The exchange-traded fund specialist said the new share class will provide flexibility in managing currency risk.

WisdomTree has listed a British pound-hedged accumulating share class for its US equity income UCITS exchange traded fund on the London Stock Exchange.

This share class will use WisdomTree’s dividend weighting methodology for high yielding US equities, while managing currency risk through a monthly currency hedge.

WisdomTree’s US Equity Income UCITS ETF has delivered higher risk adjusted returns relative to the S&P 500 over the past year, the firm noted. It highlighted the need to be able to efficiently hedge out currency risk in light of macro events, including Brexit, quantitative easing and the expected tightening of US interest rates.

“In addition to providing a hedge against currency risk, this accumulating share class allows investors to benefit from the compounded returns in dividend-based strategies,” said Nizam Hamid, ETF strategist at WisdomTree.

The firm’s head of European distribution, Morgan Lee, added: “This additional share class is also a reflection of the positive feedback we have had from clients wanting to benefit from the efficiency of the share class structure we can offer.”

WisdomTree has around $38.8 billion in assets under management globally.