WisdomTree filed with the SEC yesterday to register the S&P 500 Managed Distribution Fund. The fund will track the price and yield performance, before fees and expenses, of the S&P 500 Managed Distribution Index. No expense ratio was listed.
The Index the fund tracks is designed to provide exposure to ETFs that track the performance of the S&P 500 Index while reflecting a payment of quarterly distributions equal to an annualized rate of six percent (6%). Three Underlying ETFs that seek to track the performance of the S&P 500 Index make up the index: the SPDR S&P 500 ETF, the iShares Core S&P 500 ETF and the Vanguard S&P 500 ETF.
The fund intends to invest in the underlying ETFs in the same proportion as the index and pay quarterly distributions to shareholders at an annual rate of 6%. The index assigns an equal weight (approximately 33 1/3%) to each underlying ETF initially, and again after the close of each year end. The actual weight of each underlying ETF in the index and fund may fluctuate throughout the year. The fund is distributed by ALPS.