WCBR offers exposure to the key themes driving cybersecurity developments and addresses increased interest in cybersecurity as shift towards remote work and cloud computing accelerates
NEW YORK, Jan. 28, 2021 -WisdomTree Investments, Inc. (NASDAQ: WETF), an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset manager, announced today the launch of the WisdomTree Cybersecurity Fund (WCBR) on NASDAQ. WCBR seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Team8 Cybersecurity Index (WTCBR), and has an expense ratio of 0.45%.
“Cybersecurity and security-oriented technology are central to remote work environments, and the more reliance we have on remote systems, the greater the importance and required investment in protecting the security of these infrastructures,” explained Jeremy Schwartz, WisdomTree Global Head of Research. “The WisdomTree Cybersecurity Fund provides exposure to global innovations in cybersecurity via a rules-based process and measures the exposure of public cybersecurity companies, their products and services, to these key development areas.”
WCBR seeks to track performance of the WisdomTree Team8 Cybersecurity Index (WTCBR), a basket of cybersecurity companies driving key developments and innovations in the industry. WisdomTree has leveraged data from Team8, specialists in cybersecurity, data and fintech1, to identify cyber-relevant companies and cybersecurity development themes.
Nadav Zafrir, Managing Partner at Team8, said, “In 2020, a rapid pace of digital transformation dramatically accelerated, and trust in our digital infrastructure went from very important to absolutely critical. Amidst unprecedented challenges, remaining digitally connected fostered impressive levels of functionality driven by agility and, in many cases, kept the lights on. This apparent digital resilience mustn’t fool us. Maintaining trust in our infrastructure is achievable but requires we have our eyes wide open and an immense cyber defense effort. We have partnered with WisdomTree to highlight the trends and innovative solutions we believe will enable a secure and resilient digital future.”
WCBR: What’s Under the Hood?
The WisdomTree Cybersecurity Fund (WCBR) aims to offer exposure to high-growth companies that drive key developments and innovations in the pure-play cybersecurity market over the medium to long term.
In order to determine if a company is primarily involved in cybersecurity activities, the following are considered:
- Exposure to Cybersecurity Development Themes: The key themes include privacy and digital trust, cloud security, shift-left2, smarter security, security of things, perimeter-less world, and resilience and recovery.
- Specialist Information: Specialist information identifies cyber-relevant companies, leveraging the research techniques of Team8.
- Focus and Growth: The weighting mechanism of selected cybersecurity companies takes into account the extent of a company’s overall involvement in the cybersecurity development themes noted above while also tilting toward companies with higher revenue growth rates.
Jarrett Lilien, WisdomTree President and Chief Operating Officer, said, “WisdomTree and Team8 share a strong belief that the best way to invest and participate in market change is to identify the products and services with the most creative and effective solutions for those changes. As a remote-first workplace ourselves, we are driving innovations that are transforming the modern workplace. We are now using this first-hand perspective in our fund launches, as we did with our global launch of the WisdomTree Cloud Computing Fund (WCLD), and as we are doing now with the launch of the WisdomTree Cybersecurity Fund.”
In addition to the U.S., a UCITS ETF also launched today in Europe on the London Stock Exchange, Borsa Italiana and Börse Xetra.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund before investing. To obtain a prospectus containing this and other important information, call 866.909.9473 or visit wisdomtree.com. Read the prospectus carefully before you invest
There are risks associated with investing, including possible loss of principal.
WCBR invests in cybersecurity companies, which generate a meaningful part of their revenue from security protocols that prevent intrusion and attacks to systems, networks, applications, computers, and mobile devices. Cybersecurity companies are particularly vulnerable to rapid changes in technology, rapid obsolescence of products and services, the loss of patent, copyright and trademark protections, government regulation and competition, both domestically and internationally. Cybersecurity company stocks, especially those which are internet related, have experienced extreme price and volume fluctuations in the past that have often been unrelated to their operating performance. These companies may also be smaller and less experienced companies, with limited product or service lines, markets or financial resources and fewer experienced management or marketing personnel. The Fund invests in the securities included in, or representative of, its Index regardless of their investment merit and the Fund does not attempt to outperform its Index or take defensive positions in declining markets. The composition of the Index is heavily dependent on quantitative and qualitative information and data from one or more third parties, and the Index may not perform as intended.
WCLD invests in cloud computing companies, which are heavily dependent on the Internet and utilizing a distributed network of servers over the Internet. Cloud computing companies may have limited product lines, markets, financial resources or personnel and are subject to the risks of changes in business cycles, world economic growth, technological progress, and government regulation. These companies typically face intense competition and potentially rapid product obsolescence. Additionally, many cloud computing companies store sensitive consumer information and could be the target of cybersecurity attacks and other types of theft, which could have a negative impact on these companies and the Fund. Securities of cloud computing companies tend to be more volatile than securities of companies that rely less heavily on technology and, specifically, on the Internet. Cloud computing companies can typically engage in significant amounts of spending on research and development, and rapid changes to the field could have a material adverse effect on a company’s operating results. The composition of the Index is heavily dependent on quantitative and qualitative information and data from one or more third parties and the Index may not perform as intended.
Please read each Fund’s prospectus for specific details regarding the Fund’s risk profile.
Statements concerning financial market trends are based on current market conditions, which will fluctuate.
WisdomTree Funds are distributed by Foreside Fund Services LLC, in the U.S. only. Foreside Fund Services LLC. is not affiliated with the other entities mentioned.
Jeremy Schwartz and Jarrett Lilien are registered representatives of Foreside Fund Services, LLC.
1 Fintech: financial technology
2 Shift-left: Developing and managing software is becoming more agile and faster than ever. Security can’t come after the fact, but needs to be shifted-left to the developers, embedding security considerations from the start in a DevSecOps model
WisdomTree Investments, Inc., through its subsidiaries in the U.S. and Europe (collectively, “WisdomTree”), is an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset manager headquartered in New York. WisdomTree offers products covering equities, fixed income, currencies, commodities and alternative strategies. WisdomTree currently has approximately $69.3 Billion billion in assets under management globally. For more information, please visit www.wisdomtree.com or follow us on Twitter @WisdomTreeETFs.
WisdomTree® is the marketing name for WisdomTree Investments, Inc. and its subsidiaries worldwide.
Team8 is a global venture group that creates and invests in companies at the intersection of cyber, data, artificial intelligence and fintech. Leveraging an in-house, multi-disciplinary team of company-builders integrated with a dedicated community of C-level executives and thought leaders, Team8’s model is designed to identify big problems, ideate solutions, and accelerate success and impact through technology innovation.