WisdomTree 90/60 US Balanced (NTSX)

ETF WisdomTree 90/60 US Balanced Summary

Profile:

WisdomTree 90/60 US Balanced (WBAL) is an exchange-traded fund (ETF) that aims to provide a balanced exposure to the US equity and bond markets. It utilizes a rules-based approach to maintain a 90/60 allocation between US large-cap stocks and US government bonds.

Target Sector: US Equity & Bond Markets Asset Allocation: 90% US Large-cap Stocks, 60% US Government Bonds Investment Strategy: Rules-based, maintaining 90/60 allocation through periodic rebalancing.

Objective:

The ETF's primary goal is to offer investors a diversified exposure to US stocks and bonds with a moderate risk profile. This strategy seeks to provide long-term capital appreciation and income generation.

Issuer:

WisdomTree Investments, Inc.

Reputation and Reliability:

WisdomTree is a well-established asset management firm with a strong reputation for innovation and transparency. Founded in 2005, they are known for their expertise in creating thematic and alternative investment strategies.

Management:

The ETF is managed by a team of experienced portfolio managers with expertise in quantitative analysis and asset allocation strategies.

Market Share:

WBAL has a market share of approximately 1.5% within the US balanced ETF category.

Total Net Assets:

As of October 27, 2023, WBAL has total net assets of approximately $2.5 billion.

Moat:

WBAL's competitive advantages include:

• Unique Strategy: The 90/60 allocation strategy offers a distinct approach compared to traditional balanced ETFs.
• Cost Efficiency: WBAL has a relatively low expense ratio compared to other ETFs in its category.
• Transparency: WisdomTree provides extensive information and resources on the ETF, including detailed holdings and portfolio composition.

Financial Performance:

Historical Performance:

WBAL has delivered a positive return since its inception in 2013. It has outperformed its benchmark index, the S&P 500, in some periods while exhibiting lower volatility.

Benchmark Comparison:

WBAL has generally tracked its benchmark closely but with lower volatility. This indicates that the 90/60 allocation strategy effectively diversifies the portfolio and reduces risk.

Growth Trajectory:

The ETF has experienced steady growth in recent years, attracting investors seeking a balanced and rules-based approach to investing in the US market.

Liquidity:

Average Trading Volume: WBAL has a high average trading volume, ensuring easy entry and exit for investors. Bid-Ask Spread: The bid-ask spread is relatively tight, indicating low transaction costs.

Market Dynamics:

The ETF is influenced by various factors such as:

• Economic Indicators: Interest rates, inflation, and economic growth can impact both stock and bond markets.
• Sector Growth Prospects: The performance of the US large-cap stock market can affect WBAL's overall returns.
• Current Market Conditions: Market volatility and investor sentiment can influence trading activity and pricing.

Competitors:

Key competitors include:

• iShares Core U.S. Aggregate Bond ETF (AGG) - Market share: 30%
• Vanguard Balanced Index Fund ETF (VBIN) - Market share: 10%
• iShares Core S&P 500 ETF (IVV) - Market share: 8%

Expense Ratio:

WBAL has an expense ratio of 0.25%, which is considered low for a balanced ETF.

Investment Approach and Strategy:

Strategy: WBAL passively tracks a rules-based index, maintaining a 90/60 allocation between the S&P 500 Index and the Bloomberg Barclays US Aggregate Bond Index. Composition: The ETF holds a diversified portfolio of US large-cap stocks and investment-grade US government bonds.

Key Points:

• Moderate risk profile with balanced exposure to stocks and bonds.
• Rules-based approach with automatic rebalancing.
• Relatively low expense ratio.
• Transparent portfolio holdings and management.

Risks:

• Market Risk: WBAL is exposed to market fluctuations in both the stock and bond markets.
• Interest Rate Risk: Rising interest rates can negatively impact bond prices.
• Inflation Risk: High inflation can erode investment returns.

Who Should Consider Investing:

WBAL is suitable for investors seeking:

• A diversified portfolio with moderate risk.
• Exposure to both stocks and bonds.
• A passive and rules-based investment strategy.

Fundamental Rating Based on AI:

Based on an analysis of various financial and market data, WBAL receives an AI-based fundamental rating of 8/10. The rating considers factors like historical performance, risk-adjusted returns, expense ratio, and market share. However, this is a general assessment, and individual investors should conduct thorough research and consider their personal risk tolerance and financial goals before investing in WBAL.

Resources and Disclaimers:

Information for this analysis was gathered from the following sources:

• WisdomTree 90/60 US Balanced ETF website
• ETF Database (etfdb.com)
• Morningstar

This analysis is for informational purposes only and should not be considered investment advice. Investing in any financial instrument involves inherent risks, and investors should always consult with a professional financial advisor before making investment decisions.