WisdomTree AT1 CoCo Bond UCITS ETF – EUR Hedged (WTEB ETF) Seeks to track earnings before fees and expenses for the iBoxx Contingent Convertible Liquid Developed Europe AT1 Hedging US Dollar Index (the “Index”).
Description for WisdomTree AT1 CoCo Bond UCITS ETF EUR Hedged
WisdomTree AT1 CoCo Bond UCITS ETF EUR Hedging Invests in convertible bonds with a focus on Europe. The ETF has a full range of bond maturities. Underlying bonds have investment grade and sub-investment grades. The interest income (coupons) in the fund is distributed to the investors (semi-annual).
The total cost ratio is 0.39% per annum. The fund replicates the result of the underlying index by purchasing a selection of the most relevant components of the index (sampling technique). WisdomTree AT1 CoCo Bond UCITS ETF EUR Hedged is a small ETF with a management of £43 million. WTEB ETF is 3 years older and based in Ireland.
• Diverse exposure to AT1 CoCos
• The fund invests in cocos Those with credit ratings, backed by advanced European financial institutions, screened for liquidity and meet WisdomTree’s ESG criteria (Environment, Social and Governance)
• Offers a unique return, yield and risk profile
• The ETF is physically backed and UCITS compliant
the potential risks
• CoCos can be converted into equity in the issuing financial institution or write the principal of its capital. This can result in your investment losing some or all of the original investment amount
• The behavior of the relatively new CoCo bond market has not been tested under a systemic financial crisis, and therefore the price and liquidity of CoCo may deteriorate in such circumstances. Thus, past performance is not a suitable indicator of future performance
• Coupon payments at some CoCos are entirely discretionary and may be cancelled. As a result of the uncertainty about coupon payments, CoCo products may be more volatile, and their price may drop rapidly if coupon payments are interrupted. Some CoCos may be callable bonds, which means that these callable bonds can be redeemed by the issuer before the bond matures. This can result in the investor not recovering the invested capital on the specified call date or any date at all.
Some CoCo certificates are issued as permanent instruments and can only be invoked at pre-determined levels after approval by the relevant regulatory authority. It cannot be assumed that these permanent CoC numbers will be called on the date of the call. CoCos is a form of permanent capital. The investor may not receive a return on capital as expected on the date of purchase or indeed any date
Trade the WTEB ETF
WisdomTree AT1 CoCo Bond UCITS ETF – EUR Hedged (WTEB ETF) It is traded in Bursa Italiana and German Extra, among others.
This means that it is possible to trade units in this ETF through most Swedish banks and online brokers, for example DejeroAnd the nordnet And the Move.
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