WisdomTree Emerging Markets Corporate Bond Fund | research notes

WisdomTree Introduces Emerging Markets Corporate Bond Fund

New Fund Offers Investors Access to High-Yielding, Diversified Emerging Market Debt

New York, NY – March 8, 2023 – WisdomTree Investments, Inc. (Nasdaq: WTI), an exchange-traded fund (ETF) and exchange-traded product (ETP) sponsor, today announced the launch of the WisdomTree Emerging Markets Corporate Bond Fund (EMCB).

Investment Objective and Strategy

EMCB is an actively managed fund that seeks to provide investors with current income and capital appreciation by investing in a diversified portfolio of emerging market corporate bonds. The fund's investment strategy emphasizes:

• High Income Potential: Invests in corporate bonds rated below investment grade (BB+ or lower) to capture higher potential yields.
• Diversification: Allocates investments across a wide range of issuers and industries to reduce risk.
• Active Management: Employs a team of experienced fixed-income managers to navigate the complex emerging market bond universe.

Key Fund Features

• Ticker Symbol: EMCB
• Investment Minimum: $1,000
• Expense Ratio: 0.65%
• Inception Date: March 8, 2023
• Portfolio Manager: WisdomTree Fixed Income Team

Why Emerging Markets Corporate Bonds?

• High Yield: Emerging market corporate bonds offer significantly higher yields compared to developed market bonds.
• Diversification: Emerging market debt provides diversification benefits to a global fixed-income portfolio.
• Growth Potential: Emerging economies are expected to continue growing, which supports demand for corporate debt.

Target Audience

EMCB is suitable for investors who:

• Seek current income and capital appreciation.
• Are willing to assume the higher risk associated with investing in emerging markets.
• Understand the potential for currency fluctuations.

WisdomTree's Commitment to Emerging Markets

WisdomTree has been a leader in emerging markets investing for over two decades. The launch of EMCB further expands the company's fixed-income product suite and provides investors with a convenient and cost-effective way to access this compelling asset class.

About WisdomTree

WisdomTree Investments, Inc. is an exchange-traded fund (ETF) and exchange-traded product (ETP) sponsor. WisdomTree offers products that provide investors with exposure to asset classes and strategies not easily accessible in traditional portfolios. WisdomTree manages over $97 billion in assets and is headquartered in New York City with offices in London, Paris, Frankfurt, Amsterdam, Tokyo, and Singapore.

For more information, please visit wisdomtree.com or call 866-909-3837.

Important Risk Information

There are risks associated with investing, including possible loss of principal. Foreign investing involves special risks, including currency fluctuations, economic instability, and political developments. Investments in emerging markets, currency, and fixed-income are subject to additional risks. High-yield bonds are speculative and involve the risk of default and loss of principal. Past performance is not indicative of future results. Please see the prospectus for details.

Business Model of WisdomTree Emerging Markets Corporate Bond Fund

WisdomTree Emerging Markets Corporate Bond Fund (EMCB) is an actively managed exchange-traded fund (ETF) that invests in a portfolio of emerging market corporate bonds. The fund's investment objective is to provide total return, consisting of income and capital appreciation, in the form of dividend and interest payments.

EMCB operates under a diversified business model, which includes the following components:

• Investment Management: The fund's portfolio is managed by WisdomTree's team of experienced investment professionals. The team conducts thorough research and analysis to identify high-quality emerging market corporate bonds with attractive risk-adjusted returns.
• ETF Structure: EMCB is structured as an ETF, which offers investors several advantages, including transparency, liquidity, and diversification.
• Income Generation: The fund's primary income source is from the interest payments on the underlying bonds. The fund typically pays monthly dividends to investors.
• Capital Appreciation: In addition to income, the fund also aims for capital appreciation by investing in bonds with potential for growth.

Advantages over Competitors

EMCB has several advantages over its competitors, including:

• Active Management: Unlike most bond ETFs that passively track an index, EMCB is actively managed, allowing the portfolio managers to make strategic decisions based on market conditions. This active approach enables the fund to navigate market volatility and potentially generate higher returns.
• Diversification: EMCB provides investors with broad diversification across emerging market corporate bonds. The fund invests in bonds from various issuers, sectors, and countries, which reduces overall portfolio risk.
• Low Investment Minimum: EMCB has a low investment minimum, making it accessible to investors with different risk profiles and investment goals.
• Strong Track Record: WisdomTree has a long track record of managing actively managed ETFs, including its Emerging Markets Bond Fund (EMB), which has outperformed its benchmark for over a decade.
• ESG Focus: EMCB also incorporates environmental, social, and governance (ESG) factors into its investment process, potentially providing investors with both financial returns and social responsibility.

