WisdomTree 7-10 Year Laddered Treasury Fund | research notes

Introducing WisdomTree 7-10 Year Laddered Treasury Fund

WisdomTree Investments, Inc. (NYSE: WTI), an exchange-traded fund (ETF) sponsor and asset manager, recently launched the WisdomTree 7-10 Year Laddered Treasury Fund (NASDAQ: TLTI). The fund provides investors with exposure to a diversified portfolio of U.S. Treasury bonds with maturities ranging from seven to ten years.

Fund Overview

• Name: WisdomTree 7-10 Year Laddered Treasury Fund
• Ticker: TLTI
• Exchange: NASDAQ
• Objective: To provide current income and capital appreciation through investment in a diversified portfolio of U.S. Treasury bonds with maturities ranging from seven to ten years
• Management: WisdomTree Asset Management
• Expense Ratio: 0.15%

Investment Strategy

The fund employs a laddered investment strategy, which involves dividing the portfolio into multiple segments, each with a specific maturity range. By diversifying across different maturities, the fund aims to reduce overall portfolio risk and provide a more stable return stream.

The fund invests primarily in U.S. Treasury notes and bonds issued by the U.S. Department of the Treasury. The fund's target maturity range is seven to ten years, with an average duration of approximately 8.5 years.

Key Features

• Diversification: The fund provides broad exposure to the seven to ten year maturity segment of the U.S. Treasury market, reducing single-issuer risk.
• Income Generation: The fund's investment in Treasury bonds generates regular income in the form of interest payments.
• Capital Appreciation Potential: The fund's long-term investment horizon allows for potential capital appreciation as Treasury rates fluctuate.
• Low Cost: The fund's expense ratio of 0.15% is significantly lower than many comparable active bond funds.

Investor Benefits

• Enhance Portfolio Stability: TLTI can help investors balance their equity exposure by adding a layer of diversification with fixed income.
• Reliable Income Source: The fund's focus on Treasury bonds provides a consistent source of income for investors seeking regular cash flow.
• Potential for Growth: The fund's long-term investment horizon offers the potential for capital appreciation over time.

Conclusion

The WisdomTree 7-10 Year Laddered Treasury Fund is a compelling option for investors seeking a diversified and low-cost way to access the seven to ten year segment of the U.S. Treasury market. Its experienced management team, laddered investment strategy, and low expense ratio make it an attractive choice for both individual investors and institutional allocators.

Business Model of WisdomTree 7-10 Year Laddered Treasury Fund

WisdomTree 7-10 Year Laddered Treasury Fund (WLDS) is an actively managed closed-end fund that invests primarily in U.S. Treasury securities with maturities ranging from 7 to 10 years. WLDS uses a "laddered" strategy, where the fund's portfolio is divided into equal-weight sub-portfolios of Treasury securities with different maturities. This approach aims to reduce interest rate risk and provide investors with a steady stream of income.

Advantages to Competitors

WLDS has several advantages over its competitors, including:

• Active Management: WLDS is actively managed by a team of experienced portfolio managers who can adjust the fund's allocation to Treasury securities based on market conditions. This active management approach allows for more flexibility and potential for outperformance compared to passively managed Treasury ETFs.
• Laddered Approach: The laddered strategy used by WLDS reduces interest rate risk by diversifying across different maturity dates. This approach aims to provide investors with a stable stream of income and protect against large swings in interest rates.
• Credit Quality: WLDS invests exclusively in U.S. Treasury securities, which are considered among the safest investments in the world. This focus on high-quality credit reduces the risk of default and enhances the fund's overall safety profile.
• High Yield: WLDS typically offers a higher yield than comparable Treasury ETFs or traditional fixed-income investments. The laddered strategy allows the fund to invest in longer-term Treasury securities while maintaining a relatively short average maturity, resulting in a higher yield potential.
• Tax Efficiency: WLDS is structured as a closed-end fund, which means it is not required to distribute its capital gains to investors. This tax efficiency reduces the impact of short-term capital gains on investors' tax liabilities.
• Liquidity: WLDS trades on the New York Stock Exchange and offers daily liquidity. This allows investors to easily buy or sell shares in the fund without facing large bid-ask spreads.

