In the vast universe of investment strategies, only a select few ever ascend to the absolute top of their peer group—and even fewer stay there. In the highly competitive Morningstar U.S Large Blend category, which includes titans of index tracking, smart beta innovations and active strategies alike, ranking #1 over both one-year and three-year horizons is statistically exceptional. It's not just about relative outperformance—it's a signal that something unique is happening under the hood. Out of more than 1,000 contenders,¹ the WisdomTree Efficient Gold Plus Equity Strategy Fund (GDE) has achieved precisely that. This isn't a lucky streak or a niche anomaly; it's a deliberate convergence of two of the most potent return-generating forces in the current market regime: U.S. large-cap equity momentum and gold's renaissance as both an inflation hedge and portfolio diversifier.

What makes GDE's ascent particularly compelling is that it doesn't rely on complicated security selection, precise timing or opaque models. The equity sleeve is straightforward: a market capitalization-weighted allocation to the 500 largest U.S. stocks—a segment that has led the equity markets, with mega-cap resilience dominating the performance tables. But layered onto this equity core is the innovation. GDE overlays gold futures exposure in a capital-efficient structure, using only $10 of collateral for every $90 in gold futures while maintaining full equity exposure. In effect, GDE deploys a 90/90 structure: $90 in equities, $90 in gold and $10 in cash collateral, made possible through the futures market. This layered approach allows investors to hold dual exposures without requiring dual capital commitments.²

The period during which GDE climbed to the top of the Morningstar charts coincided with two reinforcing macro trends: the dominance of large-cap U.S. equities and a breakout in gold prices. The strategy didn't just benefit from exposure—it benefited from efficient exposure. Gold futures have surged amid declining real yields, central bank accumulation and heightened geopolitical risk.³ Meanwhile, U.S. large caps have defied pessimism and rate volatility to deliver strong returns, especially as investors concentrated on a narrow band of mega-cap winners. GDE captured both themes with precision, translating macro-level alignment into benchmark-beating performance. It's rare to be number one.

Figure 1a: Standardized Returns

As we noted, Morningstar places GDE within the broader U.S. Large Blend category. The leveraged exposure to gold futures is a very unique proposition.

• Over the one-year period ended March 31, 2025, GDE was actually the TOP-performing strategy in the very broad peer group—with 1,375 managers.
• For the three-year period ended March 31, 2025, GDE was also the TOP-performing strategy, in this case, among 1,274 different strategies.

Adding gold futures exposure on top of traditional equities is driving these results, but being the literal number one fund in any period in such a broad category is, in our opinion, an impressive feat.

Figure 1b: Ranking within the U.S. Large Blend Category

Conclusion: Hold Gold Without Sacrificing Equities

As with any investment strategy, the elements that have driven GDE's standout performance—surging gold prices and strong large-cap equity returns—are not static. Gold, in particular, is notorious for episodes of volatility and long stretches of subdued returns. GDE's embedded leverage, while essential to its capital efficiency, magnifies both gains and losses, introducing risk during periods when either equities or gold underperform. Moreover, the psychological barrier of "I've already missed it" can paralyze investor decision-making, especially when looking at charts already steeped in green. But history shows that gold's price drivers—real interest rates, currency shifts and geopolitical uncertainty—rarely move in a straight line. The environment that pushed gold to new highs in recent quarters may evolve, but it is far from resolved.

Much has been made of 2025's volatility in equity markets so far—we believe many wouldn't realize how GDE has been able to navigate this to a significant advantage with the efficient gold exposure.

Figure 2: A Game-Changer So Far in 2025

One of the most significant advantages of GDE is that it helps investors sidestep a false dilemma: choosing between equity participation and gold exposure. Many investors are understandably hesitant to shift capital into gold after a strong run, fearing they'll miss out on the next leg higher in equities—especially with mega-cap stocks continuing to drive benchmark returns. But GDE's structure offers a solution that reframes the conversation: It doesn't require an investor to give up equity exposure to gain access to gold. Instead, through capital-efficient layering of gold futures atop a traditional equity core, GDE enables simultaneous participation in both trends. This dual exposure can be a game-changer for portfolio construction—preserving upside potential while embedding diversification. While no strategy is without risk, and past performance is no guarantee of future results, GDE offers a thoughtful way to expand opportunity sets without diluting core equity allocations. It's not about timing gold—it's about holding both, smartly.

¹ Shown in figure 1b. Source: Morningstar Direct. The longest available period is from April 1, 2022, to March 31, 2025, based on April 1, 2022, being the closest next-month start relative to GDE’s inception on March 17, 2022. For completeness, we show it, but it is the same period as the “3-Year,” in this particular case. Past performance is not indicative of future results.

² This fund does not hold physical gold.

³ Sources: “How lower rates and central bank demand are fueling the gold rally,” Forbes, 3/25/24; “What does the record price of gold tell us about risk perceptions in financial markets?,” European Central Bank, 5/25. https://www.ecb.europa.eu/press/financial-stability-publications/fsr/focus/2025/html/ecb.fsrbox202505_02~7f616fcd3f.en.html