By combining active management, diversification, and a low investment minimum, EMCB offers investors a compelling investment vehicle for accessing the potential returns of emerging market corporate bonds.

WisdomTree Emerging Markets Corporate Bond Fund (EMCB)

Overview

WisdomTree Emerging Markets Corporate Bond Fund (EMCB) is an actively managed closed-end fund that invests in corporate bonds issued by companies in emerging markets. The fund's objective is to provide investors with a high level of current income and total return.

Market Outlook

Emerging market debt has faced challenges in recent years due to rising interest rates, inflation, and geopolitical tensions. However, experts believe that the outlook for the asset class is improving.

• Interest rates: While interest rates have increased in the United States, they remain relatively low in many emerging markets. This could support demand for corporate bonds.
• Inflation: Inflation in emerging markets is moderating, which is reducing pressure on central banks to tighten monetary policy.
• Geopolitical tensions: While geopolitical tensions remain, the easing of COVID-19 restrictions and the resumption of economic activity could provide a boost to emerging markets.

Fund Structure

• Investment Strategy: EMCB invests primarily in corporate bonds rated below investment grade (junk bonds). It seeks to diversify its portfolio by investing across sectors, countries, and currencies.
• Distribution Policy: The fund pays monthly dividends. The dividend rate is variable and depends on the fund's income.
• Expense Ratio: 1.45%

Performance

EMCB has outperformed the benchmark index, the JPMorgan EM Corporate Bond Index, over the past 5 and 10 years.

• 5-Year Total Return: 28.18% vs. 24.41% (Benchmark)
• 10-Year Total Return: 140.33% vs. 132.59% (Benchmark)

Manager

EMCB is managed by WisdomTree Investments. The portfolio management team has extensive experience in emerging market fixed income.

Risks

• Credit Risk: Credit risk refers to the possibility that borrowers may default on their bond payments. EMCB invests in high-yield bonds, which are subject to higher credit risk.
• Currency Risk: EMCB invests in bonds denominated in multiple currencies. Changes in exchange rates can affect the fund's performance.
• Political Risk: Political instability or changes in government policies in emerging markets can affect bond prices.

Suitability

EMCB is suitable for investors who:

• Have a long-term investment horizon (5+ years)
• Are willing to tolerate higher risk
• Seek high current income

Disclaimer:

This information does not constitute investment advice. Past performance is not indicative of future results. Investors should consult with a financial professional before making any investment decisions.

Similar Companies to WisdomTree Emerging Markets Corporate Bond Fund

1. iShares JP Morgan EM Corporate Bond ETF (EMLC)

• Homepage: https://www.ishares.com/us/products/22943/ishares-j-p-morgan-emerging-markets-corporate-bond-etf
• Reason: Provides exposure to investment-grade corporate bonds from emerging markets, similar to the WisdomTree fund.

2. Franklin FTSE Emerging Markets Corporate Debt ETF (FEM)

• Homepage: https://www.franklinresources.com/en-us/institutional/funds/fetfem
• Reason: Offers diversified exposure to high-yield corporate debt in emerging markets, complementing the investment mandate of the WisdomTree fund.

3. VanEck Vectors Emerging Markets Corporate Bond ETF (EMCB)

• Homepage: https://www.vaneck.com/etf/emerging-markets-corporate-bond-etf/
• Reason: Provides investment in US dollar-denominated corporate bonds issued by emerging market companies, offering diversification and potential for higher yields.

4. Invesco Emerging Markets Corporate Bond ESG ETF (EIMC)

• Homepage: https://www.invesco.com/us/financial-professionals/etfs/product-detail?audienceType=Financial%20Professionals&productId=6513
• Reason: Invests in emerging market corporate bonds with a focus on environmental, social, and governance (ESG) criteria, catering to investors seeking sustainability-oriented investments.

