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WFC3B

WisdomTree Fundamental U.S. BBB Corporate Bond Index

WisdomTree Fundamental U.S. BBB Corporate Bond Index is a rule-based alternatively weighted index designed to capture the performance of selected issuers in the lowest tier of US investment grade corporate bond market that are deemed to have attractive fundamental and income characteristics. The Index employs a multi-step process, which screens on fundamentals to identify bonds with favorable characteristics and then tilts to those which offer attractive income characteristics. The Index is comprised of U.S. corporate bonds of public issuers domiciled in the United States. To be eligible for inclusion in the Index, debt securities must have fixed coupons with at least $500 million in par amount outstanding and a remaining maturity of at least one year. Component securities will have a rating of BBB given by at least two rating agencies.

Index Facts

As of 05/23/2017
Total Return Index Symbol WFC3B
Exchange Index Symbol
Index Inception Date 03/01/2016
Base Index Value 100
Number of Components in Index 981
Total Return Index Closing Value 191.74

Index Statistics

As of 05/23/2017
Yields to Worst 3.33
Average Effective Maturity 9.56
Average Yield to Maturity 3.35
Effective Duration 6.44
Option Adjusted Spread 137.01
Par-Weighted Coupon 4.38

Credit Quality

As of 05/23/2017
Weight
1. BBB 99.88%
2. BB 0.12%

Sector Breakdown

As of 05/23/2017
Weight
1. Financials 26.93%
2. Communications 13.81%
3. Health Care 10.07%
4. Consumer Discretionary 8.71%
5. Energy 7.98%
6. Consumer Staples 6.95%
7. Technology 6.00%
8. Consumer 4.81%
9. Utilities 3.77%
10. Telecom 3.50%
11. Industrials 3.50%
12. Materials 2.72%
13. Information Technology 0.63%
14. Media 0.61%

Definitions

  • The Yield To Worst (YTW) is the lowest potential yield that can be received on a bond without the issuer actually defaulting. When a bond is callable, the yield to worst is the lower yield of yield to maturity and yield to call.
  • Average Yield to Maturity represents the weighted average yield to maturity of investments in money market securities and short-term fixed income securities as of a specified date. Yield to maturity is the rate of return generated on a fixed income instrument assuming interest payments and capital gains or losses as if the instrument is held to maturity. The weighted average yield is calculated based on the market value of each fixed-income investment. The calculation does not incorporate yield from any currency forward contracts.
  • Duration is a measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. Effective duration is a calculation used to approximate the actual, modified duration of a callable bond. It takes into account that future interest rate changes will affect the expected cash flows for a callable bond.
  • Option Adjusted Spread is the spread of the bond yield and Treasury yield, which is adjusted to take into account an embedded option if the bond is callable or puttable.
  • Credit Quality is the underlying credit worthiness of a bond, reflecting its risk of default. Credit quality is typically represented by the credit ratings of a bond that are assigned by rating agencies such as Moody’s or Standard and Poor’s.
  • Par-Weighted Coupon is a par-weighted average of all coupon rates of the bonds in the index.
  • Average Effective Maturity is the average length of time until the bonds in the index reach maturity and are repaid, taking into account that some bonds may be called prior to maturity.
  • You cannot invest directly in an index.