Download The Case for the Continuous Commodity Index Fund

 WisdomTree ETFs
CONTINUOUS COMMODITY INDEX FUND
GCC
Institutional investors have long utilized commodities, managed futures and other “alternative investments” as a
way to achieve true diversification and performance potential in almost any market. And as markets have become
more correlated and more volatile, these nontraditional investments have become increasingly popular. Of course,
the majority of alternative investments require substantial assets, have extensive fees and are typically available
only to institutional or ultrahigh-net-worth investors. Until now.
The WisdomTree Continuous Commodity Index Fund (GCC) provides an innovative and efficient way to
deliver broad-based, diversified commodity exposure. It aims to achieve this by using futures contracts to track
the Thomson Reuters Equal Weight Continuous Commodity Total Return Index (CCI-TR).
WHY COMMODITIES?
Commodities are basic goods—such as oil, coffee or orange juice—that are interchangeable with others of the
same type (crude oil is essentially the same, regardless of where it comes from). They have a historically low
correlation with equities and fixed income, and can be an effective diversification tool. CCI-TR comprises 17
commodity futures that are continuously rebalanced.
Thomson Reuters Equal Weight Continuous Commodity Total Return Index – 5.88% Per Component
Heating Oil
Wheat
Cocoa
Coffee “C”
Copper
Corn
Cotton
Crude Oil
Gold
Sugar
Soybeans
Silver
Platinum
Soy Oil
Natural Gas
Live Cattle
Lean Hogs
You cannot invest directly in an index. Subject to change.
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WisdomTree ETFs CONTINUOUS COMMODITY INDEX FUND
BROAD COMMODITY EXPOSURE AND DIVERSIFICATION
The index GCC tracks, CCI-TR, provides meaningful exposure to all four major commodity subgroups—energy,
metals, agriculture and softs. It potentially provides better diversification than many other indexes, such as the
S&P GSCI, that are over-weight to energy. Plus, the Index rebalances daily to keep weights constant, while other
commodity indexes below rebalance quarterly or annually.
Sector Allocation for the Thomson Reuters Equal Weight Continuous Commodity Total Return Index
18%
29%
Energy
Metals
Softs
Agriculture
24%
29%
LOWER-VOLATILITY APPROACH
CCI-TR has lower historical volatility1 than its commodity peer group. When compared to other commodity indexes,
this lower volatility is largely attributed to a lower weighting to the volatile Energy sector. Additionally, Index positions
spanning the near six months of the forward curve tend to reduce volatility and mitigate negative roll yield2.
Risk Adjusted Returns - Commodity Index Landscape (9/30/2011-9/30/2016)
25%
20%
S&P GSCI
CQG Rogers International Commodity
15%
Bloomberg Commodity
Thomson Reuters Equal Weight
Continuous Commodity Total Return
10%
Annualized Risk (%)
DBIQ Optimum Yield Diversified Commodity
5%
-13%
-12%
-11%
-10%
-9%
-8%
-7%
0%
-6%
Annualized Returns (%)
Past performance is not indicative of future results. You cannot invest directly in an index. Start date was chosen to coincide with a full five-year
standardized period.
Volatility: A measure of the dispersion of actual returns around a particular average level. Also known as “standard deviation.”
Roll yield: Yield that futures investors capture when their futures contracts converge to the spot price.
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WisdomTree ETFs CONTINUOUS COMMODITY INDEX FUND
The WisdomTree Continuous Commodity Index Fund (GCC) is a liquid, efficient and low-volatility way to
add and manage commodity exposure.
A RULES-BASED APPROACH
GCC takes a disciplined, rules-based approach to delivering continuous commodity exposure.
1.CCI-TR is based on the average daily price of the 17 component commodities, equally weighted, plus the yield on
90-day U.S. Treasury Bills. The Index is rebalanced daily to retain equal weighting.
2.To track the Index, GCC maintains long unlevered futures positions in each commodity, with excess cash held in
t-bills. Futures positions are rebalanced daily to match the index methodology.
3.To avoid taking physical delivery of the underlying commodities, GCC must sell maturing contracts and replace
them with longer-dated ones. This is known as “rolling forward.”
