How to invest
Exchange Traded Products (ETPs) are listed instruments and can be bought and sold via regulated stock exchanges just like individual shares. This makes them a useful building block within an investment portfolio. You can view the full WisdomTree ETP range here
The most common methods to access WisdomTree ETPs are listed below:
1. Execution Platforms
Execution Platforms offer their clients the ability to invest on their own into shares, ETPs and other financial products. Execution Platforms typically offer transaction-based fees, and do not offer financial advice.
Partners
WisdomTree has partnered with the following execution platforms and some WisdomTree ETPs are available on a commission-free or discounted trading basis. Click a platform card to visit their website.
Platforms
WisdomTree ETPs are available on the following execution platforms. Please click a platform card to visit their website.
If you cannot find a WisdomTree product on your chosen Execution Platform, please reach out to your Execution Platform's customer service team to request that it is added.
2. Financial Advisers
Financial Advisers often provide holistic services to their clients that include both advice and execution. Advisers may offer both fixed fee, and transactional fees schedules. VouchedFor and Unbiased can both help investors find an adviser.
3. Stockbroker
A stockbroker is a professional entity or individual that is registered to trade on a stock exchange. Stockbrokers typically trade shares as well as ETPs. Most brokers charge transaction-based fees, however this may vary. UK investors can find a list of stockbrokers on the exchange here.
Exchanges
Below is a list of European exchange venues where WisdomTree products are listed
What are the costs?
The price of securities will depend on the current value of the underlying index or asset on which the ETP is based. It will also include various fees and charges:
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Product costs
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Total Expense Ratio (TER) (%)
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Rebalancing costs
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Swap spread
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Securities lending
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Bid/Offer Spread
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Broker/Platform charges
This refers to the fees subtracted to cover the cost of operating the product, and is typically expressed as an annualised percentage. For more information about specific product fees, please see individual product pages. Also sometimes referred to as the Management Fee or the Management Expense Ratio (MER).
The cost incurred by physical ETPs when they buy and sell securities. When the underlying index changes its constituents, the ETP must do likewise. Transaction costs depend on how many and often the index constituents change: the greater the number and frequency, the more expensive the rebalancing costs will be.
The fee paid by synthetic ETP providers to the swap counterparties for the swap agreements. Generally, more illiquid or exotic exposures have more expensive swap spreads. Sometimes the swap spread is incorporated into the TER of ETPs.
Revenue incurred by physical ETPs can reduce the cost of the ETP. WisdomTree does not engage in securities lending.
This refers to the price a market maker* charges an investor when they buy or sell an ETP on a stock exchange. This is often quoted in basis points - one-hundredth of a percent - so a 10 basis point spread would indicate a 0.1% difference between the market maker's bid (the price at which an investor would sell), and the price the market maker offers (the price at which an investor would buy).
This refers to the charges exacted by the broker or platform for executing the requested order.
* A market maker is a specialist in providing prices for investors to buy or sell at.
Example of how to read ETP codes and tickers
This example, using WisdomTree Physical Gold, shows how a single ETP can have multiple trading lines and identifiers depending on where it is listed.
Definitions:
Base Currency
The currency in which the product reports the value of its net assets. Usually based on the underlying index or asset currency. Also known as ‘denominated currency’.
ISIN
The International Securities Identification Number - a code that uniquely identifies a specific securities issue. Although uncommon, it is possible for two ISINs to relate to the same product. For example, German ISINs differ from those in other countries, as shown in the diagram below.
Trading Line
The currency in which a product can be bought or sold on a particular exchange. Taking WisdomTree Physical Gold as an example: Gold is priced in USD, therefore WisdomTree Physical Gold base currency is USD. However, this product can be traded in other trading lines such as GBX, EUR, JPY.
Exchange Code
Also known as a ‘ticker’. It is an abbreviation used to uniquely identify securities listed on a certain exchange. The exchange code may consist of letters, numbers or a combination of both.
WisdomTree Physical Gold |
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Base currency: USD |
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ISIN |
ISIN |
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Trading lines and exchange codes: |
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USD |
EUR |
JPY |
GBX |
EUR |
For illustrative purposes only
Most of these identifiers can be used to find a product on an execution-only broker's online platform.