WisdomTree has launched two new ETFs on NYSE Arca – the WisdomTree ICBCCS S&P China 500 Fund (WCHN US) and the WisdomTree Balanced Income Fund (WBAL US) – providing exposure to Chinese equities and a multi-asset portfolio of ETFs respectively.
WisdomTree launches China equity and global balanced income ETFs.
WCHN tracks the S&P China 500 Index, a broad-based index offering exposure to all Chinese equity share classes, listed both in Mainland China and internationally. Constituent selection involves choosing 500 of the largest, most liquid Chinese companies, regardless of share type, within the 11 GICS (Global Industry Classification Standard) sectors, with the goal of maintaining comparable sector weights as the S&P Total China BMI Index. Constituents are weighted by float-adjusted market capitalization.
WisdomTree notes that, due to the S&P China 500 Index reflecting the sector composition of the total universe of Chinese companies, it has a more diversified sector exposure compared to other China-focused indices.
Jeremy Schwartz, WisdomTree director of research, said, “The WisdomTree ICBCCS S&P China 500 Fund provides investors with the broadest exposure to a fast-growing economy in the early stages of liberalizing their capital markets. In addition, investors can gain exposure to Chinese equities without the concentration risk of competing indices.”
He continued, “China offers an attractive mix of high growth rates, a burgeoning middle class, and an economy poised to climb the value chain from export-oriented growth. China’s influence among global financial markets is likely to grow as the government increases integration among global investors.”
The fund’s total expense ratio (TER) is 0.55%.
WBAL tracks the WisdomTree Balanced Income Index, designed to provide a balanced exposure to global equities and fixed income through exposure to ETFs. The ETFs that make up the index, which may include WisdomTree ETFs and non-WisdomTree ETFs, must trade on a US stock exchange and are reconstituted and rebalanced annually to approximately 60% equity exposure and 40% fixed income exposure.
Luciano Siracusano, WisdomTree chief investment strategist, explained, “The WisdomTree Balanced Income Fund offers investors access to income-generating asset classes across the globe. WBAL incorporates WisdomTree strategies that have proven themselves in the marketplace over the past decade, while also incorporating some of the firm’s more recent products into one integrated solution.”
The fund’s TER is 0.35%, reflecting a contractual fee waiver in place until 31 December 2020. Its gross expense ratio is 0.72%.