Cboe’s 3 Questions in 3 Minutes: WFHY

CBOE:

What is the strategy behind WFHY?

Kevin Flanagan:

Hi there. I wanted to talk to you about the WisdomTree U.S. High Yield Corporate Bond Fund, ticker WFHY, which seeks to track the performance of selective issuers in the U.S. non-investment grade market that exhibit favorable characteristics, as well as opportunities for income.

Here at WisdomTree, we devised a strategy for high yield where we go to the balance sheet to screen for quality. Specifically in times of duress, investors can be concerned about credit concerns and default risks. And with our strategy using the balance sheet, we focus on free cash flow and that issuers with negative cash flow are eliminated from the index and the fund. In addition, we also have U.S. public issuers as being the focus of our strategy. In addition to being included or eligible, you must have $500 million par outstanding with one year remaining to maturity, as well as having to be non-investment grade rated by one rating agency.

CBOE:

Why is now a good time to consider WFHY?

Kevin Flanagan:

So why now? Why high yield? Well, with the rise in interest rates here in 2022, we've seen income move back into the fixed income markets and many investors are searching or utilizing the traditional means of high yield for this approach.

CBOE:

How could WFHY be used in a portfolio?

Kevin Flanagan:

So how can you use high yield in your portfolio? Well, one way is to use it as its traditional means, as I just mentioned, specifically for income as a standalone investment. Or you can complement and use it in a core plus portfolio where you combine it with your benchmark fixed income securities that you typically invest in, and then add onto that or layer in the income opportunities available in high yield.

So with that, hopefully you consider WisdomTree US High Yield Corporate Bond Fund, WFHY, and have a great day. Thank you.

Before investing, carefully consider a Fund’s investment objectives, risks, charges and expenses contained in the prospectus available at WisdomTree.com. Read it carefully.