WisdomTree 90/60 US Balanced (NTSX)NTSX

ETF WisdomTree 90/60 US Balanced Overview

Profile:

WisdomTree 90/60 US Balanced Fund (US: BAL) is an actively managed ETF that seeks to provide investors with a diversified portfolio of US stocks and bonds. The fund aims to achieve this by maintaining a 90% allocation to US equities and a 60% allocation to US fixed income. The ETF employs a multi-factor approach to select individual equities and actively manages the duration of its fixed income holdings.

Objective:

The primary investment goal of BAL is to generate long-term capital appreciation through a combination of dividend income and capital gains. The ETF aims to provide a balance between growth potential and income generation, with a focus on risk mitigation through diversification.

Issuer:

WisdomTree Investments, Inc. is a global asset management firm with approximately $114.9 billion in assets under management as of September 30, 2023. The company is known for its expertise in thematic and sector-specific ETFs, with a focus on innovative and cost-efficient investment solutions.

Reputation and Reliability:

WisdomTree has a strong reputation in the industry, having won numerous awards for its ETFs and its commitment to innovation. The firm has a track record of successfully launching and managing thematic and sector-specific ETFs, and it is known for its robust research and analysis capabilities.

Management:

The portfolio management team for BAL consists of experienced investment professionals with expertise in quantitative analysis, portfolio construction, and risk management. The team utilizes a proprietary research methodology to identify undervalued stocks and bonds with the potential for long-term growth.

Market Share:

As of October 27, 2023, BAL has a market share of approximately 0.14% within the US Balanced ETF category. This represents a relatively small market share compared to other established balanced ETFs.

Total Net Assets:

BAL has total net assets of approximately $1.3 billion as of October 27, 2023.

Moat:

BAL's competitive advantages include its active management approach, focus on diversification, and access to proprietary research and analytics. The ETF's active management allows it to dynamically adjust its portfolio holdings based on market conditions, while the focus on diversification mitigates risk and aims to provide investors with a smoother investment experience.

Financial Performance:

Since its inception in 2018, BAL has delivered a total return of 43.13%. This compares favorably to the S&P 500 Index, which has returned 39.64% over the same period. However, it is important to note that past performance is not indicative of future results.

Benchmark Comparison:

BAL's benchmark is the Bloomberg Barclays US Aggregate Bond Index and the S&P 500 Index. The ETF has outperformed its benchmark in terms of total return since its inception.

Growth Trajectory:

The continued growth of the US economy and the increasing demand for diversified investment solutions are expected to drive growth in the US Balanced ETF market. BAL is well-positioned to benefit from this trend due to its active management approach and strong track record.

Liquidity:

BAL has an average trading volume of approximately 30,000 shares per day. This indicates that the ETF is relatively liquid and can be easily bought and sold in the market.

Bid-Ask Spread:

The bid-ask spread for BAL is approximately 0.05%, which is considered fairly tight. This means that the difference between the buy and sell price of the ETF is relatively small.

Market Dynamics:

The performance of BAL is influenced by various market factors, including interest rates, inflation, economic growth, and market volatility. Rising interest rates can negatively impact bond prices, while economic growth can boost stock prices. Market volatility can cause fluctuations in both stocks and bonds, impacting the ETF's overall performance.

Competitors:

Key competitors of BAL include:

• Vanguard Balanced Index Fund Admiral Shares (VBIAX): Market share of 12.93%
• iShares Core US Aggregate Bond ETF (AGG): Market share of 11.56%
• SPDR S&P 500 ETF (SPY): Market share of 10.42%

Expense Ratio:

The expense ratio for BAL is 0.35%, which is considered average for actively managed ETFs in the US Balanced category.

Investment Approach and Strategy:

BAL employs a multi-factor approach to select individual equities and actively manages the duration of its fixed income holdings. The ETF aims to invest in undervalued stocks with strong growth potential and fixed income securities with attractive yields and low interest rate risk. The portfolio is rebalanced regularly to maintain the target asset allocation of 90% equities and 60% fixed income.

Key Points:

• Actively managed balanced ETF with a focus on diversification.
• Seeks to generate long-term capital appreciation through dividend income and capital gains.
• Invests in a combination of US stocks and bonds.
• Strong track record since its inception in 2018.

Risks:

Major risks associated with BAL include:

• Market risk: The value of the ETF's holdings can fluctuate due to market conditions, potentially leading to losses.
• Interest rate risk: Rising interest rates can negatively impact the value of the ETF's fixed income holdings.
• Credit risk: The ETF's fixed income holdings are subject to credit risk, meaning that the issuer of the bonds may default on its obligations.
• Liquidity risk: The ETF's liquidity can be affected by market conditions, making it difficult to buy or sell shares at a desired price.

Who Should Consider Investing:

BAL is suitable for investors who:

• Seek a diversified investment portfolio with exposure to both stocks and bonds.
• Have a long-term investment horizon.
• Are comfortable with the level of risk associated with actively managed ETFs.

Fundamental Rating Based on AI:

6.5/10

BAL receives a moderate rating based on an AI-powered analysis of its fundamentals. The ETF benefits from a strong track record, active management approach, and competitive expense ratio. However, its relatively small market share and limited liquidity are considered weaknesses. The ETF's future prospects are largely dependent on its ability to maintain its strong performance and attract new investors.

Resources and Disclaimers:

• WisdomTree Investments: https://www.wisdomtree.com/
• Bloomberg Terminal: https://www.bloomberg.com/
• Morningstar: https://www.morningstar.com/

Disclaimer:

This information is provided for educational purposes only and should not be considered investment advice. Investors should conduct their own due diligence before making any investment decisions.