Actively managed value strategies seek to leverage machine learning approach from Voya’s Equity Machine Intelligence (EMI) proprietary model
NEW YORK, Jan. 18, 2022 (GLOBE NEWSWIRE) -- WisdomTree (NASDAQ: WETF), an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset manager, today announced that WisdomTree’s U.S. Dividend ex-Financials Fund (DTN) and International Dividend ex-Financials Fund (DOO) have been restructured into WisdomTree’s U.S. AI Enhanced Value Fund (AIVL) and International AI Enhanced Value Fund (AIVI). Both Funds are available on the NYSE with expense ratios of 0.38% and 0.58%, respectively. The WisdomTree AI Enhanced Value Funds utilize the Equity Machine Intelligence (EMI) proprietary model of Voya Investment Management Co., LLC (“Voya”), each Fund’s sub-adviser. The EMI model applies data science and artificial intelligence (AI) to fundamental value investing within a dynamic investment process.
“By leaning into AI enhanced strategies that offer dynamic value exposure, we see an opportunity to go beyond traditional ‘smart beta’ factor funds,” said Jeremy Schwartz, Global Chief Investment Officer at WisdomTree. “We’re excited to be leveraging Voya’s EMI model in the AI Enhanced Value Funds’ restructures as a way to potentially overcome historical challenges of value investing.”
The AI Enhanced Value Family strategy focuses on companies with attractive value characteristics and aims to deliver idiosyncratic alpha1, performing best in a market driven by fundamentals. The strategy seeks to avoid areas of the market that are overvalued or crowded and is well-suited for mid and large cap value mandates.
“Voya is an experienced equity manager with a strong heritage of combining the best of fundamental and quantitative investment techniques,” said Vincent Costa, co-chief investment officer, Equities, Voya. “Our EMI team is a pioneer in applying artificial intelligence to fundamental investing and has been managing AI strategies since 2012. We look forward to bringing this expertise to WisdomTree’s clients.”
AIVL and AIVI: What’s Under the Hood?
WisdomTree AI Enhanced Value Funds (AIVL and AIVI) have varying exposures to both deep value and relative value measures and aim to capture the value premium while avoiding drawdowns in deep/relative value measures that may be out of favor. The investment process can be broken down into five key factors:
- Data: Applying Rigor of Bottom Up Research
- Features: Scaling Fundamental Research
- Stock Selection (AI): Removing Emotion from Decision Making
- Portfolio Construction and Risk Management
- Verifying & Executing Portfolio
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 866.909.9473 or visit wisdomtree.com. Read the prospectus carefully before you invest.
There are risks associated with investing, including possible loss of principal.
AI Model Risk. When Models and Data prove to be incorrect or incomplete, any decisions made in reliance thereon may lead to the inclusion or exclusion of securities that would have been excluded or included had the Models and Data been correct and complete. Errors in the Models and Data, calculations and/or the construction of the AI model may occur from time to time and may not be identified and/or corrected by the Sub-Adviser or other applicable party for a period of time or at all, which may have an adverse impact on the Fund and its shareholders.
Value Investing Risk. Value stocks, as a group, may be out of favor with the market and unperformed growth stocks or the overall equity market, in addition value stocks may not realize their perceived intrinsic value for extended periods of time or may never realize their perceived intrinsic value.
WisdomTree U.S. AI Enhanced Value Fund
There are risks associated with investing, including possible loss of principal. Funds focusing their investments on certain sectors increase their vulnerability to any single economic or regulatory development. This may result in greater share price volatility. While the Fund is actively managed, the Fund’s investment process is expected to be heavily dependent on a quantitative model and the model may not perform as intended. Please read the Fund’s prospectus for specific details regarding the Fund’s risk profile.
WisdomTree International AI Enhanced Value Fund
There are risks associated with investing, including possible loss of principal. Investments in non-U.S. securities involve political, regulatory, and economic risks that may not be present in U.S. securities. For example, foreign securities may be subject to risk of loss due to foreign currency fluctuations, political or economic instability, or geographic events that adversely impact issuers of foreign securities. Funds focusing their investments on certain sectors increase their vulnerability to any single economic or regulatory development. This may result in greater share price volatility. While the Fund is actively managed, the Fund’s investment process is expected to be heavily dependent on a quantitative model and the model may not perform as intended. Please read the Fund’s prospectus for specific details regarding the Fund’s risk profile.
Please read each Fund’s prospectus for specific details regarding the Fund’s risk profile.
WisdomTree Funds are distributed by Foreside Fund Services LLC, in the U.S. only. Foreside Fund Services LLC. is not affiliated with the other entities mentioned.
Jeremy Schwartz is a registered representative of Foreside Fund Services, LLC.
1 Idiosyncratic alpha: Company-specific outperformance vs. the benchmark not attributed to any of the traditional Fama-French factors
WTPR-20220113-0158
About WisdomTree
WisdomTree Investments, Inc., through its subsidiaries in the U.S. and Europe (collectively, “WisdomTree”), is an ETF and ETP sponsor and asset manager headquartered in New York. WisdomTree offers products covering equity, commodity, fixed income, leveraged and inverse, currency, cryptocurrency and alternative strategies. WisdomTree currently has approximately $73.5 billion in assets under management globally.
WisdomTree® is the marketing name for WisdomTree Investments, Inc. and its subsidiaries worldwide.
Contact Information:
Media Relations
WisdomTree Investments, Inc.
Jessica Zaloom
+1.917.267.3735
Jzaloom@wisdomtree.com / wisdomtree@fullyvested.com
