Investor Presentaiton
Wisdom Tree Japan Hedged Equity Index: Positive Correlation.
between Excess Returns and Rising US Treasury Yields
+ Trailing 3-year correlation using excess returns (vs. S&P 500) vs. change in 10-year
US Treasury Yield
+ Similar to more economically sensitive sectors, the Wisdom Tree Japan Hedged
Equity Index has a positive correlation of outperformance to rising US rates
Correlation: Excess Returns vs. 10-Year US Treasury Yield
Cyclical
Energy
Financials
Industrials
Materials
55%
40%
28%
28%
WT Japan Hedged Equity
17%
Cons. Disc
-8%
Info. Tech
Comm. Svc.
-9%
-13%
Real Estate
-44%
Health Care
-50%
Defensive
Cons. Staples -65%
Utilities -66%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
Source: Wisdom Tree, S&P, FRED. Correlation measures monthly excess returns versus S&P 500 between 3/31/2018-3/31/2021. Sector returns from S&P
500 sectors. Japan measured by Wisdom Tree Japan Hedged Equity index. You cannot invest directly in an index.
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