WisdomTree lists two autocallable defined-outcome ETFs on Xetra and Borsa Italiana
The actively managed UCITS funds charge 0.65% and target annualised returns of 8-9% and 6-7%, according to the issuer, which gave no launch assets.
WisdomTree has entered Europe's defined outcome ETF market with two actively managed autocallable UCITS funds on Xetra and Borsa Italiana, the Defined Return Autocallable EUR Active UCITS ETF trading as DRTN and the Defensive Defined Return Autocallable EUR Active UCITS ETF as DRTD, both carrying a total expense ratio of 0.65 per cent.
The pair holds diversified, actively managed exposure to autocallables on liquid large-cap indices such as the EURO STOXX 50, strategies the issuer says harvest both the equity and volatility risk premia in pursuit of a return profile it describes as consistent and resilient across different market environments, with DRTN targeting 8 to 9 per cent annualised and the defensive fund 6 to 7 per cent. The announcement gives no launch assets for either fund.
The 0.65% question
The launch comes as WisdomTree, which crossed $50 billion in assets in August, is in a different phase from the one that built its European book, having reached that mark in less than a decade of gathering, led by currency-hedged funds and $9.7 billion of record inflows this year. Autocallables are a different sale for a distribution force that has spent years on hedged equity and commodity exposure, and the wrapper is the part that is familiar, since active strategies keep arriving in ETF form. The EURO STOXX 50 exposure lands while European equity ETFs have been catching a rotation tailwind.
At that price, the funds sit closer to active equity pricing than to the ultra-cheap index core that has absorbed the bulk of European ETF flows, the fee barbell in European ETFs splitting flows between that core and a growing minority willing to pay for active management while the middle of the shelf has to rent its space through fee cuts or acquisitions. Structures without a plain index standing beside them on the platform are the ones still able to charge for the shape of a return, which is the argument for wrapping autocallable exposure in an ETF.
What the announcement does not say is whether those target figures are net of the 0.65 per cent fee, or how the funds will behave when the index behind the autocallables falls rather than rises. The second question takes a year of returns to answer. The first is arithmetic and should be legible in the fund documents; until it is, the targets read as numbers struck before the fee rather than after it.
Save this analysis and keep the funds you follow together in My Desk.
Sign in to save articles or follow funds.