WisdomTree has launched an ETF that is designed to provide investors with diversified exposure to 14 themes in a single ETF. The WisdomTree Megatrends UCITS ETF (WMGT) is the 11th ETF in WisdomTree’s thematic equity UCITS ETF range.
WMGT seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Global Megatrends Equity Index (the ‘Index’) and has a total expense ratio of 0.50 per cent. WMGT, listed today on Börse Xetra, and will list on the London Stock Exchange.
The proprietary Index is designed to track the performance of global companies involved in global megatrends including social, technological, environmental or geopolitical shifts defined in the WisdomTree Thematic Classification and that meet WisdomTree’s ESG criteria.
The launch of the WisdomTree Megatrends UCITS ETF signals the evolution of WisdomTree’s leading thematic ETF and research platform. Since 2018, WisdomTree has launched multiple expert-driven thematic ETFs and developed world-class research around the construction of single thematic strategies and thematic portfolios. Leveraging WisdomTree’s deep thematic research, the WisdomTree Megatrends UCITS ETF is built around three layers of alpha generation – strategic thematic asset allocation, tactical thematic asset allocation and thematic stock selection.
1. Strategic thematic asset allocation provides investors with a curated exposure to the most promising themes while maximising diversification between the themes across different Megatrends.
2. Tactical thematic asset allocation allows the strategy to lean in and overweight themes when a combination of positive factors creates a virtuous cycle for a given theme, as observed with cloud computing during 2020 and artificial intelligence in 2023.
3. Thematic stock selection leverages experts across different theme to select the most relevant up-and-coming companies for each theme. The multi-thematic strategy takes advantage of WisdomTree’s thematic expert partners to deliver a differentiated portfolio of stocks for each theme.
Chris Gannatti, Global Head of Research, WisdomTree, says: “Building a multi-thematic portfolio can be challenging as there are many pitfalls that can lead to subpar results. An overly concentrated portfolio, a lack of control around the allocation between themes, a lack of focus on smaller, high-potential companies or a lack of discipline and theme expertise in stock selection can all diminish or even erase the impact of thematic investments. Our approach to building this multi-thematic strategy provides a value-added solution to investors toolkit. Through the strategy, investors are able to gain exposure to the most important and transformative themes, benefit from short-term trends in thematics, maximise diversification between themes and growth potential, while minimising exposure to mega caps through a focus on pure play up-and coming companies.”
Through the WisdomTree Megatrends UCITS ETF, investors will get access to 14 themes across technological, environmental, and social shift megatrends, the firm says.
