WisdomTree Newsletter 2 May
Welcome to the 15th issue of WisdomTree's newsletter. In this update, we will provide highlights on the latest market news and trends across all major asset classes. Additionally, we will share our latest insights resources, podcasts and company news.
??Product news
WisdomTree expands equity range with US Quality Growth UCITS ETF (QGRW)
We're excited to announce the launch of WisdomTree US Quality Growth UCITS ETF (QGRW) on B?rse Xetra, Borsa Italiana & London Stock Exchange. This ETF is a long-term solution for investors seeking growth via US stocks without sacrificing the quality of their portfolio.
QGRW Features:
+ Strategic, long-term US equity investment - a more holistic alternative to growth strategies like Nasdaq-100
+ Captures trends in earnings and sales, often including disruptive stocks and tech giants for upside benefit
+ Quality focus introduces stability by eliminating most unprofitable and speculative stocks
To learn more about QGRW, visit our strategy page here.
We are celebrating WisdomTree Physical Ethereum (ETHW) 3-year anniversary
This week marked the 3-year anniversary for WisdomTree Physical Ethereum (ETHW) .This ETP offers simple, secure and low-cost access to physically-backed Ether with staking rewards through reputable exchanges such as Deutsche B?rse Xetra, Swiss Stock Exchange and Euronext.
Learn more by visiting our site.
????Thought Leadership
Gold Outlook to Q1 2025
Gold prices hit multiple new highs in March & April despite robust economic data & an expected delay to the next US rate cut. In our new Gold Outlook, we discuss why our model indicates that these prices are in line with gold's fundamentals.
Learn why in our report.
WisdomTree Commodity Monthly Monitor – March/April 2024
Continued robust performance was observed in commodity markets during March/April, evident across the majority of sectors, barring agriculture.
For a comprehensive report, download our newly published Commodity Monthly Monitor here.
WisdomTree Thematic Quarterly
In our quarterly thematic review, we analyse the state of thematic strategies in Europe through the lens of performance and flows, as well as any other interesting trends we see in the space. For all of our calculations, we use the?WisdomTree Thematic Classification, which we monitor and update on a quarterly basis.
Read the full update here.
???Latest Insights
Is the Nasdaq-100 the best proxy for growth stocks?
The Nasdaq-100 Index is considered by many as the default benchmark for growth. The methodology is straightforward—the 100 largest non-financial companies by market cap listed on the Nasdaq Exchange are selected for inclusion. Securities are weighted by modified market capitalisation.
One of the drawbacks to this simplicity for a growth benchmark is that mature, slow growth companies can populate the index because of the absence of fundamental selection criteria. In our view, WisdomTree has created a better way to capture growth—the WisdomTree U.S. Quality Growth Index.
Read more here.
Where might investors find the next Nvidia?
领英推荐
What is the right valuation for a company that is powering the most transformative megatrend in the world right now? It is a difficult question to answer. But another related and equally interesting question is how investors can identify the next Nvidia. If the AI revolution is only just getting started, there will surely be many more winners. This blog explores where some of the most promising candidates may be found.
Read more here.
What’s Hot: Is oil sufficiently pricing in geopolitical risks?
Geopolitical risks are rising with the Israel-Iran conflict moving to the next stage. Oil prices could spike with production disruptions or more importantly transit disruptions.
Read more here.
???Podcasts
The Next Big Thing: AI, automation and cybersecurity - defending the digital realm
Will AI help safeguard the digital future? In our latest podcast episode we dissect AI's double-edged sword for cybersecurity spotlighting its potential to improve detection of malicious threats despite also introducing new challenges. Listen to the discussion with cybersecurity expert Maximilian Heinemeyer, Chief Product Officer at Darktrace and subscribe to receive notifications when new episodes are released.
