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Security Profile
- Security Type
- Index ETF
- CUSIP
- 97717Y808
- Market Cap
- Micro Cap · $5 Million
- IPO
- 5/18/2017
Fund Description: WisdomTree Barclays Yield Enhanced U.S. Short-Term Aggregate Bond Fund is an exchange-traded index fund or Index ETF which is a separate investment portfolio of WisdomTree Trust, an open-end investment management company. INVESTMENT OBJECTIVE: The WisdomTree Barclays Yield Enhanced U.S. Short-Term Aggregate Bond Fund seeks investment results that closely correspond to the price and yield performance, before fees and expenses, of the Bloomberg Barclays U.S. Short Aggregate Enhanced Yield Index. INDEX DESCRIPTION: The Bloomberg Barclays U.S. Short Aggregate Enhanced Yield Index is designed to broadly capture the short-term U.S. investment grade, fixed income securities market while seeking to enhance yield within desired risk parameters and constraints. The Index is comprised of those subgroups of the Bloomberg Barclays U.S. Aggregate Index (i.e., Treasuries, agencies, credit and securitized) with effective maturities generally shorter than five years (ST Agg Universe). The Index uses a rules-based approach to re-weight these subgroups to achieve higher yields, while managing risk through constraints on expected tracking error and turnover, as well as sector, duration, and credit exposure relative to the ST Agg Universe. Individual securities within a subgroup are market value-weighted within the subgroup. The Index is rebalanced on a monthly basis. The Index draws from the ST Agg Universe, which consists of U.S. dollar-denominated securities, including U.S. Treasuries, U.S. Government-related bonds, corporate bonds, mortgage-backed pass-through securities, commercial mortgage-backed securities, and asset-backed securities that are publicly offered for sale in the United States. These securities feature fixed rate coupons and have at least $300 million in par amount outstanding and one year to final maturity, with the exception of asset-backed securities and commercial mortgage-backed securities, which must have an original deal size of $500 million, a minimum tranche size of $25 million, and at least $300 million of the original transaction still outstanding. The duration of the Index is generally expected not to exceed the duration of the ST Agg Universe by more than 0.5 years. The Index includes U.S. agency mortgage-backed pass-through securities which occur through standardized contracts for future delivery in which the exact mortgage pools to be delivered are not specified until a few days prior to settlement, referred to as a to-be-announced transaction” or TBA Transaction. In a TBA Transaction, the buyer and seller agree upon general trade parameters such as agency, settlement date, par amount and price. The Fund expects to enter into such contracts on a regular basis. The Fund, pending settlement of such contracts, will invest its assets in high-quality, liquid short-term instruments. FUND 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 Fund’s 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 Fund may invest up to 20% of its assets in other fixed income securities and/or such other investments, with characteristics similar to the Index constituents, that the Adviser and/or Sub-Adviser believe will help the Fund track the performance of the Index. Other fixed income securities will consist primarily of investment grade securities with similar risk characteristics as the Index components, but up to 5% of the Fund’s total assets may be held in non-investment grade securities (junk bonds) with credit ratings deemed to be of no less than BB. FUND MANAGEMENT: WisdomTree Asset Management, Inc. serves as investment adviser to the Fund. Voya Investment Management Co., LLC serves as sub-adviser to the Fund.
Company Contact
- Headquarters
- 245 Park Avenue, 35th Floor, New York, NY 10167
- Phone
- 866-909-9473 · Toll-Free 866-909-9473
- Investor Relations
- Jason Weyeneth, CFA · 917-267-3858 · JWeyeneth@wisdomtree.com