WisdomTree Launches Core Laddered and High Income Laddered Municipal ETFs
WisdomTree (NYSE: WT) has launched two new municipal bond ETFs on the Nasdaq: the WisdomTree Core Laddered Municipal Fund (WTMU) and WisdomTree High Income Laddered Municipal Fund (WTMY), with expense ratios of 0.25% and 0.35% respectively.
WTMU employs a conservative approach, investing in municipal debt securities with an average duration of 4-8 years. It can invest up to 30% in securities subject to federal alternative minimum tax. WTMY takes a more aggressive stance, targeting higher income through a combination of investment grade and high yield municipals, with an average duration of 5-10 years.
Both funds are actively managed and sub-advised by Insight North America , focusing on securities expected to mature or be called within 15 years. The investment strategy aims to exploit market inefficiencies, manage credit risk, and optimize yield through structured approaches.
WisdomTree (NYSE: WT) ha lanciato due nuovi ETF di obbligazioni municipali sul Nasdaq: il WisdomTree Core Laddered Municipal Fund (WTMU) e il WisdomTree High Income Laddered Municipal Fund (WTMY), con rapporti di spesa rispettivamente dello 0,25% e dello 0,35%.
WTMU adotta un approccio conservativo, investendo in titoli di debito municipale con una durata media di 4-8 anni. Può investire fino al 30% in titoli soggetti a tassa federale alternativa minima. WTMY adotta una posizione più aggressiva, puntando a un reddito più elevato attraverso una combinazione di municipali di grado di investimento e ad alto rendimento, con una durata media di 5-10 anni.
Entrambi i fondi sono gestiti attivamente e co-consigliati da Insight North America, concentrandosi su titoli che si prevede scadano o vengano richiamati entro 15 anni. La strategia di investimento mira a sfruttare le inefficienze di mercato, gestire il rischio di credito e ottimizzare il rendimento attraverso approcci strutturati.
WisdomTree (NYSE: WT) ha lanzado dos nuevos ETF de bonos municipales en el Nasdaq: el WisdomTree Core Laddered Municipal Fund (WTMU) y el WisdomTree High Income Laddered Municipal Fund (WTMY), con ratios de gastos del 0.25% y 0.35% respectivamente.
WTMU emplea un enfoque conservador, invirtiendo en valores de deuda municipal con una duración promedio de 4-8 años. Puede invertir hasta un 30% en valores sujetos a impuesto mínimo alternativo federal. WTMY adopta una postura más agresiva, buscando ingresos más altos a través de una combinación de bonos municipales de grado de inversión y de alto rendimiento, con una duración promedio de 5-10 años.
Ambos fondos son gestionados activamente y asesorados por Insight North America, enfocándose en valores que se espera maduren o sean llamados dentro de 15 años. La estrategia de inversión busca aprovechar ineficiencias del mercado, gestionar el riesgo de crédito y optimizar el rendimiento a través de enfoques estructurados.
WisdomTree (NYSE: WT)는 나스닥에 두 개의 새로운 지방채 ETF를 출시했습니다: WisdomTree Core Laddered Municipal Fund (WTMU)와 WisdomTree High Income Laddered Municipal Fund (WTMY), 각각 0.25%와 0.35%의 비용 비율을 가지고 있습니다.
WTMU는 보수적인 접근 방식을 채택하여 평균 4-8년의 만기를 가진 지방채에 투자합니다. 연방 대체 최소세가 적용되는 증권에 최대 30%까지 투자할 수 있습니다. WTMY는 더 공격적인 입장을 취하며, 투자 등급 및 고수익 지방채의 조합을 통해 더 높은 수익을 목표로 하며, 평균 5-10년의 만기를 가집니다.
두 펀드 모두 Insight North America에 의해 적극적으로 관리되고 자문을 받으며, 15년 이내에 만기되거나 호출될 것으로 예상되는 증권에 집중합니다. 투자 전략은 시장 비효율성을 활용하고 신용 위험을 관리하며 구조화된 접근 방식을 통해 수익을 최적화하는 것을 목표로 합니다.
