WisdomTree Plans Active ETF

WisdomTree recently filed for an actively managed ETF that will seek to combine exposure to equities with a futures portfolio in order to achieve total return.

The WisdomTree 90/60 U.S. Balanced Fund will invest 90% of its assets in large-cap U.S. equities, while the remainder of the portfolio will provide notional exposure representing 60% of the fund’s assets via a portfolio of U.S. Treasury futures contracts. The prospectus notes that the equities portfolio will generally be weighted by market capitalization.

Meanwhile, the 10% of the portfolio that serves a collateral for Treasury futures consists of cash and cash equivalents, with the futures portfolio primarily targeting contract positions with maturities that can range from two to 30 years, with a target duration of three to seven years.

The futures portfolio will reflect the level of interest rate risk of intermediate term fixed income, and the prospectus says the portfolio can be rebalanced when its exposures deviate from the stated 90/60 allocation by 5% or more. The filing does not include an expense ratio, ticker or listing exchange.

Contact Heather Bell at [email protected]