WisdomTree Pays $4M SEC Penalty For Compliance Failures Related To ESG Funds
Portfolio Pulse from Erica Kollmann
WisdomTree Asset Management Inc. has been fined $4 million by the SEC for compliance failures related to ESG funds. The firm invested in fossil fuels and tobacco, contradicting its ESG-marketed ETFs' prospectuses. WisdomTree has since liquidated the funds.
October 21, 2024 | 10:57 pm
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NEGATIVE IMPACT
WisdomTree's compliance failures in ESG funds led to a $4 million SEC penalty. The firm invested in fossil fuels and tobacco, contradicting its ESG-marketed ETFs' promises. This may affect investor confidence in WisdomTree's other funds, including DEM.
The SEC penalty highlights compliance issues in WisdomTree's ESG funds, which could lead to decreased investor confidence in its other funds, including DEM. The negative publicity and potential loss of trust may impact DEM's short-term performance.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 70