The products will be part of the WisdomTree Trust and will be co-branded and marketed by both organizations. Dreyfus will act as subadvisor to the Trust.
"BNY Mellon Asset Management comprises asset management companies with individual, proprietary investment expertise, and this unique combination of talent fosters the development of innovative investment products," said Ronald P. O'Hanley, president and chief executive officer of BNY Mellon Asset Management.
"The creation of new ETFs complements what BNY Mellon Asset Management does already." BNY Quantitative Equity Management Group already subadvises for WisdomTree , among others. "BNY Mellon Asset Management's ability to distribute new ETFs in the marketplace extends our capabilities to new products that are becoming increasingly important in the retail and intermediary business," O'Hanley continued.
The ETF business is seen as an increasingly vibrant segment of asset management, according to Phil Maisano, chief investment strategist of BNY Mellon Asset Management and chief investment officer of Dreyfus. "The strategic venture between Dreyfus and WisdomTree creates a formidable player as both companies bring their respective expertise to the venture."
Jonathan Steinberg, WisdomTree chief executive officer said there is significant opportunity for ETFs to provide exposure to cash products around the world. "Despite U.S. cash being a $3 trillion market segment, today's U.S. investor is surprisingly limited in their ability to easily hold cash in non-U.S. cash investments. We are pleased to work with a widely recognized asset management industry leader in BNY Mellon Asset Management."
Through its asset servicing business, The Bank of New York Mellon will provide full fund accounting and administration services for the new ETFs.
The Dreyfus Corporation, established in 1951 and headquartered in New York City, is one of the US's leading asset management and distribution companies, managing more than $260 billion in mutual funds, separately managed accounts, and institutional portfolios. Dreyfus is part of BNY Mellon Asset Management.
WisdomTree Investments, Inc. has developed the first family of fundamentally weighted indexes and ETFs. The WisdomTree Indexes cover all major market capitalizations, both domestically and internationally. In contrast to capitalization- weighted indexes, the WisdomTree Indexes anchor the initial weights of individual stocks to a measure of fundamental value. The company believes its approach provides investors with a viable alternative to market cap-weighted indexes.
WisdomTree Trust is a Delaware statutory trust registered as an open-end investment company with the Securities and Exchange Commission. Each WisdomTree ETF is a series of WisdomTree Trust. As of January 2008, assets under management in the WisdomTree trust are more than $4 billion.