WisdomTree TIPS Digital Fund
Name
As of 11/01/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
Vitals
YTD Return
2.4%
1 yr return
5.8%
3 Yr Avg Return
N/A
5 Yr Avg Return
N/A
Net Assets
$968 K
Holdings in Top 10
93.9%
52 WEEK LOW AND HIGH
Expenses
OPERATING FEES
Expense Ratio 0.05%
SALES FEES
Front Load N/A
Deferred Load N/A
TRADING FEES
Turnover 185.00%
Redemption Fee N/A
Min Investment
Standard (Taxable)
$2,500
IRA
$1,000
Fund Classification
Fund Type
Open End Mutual Fund
Name
As of 11/01/2024Price
Aum/Mkt Cap
YIELD
Exp Ratio
Watchlist
TIPSX - Profile
Distributions
- YTD Total Return 2.4%
- 3 Yr Annualized Total Return N/A
- 5 Yr Annualized Total Return N/A
- Capital Gain Distribution Frequency Annually
- Net Income Ratio 0.14%
- Dividend Yield 3.1%
- Dividend Distribution Frequency Quarterly
Fund Details
-
Legal NameWisdomTree TIPS Digital Fund
-
Fund Family NameWisdomTree Digital Trust
-
Inception DateJan 24, 2023
-
Shares OutstandingN/A
-
Share ClassOther
-
CurrencyUSD
-
Domiciled CountryUS
-
ManagerDarwei Kung
Fund Description
The Fund employs a “passive management” – or indexing – investment approach designed to track the performance of the Solactive U.S. Treasury Inflation-Linked Bond Index (the “Index”) through the use of a representative sampling strategy. Under normal circumstances, at least 80% of the value of the Fund’s net assets, plus the amount of any borrowings for investment purposes, will be invested in component securities of the Index, which is comprised of Treasury Inflation-Protected Securities issued by the U.S. Treasury, commonly known as “TIPS”, and investments that have economic characteristics that are substantially identical to the economic characteristics of such component securities. The Index is maintained by Solactive AG (the “Index Provider”) and is designed to measure the performance of TIPS. TIPS are securities issued by the U.S. Treasury that are designed to provide inflation protection to investors, with both principal and interest inflation-linked. The Index includes publicly issued TIPS that have at least 1 year remaining to maturity on the Index rebalancing date, with an issue size equal to or in excess of $750 million.
Up to 20% of the Fund’s net assets may be invested in securities that are denominated in U.S. dollars and have a fixed-rate nominal coupon, but the Fund does not invest in nominal bonds, non-government inflation-linked bonds, Separate Trading of Registered Interest and Principal of Securities (“STRIPS”), Treasury bills, Private placements, and floating-rate bonds, which are also excluded from the Index. The components of the Index are weighted by market-capitalization and the Index is rebalanced and reconstituted on a monthly basis, effective after the market close of the last business day of each month.
At each reconstitution of the Index, certain securities (i.e., TIPS meeting the aforementioned criteria) are eligible for inclusion in the Index. Accordingly, the Fund will invest in TIPS in seeking to track the Index and the Fund will publicly disclose its portfolio holdings daily. The Fund may be required to purchase or sell portfolio assets to track the Index as the Index reconstitutes and rebalances and/or in order to meet investor purchase or redemption requests. As a result, the Fund will engage in frequent trading of portfolio securities.
Use of Blockchain
As described further below, through its transfer agent, the Fund uses blockchain technology in relation to maintaining a record of its shares. The following “Use of Blockchain” section describes what blockchain technology is and how the Fund uses it for the recording of its shares.
WisdomTree Transfers, Inc., the Fund’s transfer agent (“WisdomTree Transfers” or “Transfer Agent”), maintains the official record of share ownership through an integrated recordkeeping system with records in book-entry form and digital representations of Fund shares that are recorded – or tokenized – on the applicable blockchain. A transfer of the record on the blockchain can act as an information source for the Transfer Agent to register a transaction in its book-entry records. The Transfer Agent will reconcile book-entry and blockchain transactions on at least a daily basis. Reconciliation involves maintaining a matching book-entry record and blockchain record of the total number of shares in circulation, the ownership of the shares at any given time, and all transactions between parties involving the shares. The Transfer Agent’s book-entry records constitute the official record of share ownership. The policies and procedures of the Fund and the Transfer Agent both address the use of blockchain integrated recordkeeping systems. The Fund’s Board of Trustees (the “Board”) has approved these policies and procedures, including those that address the use of blockchain integrated recordkeeping systems.
