US-based ETP sponsor WisdomTree has launched a global Ucits ETF to its Quality Growth range.
The fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Global Quality Growth Ucits Index and has a total expense ratio (TER) of 0.35%.
Listed on Wednesday on the Börse Xetra and Borsa Italiana, WGRO will be listed on the London Stock Exchange on 27 February 2025.
The proprietary index is designed to track the performance of global large-cap companies with strong quality (including profitability) and growth characteristics.
The investment aim will be to provide higher upside participation in bull markets and generate positive excess returns over a full market cycle.
The growth factor seeks to capture companies experiencing growth in sales, realised earnings, and expected earnings, often including disruptive companies and technological giants, allowing for greater upside participation.
The quality factor adds stability to a portfolio and helps filter out the most unprofitable, highly speculative, and low-quality names.
In a statement, the company said that “investors may view the ETF as a diversified global alternative to the US-centric NASDAQ 100 capturing growth stocks from across all developed markets”.
Pierre Debru, Head of Research, Europe, WisdomTree, said: “WisdomTree’s quality and growth-focused equity ETFs can serve as a powerful strategy for those seeking stable and high-growth investments that balance risk and reward.
“Quality is a time-tested investment philosophy demonstrating historical outperformance across regions with reduced volatility and drawdowns, while growth stocks tend to capture market trends and outperform the market in upward and sideways moving markets.
“When combined, you have an equity solution that can generate high excess returns over full market cycles.”
The WisdomTree Global Quality Growth Ucits ETF is the second ETF in the range to launch in Europe following the listing of the WisdomTree US Quality Growth UCITS ETF (QGRW) in 2024.
