WisdomTree 90/60 US Balanced (NTSX)

Overview

The WisdomTree 90/60 US Balanced Fund (NTSX) is a balanced fund that invests in a combination of US equities and US Treasury futures. It aims to deliver equity-like returns with lower volatility by allocating 90% of its assets to equities and 60% to US Treasury futures for leverage.

Reputation and Reliability

WisdomTree is a well-established ETF provider known for its innovative approach to indexing and factor-based investing.

Management Expertise

WisdomTree has a dedicated team of portfolio managers and analysts with experience in managing ETFs and implementing investment strategies.

Goal

To achieve equity-like returns with potentially lower volatility than a pure equity portfolio.

Investment Approach and Strategy

Strategy: Employs a combination of US equities and US Treasury futures to achieve a 90/60 exposure. It uses a levered exposure to bonds to enhance returns.

Composition Primarily invests in US equities and US Treasury futures. The fund's equity holdings are diversified across market capitalizations and sectors.

Market Share: NTSXu2019s market share in the leveraged equity/bond ETF sector is moderate.

Total Net Assets (AUM): 1470000000

Key Competitors

• SPDR Portfolio S&P 500 High Dividend ETF (SPYD)
• Invesco S&P 500 Equal Weight ETF (RSP)
• Vanguard Balanced Index Fund ETF (VBIA)

Competitive Landscape

The balanced ETF landscape is highly competitive, with many established players. NTSX differentiates itself with its unique 90/60 strategy, offering leveraged bond exposure. Advantages include potential for higher returns and lower volatility. Disadvantages include increased complexity and potential risks associated with leverage.

Historical Performance: Historical performance can be found in the annual/quarterly reports.

Benchmark Comparison: Performance is often compared to a traditional 60/40 stock/bond portfolio or the S&P 500 Index, adjusted for volatility.

Expense Ratio: 0.2

Average Trading Volume

The ETF exhibits a moderate average trading volume, indicating adequate liquidity for most investors.

Bid-Ask Spread

The bid-ask spread is typically tight, which reflects a cost-effective level of trading in normal market conditions.

Market Environment Factors

Interest rate movements, equity market performance, and investor sentiment all impact NTSX's performance. Economic indicators like GDP growth and inflation also play a significant role.

Growth Trajectory

Growth has been driven by increased investor interest in balanced strategies and the fund's ability to deliver competitive risk-adjusted returns. Changes to strategy and holdings are disclosed in the fund's prospectus.

Competitive Edge

NTSX's competitive edge lies in its innovative 90/60 strategy, which provides exposure to both equities and leveraged US Treasury futures. This approach aims to deliver equity-like returns with potentially lower volatility. The fund's relatively low expense ratio for a strategy that involves leverage enhances its appeal. It is also favored for investors seeking a more tax-efficient means of accessing leverage versus a traditional margin loan.

Volatility

NTSX's volatility is generally lower than a pure equity portfolio but higher than a traditional bond portfolio due to its leveraged exposure.

Market Risk

Market risk includes potential declines in both equity and bond markets. The fund is also subject to risks associated with leverage, such as increased volatility and potential for losses.

Ideal Investor Profile

Ideal investors are those seeking equity-like returns with potentially lower volatility, and who understand the risks and rewards of leveraged bond exposure.

Market Risk

Suitable for long-term investors and passive index followers who are comfortable with a moderate level of risk and understand the complexities of leveraged strategies.

WisdomTree 90/60 US Balanced Fund (NTSX) is a balanced ETF that seeks to provide equity-like returns with potentially lower volatility through a 90/60 exposure to equities and US Treasury futures. It offers a unique approach to balanced investing with a leveraged bond component. Investors should carefully consider the risks associated with leverage. Its expense ratio of 0.20% makes it a cost-effective alternative for investors looking to implement a balanced and tax-efficient strategy.

Data Sources:

• WisdomTree Funds Website
• ETF.com
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investors should consult with a financial advisor before making any investment decisions. Market share estimates are approximate and based on available data.