Bringing you live news and features since 2006 

WisdomTree launches new smart beta fund with multifactor exposure


Exchange-traded fund (ETF) and exchange-traded product (ETP) sponsor and asset manager WisdomTree has launched the WisdomTree US Multifactor Fund (USMF), on the BATS Exchange.

USMF seeks to track the price and yield performance of the WisdomTree US Multifactor Index and has a net expense ratio of 0.28 per cent.
WisdomTree’s eleven years of experience in the ETF asset management industry is based on its investment philosophy that broad-based, fundamentally weighted ETFs can add value compared to both traditional passive and active managers. Now, through its latest strategy, WisdomTree will directly target multiple smart beta factors in an effort to generate excess return, and reduced volatility, relative to the broader market.
Luciano Siracusano, Chief Investment Strategist at WisdomTree, says: “WisdomTree’s existing suite of dividend- and earnings-weighted ETFs have typically tapped into the smart beta factors of value, quality and size and, in many instances, have outperformed their market capitalisation-weighted benchmarks, while exhibiting relatively low tracking error against those benchmarks. But, for investors willing to assume higher tracking error relative to traditional market capitalisation-weighted benchmarks, a multifactor approach, such as the WisdomTree US Multifactor Fund, has the potential to enhance returns, while providing greater factor diversification and thus, may lower volatility compared to single-factor approaches.”
USMF seeks to track the WisdomTree US Multifactor Index, which was designed to beat the market through an innovative selection and weighting methodology by gaining exposure to the factors of value, quality, momentum, size and low correlation, while managing volatility and maintaining sector neutrality.
Siracusano says: “We believe USMF is a simple, intuitive solution for investors seeking to incorporate the potential of factor investing into their US equity allocations.”

Latest News

Electronic marketplace Tradeweb Markets Inc has reported total trading volume for May 2023 of USD29.4 trillion. Average daily volume (ADV)..
Invesco’s Paul Syms, Head of EMEA ETF Fixed Income and Commodity Product Management, has commented on the gold price, saying:..
Everysk, a provider of customisable, no-code, low-code intelligent automation solutions, has been chosen as a strategic partner of Dynamic Beta..
Rize ETF has listed its new Rize Circular Economy Enablers UCITS ETF (CYCL) on the London Stock Exchange (LSE) and..

Related Articles

The European thematic fund market presents interesting opportunities for asset managers and ETF issuers, particularly in the passive sphere, according...
Stephanie Miller Pierce, BNY Mellon
The three-year anniversary of BNY Mellon Investment Management’s launch of ETFs was marked by the quarter one growth of 172...
South Korea Flag
The overall trend in retail subscriptions to mutual funds in Korea is shifting gradually toward ETFs, as exchange-traded offerings have...
“The beauty of ETFs is that you can have effectively a rules-based strategy at low cost” says Laurent Kssis, head...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by