Overall, WisdomTree 7-10 Year Laddered Treasury Fund offers a unique combination of active management, laddered strategy, high credit quality, high yield, tax efficiency, and liquidity, which provides advantages over its competitors in the Treasury investment space.

Outlook of WisdomTree 7-10 Year Laddered Treasury Fund (WFLE)

Company Overview

WisdomTree 7-10 Year Laddered Treasury Fund (WFLE) is an exchange-traded fund (ETF) that tracks the Bloomberg 7-10 Year US Treasury Index. The fund invests in a portfolio of U.S. Treasury bonds with maturities ranging from 7 to 10 years.

Investment Strategy

WFLE employs a laddered investment strategy, which involves investing in a series of Treasury bonds with different maturities. This strategy aims to reduce interest rate risk by ensuring that the fund's investments mature at staggered intervals.

Maturity Distribution

As of March 3, 2023, WFLE's portfolio had the following maturity distribution:

• 7-9 years: 32.5%
• 9-10 years: 67.5%

Expense Ratio

WFLE's expense ratio is 0.15%, or $15 for every $10,000 invested. This fee covers the fund's operating expenses, such as management fees, trading costs, and administration.

Performance

Over the past 5 years, WFLE has returned an annualized return of 3.05%. The fund has outperformed the Bloomberg U.S. Aggregate Bond Index, which had an annualized return of 1.96% over the same period.

Strengths

• Low interest rate risk: The laddered investment strategy helps reduce interest rate risk.
• Diversified portfolio: WFLE invests in a broad range of Treasury bonds, providing diversification.
• Tax-efficient: The fund is structured as an ETF, which can offer tax benefits for certain investors.
• Low expense ratio: The 0.15% expense ratio is relatively low for a bond ETF.

Weaknesses

• Limited upside potential: Treasury bonds have historically provided limited upside potential.
• Interest rate fluctuations: While the laddered strategy mitigates interest rate risk, WFLE's performance can still be impacted by changes in interest rates.
• Inflation risk: Treasury bonds can lose value if inflation exceeds the rate of return on the bonds.

Outlook

The outlook for WFLE is generally favorable as interest rates are expected to remain stable or decline in the near term. However, investors should be aware of the potential risks associated with Treasury bonds, including interest rate fluctuations and inflation risk.

Suitability

WFLE is suitable for investors who:

• Are seeking a low-risk, fixed-income investment
• Want to reduce interest rate risk through a laddered strategy
• Have a long-term investment horizon
• Understand the potential risks associated with Treasury bonds

Similar Companies to WisdomTree 7-10 Year Laddered Treasury Fund

1. iShares Core U.S. Treasury Bond ETF (AGG)

• Homepage: https://www.ishares.com/us/products/239800/ishares-core-us-aggregate-bond-etf
• Reason for customer interest: Low-cost and diversified exposure to the entire U.S. Treasury bond market, providing a broad benchmark for fixed income investments.

2. Vanguard Total Bond Market ETF (BND)

• Homepage: https://investor.vanguard.com/etf/profile/BND
• Reason for customer interest: Broadly diversified portfolio that provides a mix of investment-grade corporate bonds, Treasuries, and mortgage-backed securities, offering diversification and potential income generation.

3. SPDR Bloomberg High Yield Bond ETF (JNK)

• Homepage: https://www.spdrfunds.com/en/etf/overview/jknk
• Reason for customer interest: Exposure to the high-yield segment of the bond market, offering potential for higher returns but also greater risk. Suitable for investors seeking income and willing to assume more risk.

4. Invesco Dynamic Bond ETF (PBD)

• Homepage: https://www.invesco.com/intermediary/en/products/etfs/etf-library/bond-etfs/invesco-dynamic-bond-etf
• Reason for customer interest: Actively managed ETF that dynamically adjusts its portfolio based on interest rate and credit market trends, seeking to enhance returns in various interest rate environments.

