WisdomTree has rolled out a “capital efficient alternative” to the traditional 60/40 multi-asset portfolio.
The WisdomTree Global Efficient Core UCITS ETF index aims to provide a 90% exposure to large-cap global developed equities and 60% to global government bond futures, providing a leveraged alternative to other multi-asset funds.
The futures portfolio consists of US, German, UK and Japanese government bond futures contracts with maturities ranging from two to 30 years.
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“The Efficient Core concept aims to provide another powerful tool for investors to push the boundaries of what is possible to improve their portfolios,” Pierre Debru, head of quantitative research & multi asset solutions at WisdomTree, said.
“By combining the two main tools from the modern portfolio theory, diversification and leverage, it is possible to unlock even more efficient portfolios.
“The result is intended to be a portfolio that maintains a high correlation to the market for possible equity upside, with potentially lower volatility and drawdowns through greater fixed income exposure, while also allowing for allocations to other diversifiers or alternative strategies, like broad commodities, gold or crypto assets.”
The strategy charges a 0.25% total expense ratio. It listed today on the Börse Xetra and Borsa Italiana, and will trade on the London Stock Exchange tomorrow (13 November).
