WisdomTree filed for new ETF: Alternative Credit

WisdomTree Alternative Credit Strategy Fund

Ticker: N/A
Exchange: N/A
Expense ratio: N/A
Filing date: December 17, 2020
Effective date: March 2, 2021
Listing Date: N/A
 
CUSIP: N/A
Adviser: WisdomTree Asset Management, Inc
Sub-Adviser: N/A
 
Index: [ Alternative Credit Index ]

Constituents: 35 - Equal weighted
 
Prospectus is here.

Strategy: Invests in BDC CEFs and REITs.

Principal Investment Strategies of the Fund

The Index is designed to provide diversified exposure to alternative credit sectors. 

The Index is comprised of U.S.-listed, registered closed-end investment companies (“CEFs”), including CEFs that have elected to be regulated as “business development companies” (“BDCs” and together with CEFs, the “Underlying Funds”) under the Investment Company Act of 1940, as amended (the “1940 Act”), and real estate investment trusts (“REITs” and, together with Underlying Funds, the “Vehicles”).

To be eligible for inclusion in the Index, a Vehicle must, among other requirements: 

(i) have a stated objective of investing primarily in public high-yield corporate bonds and broadly-syndicated loans, private middle market corporate loans, collateralized loan obligations, mortgage-backed securities, other asset-backed securities and/or real estate loans, 

(ii) be registered under the Securities Act of 1933, as amended (the “Securities Act”), 

(iii) be U.S.-listed, 

(iv) have a permanent capital structure (i.e., not allow investors to redeem shares), 

(v) have a six-month average daily market capitalization of greater than $100 million, and 

(vi) have a six-month average daily trading volume greater than $750,000.

Vehicles meeting the foregoing requirements are classified based on the Vehicle’s investment holdings in the following alternative credit sectors: 

(i) private corporate lending, 

(ii) public corporate debt, 

(iii) commercial real estate lending, 

(iv) agency real estate debt, 

(v) non-agency real estate debt, and 

(vi) multi-sector alternative credit. 

To meet classification requirements, at least 75% of a Vehicle’s investment holdings must provide exposure to a foregoing sector to be classified within that sector. 

Within each sector, eligible Vehicles are selected based on market capitalization until approximately thirty-five (35) Vehicles spanning the foregoing sectors are included as constituents. Constituents in the Index are equal-weighted. 

The Index is rebalanced quarterly and reconstituted semi-annually.

To the extent the Index concentrates (i.e., holds 25% or more of its total assets) in the securities of a particular industry or group of industries, the Fund will concentrate its investments to approximately the same extent as the Index.

MORE ETF HEARSAY