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NTSX ETF uses Treasuries futures to boost stock and bond exposure
The WisdomTree US Efficient Core Fund allocates about 90% to US stocks and adds roughly 60% bond exposure via Treasury futures, targeting about $150 of market exposure per $100 invested.
Wall Street has developed an approach to the classic 60/40 portfolio using capital efficient ETFs that layer more exposure without tying up the full notional amount in bonds, according to Yahoo Finance.
One example highlighted is the WisdomTree US Efficient Core Fund (NTSX). The fund directs roughly 90% of its assets to US stocks and uses Treasury futures to add another 60% of bond exposure, creating an effective setup where every $100 invested provides about $150 of market exposure, split between $90 in stocks and $60 in Treasuries.
The article notes that futures can require less upfront capital than a full bond allocation because only a smaller amount is posted as collateral, leaving more money available for stock exposure.
Yahoo Finance points to lingering weakness in long term Treasuries as part of the motivation to rethink traditional mixes, saying the iShares 20+ Year Treasury Bond ETF (TLT) remains roughly 50% below its 2020 peak after a historic selloff. It also describes tradeoffs common to income and derivative based structures, including the possibility that preset income conditions can lead to larger losses, with daily resets and volatility potentially changing longer term results compared with the underlying assets.