WisdomTree Enhanced Commodity Carry

Issuer: WisdomTree

Asset Class: Commodity

TER: 0.004

Trading Currency: USD

Pays Income: False

Listing Date: 24 Apr 2025

Ticker: WCRV_LN

ISIN: XS3022291473

The WisdomTree Enhanced Commodity Carry is an investment strategy that aims to capitalize on the potential return from investing in commodity futures markets. The strategy focuses on carry, which is the return generated from holding a long position in a commodity that earns a higher yield than the cost of funding the position. This strategy is designed to benefit from the roll yield that can be earned by rolling futures contracts that are in contango, where the futures price is higher than the spot price.

The WisdomTree Enhanced Commodity Carry strategy seeks to provide investors with an enhanced return by capturing the carry from investing in commodities. By holding a diversified portfolio of commodity futures, the strategy aims to generate returns that are uncorrelated with traditional asset classes such as stocks and bonds. This can help to improve the overall risk-adjusted return of a portfolio by adding a source of return that is not dependent on the performance of equity or fixed income markets.

In addition, commodities have historically exhibited low correlation with other asset classes, making them a valuable tool for diversification. The WisdomTree Enhanced Commodity Carry strategy allows investors to access this asset class in a cost-efficient and liquid manner. By investing in a transparent and rules-based strategy, investors can gain exposure to the potential return offered by commodity carry while mitigating some of the risks associated with investing directly in commodity futures markets.