WisdomTree Inc Launches U.S. Adaptive Moving Average Fund And International Adaptive Moving Average Fund

WisdomTree, Inc. announced the launch of two funds: the WisdomTree U.S. Adaptive Moving Average Fund (WAMA) and the WisdomTree International Adaptive Moving Average Fund (WIMA), both listed on the Nasdaq, with expense ratios of 0.32% and 0.42%, respectively. WAMA and WIMA are designed to track the price and yield performance, before fees and expenses, of the WisdomTree U.S. Adaptive Moving Average Index and the WisdomTree International Adaptive Moving Average Index, respectively, which apply systematic price trend signals within a rules-based methodology to adjust equity exposure based on market conditions. WAMA focuses on U.S. equity securities and U.S. Treasury bills, while WIMA applies the same framework to developed international markets.

WAMA uses a 200-day simple moving average to determine allocation between U.S. equities and U.S.Treasury bills. WAMA adjusts equity exposure when markets move above or below long-term trend levels. WAMA evaluates the percentage of index constituents trading above their own 200-day averages to inform equity re-entry.

WAMA requires signals to persist for two days before changing exposure. WIMA seeks to track an index applying the same trend and breadth framework as WAMA. WIMA applies the systematic allocation methodology to developed international equity markets.

WIMA utilizes defined signals to adjust exposure between equities and U.S. Treasury bills. The Fund generally uses a representative sampling strategy to achieve its investment objective, meaning it generally will invest in a sample of the securities in the Index whose risk, return and other characteristics resemble the risk, return and other characteristics of the Index as a whole. In seeking to adapt to rising and falling trends in the U.S. equity market, the Index and, therefore, the Fund, allocates its assets to equity or fixed income securities.

These allocations and the timing of the allocations may result in performance that is less favorable than that of a portfolio that does not make such allocations. There can be no guarantee that the adaptive strategy will work as intended. The strategy may result in periods of underperformance, limit the Fund?s ability to participate in rising markets, and increase transaction costs.

The Fund invests in the securities of large-capitalization companies. As a result, the Fund?s performance may be adversely affected if securities of these companies underperform securities of smaller capitalization companies or the market as a whole. The Fund invests in a combination of investments that provide direct and indirect exposure to U.S. equity securities and U.S.Treasury bills.

Investments that provide direct and indirect exposure to U.S. government securities may or may not be backed by the full faith and credit of the U.S. government. U.S. government securities are subject to the risks associated with fixed income and debt securities, particularly interest rate risk and credit risk, but may provide relatively lower returns than those of other securities. The Fund invests in the securities included in, or representative of, its Index regardless of their investment merit.

The Fund does not attempt to outperform its Index. The composition of the Index is governed by an Index Committee, and the Index may not perform as intended. The Index and therefore the Fund, seeks to adapt to rising and falling trends in the international equity market by allocating weighting among international equity securities or U.S.Treasury bills.

These allocations and the timing of the allocations may result in performance that is less favorable than that of a portfolio that does not make such allocations. There can be no guarantee that the adaptive strategy will work as intended. The strategy may result in periods of underperformance, limit the Fund?s ability to participate in rising markets, and increase transaction costs.

The Fund invests in the securities of large-capitalization companies. As a result, the Fund?s performance may be adversely affected if securities of these companies underperform securities of smaller capitalization companies or the market as a whole. The Fund invests in a combination of investments that provide direct and indirect exposure to international equity securities and U.S.Treasury bills.

Investments that provide direct and indirect exposure to U.S. government securities may or may not be backed by the full faith and credit of the U.S. government. U.S. government securities are subject to the risks associated with fixed income and debt securities, particularly interest rate risk and credit risk, but may provide relatively lower returns than those of other securities. Investments in non-U.S. securities, including depositary receipts, involve political, regulatory, and economic risks that may not be present in investments in U.S. securities.

The Fund invests in the securities included in, or representative of, its Index regardless of their investment merit. The Fund does not attempt to outperform its Index. The composition of the Index is governed by an Index Committee, and the Index may not perform as intended.

Adaptive Strategy Risk: In seeking to adapt to rising and falling trends in the U.S. equity market, the Index and, therefore, the Fund, allocates its assets to equity or fixed income securities. These allocations and the timing of the allocations may result in performance that is less favorable than that of a portfolio that does not make such allocations. There can be no guarantee that the adaptive strategy will work as intended.

The strategy may result in periods of underperformance, limit the Fund?s ability to participate in rising markets, and increase transaction costs. Geographic Investment Risk: The Fund expects to invest most of its assets in the securities of U.S. companies and is therefore, more likely to be impacted by events or conditions affecting the United States. Geopolitical Risk: The United States has and may continue to experience security concerns, war, threats of war, aggression and/or conflict, terrorism, economic uncertainty, sanctions or the threat of sanctions, natural and environmental disasters, the spread of infectious illness, widespread disease or other public health issues and/or systemic market dislocations that lead to increased short-term market volatility, have adverse long-term effects on the U.S. and world economies, and disrupt the orderly functioning of securities markets generally, which may negatively impact the Fund?s investments.