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Security Profile
- Security Type
- Index ETF
- CUSIP
- 97717X560
- Market Cap
- Micro Cap · $2 Million
- IPO
- 2/24/2016
Fund Description: WisdomTree CBOE S&P 500 PutWrite Strategy 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 CBOE S&P 500 PutWrite Strategy Fund seeks investment results that closely correspond to the price and yield performance, before fees and expenses, of the CBOE S&P 500 PutWrite Index. INDEX DESCRIPTION: The CBOE S&P 500 PutWrite Index tracks the value of a cash-secured (i.e., collateralized) put option sales strategy, which consists of selling (or writing) S&P 500 Index put options (SPX Puts) and investing the sale proceeds in one- and three-month Treasury bills. By selling a SPX Put, the Fund receives a premium from the option buyer, which increases the Fund’s return if the option is not exercised and expires worthless. If, however, the value of the S&P 500 Index falls below the SPX Put’s strike price, the option finishes in-the-money and the Fund pays the buyer the difference between the strike price and the value of the S&P 500 Index. The Index’s strategy (and, accordingly, the Fund’s strategy) of selling cash-secured SPX Puts serves to partially offset a decline in the value of the S&P 500 Index to the extent of the premiums received. Further, if the value of the S&P 500 Index increases beyond the amount of premiums received, Index (and Fund) returns would not be expected to increase accordingly. All SPX Puts are standardized options traded on the Chicago Board Options Exchange (CBOE). The SPX Puts in the Index are struck at-the-money (i.e., struck at or very near the S&P 500 Index value) and are sold on a monthly basis, usually the third Friday of the month (the Roll Date), which matches the expiration date of the SPX Puts. SPX Puts generally may only be exercised at the expiration date, which is referred to as a European style option. The number of SPX Puts sold by the Fund varies month to month but is limited by the amount held by the Fund in Treasury bills, the value of which is expected to equal the maximum possible loss from final settlement of the SPX Puts. At each Roll Date, any settlement loss from the expiring SPX Puts is paid from the Treasury bill investments and a new batch of at-the-money SPX Puts is sold. The revenue from their sale is added to the Treasury bill account. In March quarterly cycle months, the three-month Treasury bills are deemed to mature, and so the total cash available is reinvested at the three-month Treasury bill rate. In other months, the revenue from the sale of SPX Puts is invested separately at the one-month Treasury bill rate. The Fund expects to operate in a similar manner as the foregoing Index description in seeking to track the Index. 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. FUND MANAGEMENT: WisdomTree Asset Management, Inc. serves as investment adviser to the Fund. Mellon Capital Management Corporation serves as sub-adviser to the Fund.
Notes: AUTO-CRE
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