A blockchain is an open, distributed ledger that digitally records transactions in a verifiable way using cryptography. A distributed ledger is a database in which data is stored in a decentralized manner. Cryptography is a method of storing and transmitting data in a particular form so that only those for whom it is intended can read and process it. A blockchain stores transaction data in “blocks” that are linked together to form a “chain”, and hence the name blockchain. Transactions on the blockchain are verified and authenticated by computers on the network. The process of authenticating a transaction before it is recorded ensures that only valid and authorized transactions are permanently recorded as “blocks” on the blockchain.
In order to facilitate the use of blockchain technology, a potential shareholder must have a blockchain wallet. WisdomTree Digital Movement, Inc. or WisdomTree Digital Trust Company, LLC, as applicable (each entity, as applicable, “WisdomTree Digital”) provides a Stellar-based wallet, including through a mobile application for individual shareholders, WisdomTree Prime® (the “App”). Institutional investors may, for their convenience and in their sole discretion, elect to use their own wallet if registered by the Transfer Agent or its agents in their sole discretion through WisdomTree ConnectTM (the “Portal”). The Portal may be accessed via a web-based portal or via application programming interface (see “Purchase and Redemption of Fund Shares” below). A blockchain wallet is a software application which stores a user’s “private key” and related digital or tokenized assets and is used to facilitate sending digital or tokenized assets on a particular blockchain. The term “digital assets” as used herein refers to native crypto assets of blockchains or protocols running on top of blockchains and the term “tokenized assets” as used herein refers to the creation of a digital representation of a traditional asset, such as the Fund shares, on the blockchain or the issuance of such an asset directly on the blockchain. A “private key” is one of two numbers in a cryptographic “key pair.” A key pair consists of a “public key” and its corresponding private key, both of which are lengthy alphanumeric codes, derived together and possessing a unique relationship. The private key is used by the owner of a digital wallet to send (i.e., digitally sign and authenticate) digital or tokenized assets and is private to the wallet owner. The public key is, as the name implies, public and open to others on the applicable blockchain to send digital assets to. The blockchain will only record public key information. WisdomTree Digital holds the private keys associated with Stellar-based wallets for individual shareholders. Institutional investors opting to use their own wallets will be responsible for holding the private key associated with their wallets, which is essential for authenticating and authorizing transactions on the applicable blockchain. An institutional investor may choose to hold the private key in their own self-hosted wallet service or use a third-party wallet service that holds the private key. Accordingly, the Stellar blockchain is currently the default blockchain utilized for retail investors, although blockchain expansion is anticipated for the future, while institutional investors may currently use other blockchains, which may offer benefits such as different transaction speeds or efficiencies based on the investor’s operational preferences.
The Transfer Agent utilizes a permissioned system that operates on top of public, permissionless blockchains. The permissioned system is established through a combination of policies, procedures, and technological controls which collectively seek to ensure that the blockchain operates as an integrated but supplementary recordkeeping mechanism under the oversight of the Transfer Agent. To create and maintain this permissioned structure on public blockchains, WisdomTree Transfers registers and associates each blockchain wallet with relevant personal identifying information which is maintained in an off-chain registry (i.e., a separate database that is not available to the public and is used to satisfy anti-money laundering regulations). Permission is granted only to registered wallets, sometimes referred to as “whitelisting”, thereby restricting the ability to transact in tokenized shares to pre-approved participants. Smart contracts are deployed as part of the operational framework to enforce compliance with the Transfer Agent’s policies and procedures, as applicable. Specifically, smart contracts have been developed to support functions such as transfer restrictions to prevent unauthorized transfers to or from unregistered wallets and ability to claw back tokens to the extent that the digital representation of Fund share ownership does not align with the book-entry records. These smart contracts are designed, deployed, and maintained by WisdomTree Digital with oversight by the Transfer Agent. In this manner, this permissioned system prevents transactions between unknown persons or unknown blockchain wallets, even though blockchain infrastructure itself remains permissionless.
