WisdomTree, a New York-based exchange-traded fund (ETF) provider, has listed two more products in London, bringing its total to six listed on the London Stock Exchange in the past four weeks.
The new funds are both directed at emerging markets, one covering small-caps, the other covering income.
WisdomTree is itself listed on the Nasdaq market and launched its first ETF in the US in 2006.
It says it is the world’s eighth largest exchange-traded products provider and Europe’s first issuer of dividend-weighted small-cap ETFs.
The firm markets itself in Europe under subsidiary WisdomTree Europe.
The Europe funds are physically replicated, domiciled in Ireland and State Street provides services.
The two latest funds track proprietary WisdomTree ‘smart beta’ indices, which have been operating since 2007.
Nik Bienkowski, co-chief executive of WisdomTree Europe, says WisdomTree’s dividend-weighted ETFs cover the three major regions of Europe, the US and emerging markets.
“Over the long-term, dividend-weighted indices have the potential to improve risk-adjusted returns,” he says.
The new equity income ETF tracks the performance of the highest dividend yielding stocks selected from the WisdomTree Emerging Markets Dividend Index. Securities ranking in the highest 30% by dividend yield are selected for inclusion.
Companies selected for the small-cap product fall within the bottom 10% of total market capitalisation of the index as of the annual index measurement date.
The funds are called WisdomTree Emerging Markets Equity Income Ucits ETF and WisdomTree Emerging Markets SmallCap Dividend Ucits ETF.
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