Exchange traded fund provider WisdomTree has unveiled new WisdomTree Dynamic Long/Short U.S. Equity Fund (DYLS) and WisdomTree Dynamic Bearish U.S. Equity Fund (DYB) on the BATS Exchange.
DYLS aims to deliver a stock selection strategy designed to add alpha in the core long stock portfolio, while hedging market drawdowns with a dynamic hedge on the market.
DYB will also offer a stock selection strategy, which adds alpha in the core long stock portfolio, but will provide more bearish net positioning.
Designed to invest in dynamic long/short U.S. equity strategies, DYLS and DYB will have a net expense ratio of 0.48%.
Both the funds will provide investors diversification to traditional long only asset classes, access to alternative investments with no investment minimums, no sales loads, no lock up periods or redemption fees and clear, rules-based strategy.
They will also offer full daily transparency of holdings, intra-day liquidity as well as No K-1 filing and all the other benefits of ETFs.
Additionally, WisdomTree has launched smart alternative strategies to all investors in the ETF structure, which follow rules-based passive indexes and provide daily liquidity, lower fees, transparency, and potentially more favourable tax treatment.
WisdomTree director of research Jeremy Schwartz said: "Data shows that blending a long/short index with traditional equity and bond allocations has improved risk-adjusted returns.
"WisdomTree’s strategies challenge the traditional long/short and hedge fund community with systematic, liquid long/short index-based ETFs. DYLS and DYB are designed to generate alpha at the core through quantitative and fundamental stock selection – while also having the ability to hedge market risk dynamically," Schwartz added.