At a glance
- ETF Trends says active management can let a manager adjust risk as conditions change, while index-based alternatives follow rules.
- ETF Trends quoted Morgan Stanley as saying: "As market volatility continues due to inflation, Central Bank policy, and other concerns, investors may be seeking ways to add resiliency to their portfolios."
- As of Oct. 15, the S&P 500 was up 14.1% year to date and the MSCI EAFE Index 9.7%, per ETF Trends.
WisdomTree brought two actively managed long/short equity ETFs to market earlier this month, ETF Trends reported: the WisdomTree Efficient Long/Short U.S. SmallCap Equity Fund (WSLS) and the WisdomTree Global Alpha Fund (WTAL).
WSLS is a U.S. small-cap strategy and WTAL is a global one. ETF Trends says active management can let a manager adjust risk as conditions change, while index-based alternatives follow rules.
ETF Trends quoted Morgan Stanley as saying: "As market volatility continues due to inflation, Central Bank policy, and other concerns, investors may be seeking ways to add resiliency to their portfolios." The bank also said long-short strategies are "not required to maintain static exposures, nor are they tethered to a benchmark."
As of Oct. 15, the S&P 500 was up 14.1% year to date and the MSCI EAFE Index 9.7%, per ETF Trends. The article also points to the 2000-2002 and 2007-2008 bear markets, the down markets of mid-2011 and late-2018, the start of the pandemic in 2020 and the 2022 bear market, as measured by the HFRI Equity Hedge (Total) Index. It notes the new funds have no track record and that past performance does not predict future returns.
ETF Trends disclosed the piece was prepared as part of WisdomTree's general paid sponsorship of VettaFi | ETF Trends.
Reported by the Launches desk from ETF Trends. Published . Corrections