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Products January 5, 2011
WisdomTree Launches Managed Futures Strategy ETF
WisdomTree is introducing the WisdomTree Managed Futures Strategy Fund (WDTI).
Reported by Rebecca Moore
WDTI is an actively managed exchange-traded fund (ETF) that employs a quantitative, rules-based strategy designed to provide returns that correspond to the performance of the Diversified Trends Indicator. It is listed on the NYSE Arca with an expense ratio of 0.95%.
According to a press release, the Diversified Trends Indicator or the DTI Index is a long/short rules-based, managed futures strategy developed by Alpha Financial Technologies (AFT) and its founder, Victor Sperandeo. The DTI Index began live calculation in 2004 and incorporates a diversified group of 24 liquid components of exchange-traded commodity and financial futures contracts.
The announcement said WDTI seeks to provide:
- Diversification through uncorrelated asset mix and a long/short strategy;
- Potential to profit from rising and falling markets;
- Potential to perform in inflationary and deflationary environments; and
- Exposure to commodities which are currently enjoying strong global demand.