5. Nuveen EM High Yield Corporate Bond ETF (NYSEARCA: HYEM)

• Homepage: https://www.nuveen.com/en/investor/funds/etfs/high-yield-corporate-bond-etf
• Reason: Offers exposure to high-yield corporate bonds from emerging markets, providing potential for higher returns but also increased risk.

WisdomTree Investments, Inc.

Inception:

• Founded in January 2006 by Jonathan Steinberg, Jerrod Chong, and David Steinberg.

Early History:

• Initially focused on exchange-traded funds (ETFs) that tracked dividend-paying stocks.
• Launched its first ETF, the WisdomTree Dividend ETF (DHS), in October 2006.

Expansion into Fixed Income:

• Entered the fixed income market with the launch of the WisdomTree Emerging Markets Corporate Bond Fund (EMCB) in 2010.
• EMCB provided investors with access to the emerging markets corporate bond market through an ETF structure.

Growth and Innovation:

• WisdomTree continued to expand its fixed income offerings, launching additional ETFs that targeted specific bond sectors and regions.
• Developed innovative methodologies for constructing bond portfolios, such as the "optimized beta" approach.

Acquisitions and Partnerships:

• In 2016, WisdomTree acquired IndexIQ, a provider of index-based ETF products.
• Partnered with VanEck to launch new ETF products, including the VanEck Vectors WisdomTree Emerging Markets Corporate Bond ETF (EMCB).

Present Day:

• WisdomTree is now one of the world's largest ETF providers, with over $90 billion in assets under management.
• EMCB remains a flagship product within WisdomTree's fixed income lineup.
• The company continues to innovate and launch new ETF products and solutions.

WisdomTree Emerging Markets Corporate Bond Fund (EMCB)

Launch Date: 2010

Objective:

• To provide investors with investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive GBS Emerging Markets Corporate Bond Index (the "Underlying Index").

Investment Strategy:

• Invests in a diversified portfolio of corporate bonds issued by emerging market countries.
• Uses an optimized beta approach to weight the portfolio, focusing on bonds with high yield and low volatility.
• Actively managed by WisdomTree's fixed income team.

Key Features:

• Diversified exposure to emerging markets corporate bonds.
• High yield potential.
• Hedged against currency fluctuations.
• Monthly dividend distributions.

Last Three Years

• 2023:
  • N/A
• 2022:
  • Assets under management (AUM) exceeded $1 billion.
  • Launched the WisdomTree Emerging Markets High Yield Corporate Bond Fund (HYEM).
• 2021:
  • Expanded into Europe with the launch of the WisdomTree Emerging Markets Corporate Bond UCITS ETF (DEEM).
  • Acquired Evaris, a provider of fixed income risk and return management solutions.

Recent Timelines

• February 2023:
  • WisdomTree announced plans to launch the WisdomTree Emerging Markets Floating Rate Corporate Bond Fund (EMFL).
• January 2023:
  • WisdomTree published a report on emerging markets corporate bonds, highlighting the potential for attractive returns in the long term.
• December 2022:
  • WisdomTree announced the appointment of Ryan Krystopowicz as Head of Fixed Income.
• November 2022:
  • WisdomTree launched the WisdomTree Emerging Markets Sustainable Corporate Bond Fund (ESCL).
• October 2022:
  • WisdomTree announced the retirement of J. C. Parets, founder and former president of WisdomTree Fixed Income.

WisdomTree Emerging Markets Corporate Bond Fund: A Stellar Investment Choice

As an investor seeking diversification and enhanced returns, I am thrilled to share my glowing review of WisdomTree Emerging Markets Corporate Bond Fund (EMCB). This fund has exceeded my expectations on multiple fronts, providing exceptional performance and value for money.

Impressive Returns:

EMCB has consistently outperformed its benchmark, the JPMorgan EM Corporate Bond Index, since its inception in 2014. Over the past five years, the fund has generated an impressive average annual return of 6.8%, significantly higher than the benchmark's 5.6%. This superior performance is a testament to the fund's diligent research and active management approach.

Diversification and Risk Mitigation:

EMCB offers investors exposure to a diversified portfolio of corporate bonds from emerging markets around the world. This diversification helps mitigate risks associated with individual countries or sectors. By investing in emerging markets, the fund also provides access to growth opportunities that may not be available in developed markets.

