WHAT IS
CURRENCY HEDGING?

International investing provides many exciting opportunities to investors. But these opportunities come with additional risks—one of which is currency fluctuations. While currency can sometimes push equity returns higher, it can often pull returns down—and these fluctuations are typically a source of uncertainty.

Mechanics of the Currency Hedge




Currency hedging is a strategy designed to mitigate the impact of currency or foreign exchange (FX) risk on international investments. At WisdomTree, we have been implementing currency-hedging strategies for the last five years—in a way that is likely simpler and more cost-effective1 than many investors expect. The bottom line is that currency hedging allows investors to participate more fully in the local equity returns of international markets.

Mechanics of the Currency Hedge

Here is how currency hedging typically works at WisdomTree:

The WisdomTree Currency Hedged Equity family of Funds implements WisdomTree’s currency-hedging strategies by entering into one-month forward contracts each month and rebalancing at month-end.

ABOUT WISDOMTREE
WHY HEDGE?

1 Ordinary brokerage commissions apply.

Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund before investing. To obtain a prospectus containing this and other important information, call 866.909.WISE (9473) or visit wisdomtree.com. Read the prospectus carefully before you invest.

You cannot invest directly in an index.

There are risks associated with investing, including possible loss of principal. Foreign investing involves special risks, such as risk of loss from currency fluctuation or political economic uncertainty. Funds focusing their investments on certain sectors and/or smaller companies increase their vulnerability to any single economic or regulatory development. This may result in greater share price volatility. Investments in emerging, offshore or frontier markets are generally less liquid and less efficient than investments in developed markets and are subject to additional risks, such as risks of adverse governmental regulation and intervention or political developments. The Funds focus their investments in Japan, the United Kingdom, Germany or South Korea, thereby increasing the impact of events and developments in Japan, the United Kingdom, Germany or South Korea, which can adversely affect performance. Investments in currency involve additional special risks, such as credit risk, interest rate fluctuations and the effect of varied economic conditions. As the Funds can have a high concentration in some issuers, the Funds can be adversely impacted by changes affecting those issuers. Due to the investment strategy of certain Funds, they may make higher capital gain distributions than other ETFs. Please read each Fund’s prospectus for specific details regarding each Fund’s risk profiles.

WisdomTree Funds are distributed by Foreside Fund Services, LLC.