WisdomTree Dynamic Currency Hedged Japan Equity Fund

Data updated: 2020-05-29

C000164639 — WisdomTree Dynamic Currency Hedged Japan Equity Fund. Japan Real Estate · $1.12M AUM. Holdings, fees, performance and SEC filings.

C000164639 Fund Overview

WisdomTree Dynamic Currency Hedged Japan Equity Fund is a US ETF managed by WisdomTree Trust, categorised as Japan Real Estate. 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: Japan Real Estate
Assets under management: $1.12M
SEC CIK: 0001350487
SEC series ID: S000052355
Share class ID: C000164639

C000164639 Investment Objective and Strategy

WisdomTree Dynamic Currency Hedged Japan Equity Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by WisdomTree Trust.

Investment objective

The WisdomTree Dynamic Currency Hedged Japan Equity Fund (the “Fund”) seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Dynamic Currency Hedged Japan Equity 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 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 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 a dividend weighted index designed to provide exposure to Japanese equity securities while at the same time dynamically hedging currency exposure to fluctuations between the value of the Japanese yen and the U.S.

dollar. The Index consists of the equity securities of dividend-paying companies within the WisdomTree International Equity Index, which defines the dividend paying universe of companies in the industrialized world, excluding Canada and the United States, that are incorporated in Japan and traded on the Tokyo Stock Exchange. To be eligible for inclusion in the Index, a company must meet the following criteria as of the annual Index screening date: (i) payment of at least $5 million in cash dividends on shares of common stock in the prior annual cycle; (ii) market capitalization of at least $100 million; (iii) average daily dollar volume of at least $100,000 for the preceding three months; and (iv) trading of at least 250,000 shares per month for each of the preceding six months. The Index is reconstituted and rebalanced once each year on the annual Index reconstitution date Securities are weighted in the Index based on dividends paid over the prior annual cycle.

Companies that pay a greater total dollar amount of dividends are more heavily weighted. To derive a companys initial Index weight, (i) multiply the U.S. dollar value of the companys annual gross dividend per share by the number of common shares outstanding for that company (the Cash Dividend Factor); (ii) calculate the Cash Dividend Factor for each company; (iii) add together all of the companies Cash Dividend Factors; and (iv) divide the companys Cash Dividend Factor by the sum of all Cash Dividend Factors. The maximum weight of any single security in the Index is capped at 5% and the maximum weight of any one sector in the Index is capped at 25%; however, security and sector weights may fluctuate above their specified caps in response to market conditions and/or the application of volume factor adjustments.

If a component security no longer meets applicable trading volume thresholds as of the annual Index screening date, the Index methodology applies a volume factor adjustment to reduce such component securitys weight in the Index and reallocates the reduction in the weight pro rata among the other remaining securities. WisdomTree Investments, Inc., as index provider, currently uses Standard & Poors Global Industry Classification Standards (S&P GICS) to define companies within a sector. The following sectors are included in the Index: consumer discretionary, consumer staples, energy, financials, health care, industrials, information technology, materials, real estate, communication services, and utilities. A sector is comprised of multiple industries. For example, the energy sector is comprised of companies in, among others, the natural gas, oil and petroleum industries.

As of September 30, 2018, a significant portion of the Index was comprised of companies in the consumer discretionary, financial and industrial sectors. The Index dynamically hedges currency fluctuations in the relative value of the Japanese yen against the U.S. dollar, ranging from a 0% to 100% hedge. The Index determines and adjusts the hedge ratio on the Japanese yen on a monthly basis using three equally-weighted, quantitative signals: interest rate differentials, momentum, and value. Interest rate differentials are determined by measuring the difference in interest rates, as implied in one-month foreign exchange (FX) forwards, between the Japanese yen and the U.S. dollar. Momentum is the relative price momentum of the foreign currency as determined by comparing two moving average signals on the historically observed U.S.

dollar spot rates over 10 and 240 business day periods. Value is the relative purchasing power of the foreign currency as determined with reference to the foreign currency spot rate over 20 business days as compared to the latest purchasing power parity (PPP) numbers as published by the Office of Economic Cooperation and Development (OECD). This approach is designed to limit losses related to currency as the Japanese yen depreciates against the U.S. dollar while participating in gains related to currency when the Japanese yen appreciates against the U.S. dollar, thereby seeking to have the Fund benefit from such currency movements while reducing the volatility associated with currency returns. The Index applies an applicable published currency forward rate to the Japanese yen to hedge against fluctuations in the relative value of the Japanese yen against the U.S.

dollar pursuant to the applicable hedge ratio. The Fund uses forward currency contracts or futures contracts to the extent the Japanese yen is hedged. 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.

C000164639 Costs and Fees

C000164639 costs about $43 per $10,000 invested per year in fund expenses.

Net expense ratio: 0.43%
Gross expense ratio: 0.48%
Portfolio turnover: 104%
Brokerage commissions: 4.64 bps of average net assets (SEC N-CEN)

C000164639 Cashflows

Over the 12 months to 2020-03, WisdomTree Dynamic Currency Hedged Japan Equity Fund had net inflows of $0, from monthly SEC N-PORT filings.

Month	Net flow
2020-03	$0
2020-02	$0
2020-01	$0
2019-12	$0
2019-11	$0
2019-10	$0

C000164639 Debt Constituents

No individual debt constituents are reported in WisdomTree Dynamic Currency Hedged Japan Equity Fund's latest SEC N-PORT filing.

C000164639 Prospectus and SEC Filings

Official WisdomTree Dynamic Currency Hedged Japan Equity Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

Related Funds

Other Japan Real Estate funds tracked on ABC INVEST:

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.