Sustainability and responsibility are embedded throughout our business, which we believe benefits our investors, employees and shareholders.
We believe there is a need for diversification and full transparency in how investors allocate their money. ESG (environmental, social and governance) investing is a big part of WisdomTree’s global approach.
Walk the Walk
We’re proud to have built a diverse and inclusive workforce across gender, race, age, and ability, including in our leadership teams and boards.
- Our employee-led Women's Initiative Network (WIN) events also showcase our commitment to equity in the workforce and are designed to empower women in our organization.
- Our ESG Steering Committee keeps us accountable in our efforts to embed sustainability mandates at a corporate level.
- In 2019, we achieved UN Principles for Responsible Investment (UNPRI) signatory status.
Our ESG Offering
Our ex-state-owned methodology, introduced in 2014, underlines our conviction that government-owned companies, particularly in emerging markets, can often have a negative impact on long-term performance. We offer three distinct ex-state-owned approaches in broad emerging markets (XSOE), China (CXSE) and India (IXSE).
Additionally, we offer a family of broad-based U.S. (RESP), international (RESD) and emerging market (RESE) equity strategies that combine the potential performance benefits of our multifactor methodology while reflecting ESG values to meet investors' evolving needs.
This family seeks to identify and capitalize on those companies with a combination of ESG characteristics and performance factors.
The Morningstar Sustainability Rating is a measure of the financially material environmental, social and governance, or ESG, risks in a portfolio relative to a portfolio's peer group. The Morningstar Sustainability Rating is calculated through a three-step process. First, Morningstar calculates the Morningstar Portfolio Sustainability Score for every portfolio reported within the trailing 12 months. This score is a historical holdings-based calculation using the company-level ESG Risk Rating from Sustainalytics, a leading provider of ESG research. The Sustainalytics’ company-level ESG Risk Rating measures the degree to which a company’s economic value may be at risk driven by ESG issues. To be considered material to the risk rating, an ESG issue must have a potentially substantial impact on the economic value of a company and therefore on the risk-return profile of an investment in the company. The ESG issues that are material vary across industry groups and companies. Second, Morningstar uses these scores to calculate a portfolio's Morningstar Historical Portfolio Sustainability Score. Third, Morningstar assigns a Morningstar Sustainability Rating for a portfolio based on its Morningstar Historical Portfolio Sustainability Score relative to its Morningstar Global Category. Additionally, Morningstar applies ratings buffers to increase the rating's stability and makes ratings adjustments for portfolios with extreme Morningstar Historical Portfolio Sustainability Scores. For each product category, 5 globes are assigned to the top 10%, 4 globes to the next 22.5%, 3 globes to the next 35%,2 globes to the next 22.5%, and 1 globe to the bottom 10%.
Commentaries from Our Thought Leaders
WisdomTree is a long-time leader and believer that there is a need for clear purpose, diversification, and full transparency in how investors allocate their money. Jarrett Lilien explains why ESG (Environmental, Social and Governance) investing is a big part of our approach.
At a time when many investors are concerned about the ESG characteristics of their portfolios, Alejandro Saltiel and Matt Wagner explain how our suite of ex-state-owned enterprises strategies can provide the right combination of long-term returns and sustainable exposures.