IMPORTANT TAX DETAILS
It is worth noting that GCC is taxed like a partnership and will generate a K-1, usually issued by March 1. Additionally,
commodity futures are taxed on mark-to-market gains and losses as of December 31, at a blended rate of 60%
long-term and 40% short-term capital gains.
WISDOMTREE CONTINUOUS COMMODITY INDEX FUND
Not only can commodities and futures provide diversification at both the asset class AND investment strategy
level, they may also help to lower portfolio risk, reduce volatility and enhance returns. The WisdomTree Continuous
Commodity Index Fund (GCC) provides all the advantages of a broad commodity index with the benefits of an
exchange-traded fund:
+ Broad market exposure
+ A consistent, rules-based strategy
+ Consistent equal weighting
+ Intraday liquidity
+ Low volatility
+ No redemption fees
+ Exposure across the forward curve
+ No sales load
+ Full transparency of strategy and holdings
+ No investment minimums
+ The Fund is not leveraged3
The futures contracts in the fund are fully collateralized.
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WisdomTree ETFs CONTINUOUS COMMODITY INDEX FUND
Fund Quick Facts
Ticker: GCC
Exchange: NYSE Arca
Expense Ratio: 1.05*%.
Structure: Open-end ETF. Registered under the Investment Company Act of 1933.
Objective: This Fund seeks to track the Thomson Reuters Equal Weight Continuous Commodity Total Return Index.
Primary Portfolio: Commodity futures.
Rebalancing: Daily rebalancing back to original sector weights.
*The expense ratio may be lower than that shown; please refer to the breakeven analysis section of the prospectus.
Commodities and futures are generally volatile and are not suitable for all investors.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Funds before investing.
To obtain a prospectus containing this and other important information, call 866.909.WISE (9473) or visit wisdomtree.com.
Investors should read the prospectus carefully before investing.
There are risks associated with investing, including possible loss of principal. An investment in this Fund is speculative, involves
a substantial degree of risk and should not constitute an investor’s entire portfolio. One of the risks associated with the Fund
is the complexity of the different factors that contribute to the Fund’s performance. These factors include use of commodity
futures contracts. Derivative investments can be volatile, and these investments may be less liquid than other securities, and more
sensitive to the effects of varied economic conditions. The value of the shares of the Fund relate directly to the value of the futures
contracts and other assets held by the Fund, and any fluctuation in the value of these assets could adversely affect an investment
in the Fund’s shares. The Fund is not an investment company within the meaning of the Investment Company Act of 1940, as
amended, and is not subject to the regulations thereunder. Please read the Fund’s prospectus for specific details regarding the
Fund’s risk profile.
Diversification does not eliminate the risk of experiencing investment losses. Investments in commodities may be affected by
overall market movements, changes in interest rates and other factors such as weather, disease, embargoes and international
economic and political developments.
Neither WisdomTree Investments, Inc., nor its affiliates, nor Foreside Fund Services, LLC., nor its affiliates provide tax advice. All
references to tax matters or information provided on this site are for illustrative purposes only and should not be considered tax
advice and cannot be used for the purpose of avoiding tax penalties. Investors seeking tax advice should consult an independent
tax advisor.
Ordinary brokerage fees apply.
Thomson Reuters Equal Weight Continuous Commodity Total Return Index (CCI-TR): A broad-based index consisting of 17 commodities. Each of the commodities
is continuously rebalanced, and a Treasury Bill return is added to the return from the commodities to reflect interest earned on margin. S&P GSCI Index: The
index—representing market beta—is world-production weighted. It is designed to be investable by including the most liquid commodity futures. CQG Rogers
International Commodity Index: Represents the value of a basket of commodities consumed in the global economy, ranging from agricultural to energy and metals
products. DBIQ Optimum Yield Diversified Commodity Index: Based on 14 commodities drawn from the energy, precious metals, industrial metals and agriculture
sectors. Bloomberg Commodity Index: Represents 20 commodities that are weighted to account for economic significance and market liquidity.
You cannot invest directly in an index.
WisdomTree Funds are distributed by Foreside Fund Services, LLC, in the U.S. only. Foreside Fund Services, LLC, is not affiliated with the other entities mentioned.
WTGM-1041
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