WisdomTree has launched the WisdomTree Global Quality Growth UCITS ETF (WGRO). The ETF seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Global Quality Growth UCITS Index (the “Index”) and has a total expense ratio (TER) of 0.35 per cent. Listed today on 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.
WisdomTree writes that its approach aims 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.
This combination positions the WisdomTree Global Quality Growth UCITS ETF as a strategic, long-term equity solution for investors looking for thoughtful exposure to the growth segment of the global equity market without sacrificing the quality of their portfolio. 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, says: “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. The firm writes that QGRW was introduced as a fresh alternative to traditional growth strategies like the Nasdaq 100. It brings a dynamic, well-rounded approach to portfolio construction, looking beyond market capitalisation and stock exchange listing to present new growth opportunities.
Through the WisdomTree Global Quality Growth UCITS ETF, investors can continue to benefit from WisdomTree’s style-consistent, transparent, and systematic investment process, which is rooted in academically driven research.
Alexis Marinof, Head of Europe, WisdomTree, says: “The expansion of our equity ETF suite centred on the quality factor underscores our conviction that high-quality companies should form the foundation of every equity portfolio. This launch not only reinforces our commitment to delivering innovative and value-add investment solutions but also builds on the success of our USD23 billion Quality Dividend Growth range. Recognised as a core holding for investors globally, this range highlights the trust and high regard our approach to quality has earned worldwide.”
