It uses a strategy that combines a high weighting in large-cap US stocks with intermediate-term US Treasury futures. By maximizing capital efficiency, it gives investors the opportunity to put the remaining capital to work in other assets.

It suits savvy investors who want to keep a core portfolio while also freeing up room for additional asset allocation.

It is an actively managed ETF launched by WisdomTree in 2018.

It achieves efficient leverage through a high weighting in physical equities combined with bond futures exposure. The bond portion uses Treasury futures to target intermediate duration, while the equity portion is held on a market-cap-weighted basis.

• High capital efficiency achieved through futures
• A more favorable tax structure compared with holding physical bonds

Assets under management (AUM) stand at $1.3B, and the expense ratio is 0.20% per year.

Compared with CGBL, a traditional asset allocation ETF, it uses leverage to gain higher exposure, and compared with all-weather strategies such as ALLW, it carries a higher equity weighting and therefore a more aggressive profile.

In phases when stocks and bonds rise together, the leverage effect has produced stronger results than typical balanced funds, but losses can arise in the bond portion when interest rates are rising.

As interest in capital-efficient investing grows, the fund has seen steady inflows, and demand is increasing among institutional and individual investors seeking portfolio diversification.

It delivers the effect of investing in stocks and bonds simultaneously at low cost, but leverage can increase volatility when markets move sharply.

CGBL, shown in the table, takes a traditional approach without leverage, while ALLW and RLY diversify across a broader mix of assets. For more aggressive bond leverage, consider UBT, and for capital efficiency that combines equities and gold, consider GDE. SWAN, which specializes in defending against black swan risk, can also serve as a complement.

These are the key points to review when considering an investment in NTSX. You should clearly recognize that it is a complex product that includes leverage, not a simple equity ETF.

Investors should be well aware that when interest rates and stock prices swing sharply at the same time or move in the same direction, the leverage effect can produce larger volatility than expected.

For experienced investors seeking to maximize portfolio efficiency, it is an innovative investment vehicle with high value as a core holding, and it can improve the completeness of an asset allocation strategy.