5. PIMCO Active Bond ETF (BOND)

• Homepage: https://www.pimco.com/en-us/funds/etf/bond-etf
• Reason for customer interest: Managed by PIMCO, a leading global investment manager, offering expertise in bond market analysis and portfolio construction. Aims to provide consistent income and capital appreciation.

Formation and Early Years

• 2006: WisdomTree Investments, Inc. was founded by Jonathan Steinberg and Steven Economides.
• 2007: WisdomTree launched the exchange-traded fund (ETF) WisdomTree 7-10 Year Laddered Treasury Fund (TSE) in October.

Growth and Expansion

• 2008: TSE became the largest fixed income ETF in the United States.
• 2011: WisdomTree expanded into the international market by launching European and Canadian versions of TSE.
• 2014: TSE surpassed $10 billion in assets under management (AUM).
• 2018: WisdomTree acquired ETF Securities, a global provider of fixed income ETFs.

Recent Developments

• 2021: TSE reached $20 billion in AUM.
• 2022: WisdomTree enhanced TSE by adding longer-term Treasury bonds to its portfolio.

The WisdomTree Laddered Treasury Strategy

TSE employs a unique laddered treasury strategy that involves investing in a portfolio of Treasury bonds with staggered maturities. This strategy aims to provide consistent income and reduce interest rate risk by investing across different time horizons.

Key Features of TSE

• Invests in a diversified portfolio of US Treasury bonds
• Laddered maturities from 7 to 10 years
• Provides regular monthly income distributions
• Aims to minimize interest rate volatility
• Traded on the New York Stock Exchange (NYSE)

Performance

Since its inception, TSE has consistently outperformed the benchmark 7-10 Year Treasury Index. As of September 30, 2023, TSE had a 10-year annualized return of 4.14%, compared to 3.70% for the benchmark.

Current Management

• Jonathan Steinberg, Chairman and CEO
• Steven Economides, President and Head of Investments
• Jeremy Schwartz, Managing Director and Head of US Fixed Income

2023

• January: Announced the launch of the WisdomTree Emerging Markets Buffer Fund (EMBF)
• February: Launched the WisdomTree U.S. High Yield Corporate Bond Fund (HYBC)
• March: Released the WisdomTree Climate Solutions Fund (CLMT)

2022

• January: Acquired Innovative Risk & Capital Management (IRCM), a provider of factor-based and rules-based index solutions
• February: Launched the WisdomTree Global Ex-U.S. Bond Fund (EXUS)
• March: Released the WisdomTree Enhanced International Value Fund (XIV)

2021

• January: Partnered with Bolt, a financial technology company, to launch the WisdomTree Bolt Purpose ETF (PLAY)
• February: Acquired ETFLogic, a provider of ETF analytics and data
• March: Launched the WisdomTree U.S. High Dividend Fund (DHS)

Recent Timeline

• May 2023: Announced a strategic partnership with Edward Jones to offer WisdomTree ETFs to its clients
• June 2023: Launched the WisdomTree ESG International Dividend Fund (ESGD)
• July 2023: Reported record assets under management of $89.8 billion

WisdomTree 7-10 Year Laddered Treasury Fund: A Reliable Haven for Income-Seekers

As an investor seeking a safe and income-generating investment option, I highly recommend WisdomTree 7-10 Year Laddered Treasury Fund (USHY). Over my several years of experience with this fund, I have witnessed exceptional returns and peace of mind.

Diversified Treasury Holdings:

The fund's portfolio consists primarily of U.S. Treasury bonds with maturities ranging from 7 to 10 years. This laddered approach mitigates interest rate risk by spreading investments across different maturities, ensuring a steady stream of income regardless of market fluctuations.

Consistent Income Generation:

USHY has consistently delivered high-yield dividends, providing a reliable income stream for investors. The fund's focus on long-term U.S. Treasury bonds ensures regular coupon payments, even during periods of economic uncertainty.

Low Volatility and Risk Management:

U.S. Treasury bonds are considered one of the safest investments available, making USHY a low-volatility fund. The fund's laddered structure further reduces risk by diversifying its exposure to interest rate changes.

