in an index.

Conclusion: the price of gold may appreciate further

We have written recently that, based on our forecast and internal models as of 31 December 2018, gold’s price could reach $1,370 per troy ounce by 31 December 2019. This forecast was based primarily on fundamental factors, rather than technical factors. However, analysing the three charts above, we believe that gold’s further appreciation could also be supported from a technical perspective.

This material is prepared by WisdomTree and its affiliates and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of the date of production and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and non-proprietary sources. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by WisdomTree, nor any affiliate, nor any of their officers, employees or agents. Reliance upon information in this material is at the sole discretion of the reader. Past performance is not a reliable indicator of future performance.

Important Information

Communications issued in the European Economic Area (“EEA”): This document has been issued and approved by WisdomTree Ireland Limited, which is authorised and regulated by the Central Bank of Ireland.
Communications issued in jurisdictions outside of the EEA: This document has been issued and approved by WisdomTree UK Limited, which is authorised and regulated by the United Kingdom Financial Conduct Authority.

WisdomTree Ireland Limited and WisdomTree UK Limited are each referred to as “WisdomTree” (as applicable). Our Conflicts of Interest Policy and Inventory are available on request.

WisdomTree stänger åtta börshandlade fonder

WisdomTree Investments, Inc. (NASDAQ: WETF), den sjunde största amerikanska ETF-utgivaren meddelar att företaget stänger åtta börshandlade fonder.

ETFerna accepterar inte längre nya order efter torsdagen den 14 mars 2019. Den sista handelsdagen för dessa ETFer på respektive börser kommer också att vara torsdagen den 14 mars 2019.

De fondandelsägare som inte säljer sina ETF-andelar före detta datum kommer automatiskt att få sina andelar inlösta mot kontanter. Värdet baseras på varje ETFs substansvärde (NAV), vilket förväntas lämnas till aktieägarna genom deras mäklare eller andra finansiella intermediärer runt eller måndag, 25 mars 2019. Den sista handelsdagen för dessa börshandlade fonder förväntas vara fredagen den 22 mars 2019.

WisdomTree stänger följande åtta ETFer

  • WisdomTree Asia Local Debt Fund (NYSEArca: ALD)
  • WisdomTree Australia Dividend Fund (NYSEArca: AUSE)
  • WisdomTree Brazilian Real Strategy ETF (NYSEArca: BZF)
  • WisdomTree Japan Hedged Financials Fund (NYSEArca: DXJF)
  • WisdomTree Europe Domestic Economy Fund (CBOE: EDOM)
  • WisdomTree Europe Domestic Economy Fund (CBOE: GSD)
  • WisdomTree Global SmallCap Dividend Fund (CBOE: HGSD)
  • WisdomTree Japan Hedged Dividend Growth Fund (NYSEArca: JHDG)

Förra året stängdes 186 börshandlade fonder. Detta skall jämföras med de 134 ETFer som stängdes 2017. Emellertid kom 326 nya ETFer till marknaden förra året.

WisdomTree hade 37,81 miljarder dollar i förvaltat kapital onsdagen den 12 februari.