New ETF filed: WisdomTree Battery Value Chain Fund

WisdomTree Battery Value Chain Fund

Ticker: TBD

Exchange: TBD

Expense ratio: TBD

Original filing date: March 31, 2021

Effective date: June 14, 2021

Listing Date: TBD

CUSIP: TBD

Active: No

Index / Benchmark: WisdomTree Battery Solutions Index

 

Investment Objective:

Seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Battery Solutions Index.

 

Investment Strategy / Index Methodology:

Companies involved in battery and energy storage solutions

1. Raw materials

2. Manufacturing

3. Enablers

4. Emerging technologies

Adviser: WisdomTree Asset Management

Sub-Adviser: TBD

 

Adminstrator: TBD

Fund accountant: TBD

Custodian: TBD

Distributor: TBD

Legal counsel: TBD

External accounting: TBD

 

Prospectus is here.

MORE ETF HEARSAY

 

S000072191

Principal Investment Strategies of the Fund

The Fund employs a “passive management” – or indexing – investment approach designed to track the performance of the Index. The Index is designed to provide exposure to equity securities of exchange-listed companies globally, which are primarily involved in battery and energy storage solutions (“BESS”). The Index classifies companies in the value chain of BESS into four categories: (i) Raw Materials -companies that focus on raw materials mining or extracting chemicals; (ii) Manufacturing - companies that process materials, cell, pack and build components; (iii) Enablers - companies that develop the building block components such as grid edge or charging infrastructure; or (iv) Emerging Technologies - companies that use new storage technologies or develop new applications (collectively, “battery value chain activities”).

To be eligible for inclusion in the Index, a company must also meet the following criteria as of the Index screening date: (i) derive at least 50% of their revenue from battery value chain activities; have a market capitalization of at least $250 million; and (ii) an average daily volume of at least $1 million for each of the preceding three months.

The Index is reconstituted and rebalanced [semi-annually]. As of [_____], 2021, companies in the [industrial, information technology, and materials sectors] comprised a significant portion of the Index.

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

Additional Information About the Fund’s Investment Objective

The Fund seeks to track the price and yield performance, before fees and expenses, of the Index developed by WisdomTree Investments, Inc. (“WisdomTree Investments”). The Index consists of securities in the market suggested by its name that meet specific criteria developed by WisdomTree Investments.

Since the Fund’s investment objective has been adopted as a non-fundamental investment policy, the Fund’s investment objective may be changed without a vote of shareholders upon 60 days’ written notice to shareholders.

Additional Information About the Fund’s Investment Strategies

The Fund will normally invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in the types of securities suggested by its name (i.e., investments connoted by the Index). The Fund anticipates meeting this policy because, under normal circumstances, at least 80% of the Fund’s total assets (exclusive of collateral held from securities lending) will be invested in component securities of the underlying Index and investments that have economic characteristics that are substantially identical to the economic characteristics of such component securities, such as depositary receipts based on component securities. WisdomTree Asset Management, Inc. (“WisdomTree Asset Management” or the “Adviser”) expects that, over time, the correlation between the Fund’s performance and that of its Index, before fees and expenses, will be 95% or better. A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its Index, and there can be no guarantee that the Fund will achieve a high degree of correlation.

The quantity of holdings in the Fund, by using a representative sampling strategy, will be based on a number of factors, including asset size of the Fund. In addition, from time to time, securities are added to or removed from the Index and consequently the attributes of the Index, such as sectors, industries or countries represented in the Index and weightings, may change. The Fund may sell securities that are represented in the Index, or purchase securities that are not yet represented in the Index, in anticipation of their removal from or addition to the Index or to reflect various corporate actions or other changes to the Index. Further, the Fund may overweight or underweight securities in the Index, purchase or sell securities not in the Index, or utilize various combinations of other available techniques, in seeking to track the Index.

The Index is comprised of global exchange-listed companies that are primarily involved in battery value chain activities. The following four categories are used to determine if a company is primarily involved in battery value chain activities:

■	Raw Materials: Companies that focus on mining raw materials or extracting chemicals specifically used for BESS.
■	Manufacturing: Companies that process materials, cell, pack and build components.
■	Enablers: Companies that develop the building block components for BESS.
■	Emerging Technologies: Companies that use new storage technologies or develop new battery applications (e.g., wireless charging).

The Index also utilizes a rating score to determine the perceived degree of a company’s overall involvement across the battery value chain.

Non-Principal Information About the Fund’s Investment Strategies

The Fund may invest in other investments that the Fund believes will help it track its Index, including cash and cash equivalents, as well as in shares of other investment companies (including affiliated investment companies, such as ETFs), options on futures contracts, options and swaps.