WisdomTree Launches Alternative Income Fund (HYIN)
WisdomTree Investments has announced the launch of the WisdomTree Alternative Income Fund (HYIN) on the CBOE, with an expense ratio of 3.20%. This ETF aims to track the Gapstow Liquid Alternative Credit Index (GLACI), which includes approximately 35 publicly traded alternative credit vehicles like BDCs, REITs, and CEFs. Amid low interest rates globally, HYIN offers investors access to higher yielding alternative credit markets, providing potential yield advantages and low correlation to traditional investment vehicles.
- Launch of the WisdomTree Alternative Income Fund (HYIN) provides access to high-yield alternative credit sectors.
- The fund targets approximately 35 publicly traded alternative credit vehicles, diversifying investment opportunities.
- Expense ratio of 3.20% is competitive for an alternative credit-focused ETF.
- HYIN offers potential yield advantages compared to traditional fixed income investments.
- The fund is considered non-diversified, increasing the risk of concentrated investments.
- Investing in higher yielding securities may expose investors to greater liquidity and credit risks.
HYIN offers distinct liquid and diversified access to high yielding alternative credit sectors
NEW YORK, May 06, 2021 (GLOBE NEWSWIRE) -- WisdomTree Investments, Inc. (NASDAQ: WETF), an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset manager, announced today the launch of the WisdomTree Alternative Income Fund (HYIN) on the CBOE with an expense ratio of
Gapstow Capital Partners, a recognized alternative credit leader, has created the GLACI, which is an equal weighted index that tracks the performance of debt and debt-based securities of approximately 35 “Publicly Traded Alternative Credit Vehicles” (PACs) that consist of Business Development Companies (BDCs), Real Estate Investment Trusts (REITs) and Closed-End Funds (CEFs).
“Fixed income investors are facing some specific market challenges, including historically low rates, both in the U.S. and on a global scale,” explained Kevin Flanagan, WisdomTree’s Head of Fixed Income Strategy. “One way for investors to search for income in a yield-challenged environment is through alternative credit, which consists of debt and debt-based securities that have a higher risk-return profile than traditional high yield bonds. With HYIN, we’re offering investors a vetted and thoughtful option to access exactly that.”
Chris Acito, Gapstow’s CEO, said, “GLACI is an alternative credit index which is diversified, liquid, and investable. Its design has been informed by our twelve years of experience in multi-sector credit portfolio construction. We’re very pleased that WisdomTree has chosen GLACI in bringing HYIN to market.”
The WisdomTree Alternative Income Fund (HYIN) selects PACs from six alternative credit sectors, representing different forms of traded credit, structured credit, and private credit. Against the backdrop of low yields in treasuries, corporate bonds and equities, HYIN offers considerable potential yield advantages and provides a moderate to low correlation to equity and fixed income markets.
Thomas Skrobe, WisdomTree’s Head of Product Solutions, said, “Historically, alternative credit markets have primarily been limited to institutional or ultra-high net worth investors typically through private fund structures, but these solutions for alternative income will be a natural complement within model portfolios as global rates remain at historically low levels. That’s why ‘quality and income’ is one of WisdomTree’s core, ongoing investment themes and serves as a differentiating factor in our approach to both equity & fixed income solutions.”
Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund before investing. To obtain a prospectus containing this and other important information, call 866.909.9473 or visit wisdomtree.com. Read the prospectus carefully before you invest.
There are risks associated with investing, including possible loss of principal. The Fund is considered to be non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. Higher yielding securities, sometimes referred to as junk bonds, may present additional risk because these securities may be less liquid and present more credit risk than investment grade bonds.
The Fund invests in alternative credit sectors through investments in underlying closed-end investment companies (“CEFs”), including those that have elected to be regulated as business development companies (“BDCs”), and real estate investment trusts (“REITs”). The value of a CEF can decrease due to movements in the overall financial markets. BDCs generally invest in less mature private companies, which involve greater risk than well-established, publicly traded companies, and BDCs are subject to high failure rates among the companies in which they invest. By investing in REITs, the Fund is exposed to the risks of owning real estate, such as decreases in real estate values, overbuilding, increased competition and other risks related to local or general economic conditions. The Fund invests in the securities included in, or representative of, its Index regardless of their investment merit and the Fund does not attempt to outperform its Index or take defensive positions in declining markets. Please read the Fund’s prospectus for specific details regarding the Fund’s risk profile.
Statements concerning financial market trends are based on current market conditions, which will fluctuate.
WisdomTree Funds are distributed by Foreside Fund Services LLC, in the U.S. only. Foreside Fund Services LLC. is not affiliated with the other entities mentioned.
Kevin Flanagan and Thomas Skrobe are registered representatives of Foreside Fund Services, LLC.
1 The Total Expense Ratio of
WTPR-20210429-0115
About WisdomTree
WisdomTree Investments, Inc., through its subsidiaries in the U.S. and Europe (collectively, “WisdomTree”), is an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset manager headquartered in New York. WisdomTree offers products covering equities, commodities, fixed income, leveraged and inverse, currencies, and alternative strategies. WisdomTree currently has approximately
WisdomTree® is the marketing name for WisdomTree Investments, Inc. and its subsidiaries worldwide.
About Gapstow Capital Partners
Formed in 2009, Gapstow Capital Partners is a boutique investment consultancy focused exclusively on opportunities within the alternative credit asset class. As part of our on-going research, Gapstow maintains a series of more than 30 proprietary performance indices, including the Gapstow Liquid Alternative Credit Index. Gapstow is based in New York City. For more information, please visit
www.gapstow.com.
Contact Information
Media Relations
WisdomTree Investments, Inc.
Jessica Zaloom
+1.917.267.3735
jzaloom@wisdomtree.com / wisdomtree@fullyvested.com
FAQ
What is the expense ratio of WisdomTree's HYIN fund?
What does the WisdomTree HYIN fund track?
What types of securities does the HYIN fund invest in?
How many alternative credit vehicles are included in the GLACI index?
What are the risks associated with investing in the HYIN fund?
