For some investors, core investing is all about allocating to the lowest cost beta exposure in the market. The WisdomTree approach to core investing seeks to not only provide a low-cost building block for asset allocation, but also meaningfully boost the capital efficiency in the core to allow investors more flexibility and room to add further portfolio diversifiers. We accomplish this through an overlay of U.S. Treasury futures.
We started building the Efficient Core family with a focus the U.S. large cap market, but have expanded our lineup to include similar U.S. Treasury futures overlays for developed international and emerging markets. We believe the idea is simple: the additional diversification that bond futures can provide is helpful not only for U.S. markets, but also when investing abroad; and this extended family can help create more room for diversifiers in a portfolio.
A Core Alternative
Learn more about WisdomTree's Efficient Core Funds and how the Funds can help diversify your portfolio while providing upside potential during bull markets, with lower volatility and smaller drawdowns during market corrections.
Our Efficient Core Fund Family
Commentaries from Our Thought Leaders
A little more than three years ago, we launched our WisdomTree U.S. Efficient Core Fund (NTSX). Since the launch, this Fund has outperformed the S&P 500 with fewer drawdowns. Jeremy Schwartz and Brad Krom discuss why now is the right time to reconsider how NTSX could enhance your portfolio.
Many advisors are seeking less-traditional and more-diversifying portfolio solutions for their clients due to low interest rates and high equity market valuations. Against this backdrop, Scott Welch proposes our Endowment Model and Volatility Management Model as potential solutions for today’s market.