4 min readBy Ron Koren ETF Insider
How does the BSMQ ETF work?
The BSMQ ETF is a specialized investment fund that focuses on a specific sector. This exchange-traded fund offers investors exposure to a range of companies in this sector.
The WisdomTree International Efficient Core Fund is managed by WisdomTree Asset Management, Inc. This actively managed ETF employs a model-based approach to achieve its investment objective, which involves investing in international equity securities while excluding the United States and Canada. The fund primarily allocates approximately 90% of its assets to a representative basket of developed market equity securities, weighted by market capitalization. Additionally, it utilizes the remainder of its net assets as collateral for U.S. Treasury futures contracts with maturities ranging from 2 to 30 years, aiming to maintain a target duration of 3 to 8 years. This strategy helps manage interest rate risk while providing diversified exposure to non-U.S. equities, making it an attractive option for investors seeking international diversification in their portfolios.
While the Nationwide Risk-Managed Income ETF (NTSI) primarily focuses on risk management and income generation through options strategies, it still offers dividend distributions to its investors. NTSI's dividend eligibility is tied to the performance of the underlying securities and the options strategies employed by the fund's management team. These distributions are typically made on a regular basis, providing investors with an income stream. It's important to note that NTSI's dividend distribution may vary based on market conditions and the effectiveness of its risk management techniques, making it a unique choice for income-seeking investors looking for a blend of dividends and risk management in their portfolio.
The WisdomTree International Efficient Core Fund employs an actively managed approach based on models. This ETF aims to achieve its investment objective by investing in international equity securities and U.S. Treasury futures contracts. It typically allocates around 90% of its assets to developed market equity securities, excluding the United States and Canada, with weights based on market capitalization. The remaining portion of the fund's assets is held as collateral for U.S. Treasury futures contracts, targeting a duration of 3 to 8 years. The ETF is designed to maintain a risk level consistent with intermediate-term fixed-income securities. It may periodically rebalance to realign with its original target allocations, and its portfolio encompasses sectors such as consumer discretionary, consumer staples, energy, financials, health care, industrials, information technology, materials, real estate, communication services, and utilities, as per Standard & Poor’s Global Industry Classification Standards (S&P GICS). As of September 30, 2022, the fund had a notable presence in the financials, health care, and industrials sectors.
The correlation characteristics of the NTSI ETF offer insights into its potential movements in tandem with other market benchmarks or assets. For investors keen on understanding the intricate correlation details of NTSI in relation to other market components, the ETF insider web app stands as a resourceful platform. It provides comprehensive data in a user-friendly format, showcasing overlaps, correlations, and more, enabling investors to make well-informed portfolio decisions.
The WisdomTree International Efficient Core Fund (NTSI) primarily focuses on international equity securities, excluding the United States and Canada, generally weighted by market capitalization. Additionally, the fund utilizes U.S. Treasury futures contracts to manage interest rate risk and aims for a target duration of 3 to 8 years. As of September 30, 2022, the fund has significant exposure to companies in the financials, health care, and industrials sectors, providing investors with diversified international equity exposure while managing interest rate sensitivity through Treasury futures contracts.
The WisdomTree International Efficient Core Fund (NTSI) employs an actively managed models-based strategy focused on international equity securities and U.S. Treasury futures contracts. NTSI primarily invests in developed market equity securities, excluding the United States and Canada, with weightings generally determined by market capitalization. Approximately 90% of the fund's assets are allocated to these international equities. The remaining portion of the net assets, expected to be in cash and cash equivalents, serves as collateral for U.S. Treasury futures contracts with maturities ranging from 2 to 30 years, aimed at achieving a target duration of 3 to 8 years. This duration strategy is used to manage interest rate risk within the portfolio. The fund's futures contracts notional exposure is approximately 60% of its net assets. WisdomTree Asset Management uses the Standard & Poor’s Global Industry Classification Standards (S&P GICS) to classify sectors, including consumer discretionary, consumer staples, energy, financials, health care, industrials, information technology, materials, real estate, communication services, and utilities. As of September 30, 2022, the financials, health care, and industrials sectors were significant components of the fund's exposure.For deeper insights into NTSI's exposure and correlations, you can utilize ETF Insider's web app, which provides comprehensive data and visualizations for all U.S. ETFs, helping you make informed investment decisions.
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4 min readThe BSMQ ETF is a specialized investment fund that focuses on a specific sector. This exchange-traded fund offers investors exposure to a range of companies in this sector.
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