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Meet WDIG: WisdomTree’s New Rare Earth & Metals ETF

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  • DXJ
On Thursday, May 7, WisdomTree announced the debut of the WisdomTree Efficient Rare Earth Plus Strategic Metals Fund (WDIG). Available on the CBOE, the actively managed WDIG operates with a net expense ratio of 55 basis points. Key Takeaways: WisdomTree has launched WDIG, an ETF that generally looks to capture global opportunities in strategic metals and rare earths alike. To do so, the fund invests in two distinct buckets: an equities bucket full of companies exposed to rare earth miners and strategic metals, along with a bucket for commodity metals futures contracts. Considering the opportunities within strategic metals and minerals alike, along with the perks diversification alone brings to a portfolio, WDIG could be an especially strong portfolio allocation in today’s environment. True to its title, WDIG offers exposure to a mix of different strategic metals and rare earths within the ETF wrapper. This includes aluminum, copper, lithium, silver, and rare earth elements, among many others.  See More: Prepare for a Gold Rebound With This Nifty ETFDigging Into WDIG's Investment ApproachWDIG builds its allocations to these metals and elements through a compelling dual exposure strategy. To start, the fund invests in a mix of different equities from companies engaged in rare earths mining activities and strategic metals across the globe.  Furthermore, the fund also provides exposure to a basket of commodity metals futures contracts. This provides a multitude of avenues to capitalize on the metals and rare earths markets in an accordingly capital-efficient manner. “From electric vehicles and wind turbines to AI data centers and autonomous systems, many of the technologies shaping the future share a common foundation in strategic metals. At the same time, supply chains for many critical minerals remain highly concentrated, elevating their importance from commodities to strategic assets for governments and industries alike,” noted Christopher Gannatti, global head of research at WisdomTree. “WDIG reflects this convergence of rising demand and evolving supply dynamics, offering a way to access both the metals themselves and the companies producing them.” See More: How to Build an Efficient Core with ETFsThe Diversification BenefitsWDIG concurrently offers the secondary perk of amplifying diversification, considered a crucial portfolio benefit at this juncture. Not only does the fund provide access to metals and materials that tend to be underweight within portfolios, but it offers global exposure as well.  WDIG has thus joined an ever-growing lineup of WisdomTree funds, which offers a variety of different solutions for its investment community. One of the largest WisdomTree funds, the WisdomTree Japan Hedged Equity Fund (DXJ B-), has over $6.3 billion in assets under management.  For more news, information, and analysis, visit the Modern Alpha Content Hub.DisclosureThis article was prepared as part of WisdomTree’s general paid sponsorship of VettaFi | ETF Trends. This specific content within and any opinions expressed therein belong solely to VettaFi and do not reflect the opinion or analysis of WisdomTree, its employees, or its affiliates. Content published on VettaFi | ETF Trends is provided for educational purposes only and should not be considered investment or tax advice. For investment or tax advice, please consult a financial professional.  WisdomTree is an independent company, unaffiliated with VettaFi | ETF Trends. WisdomTree has not been involved with the preparation of the content supplied by VettaFi | ETF Trends. It does not guarantee, or assume any responsibility for its content.

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