Even some of the most tried and true asset classes can benefit from upgrades. ETFs are the perfect vehicles with which to provide those improvements. WisdomTree answered that bell on January 22 when it rolled out two new ETFs — the WisdomTree Efficient TIPS Plus Gold Fund (GDT) and the WisdomTree Efficient Long/Short U.S. Equity Fund (WTLS). Those rookie funds are the seventh and eighth, respectively, in the issuer’s suite of capital efficient ETFs.
“WisdomTree’s capital-efficient family of funds is built on a simple idea: pairing traditional equity or fixed income exposures with complementary overlays designed to improve portfolio efficiency,” according to the issuer. “The goal is to seek greater diversification or return potential from the same dollar invested, freeing capital to be deployed elsewhere.”
GDT: Hot Gold TIPS
The aforementioned GDT could be appealing to advisors and investors for multiple reasons. Not least of those: gold’s current impressive bull market. Add to that, WisdomTree has a legacy of combining the commodity with other assets under one ETF roof with success.
For example, the WisdomTree Efficient Gold Plus Equity Strategy Fund (GDE ) is a combination gold futures/broad market equities fund. Meanwhile, the WisdomTree Efficient Gold Plus Gold Miners Strategy Fund (GDMN ) features exposure to gold futures and shares of mining companies.
GDT could also gain rapid traction because it uses a similar approach. In this case, the new ETF layers gold exposure with Treasury Inflation Protection Securities (TIPS). The resulting vehicle could be a potent inflation-fighting option for market participants. It’s annual expense ratio is 0.30%, or $30 on a $10,000 investment.
WTLS: The Long and the Short of It
(WTLS), the new long/short fund, provides exposure to domestic large-cap stocks. It comes with the potential protection of “a dynamic long/short U.S. equity overlay strategy.”
Arguably over-valued U.S. stocks could inspire advisor and investor interest in WTLS. Additionally, increased volatility caused by turbulent trade commentary from the White House and frequent barbs aimed at the Federal Reserve could boost the appeal of ETFs, such as WTLS, that provide protection. That new ETF charges 0.88% per year.
This article was prepared as part of WisdomTree’s general paid sponsorship of VettaFi | ETF Trends. This specific content within and any opinions expressed therein belong solely to VettaFi and do not reflect the opinion or analysis of WisdomTree, its employees, or its affiliates. Content published on VettaFi | ETF Trends is provided for educational purposes only and should not be considered investment or tax advice. For investment or tax advice, please consult a financial professional.
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