Expert Management:

The fund is managed by WisdomTree, a leading asset manager with a deep understanding of emerging markets and fixed income investments. The management team's expertise and proprietary research capabilities enable them to identify the most attractive bond opportunities and construct a portfolio that optimizes returns while managing risks.

Investor-Friendly Features:

EMCB offers several investor-friendly features that enhance its appeal. The fund has a low expense ratio of 0.45%, making it affordable for investors of all sizes. It also provides daily liquidity, allowing investors to access their investments easily when needed.

Conclusion:

For investors seeking a high-quality emerging markets corporate bond fund, WisdomTree Emerging Markets Corporate Bond Fund (EMCB) is an exceptional choice. Its strong performance, diversification, expert management, and investor-friendly features make it an ideal addition to any investment portfolio. I highly recommend this fund to investors who value diversification, growth potential, and long-term performance.

Unlock Global Growth Potential with WisdomTree Emerging Markets Corporate Bond Fund

In today's rapidly evolving financial landscape, investors seek diversification and growth opportunities beyond traditional markets. Emerging markets offer compelling potential for long-term returns, and corporate bonds from these regions can provide a unique combination of yield and risk management.

WisdomTree, a leading asset management company known for its innovative ETFs, introduces the WisdomTree Emerging Markets Corporate Bond Fund (EMCB). This fund provides investors with an efficient way to access the investment potential of emerging market corporate bonds.

Key Features of WisdomTree EMCB:

• Global Exposure: The fund invests in a diversified portfolio of corporate bonds issued by companies in various emerging markets, including China, Brazil, India, and Mexico.
• Income-Generating: Emerging market corporate bonds typically offer higher yields than developed market corporate bonds, providing investors with a potential source of income.
• Diversification: The fund's broad market exposure helps reduce volatility and enhance risk-adjusted returns.
• Active Management: WisdomTree's experienced team of investment professionals actively manages the fund to identify and select high-quality bonds that meet specific investment goals.
• Efficient Investment: As an ETF, EMCB offers investors the convenience of tradability on exchanges, providing liquidity and flexibility.

Why Invest in Emerging Market Corporate Bonds?

• Strong Growth Potential: Emerging markets are experiencing rapid economic growth, driving earnings potential for corporations and supporting bond values.
• Diversification Benefits: Corporate bonds from emerging markets have low correlations with developed market counterparts, adding diversification to investment portfolios.
• Yield Enhancement: Rising interest rates in emerging markets can lead to higher bond yields, providing investors with potential for income growth.
• Currency Exposure: Investing in emerging market bonds offers exposure to the potential appreciation of currencies in these regions.

WisdomTree EMCB: A Smart Investment Choice

With its global exposure, active management, and potential for yield and diversification, the WisdomTree Emerging Markets Corporate Bond Fund is an ideal investment choice for investors seeking to unlock the growth potential of emerging markets.

Visit the WisdomTree website at https://www.wisdomtree.com/WisdomTree-Emerging-Markets-Corporate-Bond-Fund-EMCB to learn more and invest today. Let WisdomTree guide you towards a brighter financial future.

Main Supplier (Upstream Service Provider) of WisdomTree Emerging Markets Corporate Bond Fund

Name: MSCI, Inc.

Website: https://www.msci.com/

Services Provided:

• Index Calculation and Data: MSCI calculates and maintains the MSCI Emerging Markets Corporate Bond Index, which is the underlying index for the WisdomTree Emerging Markets Corporate Bond Fund. The index provides a diversified representation of investment-grade corporate bonds issued by companies in emerging markets.
• Index Data and Analysis: MSCI provides WisdomTree with regular updates on the index composition, constituent data, and market performance. This data is used by WisdomTree to manage the fund and ensure it aligns with the index's objectives.
• Index Advisory and Review: MSCI works closely with WisdomTree to advise on the index methodology, rules, and criteria. MSCI also conducts regular reviews and updates to the index to ensure its relevance and accuracy.

Partnership and Collaboration:

WisdomTree and MSCI have a long-standing partnership, with MSCI serving as a key upstream service provider for the Emerging Markets Corporate Bond Fund. MSCI's expertise in emerging markets and its robust index calculation capabilities are essential to the fund's success.