WisdomTree (NYSE: WT) a lancé deux nouveaux ETF d'obligations municipales sur le Nasdaq : le WisdomTree Core Laddered Municipal Fund (WTMU) et le WisdomTree High Income Laddered Municipal Fund (WTMY), avec des ratios de frais respectifs de 0,25 % et 0,35 %.
WTMU adopte une approche conservatrice, investissant dans des titres de dette municipale avec une durée moyenne de 4 à 8 ans. Il peut investir jusqu'à 30 % dans des titres soumis à l'impôt minimum alternatif fédéral. WTMY adopte une posture plus agressive, visant un revenu plus élevé grâce à une combinaison de municipaux de qualité d'investissement et de haut rendement, avec une durée moyenne de 5 à 10 ans.
Les deux fonds sont gérés activement et conseillés par Insight North America, se concentrant sur des titres devant arriver à maturité ou être appelés dans les 15 ans. La stratégie d'investissement vise à exploiter les inefficacités du marché, à gérer le risque de crédit et à optimiser le rendement grâce à des approches structurées.
WisdomTree (NYSE: WT) hat zwei neue kommunale Anleihe-ETFs an der Nasdaq gestartet: den WisdomTree Core Laddered Municipal Fund (WTMU) und den WisdomTree High Income Laddered Municipal Fund (WTMY), mit Kostenquoten von 0,25% bzw. 0,35%.
WTMU verfolgt einen konservativen Ansatz und investiert in kommunale Schuldtitel mit einer durchschnittlichen Laufzeit von 4-8 Jahren. Es kann bis zu 30% in Titel investieren, die der bundesstaatlichen alternativen Mindeststeuer unterliegen. WTMY verfolgt eine aggressivere Strategie und zielt auf höhere Einkommen durch eine Kombination aus Investment-Grade- und Hochzinsanleihen, mit einer durchschnittlichen Laufzeit von 5-10 Jahren.
Beide Fonds werden aktiv verwaltet und von Insight North America beraten, wobei der Fokus auf Wertpapieren liegt, die voraussichtlich innerhalb von 15 Jahren fällig werden oder zurückgerufen werden. Die Anlagestrategie zielt darauf ab, Markteffizienzen auszunutzen, das Kreditrisiko zu managen und die Rendite durch strukturierte Ansätze zu optimieren.
- Launch of two new ETF products expanding WisdomTree's municipal bond offerings
- Active management by experienced sub-advisor Insight North America
- Competitive expense ratios (0.25% for WTMU, 0.35% for WTMY)
- Structured approach to minimize risk while optimizing yield
- Diversified exposure to both investment grade and high yield municipal bonds
- Higher expense ratio for WTMY (0.35%) compared to WTMU (0.25%)
- WTMY carries additional risk due to high yield municipal exposure
- Potential interest rate risk with duration targets of 4-8 years (WTMU) and 5-10 years (WTMY)
Insights
WisdomTree's launch of two new municipal bond ETFs - WTMU and WTMY - represents a strategic expansion of its fixed income product suite targeting tax-conscious investors. The funds employ a laddered approach with 0.25% and 0.35% expense ratios respectively, positioning them competitively in the municipal ETF marketplace.
The Core fund (WTMU) takes a conservative approach with 4-8 year duration targeting investment-grade municipals, while the High Income fund (WTMY) pursues enhanced yield through higher-risk municipal securities with 5-10 year duration. Both maintain a 15-year maturity ceiling, creating a disciplined risk management framework.
The partnership with Insight North America as sub-advisor brings specialized municipal bond expertise, critical for active management in this often inefficient market segment where security selection can potentially add value beyond passive index approaches.
The laddered strategy offers particular advantages in the current fixed income environment by diversifying interest rate risk across multiple maturities while providing tax-efficient income. For WisdomTree, these products complement their existing ETF lineup and could strengthen their position in the fixed income space where they've been expanding beyond their traditional equity focus.
While the immediate revenue impact will depend on asset gathering success, this launch demonstrates WisdomTree's continued product innovation and ability to address specific investor needs in the evolving ETF marketplace.
