ETFs used to track markets. Now they're engineering outcomes.
That can mean stacking more exposure into each dollar, turning market moves into income, cushioning losses, or magnifying a bet.
Take the WisdomTree US Efficient Core Fund (NTSX). It allocates roughly 90% of its ******* ets to US stocks, using Treasury futures to add another 60% of bond exposure.
In effect, every $100 invested provides about $150 of market exposure — $90 in stocks and $60 in Treasurys.
The trick is that futures don't require the fund to put up the full value of the bonds. A smaller amount can serve as collateral, leaving most of the money available for stocks.
#stocks #market #futures #wisdomtree
That can mean stacking more exposure into each dollar, turning market moves into income, cushioning losses, or magnifying a bet.
Take the WisdomTree US Efficient Core Fund (NTSX). It allocates roughly 90% of its ******* ets to US stocks, using Treasury futures to add another 60% of bond exposure.
In effect, every $100 invested provides about $150 of market exposure — $90 in stocks and $60 in Treasurys.
The trick is that futures don't require the fund to put up the full value of the bonds. A smaller amount can serve as collateral, leaving most of the money available for stocks.
#stocks #market #futures #wisdomtree
2 months ago