Professional Management:

WisdomTree is a reputable asset management firm with a proven track record in fixed income investments. Their experienced portfolio managers actively monitor the fund's holdings and adjust the laddered maturities as needed to maximize returns while maintaining a desired risk profile.

Conclusion:

WisdomTree 7-10 Year Laddered Treasury Fund is an exceptional option for investors seeking a safe, income-generating investment. Its laddered approach to U.S. Treasury bonds ensures consistent returns, low volatility, and peace of mind. I highly recommend this fund to anyone looking to diversify their portfolio and generate income.

Unlock Financial Stability with WisdomTree's 7-10 Year Laddered Treasury Fund

In today's uncertain economic landscape, securing the future of your finances is paramount. WisdomTree's 7-10 Year Laddered Treasury Fund offers a compelling solution to your investment needs.

What is a Laddered Treasury Fund?

A laddered treasury fund invests in a series of US Treasury bonds with varying maturities, creating a "ladder" of investments that mature over time. This strategy diversifies risk and provides a steady stream of interest income.

Key Benefits of the WisdomTree 7-10 Year Laddered Treasury Fund:

• Potential for Stable Returns: Treasury bonds are backed by the full faith and credit of the US government, providing a high degree of safety and predictability of returns.
• Diversified Portfolio: The laddered approach reduces interest rate risk by ensuring that the fund's exposure to different interest rate environments is balanced.
• Regular Income: The fund's semi-annual interest payments provide a reliable source of income to help you plan for your financial goals.
• Low Expense Ratio: The fund's low expense ratio of 0.15% ensures that more of your returns stay in your pocket.
• Experienced Management: WisdomTree is a global asset manager with a proven track record of success in managing fixed income investments.

Who Should Invest in the Fund?

This fund is ideal for investors seeking:

• A conservative investment option with potential for stable returns
• Diversification for their fixed income portfolio
• A regular source of income
• Exposure to the US Treasury market

How to Invest

Visit the WisdomTree website at WisdomTree Website Link to learn more about the WisdomTree 7-10 Year Laddered Treasury Fund. You can invest through your preferred broker or financial advisor.

In an era of market uncertainty, the WisdomTree 7-10 Year Laddered Treasury Fund provides investors with a secure and accessible path to financial stability. Embrace the power of laddering and unlock the potential for a more prosperous financial future.

Name: BlackRock Fund Advisors

Website: https://www.blackrock.com/

Description: BlackRock Fund Advisors is a global investment management company that provides a wide range of investment products and services to institutional and individual investors. The company is headquartered in New York City and has offices in over 30 countries. BlackRock is the largest asset manager in the world, with over $10 trillion in assets under management.

Relationship with WisdomTree 7-10 Year Laddered Treasury Fund: BlackRock Fund Advisors is the main supplier of the WisdomTree 7-10 Year Laddered Treasury Fund. The fund invests in a portfolio of U.S. Treasury bonds with maturities ranging from 7 to 10 years. BlackRock provides the fund with investment management services, including portfolio construction, risk management, and trade execution.

Benefits of the relationship: The relationship between BlackRock and WisdomTree provides several benefits for the fund and its investors. BlackRock's global investment platform gives the fund access to a wide range of investment opportunities. BlackRock's experienced investment team provides the fund with expert portfolio management services. BlackRock's commitment to risk management helps to protect the fund's investors from potential losses.

Overall, the relationship between BlackRock and WisdomTree 7-10 Year Laddered Treasury Fund is a mutually beneficial one. BlackRock provides the fund with investment management services that help to achieve its investment objectives. The fund provides BlackRock with a valuable source of revenue.

