NEW YORK, Dec. 16, 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 Efficient Gold Plus Gold Miners Strategy Fund (GDMN), an actively managed ETF with an expense ratio of 0.45%. GDMN invests in a portfolio comprised of global equity securities issued by companies in the gold mining business, generally weighted by modified market capitalization, and U.S.-listed gold futures contracts. GDMN uses the gold futures in an effort to enhance its capital efficiency. WisdomTree believes that GDMN is an innovative and capital efficient alternative to traditional gold miner ETFs or leveraged gold miner ETFs.
“With low global interest rates and inflation at the top of many investors’ minds, we believe gold is a commodity that can provide a valuable inflation hedge — it’s not just a ‘doomsday asset’ and it has the potential to perform well in cyclical markets,” said Jeremy Schwartz, Global Chief Investment Officer at WisdomTree. “We’re constantly finding new ways to offer investors opportunities to invest in a variety of market conditions – in a rising interest rate environment, gold miners can have a potential attractive dividend yield. Blending gold futures and gold miners can extract positive traits from both, and we believe that the Fund is built for investors seeking portfolio diversifiers to hedge macroeconomic risks.”
GDMN: What’s Under the Hood?
GDMN provides exposure to a modified market capitalization weighted basket of global gold miners with an overlay providing exposure to gold via investments in gold futures.
- Structure – For every $100 invested in GDMN, the fund seeks to invest approximately $90 in gold miners and $90 in gold futures for $180 of total gold-oriented exposures.
- Return Stacking – Investors bullish on gold often will allocate to both the physical precious metal and the equities of miners in separate trades, which requires double the investment capital.
Using leverage and a ‘return stacking’ framework that layer gold futures on top of gold miners, GDMN seeks to provide these two exposures while enhancing capital efficiency.
For more information on GDMN, an innovative capital efficient alternative to traditional gold miner ETFs or leveraged gold miner ETFs, visit https://wisdomtree.com/-/media/us-media-files/documents/resource-library/investment-case/the-case-for-efficient-gold-plus-gold-miners-strategy-fund-gdmn.pdf
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, please 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 invests in U.S.-listed gold futures and global equity securities issued by companies that derive at least 50% of their revenue from the gold mining business (“Gold Miners”). The Fund’s use of U.S.-listed gold futures contracts will give rise to leverage, magnifying gains and losses and causing the Fund to be more volatile than if it had not been leveraged. Moreover, the price movements in gold and gold futures contracts may fluctuate quickly and dramatically, and have a historically low correlation with the returns of the stock and bond markets. By investing in the equity securities of Gold Miners, the Fund may be susceptible to financial, economic, political, or market events that impact the gold mining sub-industry, including commodity prices and the success of exploration projects. The Fund may invest a significant portion of its assets in the securities of companies of a single country or region, including emerging markets, and thus, the Fund is more likely to be impacted by events and political, economic, or regulatory conditions affecting that country or region, or emerging markets generally. The Fund’s investment strategy will also require it to redeem shares for cash or to otherwise include cash as part of its redemption proceeds, which may cause the Fund to recognize capital gains. Please read the Fund’s prospectus for specific details regarding the Fund’s risk profile.
WisdomTree Funds are distributed by Foreside Fund Services, LLC, in the U.S. only.
Jeremy Schwartz is a registered representative of Foreside Fund Services, LLC.
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.