The Commodity Exchange: Geopolitics, market trends and platinum perspectives
In this episode of The Commodity Exchange, Nitesh and Mobeen are joined by Edward Sterck, Director of Research, World Platinum Investment Council. Together they delve into the fascinating world of platinum. From exploring its cyclical and structural narratives to dissecting recent Middle East tensions’ impact on commodities, this podcast covers it all. Join the conversation as they discuss record deficits in platinum, supply challenges in South Africa and Russia, automotive sector trends, the rise of green hydrogen, and the future demand for this precious metal. Plus, get insights into gold, silver, oil, industrial metals, and European carbon markets—revealing positive signs and improving investor sentiment.
Crypto Clarified: Sizzling steaks and stablecoins - marrying real-world assets with DeFi
In this episode of Crypto Clarified, Ben is joined by Sébastien Derivaux, ‘founding chef’ at Steakhouse Financial, to discuss the integration of real-world assets into the decentralized finance (DeFi) ecosystem. They explore the shift from the initial vision of a trustless system to the recognition that real-world assets are necessary for DeFi to have a meaningful impact. Sebastien highlights the benefits of bringing assets on-chain, such as increased transparency, efficiency, and accessibility. They conclude by discussing the future of DeFi and the potential for building new financial products and asset classes on-chain.
?? Market Commentary
CURRENCIES: Historic yen weakness provides tailwind for export growth
Japan’s exports rose 7.3% year on year in March, slightly slower than the 7.8% gain registered in February[1]. The data print nevertheless marked the fourth consecutive month of growth in exports, attributable to the boost provided to Japan’s exporters by historic weakness in the yen. Signs of a pickup in Chinese demand also lent support.
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In other economic data releases, the core consumer price index (CPI), a leading indicator of nationwide trends, was 2.6% higher year on year in March, slightly lower than had been expected and down from a revised 2.8% in February. While suggesting that price pressures could be easing somewhat, data showing that Japan’s inbound tourism grew solidly in March, driven by an increase in visitors from South Korea and China, is likely to support services inflation.
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Japan is on the brink of currency intervention if the yen weakens any further, according to one of the country’s former top currency officials[2]. Japan spent around $60 billion intervening in currency markets in September and October of 2022 when the yen approached the 146 and 152 levels. Recently, Shunichi Suzuki issued a rare joint statement with US Treasury Secretary Janet Yellen and South Korean Finance Minister Choi Sang-mok in Washington, stating that they would continue to consult closely on foreign exchange developments. The three nations also acknowledged the serious concerns felt by Japan and Korea over the recent sharp depreciation of their currencies.
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COMMODITIES: Cocoa upward trajectory supported by stable processing figures
Despite the sharp rise in cocoa’s prices, cocoa processing in Europe fell only 2% in Q1 2024 versus last year[3]. This reflects the sharp rise in cocoa bean prices has not yet been followed by a sharp drop in demand. Last year, cocoa processing fell 7% over the prior year, owing to the significant price increase in cocoa beans. 2024 has been met with a sharper pace of cocoa bean price increases and yet we have not seen a sharper decline in processing figures. The relatively robust processing figures so far have been viewed by the market as positive for prices. However, they also highlight that there has not been an acute shortage of cocoa beans that would have forced a more pronounced reduction in grinding.
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On the supply side, the regulatory authority in Ghana is reportedly in talks with major traders to postpone the planned delivery of 150-250 thousand tons of cocoa until the next crop year. This is due to the lack of availability of cocoa beans after the main harvest turned out to be weak and the current mid-crop has is shaping out to be disappointing. This is expected to extend the supply shortage until the end of September.
This material is prepared by WisdomTree and its affiliates and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of the date of production and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and non-proprietary sources. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by WisdomTree, nor any affiliate, nor any of their officers, employees or agents. Reliance upon information in this material is at the sole discretion of the reader. Past performance is not a reliable indicator of future performance.
[1] Japan Finance Ministry as of 19 April 2024
[2] Bloomberg as of 23 April 2024
[3] European Cocoa Association