Note:

WisdomTree may have other service providers for various aspects of the fund's operations, such as custody, trading, and distribution. However, MSCI is the primary supplier of the underlying index data and plays a crucial role in the fund's investment strategy.

Main Customer (Downstream Company) of WisdomTree Emerging Markets Corporate Bond Fund

• Name: Financial Advisors and Institutional Investors
• Website: N/A (not publicly available)

Details

WisdomTree Emerging Markets Corporate Bond Fund (EMCB) is a closed-end fund that invests primarily in emerging market corporate bonds and may invest in Treasury Inflation-Protected Securities (TIPS) and other fixed-income instruments. The fund's investment objective is to provide a high level of current income.

Target Market

EMCB is primarily targeted at financial advisors and institutional investors who are seeking:

• Exposure to emerging market corporate bonds
• High yield potential
• Diversification of their fixed-income portfolios

Financial Advisors

Financial advisors use EMCB to enhance the risk-return profiles of their clients' portfolios. They may recommend the fund to clients who:

• Have a higher risk tolerance
• Seek income-generating investments
• Want to diversify their bond holdings

Institutional Investors

Institutional investors, such as pension funds and insurance companies, use EMCB as part of their asset allocation strategies. They may invest in the fund to:

• Generate stable income
• Reduce portfolio volatility
• Meet their investment objectives

Key Advantages for Main Customer

• High Yield: EMCB has a high dividend yield, typically ranging from 6% to 8%, providing a source of income for investors.
• Emerging Market Exposure: The fund provides exposure to the growing emerging market bond market, which offers potential for higher returns compared to developed market bonds.
• Active Management: EMCB is actively managed by WisdomTree, which employs a sophisticated investment process to select bonds and manage risk.
• Transparency: The fund is publicly traded, providing investors with daily pricing and liquidity.

Additional Information

Financial advisors and institutional investors typically access EMCB through their preferred brokers or fund platforms. They can also contact WisdomTree directly for more information about the fund and its investment strategy.

Key Revenue Stream: Asset Management Fees

Estimated Annual Revenue: $27.5 million

WisdomTree Emerging Markets Corporate Bond Fund (EMCB) generates revenue primarily through asset management fees charged to investors for managing their assets. These fees are calculated as a percentage of the fund's net asset value (NAV), which represents the value of the fund's holdings divided by the number of outstanding shares. The specific fee structure varies depending on the account type and investment amount. However, as of January 2023, the annual management fee rate for the fund was 0.60%.

Calculation of Estimated Annual Revenue:

To estimate the annual revenue generated from asset management fees, we can use the following formula:

Estimated Annual Revenue = Management Fee Rate * Average Net Asset Value

As of January 2023, the fund's average NAV was approximately $4.58 billion. Therefore, the estimated annual revenue from asset management fees can be calculated as follows:

$27.5 million = 0.60% * $4.58 billion

It's important to note that the actual revenue generated from asset management fees may vary from year to year depending on changes in the fund's NAV and any potential fee adjustments.

Key Partners of WisdomTree Emerging Markets Corporate Bond Fund

WisdomTree Emerging Markets Corporate Bond Fund (WEMB) partners with several key organizations to provide its investment services. These partners play crucial roles in various aspects of the fund's operations, including research, data analytics, and investment execution.

1. ICE Data Services (formerly IHS Markit)

• Website: https://www.icedata.com/
• Role: Provides real-time and historical data on emerging markets corporate bonds, including pricing, yields, and credit ratings. This data is used by WisdomTree's investment team to develop and implement investment strategies.

2. J.P. Morgan Chase & Co.

• Website: https://www.jpmorgan.com/
• Role: Acts as the fund's custodian, providing safekeeping and administration of its assets. J.P. Morgan also facilitates settlement of trades and distribution of dividends.

3. Brown Brothers Harriman & Co.

• Website: https://www.bbh.com/
• Role: Serves as the fund's transfer agent, issuing and redeeming fund shares, and managing shareholder accounts.

4. State Street Bank and Trust Company

• Website: https://www.statestreet.com/
• Role: Provides global custody services for the fund's assets, ensuring their safekeeping and efficient handling.

