WisdomTree Negative Duration High Yield Bond Fund

C000134343 Fund Overview

WisdomTree Negative Duration High Yield Bond Fund is a US ETF managed by WisdomTree Trust, categorised as Corporate Bond. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US ETF
• Manager: WisdomTree Trust
• Category: Corporate Bond
• Assets under management: $9.13M
• SEC CIK: 0001350487
• SEC series ID: S000043391
• Share class ID: C000134343

C000134343 Investment Objective and Strategy

WisdomTree Negative Duration High Yield Bond Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by WisdomTree Trust.

Investment objective

The WisdomTree Negative Duration High Yield Bond Fund (the “Fund”) seeks to track the price and yield performance, before fees and expenses, of the BofA Merrill Lynch 0-5 Year U.S. High Yield Constrained, Negative Seven Duration Index (the “Index”).

Principal investment strategy

The Fund employs a passive management or indexing investment approach designed to track the performance of the Index. 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. Under normal circumstances, at least 80% of the Funds total assets (exclusive of collateral held from securities lending) will be invested in the component securities of the Index and investments that have economic characteristics that are substantially identical to the economic characteristics of such component securities. The Index is designed to provide long exposure to the BofA Merrill Lynch 0-5 Year US High Yield Constrained Index while seeking to manage interest rate risk through the use of short positions in U.S.

Treasury securities (U.S. Treasuries). The Index is comprised of a long portfolio and short portfolio. The long portfolio of the Index intends to replicate the BofA Merrill Lynch 0-5 Year U.S. High Yield Constrained Index, which broadly captures the fixed income securities market for non-investment grade corporate debt securities (junk bonds) issued in the U.S. domestic market that have a remaining maturity of less than five years. The short portfolio of the Index holds short positions in U.S. Treasuries (or futures providing exposure to U.S. Treasuries in the case of the Fund) that seek to correspond to a duration exposure exceeding the duration of the long portfolio, with a targeted total duration exposure of approximately negative seven years (e.g., if the average duration of bonds in the long portfolio is approximately two years, the short portfolio will seek an average duration of approximately nine years among its short holdings of U.S.

Treasuries, with an aggregate targeted duration of Index holdings of approximately negative seven years). Duration is a measure used to determine the sensitivity of a portfolio to changes in interest rates with a longer duration portfolio being more sensitive to changes in interest rates. The Index methodology weights the short exposure to U.S. Treasuries of differing maturities in a manner that is intended to achieve the desired duration target for the Index, while seeking to mitigate the risk to shifts in the Treasury yield curve between the long and short maturity securities of the Index. The short exposure in the Index and the Fund, respectively, is expected to have greater sensitivity to interest rates than the long exposure of the Index and the Fund, respectively, in targeting the desired overall interest rate sensitivity, which has a target duration of negative seven years.

The short exposure of the Index and Fund are also expected to be more heavily weighted toward longer maturity U.S. Treasuries than the long exposure. The long portfolio and short portfolio of the Index are rebalanced on a monthly basis to where the dollar amount of the long portfolios bond positions is approximately equivalent to the dollar amount of the short exposure achieved within the short portfolio. The Index is designed to have greater returns than an equivalent non-interest rate hedged investment when U.S. Treasury rates are rising significantly. Conversely, the Index is designed to have lower returns than an equivalent non-interest rate hedged investment when U.S. Treasury rates are falling significantly. In seeking to track the short portfolio of the Index, the Fund will invest in short positions in futures contracts on U.S.

Treasuries. The Fund may also short U.S. Treasuries. To the extent the Index concentrates (i.e., holds 25% or more of its total assets) in the securities of a particular industry or group of industries, the Fund will concentrate its investments to approximately the same extent as its Index.

C000134343 Costs and Fees

C000134343 costs about $48 per $10,000 invested per year in fund expenses.

• Net expense ratio: 0.48%
• Gross expense ratio: 0.48%
• Portfolio turnover: 66%
• Brokerage commissions: 1.51 bps of average net assets (SEC N-CEN)

C000134343 Cashflows

Over the 12 months to 2020-05, WisdomTree Negative Duration High Yield Bond Fund had net outflows of $20.63M, from monthly SEC N-PORT filings.

C000134343 Debt Constituents

No individual debt constituents are reported in WisdomTree Negative Duration High Yield Bond Fund's latest SEC N-PORT filing.

C000134343 Prospectus and SEC Filings

Official WisdomTree Negative Duration High Yield Bond Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2020-01-16
• Prospectus (485BPOS) — filed 2018-01-23
• Prospectus supplement (497) — filed 2019-04-18
• Portfolio holdings (N-PORT) — filed 2020-07-23
• Portfolio holdings (N-PORT) — filed 2020-04-09
• Portfolio holdings (N-PORT) — filed 2020-01-28
• Annual census (N-CEN) — filed 2019-11-12
• Annual census (N-CEN) — filed 2018-11-14

Related Funds

Other Corporate Bond funds tracked on ABC INVEST:

• First Trust Preferred Securities and Income ETF (FPE)
• Nuveen Preferred Securities and Income Fund (NPSAX)
• Spectrum Preferred and Capital Securities Income Fund (PNARX)
• Invesco Variable Rate Preferred ETF (VRP)
• First Trust Institutional Preferred Securities and Income ETF (FPEI)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.