WisdomTree announces launch of its Rising Rates ETF Solution Suite

By Tali David

Minneapolis, Dec. 18 - WisdomTree announced the launch of its Rising Rates ETF Solution Suite on the Nasdaq with its Barclays U.S. Aggregate index-based strategies and BofA Merrill Lynch 0-5 Year U.S. High Yield Constrained index-based strategies, according to a press release.

The exchange-traded funds combine widely followed fixed-income strategies with targeted U.S. Treasury exposures to achieve specific durations in order to help manage interest rate risk.

The BofA Merrill Lynch 0-5 Year U.S. High Yield Constrained index based-strategies include the WisdomTree BofA Merrill Lynch High Yield Bond Zero Duration Fund (HYZD) with a 0.43% expense ratio and the WisdomTree BofA Merrill Lynch High Yield Bond Negative Duration Fund (HYND) with a 0.48% expense ratio, the release said.

The indexes track the performance of short-term dollar-denominated below-investment-grade corporate debt publicly issued in the U.S. domestic market.

"With interest rates at historic lows, the values of traditional fixed-income portfolios may be vulnerable to losses should rates increase in the future. The WisdomTree Rising Rates ETFs allow fixed-income investors to maintain traditional allocations while providing greater flexibility to manage interest rate risk," head of currency and fixed income Rick Harper said in the release.

WisdomTree is a New York-based exchange-traded fund sponsor and asset manager.

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