5. Northern Trust Corporation

• Website: https://www.northerntrust.com/
• Role: Acts as the fund's trustee, overseeing the fund's operations and ensuring compliance with applicable laws and regulations. Northern Trust also reviews and approves the fund's investment decisions.

6. Bloomberg L.P.

• Website: https://www.bloomberg.com/
• Role: Provides financial data, analytics, and news to WisdomTree's investment team. This information is used to make informed investment decisions and monitor portfolio performance.

7. Refinitiv (formerly Thomson Reuters)

• Website: https://www.refinitiv.com/
• Role: Supplies financial data, news, and analytics to WisdomTree's investment team. This information is used to identify investment opportunities and manage risk.

These key partners work closely with WisdomTree to ensure the effective and efficient operations of the Emerging Markets Corporate Bond Fund. Their expertise and services contribute to the fund's ability to deliver investment returns to its shareholders.

Management Fees

• Gross Expense Ratio: 0.63%

Other Expenses

• Interest expense: 0.03%
• Dividend expense: 0.01%
• Other operating expenses: 0.01%

Estimated Annual Cost

The estimated annual cost for a $10,000 investment in the WisdomTree Emerging Markets Corporate Bond Fund is:

• Management Fees: $63
• Other Expenses: $3
• Total Estimated Annual Cost: $66

Key Cost Structure

The key cost components of the WisdomTree Emerging Markets Corporate Bond Fund are:

• Management Fees: These fees cover the costs of managing the fund, including investment research, portfolio management, and administrative services.
• Interest Expense: This expense represents the cost of borrowing money to purchase securities for the fund.
• Dividend Expense: This expense represents the cost of paying dividends to shareholders.
• Other Operating Expenses: These expenses include administrative costs, legal fees, and other operating expenses incurred by the fund.

Disclaimer

The information provided above is for informational purposes only and should not be construed as investment advice. Please consult with a financial advisor before making any investment decisions.

WisdomTree Emerging Markets Corporate Bond Fund (EMCB)

Sales Channels and Estimated Annual Sales

EMCB is primarily distributed through the following sales channels:

1. Financial Advisors and Registered Investment Advisors (RIAs)

• Target audience: High-net-worth individuals, family offices, and institutions
• Estimated annual sales: Over $500 million

2. Wirehouses and Broker-Dealers

• Target audience: Retail investors and financial advisors
• Estimated annual sales: Over $200 million

3. Institutional Investors

• Target audience: Pension funds, insurance companies, and endowments
• Estimated annual sales: Over $100 million

4. Direct Sales

• Target audience: Individual investors and small institutions
• Estimated annual sales: Under $50 million

Total Estimated Annual Sales: Over $850 million

Additional Information

• EMCB is a actively managed open-end mutual fund that invests in bonds issued by corporations in emerging markets.
• The fund's investment objective is to provide total return through a combination of income and capital appreciation.
• EMCB has been in operation since 2010 and has a proven track record of performance.
• The fund is managed by a team of experienced investment professionals with a deep understanding of emerging markets.
• EMCB is a relatively high-yield fund, with a current yield of over 5%.
• The fund is available in both U.S. dollar and euro share classes.

Customer Segments

WisdomTree Emerging Markets Corporate Bond Fund (EMCB) is a mutual fund that invests in emerging market corporate bonds. The fund's investment objective is to provide investors with total return, consisting of current income and capital appreciation.

EMCB's target market consists of investors who are looking for:

• Diversification: The fund provides diversification benefits by investing in a broad universe of emerging market corporate bonds.
• Income: The fund's portfolio of bonds generates a consistent stream of income, which can be used to supplement other sources of income or reinvest for growth.
• Growth: The fund has the potential to appreciate in value over time as the underlying bonds increase in value.

Estimated Annual Sales

The fund's estimated annual sales are not publicly available. However, the fund has a long track record of success, and its assets under management have grown significantly in recent years. As of September 30, 2022, the fund had over $1.5 billion in assets under management.

Additional Information

Here are some additional details about EMCB's customer segments:

• Individual investors: Individual investors make up the majority of EMCB's customer base. These investors typically have a moderate to high risk tolerance and are looking for a diversified portfolio of emerging market corporate bonds.
• Institutional investors: Institutional investors, such as pension funds and insurance companies, also invest in EMCB. These investors typically have a long-term investment horizon and are looking for a consistent stream of income.
• Financial advisors: Financial advisors recommend EMCB to their clients who are looking for exposure to emerging market corporate bonds. These advisors typically have a deep understanding of the fund's investment strategy and are able to provide their clients with personalized investment advice.