It is anticipated that Fund shareholders may have the benefit of shares that may be operated on more than one blockchain, such as the blockchains noted under “Additional Information About the Purchase and Redemption of Fund Shares.”. This feature may provide shareholders with the ability to move the record of ownership between blockchain wallets, such as between the Stellar and Ethereum blockchains as desired, which may include through interoperability, which is facilitated by the Transfer Agent’s process of burning and minting the digital representations of shares on each blockchain and the Transfer Agent continuing to maintain the Fund’s official records through integrated recordkeeping. These features may permit applicable shareholders to potentially take advantage of the benefits of a supported blockchain of their choice (i.e., Stellar or Ethereum blockchain), such as transaction speed or efficiency, while also helping facilitate the Fund’s shares being available for purchase, sale, or transfer in the broader blockchain ecosystem.
The recording of digital representation of Fund shares on the blockchain will not affect the Fund’s investments in securities. The Fund will not invest in any digital assets (referred to as, among other things, virtual currencies).
TIPSX - Performance
Return Ranking - Trailing
Period | TIPSX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 2.4% | -8.8% | 8.7% | 63.55% |
1 Yr | 5.8% | -10.2% | 20.5% | 48.28% |
3 Yr | N/A* | -16.1% | 4.2% | N/A |
5 Yr | N/A* | -7.3% | 4.9% | N/A |
10 Yr | N/A* | -2.4% | 3.2% | 3.01% |
* Annualized
Return Ranking - Calendar
Period | TIPSX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | N/A | -8.7% | 5.1% | N/A |
2022 | N/A | -52.3% | -4.0% | N/A |
2021 | N/A | -7.9% | 7.7% | N/A |
2020 | N/A | -29.4% | 23.0% | N/A |
2019 | N/A | 0.8% | 16.7% | N/A |
Total Return Ranking - Trailing
Period | TIPSX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
YTD | 2.4% | -8.8% | 8.7% | 63.55% |
1 Yr | 5.8% | -10.2% | 20.5% | 48.28% |
3 Yr | N/A* | -16.1% | 4.2% | N/A |
5 Yr | N/A* | -7.3% | 4.9% | N/A |
10 Yr | N/A* | -2.4% | 3.2% | 41.98% |
* Annualized
Total Return Ranking - Calendar
Period | TIPSX Return | Category Return Low | Category Return High | Rank in Category (%) |
---|---|---|---|---|
2023 | N/A | -5.2% | 9.5% | N/A |
2022 | N/A | -40.1% | 9.2% | N/A |
2021 | N/A | -2.7% | 37.6% | N/A |
2020 | N/A | -0.5% | 27.5% | N/A |
2019 | N/A | 2.8% | 19.3% | N/A |
NAV & Total Return History
TIPSX - Holdings
Concentration Analysis
TIPSX | Category Low | Category High | TIPSX % Rank | |
---|---|---|---|---|
Net Assets | 968 K | 968 K | 51.8 B | 100.00% |
Number of Holdings | 10 | 2 | 1463 | 97.54% |
Net Assets in Top 10 | 891 K | 891 K | 24.2 B | 100.00% |
Weighting of Top 10 | 93.90% | 9.4% | 100.0% | 4.46% |
Top 10 Holdings
- U.S. Treasury Inflation-Indexed Notes 28.71%
- U.S. Treasury Inflation-Indexed Notes 14.52%
- U.S. Treasury Inflation-Indexed Bonds 9.38%
- U.S. Treasury Inflation-Indexed Bonds 8.59%
- U.S. Treasury Inflation-Indexed Bonds 8.22%
- U.S. Treasury Inflation-Indexed Notes 7.27%
- U.S. Treasury Inflation-Indexed Bonds 6.70%
- U.S. Treasury Inflation-Indexed Notes 5.56%
- U.S. Treasury Inflation-Indexed Notes 4.08%
- U.S. Treasury Inflation-Indexed Bonds 0.85%
Asset Allocation
Weighting | Return Low | Return High | TIPSX % Rank | |
---|---|---|---|---|
Bonds | 93.90% | 0.00% | 198.42% | 79.80% |
Cash | 6.10% | -42.00% | 15.77% | 4.93% |
Stocks | 0.00% | 0.00% | 100.03% | 59.61% |