Main Customer Groups of WisdomTree 7-10 Year Laddered Treasury Fund

1. Institutional Investors

• Pension funds
• Insurance companies
• Mutual funds
• Hedge funds
• Banks and financial institutions

2. High-Net-Worth Individuals

• Individuals with significant liquid assets
• Family offices
• Trust companies

3. Retirement Savers

• Those seeking diversification and income generation within their retirement portfolios
• 401(k) and 403(b) plan participants
• Individual retirement account (IRA) holders

4. Financial Advisors

• Investment professionals who manage portfolios for clients
• Seek products that provide consistent income and reduce interest rate risk

Major Downstream Companies (Clients)

1. Vanguard

• Website: https://investor.vanguard.com/

2. Charles Schwab

• Website: https://www.schwab.com/

3. Fidelity Investments

• Website: https://www.fidelity.com/

4. T. Rowe Price

• Website: https://www.troweprice.com/

5. American Funds

• Website: https://americanfunds.com/

6. BlackRock

• Website: https://www.blackrock.com/

7. Invesco

• Website: https://www.invesco.com/

8. State Street Global Advisors

• Website: https://www.ssga.com/

9. PIMCO

• Website: https://www.pimco.com/

10. Franklin Templeton

• Website: https://www.franklintempleton.com/

Key Revenue Stream: Management Fee

WisdomTree 7-10 Year Laddered Treasury Fund, commonly known as WTLDF, generates its revenue primarily through a management fee. This fee is charged as a percentage of the fund's net assets under management (AUM). The management fee is designed to compensate the fund's investment adviser for its services in managing the fund's investment portfolio.

Estimated Annual Revenue

The estimated annual revenue of WisdomTree 7-10 Year Laddered Treasury Fund can vary based on the size of the fund's AUM. However, based on historical data and industry benchmarks, we can provide an estimate:

• Assuming an AUM of $1 billion: The management fee is typically charged at an annual rate of 0.25%. This means that the fund would generate approximately $2.5 million in annual revenue from the management fee.
• Assuming an AUM of $5 billion: With a larger AUM, the management fee revenue would increase. At a rate of 0.25%, the fund would generate approximately $12.5 million in annual revenue.
• Note: These revenue estimates do not include other potential sources of income, such as performance-based fees or ancillary services.

It's important to note that the actual revenue generated by WisdomTree 7-10 Year Laddered Treasury Fund may differ from these estimates due to fluctuations in the fund's AUM and changes in the management fee structure.

Custodian: U.S. Bank National Association

• Website: https://www.usbank.com/business-banking/

Sub-Custodian: Brown Brothers Harriman & Co.

• Website: https://www.bbh.com/

Investment Advisor: WisdomTree Investments, Inc.

• Website: https://www.wisdomtree.com/

Distributor: ALPS Distributors, Inc.

• Website: https://www.alpsfunds.com/

Transfer Agent and Registrar: U.S. Bancorp Fund Services, LLC

• Website: https://www.usbank.com/fund-services/

Auditors: Ernst & Young LLP

• Website: https://www.ey.com/en_us

Legal Counsel: Baker McKenzie

• Website: https://www.bakermckenzie.com/

Other Key Service Providers:

• Bloomberg (Benchmark Provider)
• Website: https://www.bloomberg.com/
• CQG, Inc. (Index Data Provider)
• Website: https://www.cqg.com/
• ICE Data Services (Index Calculation Agent)
• Website: https://www.theice.com/
• MSCI, Inc. (Index Calculation Agent)
• Website: https://www.msci.com/
• Refinitiv Data and Analytics (Information Data Provider)
• Website: https://www.refinitiv.com/
• State Street Corporation (Swap Counterparty)
• Website: https://www.statestreet.com/

Key Cost Structure of WisdomTree 7-10 Year Laddered Treasury Fund

Expense Ratio: 0.14%

The expense ratio is a percentage of the fund's assets that cover the fund's operating expenses, including management fees, administrative fees, and other expenses. For the WisdomTree 7-10 Year Laddered Treasury Fund, the expense ratio is 0.14%, which means that for every $10,000 invested, $14 would be used to cover the fund's expenses.

Management Fee: 0.10%

The management fee is a percentage of the fund's assets that is paid to the fund's investment manager for managing the fund. For the WisdomTree 7-10 Year Laddered Treasury Fund, the management fee is 0.10%, which means that for every $10,000 invested, $10 would be paid to the fund's investment manager.

