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WisdomTree Launches Core Laddered and High Income Laddered Municipal ETFs

via Business Wire

WTMU and WTMY utilize a time-tested bond investment strategy to leverage the diverse opportunities in the municipal bond market

WisdomTree, Inc. (NYSE: WT), a global financial innovator, today announced the launch of the WisdomTree Core Laddered Municipal Fund (WTMU) and WisdomTree High Income Laddered Municipal Fund (WTMY) on the Nasdaq, with expense ratios of 0.25% and 0.35%, respectively. WTMU and WTMY target different income levels within the municipal bond market through risk-conscious approaches.

“In today’s changing fixed income landscape, investors seek stability and income. Municipal bonds can potentially offer strong credit quality, lower default rates than corporate bonds, and resilience in rising rate environments—making them a compelling choice,” said Kevin Flanagan, Head of Fixed Income Strategy at WisdomTree.

“WTMU and WTMY update the laddered approach to offer investors access to the tax-efficiency and diversification of investment grade and high yield municipals,” said Rick Harper, Chief Investment Officer, Fixed Income and Model Portfolios at WisdomTree.

The Funds will be actively managed and sub-advised by Insight North America LLC (“Insight”), which has decades of experience managing municipal bond portfolios. Over the years, Insight has built a reputation as a disciplined risk manager and for designing bespoke investment solutions that seek to meet its clients’ needs.

WisdomTree Core Laddered Municipal Fund (WTMU)

WTMU uses a laddered maturity strategy to invest in municipal debt securities and may invest up to 30% in municipal securities subject to the federal alternative minimum tax. The Fund utilizes a value-approach to identify securities and sectors within the municipal market. WTMU seeks to select a portfolio of securities with an average duration between four and eight years and invests across maturity rungs in a structured manner, focusing on securities that are expected to mature or have an option to be called or tendered in 15 years. This investment approach is expected to optimize yield, minimize risk, and provide consistent levels of after-tax income.

WisdomTree High Income Laddered Municipal Fund (WTMY)

WTMY employs a similar strategy with a stronger focus on maximizing income and yield. While WTMU follows a more conservative, core laddered approach, WTMY takes on additional risk in pursuit of higher income levels and returns, by adding a targeted allocation of high income municipal securities to a laddered exposure in investment grade municipals. The Fund invests in securities with an average duration between five and ten years and seeks to diversify interest rate risk across the curve, with a focus on securities that are expected to mature or have an option to be called or tendered inside of 15 years. WTMY is more opportunistic, capitalizing on insights into credit opportunities for enhanced performance.

WTMU and WYMY: What’s Under the Hood?

The investment process for WTMU and WTMY strives to:

  • Take a structured approach on interest rate risk to focus on adding value through credit research
  • Exploit market inefficiencies through independent credit research and flexible opportunistic trading
  • Identify multiple sources of excess income and potential spread tightening through the credit analysis process
  • Avoid spread widening, unanticipated downgrades, and defaults

Investors should carefully consider the investment objectives, risks, charges and expenses of each Fund before investing. For a prospectus or, if available, the summary prospectus containing this and other important information about each Fund, call 866.909.9473 or visit WisdomTree.com/investments. Read the prospectus or, if available, the summary prospectus carefully before investing.

There are risks associated with investing, including possible loss of principal. Municipal securities carry various risks, including credit, interest rate, prepayment, and valuation risks. Issuers may face financial difficulties that impact their ability to meet payment obligations. The value of these securities can fluctuate due to changes in revenue sources, local economic and political conditions, and industry-specific downturns (e.g., education, healthcare, transportation, utilities). Additionally, tax-exempt income from municipal securities could become taxable due to regulatory changes or issuer noncompliance, potentially reducing their value. Fixed income investments are subject to interest rate risk; their value will normally decline as interest rates rise. Higher yield securities or “junk” bonds have lower credit ratings and involve a greater risk to principal. Fixed income investments are also subject to credit risk, the risk that the issuer of a bond will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer’s ability to make such payments will cause the price of that bond to decline. While the Funds attempt to limit credit and counterparty exposure, the value of an investment in the Funds may change quickly and without warning in response to issuer or counterparty defaults and changes in the credit ratings of the Funds’ portfolio investments. Please read each Fund’s prospectus for specific details regarding that Fund’s risk profile.

Neither WisdomTree, Inc., nor its affiliates, nor Foreside Fund Services, LLC, nor its affiliates provide tax advice. All references to tax matters or information provided here are for illustrative purposes only and should not be considered tax advice and cannot be used for the purpose of avoiding tax penalties. Investors seeking tax advice should consult an independent tax advisor.

WisdomTree Funds are distributed in the U.S. by Foreside Fund Services, LLC. Foreside Fund Services, LLC, is not affiliated with the other entities mentioned.

Kevin Flanagan and Rick Harper are registered representatives of Foreside Fund Services, LLC.

About WisdomTree

WisdomTree is a global financial innovator, offering a diverse suite of exchange-traded products (ETPs), models and solutions, as well as digital asset-related products. Our offerings empower investors to shape their financial future and equip financial professionals to grow their businesses. Leveraging the latest financial infrastructure, we create products that emphasize access, transparency and provide an enhanced user experience. Building on our heritage of innovation, we offer next-generation digital products and services related to tokenized real world assets and stablecoins, as well as our blockchain-native digital wallet, WisdomTree Prime® and institutional platform, WisdomTree Connect™.*

* The WisdomTree Prime digital wallet and digital asset services and WisdomTree Connect institutional platform are made available through WisdomTree Digital Movement, Inc., a federally registered money services business, state-licensed money transmitter and financial technology company (NMLS ID: 2372500) or WisdomTree Digital Trust Company, LLC, in select U.S. jurisdictions and may be limited where prohibited by law. WisdomTree Digital Trust Company, LLC is chartered as a limited purpose trust company by the New York State Department of Financial Services to engage in virtual currency business. Visit https://www.wisdomtreeprime.com, the WisdomTree Prime mobile app or https://wisdomtreeconnect.com for more information.

WisdomTree currently has approximately $116.2 billion in assets under management globally.

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