WisdomTree prepares for launch of China Dividend ex-Financials Fund

By Toni Weeks

San Diego, Feb. 1 - WisdomTree Trust announced in an N-1A filing with the Securities and Exchange Commission that it is planning a new fund that will invest in the 10 highest dividend-yielding companies in each sector of the Chinese economy, with the exception of the financial sector.

The WisdomTree China Dividend ex-Financials Fund will seek to track the price and yield performance, before fees and expenses, of the WisdomTree China Dividend ex-Financials Index by investing, under normal circumstances, 95% of its assets in the stocks that make up the index. The index measures the performance of high dividend-yielding stocks outside of the financial sector.

The sectors included in the index are as follows: consumer discretionary, consumer staples, energy, health care, industrials, information technology, materials, telecommunication services and utilities. Companies must have $1 billion or more in float-adjusted market capitalization and be domiciled in China with a listing on the Hong Kong Stock Exchange to be included in the index.

WisdomTree said it expects that over time the correlation between the fund's performance and the performance of the index, before fees and expenses, will reach at least 95%.

According to the filing, the portfolio management team has not been selected. In addition, the fund's fees and ticker symbol have not been announced, although the fund will be listed on the NYSE Arca.

New York-based WisdomTree Asset Management, Inc. will serve as investment adviser to the fund.

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