Administrative Fee: 0.04%

The administrative fee is a percentage of the fund's assets that is paid to the fund's administrator for providing administrative services, such as recordkeeping, accounting, and shareholder services. For the WisdomTree 7-10 Year Laddered Treasury Fund, the administrative fee is 0.04%, which means that for every $10,000 invested, $4 would be paid to the fund's administrator.

Other Expenses: 0.00%

Other expenses are any additional costs that the fund incurs, such as legal fees, accounting fees, and marketing expenses. For the WisdomTree 7-10 Year Laddered Treasury Fund, the other expenses are estimated to be 0.00%.

Estimated Annual Cost

The estimated annual cost of the WisdomTree 7-10 Year Laddered Treasury Fund is 0.14%, which means that for every $10,000 invested, $14 would be used to cover the fund's expenses.

Example

If you invested $100,000 in the WisdomTree 7-10 Year Laddered Treasury Fund, the estimated annual cost would be $140. This cost would be deducted from the fund's assets, which would reduce the amount of money that you earn from the fund.

Additional Information

The WisdomTree 7-10 Year Laddered Treasury Fund is a passive fund that seeks to track the price and yield of the Bloomberg U.S. Treasury Laddered 7-10 Year Index. The fund invests in a portfolio of U.S. Treasury bonds with maturities between 7 and 10 years. The fund's objective is to provide investors with a diversified and low-cost exposure to the 7-10 year segment of the U.S. Treasury market.

Sales Channels for WisdomTree 7-10 Year Laddered Treasury Fund

Direct Sales

• Financial advisors (FAs): FAs play a significant role in distributing WisdomTree funds to their clients. They provide personalized advice and guidance, recommending funds based on investors' risk tolerance and financial goals.
• Independent broker-dealers (IBDs): IBDs are independent firms that offer a wide range of investment products, including WisdomTree funds. They typically cater to individual investors and small financial institutions.

Indirect Sales

• Institutional investors: Large institutions, such as pension funds, endowments, and insurance companies, allocate portions of their investment portfolios to WisdomTree funds. These institutions often invest directly with the fund manager or through intermediaries.
• Exchange-traded funds (ETFs): WisdomTree 7-10 Year Laddered Treasury Fund is available as an ETF on major exchanges. This allows investors to trade the fund like a stock, providing liquidity and ease of access.

Estimated Annual Sales

The estimated annual sales for WisdomTree 7-10 Year Laddered Treasury Fund are not publicly disclosed. However, you can track the fund's assets under management (AUM) over time to get a general idea of sales trends.

As of December 2022, the fund had AUM of approximately $4.5 billion.

It's important to note that sales figures can fluctuate significantly based on market conditions, the fund's performance, and competitive factors. Additionally, the fund may have other sales channels beyond those listed above.

Customer Segments

WisdomTree 7-10 Year Laddered Treasury Fund (WSY) targets retail and institutional investors seeking the following:

• Fixed Income Exposure: Investors looking for exposure to fixed-income assets, particularly US Treasury bonds with maturities between 7 and 10 years.
• Income Generation: Investors seeking regular income payments from fixed interest payments on the underlying Treasury bonds.
• Capital Appreciation: While primarily designed for income generation, the fund has the potential for capital appreciation over time as interest rates fluctuate and the laddered structure provides some downside protection.
• Diversification: The fund provides diversification benefits by investing in a broad range of Treasury bonds with different maturities, reducing concentration risk.

Estimated Annual Sales

WisdomTree does not disclose specific sales figures for individual funds, but the 7-10 Year Laddered Treasury Fund has experienced strong growth since its inception in 2014. As of June 30, 2023, the fund had approximately $2.3 billion in net assets under management.

Based on industry benchmarks and the fund's historical performance, it is estimated that WisdomTree 7-10 Year Laddered Treasury Fund could generate annual sales in the range of $150 million to $250 million. This estimate is subject to market conditions, interest rate fluctuations, and investor demand.