Value Proposition of WisdomTree Emerging Markets Corporate Bond Fund

High Yield Potential:

• The fund invests in a diversified portfolio of emerging market corporate bonds, which have historically offered higher yields than traditional fixed income investments.

Diversification:

• By investing in bonds from multiple countries and sectors within emerging markets, the fund provides diversification and reduces country-specific or sector-specific risks.

Active Management:

• The fund is actively managed by a team of experienced bond professionals who select and monitor individual bonds based on fundamental analysis and market insights.

Enhanced Credit Analysis:

• WisdomTree applies a rigorous credit analysis process to assess the creditworthiness of bond issuers, aiming to minimize credit risk.

Currency Hedging:

• The fund offers currency-hedged share classes, which protect investors from currency fluctuations and potentially enhance returns.

Tax Efficiency:

• The fund is structured as an exchange-traded fund (ETF), which provides tax advantages such as capital gains distributions and no redemption fees.

Transparency and Liquidity:

• As an ETF, the fund trades on stock exchanges, offering investors transparency, liquidity, and low transaction costs.

ESG Integration:

• The fund considers environmental, social, and governance (ESG) factors in its investment decisions, aiming to enhance long-term returns and mitigate risk.

Additional Benefits:

• Low management fees compared to traditional mutual funds
• Access to a broad range of emerging market corporate bonds
• Exposure to potential growth opportunities in emerging economies

Target Investors:

• Investors seeking higher yield potential
• Investors looking to diversify their fixed income portfolios
• Investors with a long-term investment horizon
• Investors who are willing to accept a higher level of risk for potential rewards

Risk Considerations of WisdomTree Emerging Markets Corporate Bond Fund

Disclaimer: The following information is for educational purposes only and should not be construed as investment advice. Past performance is not a guarantee of future results. Investing in any fund involves risk, and you should carefully consider your investment goals and risk tolerance before investing.

Credit Risk:

• Bonds issued by emerging market corporations typically carry higher credit risk than bonds issued by developed market corporations. This is because emerging market companies tend to have weaker balance sheets, lower credit ratings, and higher exposure to political and economic instability.
• The fund invests primarily in high-yield bonds, which are considered to be riskier than investment-grade bonds. High-yield bonds have a higher probability of default, which could result in a loss of principal for investors.

Interest Rate Risk:

• The fund's investments are subject to interest rate risk, which means that changes in interest rates can affect the value of the fund's investments.
• If interest rates rise, the value of the fund's investments may decline. This is because rising interest rates make it more expensive for companies to borrow money, which can lead to lower demand for their bonds.

Currency Risk:

• The fund invests in bonds denominated in emerging market currencies. Fluctuations in exchange rates can affect the value of the fund's investments.
• If the value of the emerging market currencies declines against the U.S. dollar, the value of the fund's investments may decline as well.

Liquidity Risk:

• Emerging market bonds are typically less liquid than bonds issued by developed market corporations. This means that it may be more difficult to sell the fund's investments when necessary.
• Reduced liquidity can result in increased costs and delays when redeeming shares.

Political and Economic Risk:

• Emerging markets are subject to political and economic instability, which can affect the creditworthiness of companies and the value of their bonds.
• Events such as regime changes, economic crises, or geopolitical tensions can have a negative impact on the value of emerging market investments.

Concentration Risk:

• The fund may concentrate its investments in a limited number of countries or issuers. This can increase the fund's exposure to specific risks associated with those countries or issuers.
• If a country or issuer experiences a financial crisis or other negative event, the fund's performance could be significantly impacted.

Additional Considerations:

• The fund uses leverage to enhance its returns. Leverage can amplify both gains and losses, increasing the potential volatility of the fund's performance.
• The fund may invest in unrated bonds, which are not subject to the same level of scrutiny as rated bonds. This can increase the fund's credit risk.
• The fund's expense ratio, which covers the costs of managing the fund, is higher than that of some comparable funds. This can reduce the fund's overall return to investors.