WTMU and WTMY utilize a time-tested bond investment strategy to leverage the diverse opportunities in the municipal bond market
“In today’s changing fixed income landscape, investors seek stability and income. Municipal bonds can potentially offer strong credit quality, lower default rates than corporate bonds, and resilience in rising rate environments—making them a compelling choice,” said Kevin Flanagan, Head of Fixed Income Strategy at WisdomTree.
“WTMU and WTMY update the laddered approach to offer investors access to the tax-efficiency and diversification of investment grade and high yield municipals,” said Rick Harper, Chief Investment Officer, Fixed Income and Model Portfolios at WisdomTree.
The Funds will be actively managed and sub-advised by Insight North America LLC (“Insight”), which has decades of experience managing municipal bond portfolios. Over the years, Insight has built a reputation as a disciplined risk manager and for designing bespoke investment solutions that seek to meet its clients’ needs.
WisdomTree Core Laddered Municipal Fund (WTMU)
WTMU uses a laddered maturity strategy to invest in municipal debt securities and may invest up to
WisdomTree High Income Laddered Municipal Fund (WTMY)
WTMY employs a similar strategy with a stronger focus on maximizing income and yield. While WTMU follows a more conservative, core laddered approach, WTMY takes on additional risk in pursuit of higher income levels and returns, by adding a targeted allocation of high income municipal securities to a laddered exposure in investment grade municipals. The Fund invests in securities with an average duration between five and ten years and seeks to diversify interest rate risk across the curve, with a focus on securities that are expected to mature or have an option to be called or tendered inside of 15 years. WTMY is more opportunistic, capitalizing on insights into credit opportunities for enhanced performance.
WTMU and WYMY: What’s Under the Hood?
The investment process for WTMU and WTMY strives to:
- Take a structured approach on interest rate risk to focus on adding value through credit research
- Exploit market inefficiencies through independent credit research and flexible opportunistic trading
- Identify multiple sources of excess income and potential spread tightening through the credit analysis process
- Avoid spread widening, unanticipated downgrades, and defaults
Investors should carefully consider the investment objectives, risks, charges and expenses of each Fund before investing. For a prospectus or, if available, the summary prospectus containing this and other important information about each Fund, call 866.909.9473 or visit WisdomTree.com/investments. Read the prospectus or, if available, the summary prospectus carefully before investing.
There are risks associated with investing, including possible loss of principal. Municipal securities carry various risks, including credit, interest rate, prepayment, and valuation risks. Issuers may face financial difficulties that impact their ability to meet payment obligations. The value of these securities can fluctuate due to changes in revenue sources, local economic and political conditions, and industry-specific downturns (e.g., education, healthcare, transportation, utilities). Additionally, tax-exempt income from municipal securities could become taxable due to regulatory changes or issuer noncompliance, potentially reducing their value. Fixed income investments are subject to interest rate risk; their value will normally decline as interest rates rise. Higher yield securities or “junk” bonds have lower credit ratings and involve a greater risk to principal. Fixed income investments are also subject to credit risk, the risk that the issuer of a bond will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer’s ability to make such payments will cause the price of that bond to decline. While the Funds attempt to limit credit and counterparty exposure, the value of an investment in the Funds may change quickly and without warning in response to issuer or counterparty defaults and changes in the credit ratings of the Funds’ portfolio investments. Please read each Fund’s prospectus for specific details regarding that Fund’s risk profile.
Neither WisdomTree, Inc., nor its affiliates, nor Foreside Fund Services, LLC, nor its affiliates provide tax advice. All references to tax matters or information provided here are for illustrative purposes only and should not be considered tax advice and cannot be used for the purpose of avoiding tax penalties. Investors seeking tax advice should consult an independent tax advisor.
WisdomTree Funds are distributed in the
Kevin Flanagan and Rick Harper are registered representatives of Foreside Fund Services, LLC.
About WisdomTree
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FAQ
What are the expense ratios for WisdomTree's new municipal bond ETFs (WTMU and WTMY)?
What is the duration target for WisdomTree's WTMU municipal bond ETF?
How does WTMY differ from WTMU in WisdomTree's municipal bond strategy?
What is the maximum maturity horizon for WisdomTree's new municipal bond ETFs?
What percentage can WTMU invest in municipal securities subject to alternative minimum tax?
