Investment strategy seeking to balance risk and reward and address investor concerns over market volatility
NEW YORK, Oct. 07, 2021 (GLOBE NEWSWIRE) -- WisdomTree Investments, Inc. (NASDAQ: WETF), an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset manager, announced today the launch of the WisdomTree Target Range Fund (GTR) on NASDAQ with an expense ratio of 0.70%. GTR is an actively managed ETF that seeks to provide capital appreciation, with a secondary objective of hedging risk. In pursuing its investment objectives, GTR aims to follow the methodology of the TOPS® Global Equity Target RangeTM Index (the “Index”). The Index was created by Valmark Advisers, a subsidiary of Valmark Financial Group.
“Investors face a complex market environment with elevated stock valuations and historically low interest rates. Fears of inflation and rising rates have pushed some investors out on the risk curve1, pushing up a traditional 60% equity/40% fixed income mix towards 75/25,” said Jeremy Schwartz, Global Head of Research at WisdomTree. “WisdomTree’s Target Range Fund may help investors increase their equity exposure and upside participation in markets, but in a risk controlled manner.”
WisdomTree’s Target Range Fund (GTR) utilizes a call spread strategy whose returns seek to be similar to the returns of the Index but will not match the Index’s returns due to the amount and timing of assets that flow in and out of GTR and GTR’s fees and expenses. In seeking to follow the methodology of the Index, GTR’s call spread strategy consists of (1) buying long call options and selling short call options on a portfolio of four underlying ETFs that track the performance of large- and mid-capitalization companies in the United States, developed market countries and emerging market countries; and (2) cash collateral. GTR’s target exposure to the underlying ETFs may differ from time to time from the Index due to the active management of the Fund, market movements and cash flows in and out of the Fund.
“The TOPS ® Global Equity Target Range Index (TOPSGB) seeks to manage downside risk yearly with potential monthly restrikes,” said Michael McClary, Chief Investment Officer at Valmark Financial Group and Portfolio Manager of the TOPS® ETF Portfolios. “WisdomTree is the perfect firm to collaborate with, and we’re excited for investors to have access to this new fund.”
WisdomTree’s target range strategy offers exposure to a diversified portfolio of global equity ETFs, representing U.S large-cap, U.S. small-cap, developed markets, and emerging markets.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund before investing. To obtain a prospectus containing this and other important information, call 866.909.9473 or visit wisdomtree.com. Read the prospectus carefully before you invest.
There are risks associated with investing, including possible loss of principal. The Fund is actively managed and implements a strategy similar to the methodology of the TOPS® Global Equity Target RangeTM Index (the “Index”), which seeks to track the performance of a cash-secured call spread option strategy. There can be no assurance that the Index or the Fund will achieve its respective investment objectives, or that the Fund will successfully implement its investment strategy. Moreover, while the Fund seeks to target returns within a prescribed range thereby minimizing downside investment loss, there can be no guarantee that an investor in the Fund will experience limited downside protection. The Fund’s options strategy will subject Fund returns to an upside limitation on returns attributable to the assets underlying the options. The Fund’s investments in options may be subject to volatile swings in price influenced by changes in the value of the underlying ETFs or other reference asset. The return on an options contract may not correlate with the return of its underlying reference asset. The Fund’s use of derivatives will give rise to leverage and derivatives can be volatile and may be less liquid than other securities. As a result, the value of an investment in the Fund may change quickly and without warning and you may lose money. Please read the Fund’s prospectus for specific details regarding the Fund’s risk profile.
Investing involves risks including possible loss of principal.
Investment exposure to securities and instruments traded in foreign or emerging markets, or that provide exposure to such securities or markets, can involve additional risks relating to political, economic, or regulatory conditions not associated with investments in U.S. securities and instruments or investments in more developed international markets.
Limited Upside Return Risk. By virtue of its cash-secured call spread option strategy, Fund returns will be subject to an upside limitation on returns attributable to an Underlying ETF or other reference asset and the Fund will not participate in gains beyond such upside limitation. In the event an investor purchases Fund shares after the date on which the Fund implements the call spread strategy and the share price of the relevant Underlying ETF or other reference asset has risen in value to a level near the strike price, there may be little or no ability for that investor to experience an investment gain on an investment in Fund shares with respect to that Underlying ETF or other reference asset.
Downside Loss Risk. There can be no guarantee that an investor in the Fund will experience limited downside protection, particularly short-term investors, investors that seek to time the market and/or investors that invest over a period other than the annual period. The Fund does not protect an investor against the loss of principal, and an investor may experience significant losses on its investment in the Fund, including the loss of his or her entire investment.
FLEX Options may be less liquid than standard options and may have difficulty closing out certain FLEX Options positions at desired times and prices.
WisdomTree Funds are distributed by Foreside Fund Services LLC, in the U.S. only. Foreside Fund Services LLC. is not affiliated with the other entities mentioned.
Jeremy Schwartz is a registered representative of Foreside Fund Services, LLC.
1Risk Curve: a graphical representation of risk and return
WisdomTree Investments, Inc., through its subsidiaries in the U.S. and Europe (collectively, “WisdomTree”), is an ETF and ETP sponsor and asset manager headquartered in New York. WisdomTree offers products covering equity, commodity, fixed income, leveraged and inverse, currency, cryptocurrency and alternative strategies. WisdomTree currently has approximately $73.5 billion in assets under management globally.
WisdomTree® is the marketing name for WisdomTree Investments, Inc. and its subsidiaries worldwide.
About Valmark Financial Group, LLC
Valmark Financial Group is a holding company of several subsidiaries, including Executive Insurance Agency, Inc., a national producer group; Valmark Securities, Inc., a broker-dealer and member of both FINRA and SIPC; Valmark Advisers, Inc., a U.S. Securities and Exchange Commission registered investment adviser; and the Valmark Policy Management Company, LLC. Headquartered in Akron, Ohio, Valmark Advisers is the Index Provider for the TOPS® Target Range™ Indexes. To learn more about Valmark Financial Group, visit www.valmarkfg.com or www.topsfunds.com
Securities offered through Valmark Securities, Inc. Member FINRA/SIPC.
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