WisdomTree Updates ETF Family with Enhanced Commodity Strategy Fund (GCC)

Reorganization of Fund – previously the WisdomTree Continuous Commodity Index Fund – introduces updated approach to broad-based commodity investing

NEW YORK, Dec. 22, 2020 (GLOBE NEWSWIRE) -- WisdomTree (NASDAQ: WETF), an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset manager, today announced the completion of the reorganization of the WisdomTree Continuous Commodity Index Fund (“CCIF”) into and with the WisdomTree Enhanced Commodity Strategy Fund. The Enhanced Commodity Strategy Fund is organized under the Investment Company Act of 1940, as amended, with no Schedule K-1 and an expense ratio of 0.55%. The Enhanced Commodity Strategy Fund will focus on providing broad-based exposure to a diversified basket of commodities through investment in futures contracts and trade under the ticker symbol “GCC”.   

Jeremy Schwartz, WisdomTree Global Head of Research, said, “The macroeconomic backdrop as we emerge from lockdowns could bring higher inflation. We believe it is a good time to investigate commodities as hedges to traditional portfolios given the sustained low interest rate environment and these elevated inflation risks.”

Enhanced Commodity Strategy Fund: What’s Under the Hood?

Taking a broad-based commodity investing approach, the Enhanced Commodity Strategy Fund seeks to:

• Provide broad-based exposure to a diversified basket of over 25 commodities across four major sectors: Energy, Agriculture (including Grains, Softs and Livestock), Precious Metals, and Industrial Metals, in contrast to CCIF, which provided exposure to a more limited basket of 17 commodities; and
• Focus on hard assets and precious metals to preserve purchasing power and industrial metals like copper, aluminum, and nickel for anticipated demand growth with the energy transition and decarbonization processes.

“The Enhanced Commodity Strategy Fund provides commodity exposure across all major sectors while recognizing through its exposures the shifting commodity demand from new technologies in electronic devices, electricity delivery and storage, transportation, communication, and manufacturing. In contrast to CCIF, the Enhanced Commodity Strategy Fund does not use a fixed rolling mechanism as it seeks to maximize carry and roll futures contracts in a manner designed to enhance returns while lowering volatility,” Schwartz added.