NTSE Profile
The WisdomTree Emerging Markets Efficient Core Fund aims to provide investors with exposure to emerging markets equities while incorporating a strategic allocation to U.S. Treasury futures contracts. The fund’s primary strategy involves investing in a broad selection of emerging markets equity securities, typically weighted by market capitalization to represent the performance of the underlying markets accurately. The fund is designed to capture the growth potential of emerging markets by holding a diverse basket of stocks from various countries within this asset class.
Under normal market conditions, the fund allocates approximately 90% of its net assets to emerging markets equity securities. This allocation provides investors with significant exposure to companies in developing economies, which are expected to benefit from higher economic growth rates compared to more developed markets. The remaining portion of the fund's assets is invested in U.S. Treasury futures contracts, which serve as a tool for managing interest rate risk and providing a hedge against market volatility.
The fund's investment approach is non-diversified, focusing on a concentrated set of emerging markets equities to achieve its investment goals. By leveraging U.S. Treasury futures, the fund aims to enhance portfolio stability and reduce overall risk, potentially improving returns during periods of market uncertainty. The inclusion of futures contracts allows the fund to adjust its interest rate exposure and manage liquidity more effectively.
Investors considering this fund should be aware that while it seeks to capitalize on the growth opportunities in emerging markets, the concentrated nature of its equity holdings and the use of futures contracts introduce unique risks. The performance of the fund is influenced by the volatility and economic conditions in emerging markets, as well as changes in interest rates. Therefore, potential investors should evaluate their risk tolerance and investment horizon to ensure alignment with the fund's objectives and strategies.
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