WisdomTree Canada adds non-hedged class to Europe Hedged Equity Index ETF

Aug 14th, 2017 | By | Category: Equities

WisdomTree Canada has introduced non-hedged units of the WisdomTree Europe Hedged Equity Index ETF (Toronto: EHE).

WisdomTree Canada adds non-hedged class to Europe Hedged Equity Index ETF

The unhedged class of the WisdomTree Europe Hedged Equity Index ETF comes with a management fee of 0.55%.

EHE tracks the WisdomTree Europe CAD-Hedged Equity Index, providing exposure to dividend-paying European equities while hedging exposure to fluctuations between the euro and the Canadian dollar. The new non-hedged units, (Ticker: EHE.B), will not be hedged back to the Canadian dollar.

Kurt MacAlpine, WisdomTree head of global distribution, commented: “There’s no one-size-fits-all solution when it comes to investing, so it’s important that we provide investors with options that meet their diverse and evolving needs. This is why we are pleased to offer hedged, non-hedged and variably hedged currency options for many of our international equity exposures. As a proprietary index provider, we’re fortunate to have the flexibility to quickly innovate and expand our product set. This offering is the latest example of WisdomTree’s ongoing commitment to the Canadian marketplace.”

The underlying index is comprised of European companies with market capitalization of at least $1 billion, which derive at least 50% of their revenue from countries outside of Europe. Constituents are weighted by annual cash dividends paid.

The largest country exposures are France and Germany, each accounting for one quarter of the total index weight. Spain (17.7%), The Netherlands (16.7%) and Belgium (7.6%) account for the next largest country exposures. The most significant sector exposures are consumer staples (19.7%), consumer discretionary (17.2%), industrials (16.2%), financials (13.2%) and materials (11.4%). While there are 146 constituents, the index is relatively concentrated with the top ten constituents accounting for approximately 45% of the total weight: the largest are Anheuser-Busch (6.2%), Banco Santander (5.3%), Telefonica (4.7%), Sanofi-Aventis (4.6%), Banco Bilbao (4.6%).

The non-hedged share class charges a management fee of 0.55% compared to 0.58% per the hedged share class.

WisdomTree’s Canadian suite now consists of eight ETFs, including hedged, non-hedged and variably hedged unit classes.

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