Preferred Stocks | 0.00% | 0.00% | 0.78% | 60.59% |
Other | 0.00% | -58.58% | 68.12% | 76.85% |
Convertible Bonds | 0.00% | 0.00% | 3.96% | 70.94% |
Bond Sector Breakdown
Weighting | Return Low | Return High | TIPSX % Rank | |
---|---|---|---|---|
Government | 112.97% | 6.70% | 112.97% | 0.49% |
Securitized | 0.28% | 0.00% | 58.03% | 68.97% |
Derivative | 0.00% | -26.67% | 16.13% | 77.83% |
Cash & Equivalents | 0.00% | 0.00% | 11.92% | 87.19% |
Corporate | 0.00% | 0.00% | 50.64% | 83.74% |
Municipal | 0.00% | 0.00% | 1.28% | 66.01% |
Bond Geographic Breakdown
Weighting | Return Low | Return High | TIPSX % Rank | |
---|---|---|---|---|
US | 93.90% | 0.00% | 174.44% | 72.91% |
Non US | 0.00% | 0.00% | 42.19% | 74.38% |
TIPSX - Expenses
Operational Fees
TIPSX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Expense Ratio | 0.05% | 0.03% | 22.29% | 97.51% |
Management Fee | 0.05% | 0.00% | 0.99% | 9.85% |
12b-1 Fee | N/A | 0.00% | 1.00% | N/A |
Administrative Fee | 0.10% | 0.01% | 0.40% | 60.53% |
Sales Fees
TIPSX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Front Load | N/A | 1.00% | 4.75% | N/A |
Deferred Load | N/A | 1.00% | 4.00% | N/A |
Trading Fees
TIPSX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Max Redemption Fee | N/A | N/A | N/A | N/A |
Related Fees
Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.
TIPSX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
---|---|---|---|---|
Turnover | 185.00% | 0.00% | 246.00% | 97.94% |
TIPSX - Distributions
Dividend Yield Analysis
TIPSX | Category Low | Category High | TIPSX % Rank | |
---|---|---|---|---|
Dividend Yield | 3.10% | 0.00% | 14.25% | 4.43% |
Dividend Distribution Analysis
TIPSX | Category Low | Category High | Category Mod | |
---|---|---|---|---|
Dividend Distribution Frequency | Quarterly | Quarterly | Monthly | Quarterly |
Net Income Ratio Analysis
TIPSX | Category Low | Category High | TIPSX % Rank | |
---|---|---|---|---|
Net Income Ratio | 0.14% | -0.06% | 6.71% | 99.50% |
Capital Gain Distribution Analysis
TIPSX | Category Low | Category High | Capital Mode | |
---|---|---|---|---|
Capital Gain Distribution Frequency | Annually | Annually | Annually | Annually |
Distributions History
Date | Amount | Type |
---|---|---|
Sep 25, 2024 | $0.074 | OrdinaryDividend |
Jun 25, 2024 | $0.213 | OrdinaryDividend |
Mar 22, 2024 | $0.040 | OrdinaryDividend |
Dec 22, 2023 | $0.120 | OrdinaryDividend |
Sep 25, 2023 | $0.128 | OrdinaryDividend |
Jun 26, 2023 | $0.185 | OrdinaryDividend |
Mar 27, 2023 | $0.053 | OrdinaryDividend |
TIPSX - Fund Manager Analysis
Managers
Darwei Kung
Start Date
Tenure
Tenure Rank
Feb 01, 2011
6.67
6.7%
DARWEI KUNG, DIRECTOR, has joined Deutsche Asset Management in 2006. Previously he has worked as a Director, Engineering and Business Development at Calpoint LLC from 2001-2004. He holds a BS and MS from University of Washington, Seattle; a MS and MBA from Carnegie Mellon University.
Rick Smith
Start Date
Tenure
Tenure Rank
Jun 30, 2017
0.25
0.3%
RICK SMITH, CFA, MANAGING DIRECTOR and Portfolio Manager. Joined Deutsche Asset Management in 2004 with 21 years of industry experience. Prior to joining, he served 11 years as a Fixed Income Investment Grade Portfolio Manager at MFS Investments. Previously, he worked as a Research Analyst at Salomon Brothers. BS in Economics, Vassar College; MBA in Finance, Vanderbilt University.
Tenure Analysis
Category Low | Category High | Category Average | Category Mode |
---|---|---|---|
0.17 | 20.51 | 6.55 | 11.1 |