Additional Considerations

It is important to note that the fund's sales may vary depending on factors such as:

• Market volatility and interest rate changes
• Competitive landscape and offerings from other fixed-income funds
• Investor risk tolerance and investment objectives
• Economic and geopolitical conditions

Value Proposition of WisdomTree 7-10 Year Laddered Treasury Fund (TLT)

WisdomTree 7-10 Year Laddered Treasury Fund (TLT) provides investors with a diversified exposure to U.S. Treasury securities with maturities between 7 and 10 years. The fund's unique laddered strategy offers several key value propositions, including:

1. Diversification and Risk Management:

• The fund invests in a broad range of Treasury securities with varying maturities, reducing the impact of interest rate fluctuations on any single bond.
• By laddering the maturities, the fund minimizes the risk of reinvestment at potentially lower interest rates.

2. Consistent Income Generation:

• Treasury bonds generally offer regular interest payments, providing investors with a predictable stream of income.
• The fund's laddered structure ensures that some bonds mature every year, allowing for potential reinvestment at higher interest rates.

3. Interest Rate Exposure:

• TLT provides targeted exposure to the 7-10 year segment of the Treasury yield curve.
• Investors can adjust their exposure to interest rate risk by increasing or decreasing their allocation to the fund.

4. Liquidity and Transparency:

• TLT is an exchange-traded fund (ETF), providing investors with intraday liquidity and the ability to buy or sell shares throughout the trading day.
• The fund's holdings are fully transparent, allowing investors to monitor its performance and make informed investment decisions.

5. Tax Efficiency:

• TLT is structured as an ETF, which generally provides tax efficiency benefits compared to traditional Treasury mutual funds.
• The fund's laddered structure can help minimize capital gains distributions, further enhancing tax efficiency.

Target Investors:

TLT is suitable for investors seeking:

• Diversification and risk management in their Treasury bond investments
• Consistent income generation with potential for growth
• Targeted exposure to the 7-10 year segment of the yield curve
• Liquidity and transparency in their investment vehicle
• Tax efficiency in their portfolio

Conclusion:

WisdomTree 7-10 Year Laddered Treasury Fund (TLT) offers a unique value proposition for investors seeking a diversified and risk-managed exposure to the 7-10 year Treasury bond market. Its laddered strategy, consistent income potential, interest rate exposure, and liquidity make it a compelling investment option for a wide range of investors.

WisdomTree 7-10 Year Laddered Treasury Fund (TLH)

Issuer: WisdomTree Investments, Inc.

Investment Objective: To provide income and capital appreciation by investing primarily in U.S. Treasury securities with maturities ranging from 7 to 10 years.

Risks:

Credit Risk: TLH invests primarily in U.S. Treasury securities, which are considered to have a low credit risk. However, even the U.S. government may default on its obligations, which could result in a loss of principal.

Interest Rate Risk: TLH's portfolio is subject to interest rate fluctuations. If interest rates rise, the market value of the fund's investments may decline.

Duration Risk: The average maturity of TLH's portfolio is 8.3 years. This means that the fund's price is more sensitive to changes in interest rates than funds with shorter maturities.

Liquidity Risk: TLH is traded on the American Stock Exchange. However, the fund may experience liquidity constraints during periods of market volatility or heightened redemptions.

Credit Spread Risk: TLH's portfolio includes Treasury Inflation-Protected Securities (TIPS), which are subject to credit spread risk. If the credit spread between TIPS and comparable Treasury securities widens, the market value of TIPS may decline.

Inflation Risk: TLH's portfolio includes nominal Treasury securities, which are not protected against inflation. If inflation rises, the purchasing power of the fund's investments may decline.

Other Risks:

• Regulatory Risk: Changes in regulations could adversely affect the fund's operations or investments.
• Operational Risk: Errors or disruptions in the fund's operations could result in losses.
• Management Risk: The fund's performance may be affected by the skill and judgment of its managers.

Additional Considerations:

• TLH is a passively managed fund that tracks an index. This means that the fund's performance will closely resemble the performance of the underlying index, net of fees.
• TLH charges an annual management fee of 0.19%.
• TLH has a 1-year risk rating of Moderate and a 3-year risk rating of Low, according to Morningstar.

Overall, TLH is a low-risk investment for investors seeking income and capital appreciation. However, it is important to be aware of the potential risks associated with investing in Treasury securities and other fixed income instruments.