An Established Strategy—Now in the Exchange-Traded Fund (ETF) Structure
Traditionally, to access managed futures strategies, individuals would have to make significant investments with hedge funds or commodity trading advisors (CTAs)—an expensive proposition. These investments typically charge a 20% performance fee on top of a 2% annual fee. Additionally, CTAs generally lack transparency, have limited liquidity and can introduce single-manager risk.
The WisdomTree Managed Futures Strategy Fund (WDTI) is managed using a quantitative, rules-based strategy designed to provide returns that correspond to the performance of the DTI Index. These are some of the advantages we feel an ETF structure can provide:
• Low fees of only 95 basis points3
• Intraday liquidity
• Full transparency of strategy and holding
• No investment minimums, sales loads or redemption fees
• No K-1 filing
Learn more about our approach to alternatives here.
1Sources: WisdomTree, Bloomberg; refers to the S&P 500 Index high on 9/18/14.
2Sources: WisdomTree, Bloomberg, 9/30/04–9/30/14.
3Ordinary brokerage commissions apply.
Important Risks Related to this Article
Diversification does not eliminate the risk of experiencing investment losses. There are risks associated with investing, including possible loss of principal. An investment in this Fund is speculative and involves a substantial degree of risk. One of the risks associated with the Fund is the complexity of the different factors that contribute to the Fund’s performance, as well as its correlation (or non-correlation) to other asset classes. These factors include use of long and short positions in commodity futures contracts, currency forward contracts, swaps and other derivatives. Derivative investments can be volatile, and these investments may be less liquid than other securities, and more sensitive to the effects of varied economic conditions.