Toronto-based WisdomTree Asset Management Canada Inc. has completed the initial public offering of the hedged and non-hedged units of WisdomTree Japan Equity Index ETF and the non-hedged units of WisdomTree ICBCCS S&P China 500 Index ETF. The two new ETFs began trading on the Toronto Stock Exchange on Friday.
WisdomTree Japan Equity Index ETF seeks to track, to the extent possible, the price and yield performance of the WisdomTree Japan equity index CAD before fees and expenses. The management fee is 0.51% for hedged units of the ETF and 0.48% for non-hedged units.
This ETF provides exposure to dividend-paying stocks within Japan and traded on the Tokyo Stock Exchange that derive less than 80% of their revenue from sources in the Japanese market. By excluding companies that derive 80% or more of their revenue from Japan, the index is tilted toward companies with a more significant global revenue base. The hedged version of the ETF is designed to provide exposure to Japan’s equity markets while neutralizing exposure to fluctuations of the Japanese yen movements relative to the Canadian dollar.
“Japan is a market that has been underowned by investors for decades,” said Jeff Weniger, asset-allocation strategist with WisdomTree, in a statement. “However, across developed market economies, [Japan] represents a compelling opportunity as the Japanese economy is poised for growth, corporate fundamentals remain strong, valuations are cheap relative to Canada, and the Bank of Japan is likely to remain accommodative.”
WisdomTree ICBCCS S&P China 500 Index ETF seeks to track, to the extent possible, the price and yield performance of the S&P China 500 index CAD before fees and expenses. The management fee for the non-hedged units of the ETF is 0.55%.
This ETF provides exposure to the S&P China 500 index CAD, which selects the largest 500 eligible companies from the broader S&P total China BMI index, representing the entire universe of Chinese companies including A-shares and offshore listings that meet eligible criteria. The underlying index provides significant exposure to mainland China listings, with approximately 48.5% of the index investing in China A-shares as of June 30.
“The WisdomTree ICBCCS S&P China 500 Index ETF provides investors with the opportunity to efficiently access diverse sectors in one of the largest and fastest-growing economies in the world,” Weniger said. “We expect to see China’s economy expand further as the government increases integration efforts with global investors. Chinese equities are certainly an area where index-based concepts are in high demand.”