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
Sustainable energy production
Sustainable energy storage
Sustainable resource management
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.”