WisdomTree Launches Managed Futures Strategy ETF

WisdomTree is introducing the WisdomTree Managed Futures Strategy Fund (WDTI).

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.