New Listing

WisdomTree unveils multi-theme megatrend ETF

WGMT becomes the firm’s eleventh thematic equity ETF

Jamie Gordon

Chris Gannatti

WisdomTree has launched an ETF capturing 14 themes across three megatrends.

The WisdomTree Megatrends UCITS ETF (WGMT) is listed on Deutsche Boerse and will list on the London Stock Exchange on 12 December with a total expense ratio (TER) of 0.50%.

WGMT physically tracks the WisdomTree Global Megatrends Equity index which captures companies involved in 14 themes across technological, environmental and social shift megatrends.

The themes are 

  • Artificial intelligence and big data 

  • Blockchain 

  • Cloud computing 

  • Digital infrastructure 

  • HealthTech 

  • Semiconductors 

  • Sustainable energy production 

  • Sustainable energy storage 

  • Sustainable food

  • Sustainable resource management

  • Aging population

  • Rise of emerging market consumer

  • Rise of middle class

The themes are defined in the WisdomTree Thematic Classification and meet the firm’s ESG criteria. 

WGMT aims to target “three layers of alpha generation” across strategic and tactical asset allocation as well as thematic stock selection.

To achieve this, the ETF’s index overweights themes during periods of strong momentum and individual companies leading within their respective theme.

Chris Gannatti (pictured), global head of research at WisdomTree, commented: “An overly concentrated portfolio, a lack of control around the allocation between themes, a lack of focus on smaller, high-potential companies or a lack of discipline and theme expertise in stock selection can all diminish or even erase the impact of thematic investments.

“Through the strategy, investors are able to gain exposure to the most important and transformative themes, benefit from short-term trends in thematics, maximise diversification between themes and growth potential, while minimising exposure to mega caps through a focus on pure play up-and coming companies.”

WGMT becomes the firm’s eleventh thematic equity ETF and follows the launch of the WisdomTree Renewable Energy UCITS ETF (WRNW) in June.

The issuer also unveiled the WisdomTree US Efficient Core UCITS ETF (NTSX) last month.

Featured in this article