WisdomTree Managed Futures Strategy (WTMF)

ETF WisdomTree Managed Futures Strategy (WTMF)

Profile:

WTMF is an actively managed exchange-traded fund that aims to achieve positive absolute returns regardless of market conditions. It invests in a diversified portfolio of futures contracts across various asset classes, including equities, fixed income, currencies, and commodities. The fund uses a quantitative, trend-following model to identify and capitalize on potential price trends across these markets.

Objective:

The primary objective of WTMF is to generate consistent returns over the long term through actively managing its exposure to various futures contracts. The fund seeks to achieve this by capturing market trends while mitigating downside risk.

Issuer:

WTMF is issued by WisdomTree Investments, Inc., a global asset management firm with a reputation for innovation and expertise in alternative investment strategies. The firm has over $84.6 billion in assets under management and a track record of creating and managing successful ETFs.

Market Share:

WTMF accounts for approximately 2.2% of the total assets within the managed futures ETF category.

Total Net Assets:

WTMF has total net assets of approximately $901.7 million.

Moat:

WTMF's competitive advantages include:

• Active Management: The fund's actively managed approach allows it to dynamically adjust its portfolio based on market conditions and identified trends.
• Quantitative Model: The use of a quantitative model for identifying and capturing trends provides a systematic and disciplined approach to investment decision-making.
• Diversification: Investment across various asset classes aims to mitigate risk and provide stability to the portfolio.

Financial Performance:

WTMF has delivered positive returns over the past several years, outperforming its benchmark index (Bloomberg Commodity Index Total Return) in most periods. Its annualized return since inception is approximately 7.9%.

Growth Trajectory:

WTMF has experienced steady growth in its assets under management over time, reflecting investor confidence in its investment strategy and performance.

Liquidity:

WTMF has an average daily trading volume of over 50,000 shares, indicating its relatively high liquidity. The bid-ask spread is also tight, suggesting minimal cost associated with trading the ETF.

Market Dynamics:

Market factors affecting WTMF include economic growth, interest rate fluctuations, commodity price changes, and geopolitical events. The fund's performance can be impacted by these factors, although its diversification aims to mitigate individual market risks.

Competitors:

Key competitors of WTMF include:

• Invesco DB Commodity Index Tracking Fund (DBC)
• iShares S&P GSCI Commodity-Indexed Trust (GSG)
• Teucrium Wheat Fund (WEAT)

Expense Ratio:

The expense ratio of WTMF is 0.85% per year, which is considered competitive compared to other managed futures ETFs.

Investment approach and strategy:

WTMF utilizes a quantitative trend-following model to identify and capitalize on trends across various asset classes. The fund invests in futures contracts without any specific index tracking or sector focus. This flexibility allows the portfolio to adapt to changing market conditions.

Key Points:

• Actively managed ETF with a focus on achieving positive absolute returns.
• Invests in a diversified portfolio of futures contracts across various asset classes.
• Delivers positive returns over the long term while mitigating downside risk.
• Competitive expense ratio and strong track record.

Risks:

The main risks associated with WTMF include:

• Market Volatility: The fund's performance can be significantly impacted by market volatility and unexpected price movements.
• Tracking Error: As an actively managed fund, WTMF may not perfectly track its benchmark index, potentially impacting returns.
• Counterparty Risk: The fund relies on counterparties to fulfill futures contracts, introducing potential risks in case of counterparty default.

Who Should Consider Investing:

WTMF is suitable for investors seeking to:

• Diversify their portfolios with exposure to alternative assets.
• Achieve positive returns regardless of market conditions.
• Mitigate downside risk through active management.

Fundamental Rating Based on AI:

Based on an AI-powered analysis of various financial and market factors, WTMF receives a Fundamental Rating of 7.5 out of 10. The rating reflects the fund's strong track record, active management approach, and competitive expense ratio. However, investors should also consider the potential risks associated with market volatility and tracking error before investing.

Resources and Disclaimers:

This analysis is based on information obtained from WisdomTree Investments, Inc.'s website and other publicly available sources. It is not intended as a recommendation to buy or sell WTMF and should not be considered financial advice. Investors should conduct their own due diligence before making any investment decisions.