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WISD ETF — Holdings & Analysis

The Wisdom Short Duration Income ETF (WISD) is an actively managed ETF with $0.37 billion in assets under management that invests in global fixed-income securities with a short duration of one year or less. WISD differentiates itself through its active management style and focus on short-duration global fixed income, including US and foreign bonds, commercial paper, and mortgage-backed securities. With an expense ratio of 0.42%, WISD aims to provide income while managing interest rate and currency risks through hedging strategies, potentially leading to higher portfolio turnover.

Wisdom Short Duration Income ETF (WISD) ETF — Price, Holdings & Analysis

The Wisdom Short Duration Income ETF (WISD) is an actively managed ETF with $0.37 billion in assets under management that invests in global fixed-income securities with a short duration of one year or less. WISD differentiates itself through its active management style and focus on short-duration global fixed income, including US and foreign bonds, commercial paper, and mortgage-backed securities. With an expense ratio of 0.42%, WISD aims to provide income while managing interest rate and currency risks through hedging strategies, potentially leading to higher portfolio turnover.

ETF Overview

WISD broadly invests in global fixed-income securities with a short duration of one year or less. The funds portfolio includes US and foreign bonds, debt securities, commercial paper, mortgage-backed securities, floating-rate securities, and up to 30% in asset-backed securities, such as CLOs rated investment-grade. Junk bonds are limited to 15% of net assets. The fund may invest up to 50% in foreign-denominated securities, including 10% in emerging markets. Foreign currency exposure is capped at 10% using derivatives such as treasury and bond futures, swaps, and credit default swaps to hedge interest rate and currency risks. The fund may have a higher portfolio turnover rate due to active and frequent trading. Prior to November 11, 2025, the fund operated as a mutual fund before converting to an actively managed ETF structure, launching with $368.81 million in assets.
WISD aims to generate income by investing in a diversified portfolio of global fixed-income securities with a short duration, targeting one year or less. The fund's strategy involves actively managing its holdings across various debt instruments, including U.S. and foreign bonds, commercial paper, mortgage-backed securities, and floating-rate securities. Up to 30% of the portfolio can be allocated to asset-backed securities, such as investment-grade CLOs, while junk bonds are limited to 15% of net assets. The fund may invest up to 50% in foreign-denominated securities, with a maximum of 10% allocated to emerging markets. To mitigate risks associated with foreign currency exposure, WISD employs derivatives like treasury and bond futures, swaps, and credit default swaps to hedge interest rate and currency fluctuations. This active management approach may result in a higher portfolio turnover rate as the fund frequently trades to optimize its holdings. WISD converted from a mutual fund to an ETF on November 11, 2025, retaining its focus on short-duration income generation.

Risk Metrics

WISD's active management and investment in global fixed-income securities introduce several risks. The fund's exposure to foreign-denominated securities, up to 50% of the portfolio, carries currency risk, although this is partially mitigated by hedging strategies. The inclusion of up to 15% in junk bonds adds credit risk, as these securities are more susceptible to default. The fund's focus on short-duration bonds helps to mitigate interest rate risk, but it may also limit potential capital appreciation in a rising rate environment. The expense ratio of 0.42% creates an expense drag on returns, which can impact overall performance, especially in a low-yield environment. The potential for higher portfolio turnover due to active trading could also lead to increased transaction costs, further impacting returns. Investors should carefully consider these risks before investing in WISD.

Expense Ratio

0.42%

Dividend Yield

0.00%
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Questions & Answers

What is WISD and what does it track?

The Wisdom Short Duration Income ETF (WISD) is an actively managed fund that invests in global fixed-income securities with a short duration of one year or less. Unlike passive ETFs that track an index, WISD's portfolio is actively managed by investment professionals who make decisions on asset allocation and security selection. The fund's investments include U.S. and foreign bonds, commercial paper, mortgage-backed securities, and asset-backed securities, with a focus on managing interest rate and currency risks. WISD aims to provide income while preserving capital by focusing on short-duration assets.

What is the expense ratio for WISD?

The expense ratio for WISD is 0.42%. This means that for every $10,000 invested in the fund, $42 is used to cover the fund's operating expenses. While this is a reasonable expense ratio for an actively managed ETF, it's important to consider that passively managed ETFs in the same category may have lower expense ratios. Investors should weigh the potential benefits of active management against the cost when considering WISD.

What are the top holdings in WISD?

As an actively managed ETF, WISD's holdings are subject to change. While a precise list of current top holdings requires real-time data, the fund's investment strategy indicates a focus on short-duration fixed income securities. These typically include U.S. Treasury securities, corporate bonds, commercial paper, and mortgage-backed securities. The fund may also hold asset-backed securities, such as CLOs, and foreign-denominated securities. Investors should consult the fund's official website for the most up-to-date holdings information.

Is WISD a good long-term investment?

Whether WISD is a suitable long-term investment depends on an investor's individual circumstances and risk tolerance. The fund's focus on short-duration fixed income makes it relatively less sensitive to interest rate changes, which can be beneficial in a rising rate environment. However, the 0.42% expense ratio will impact long-term returns. Investors seeking income with a focus on capital preservation may find WISD appealing, but it's crucial to consider the fund's active management style and potential for higher turnover. Past performance does not guarantee future results.

How does WISD compare to similar ETFs?

WISD differentiates itself from other short-term bond ETFs through its active management and global focus. Many competing ETFs are passively managed and track specific indexes, potentially resulting in lower expense ratios. WISD's expense ratio of 0.42% is higher than some passively managed alternatives, but the active management may provide the potential for outperformance. The fund's AUM of $0.37 billion indicates a moderate level of investor interest. Investors should compare WISD's performance, expense ratio, and investment strategy to other short-term bond ETFs to determine the best fit for their portfolio.

Does WISD pay dividends?

According to the provided data, WISD has a dividend yield of 0.00%. This suggests that the fund is not currently distributing dividends to its shareholders. While the fund invests in income-generating fixed-income securities, the returns may be reinvested or used to cover fund expenses. Investors seeking current income may want to consider other fixed-income ETFs with a higher dividend yield.