ETF sponsor WisdomTree, has announced that its WisdomTree Europe Equity UCITS ETF has become its fastest growing and largest total AUM UCITS ETF.
The ETF has added almost USD100 million of net news assets in the past month and has recently reached close to USD172 million in total assets. The recent asset inflows follow the recent launch of currency hedged and unhedged share classes, helping the fund more than triple in size over the past five months.
Viktor Nossek, WisdomTree Europe’s Director of Research says: “The Fed rate hike has cemented the continuation of monetary policy divergence in 2016, with the widening of the interest rate premium that US assets enjoy over Eurozone assets keeping the euro fundamentally weak. Faced with a strong US economy underpinned by increased consumer spending power the ECB will attempt to talk down the euro through dovish talk rather than policy action. This occurs as signs of a broader Eurozone recovery remain at an early inflection point which is still vulnerable to a strengthening currency. A volatile path for euro-dollar lies ahead as the impact of future interest rate hikes by the Fed and potentially more easing measures by the ECB will be hard to gauge at this point. Investors seeking the to take advantage of more positive sentiment in Eurozone equities as a result of euro weakness may want to consider to hedging their Eurozone equity exposure as a result.”