The WDIG ETF is an actively managed product that seeks total return by combining equities and futures contracts tied to strategic metals and rare earths mining activity. Changes in the metals supply chain and related industries affect the value of the underlying assets.

It suits investors who understand the volatility of strategic metals prices and mining cycles, and who want to add commodity-related exposure that differs from conventional equity assets in their portfolios.

It is an ETF with an active management approach, run by WisdomTree.

The manager uses a model to select mining companies based on the relevance of their strategic metals and rare earths businesses, and builds capital-efficient exposure by adding metals futures contracts. Because the fund uses futures and listed stocks rather than holding physical metals directly, commodity prices, corporate earnings and contract market conditions are all reflected in its results.

• By combining equities and futures, the structure gives exposure to both strategic metals prices and the share prices of mining companies.
• It uses a model that considers revenue linkage to relevant businesses and market accessibility.

Assets under management (AUM) stand at $3.6M, and the expense ratio is 0.55% per year.

Trading conditions for this product can vary with market circumstances, so it is sensible to check the bid-ask spread and trading volume separately before buying. The fee should be reviewed alongside the automatically displayed figure and compared with the structure of similar commodity products.

The performance of the WDIG ETF can vary in complex ways when the spot and futures markets for strategic metals, miners' cost structures and industrial demand outlooks move in different directions. It is hard to assume that a rise in metals prices will immediately translate into higher share prices for the holdings, and the effect of rolling contracts at expiry should also be considered.

Interest in rare earths and strategic metals exposure is influenced by factors such as electrification, data processing infrastructure, the defense industry and supply chain realignment. Even when thematic demand flows in, futures market liquidity, mining companies' business risks and regional regulatory changes all act at the same time, so fund flows alone have limited value as a basis for judgment.

Combining equities and futures broadens exposure to strategic metals, but commodity, mining and derivatives risks can all act together.

No comparable listed fund candidates could be identified in the data provided, so no specific alternative ETF ticker is suggested. When reviewing the holdings of the WDIG ETF, you can look at ATI, MTRN, MP, UUUU and SCCO together. Because each of these stocks has a different metals exposure and its own company-specific risks, it is important to compare them by weighing not only their portfolio weights but also the role of the futures contracts, trading conditions and overall mining industry volatility.

When evaluating the WDIG ETF, rather than judging it on the strategic metals theme alone, you should check the combined structure of futures and stocks, the mining industry sensitivity of the holdings and the trading conditions together. In particular, keep in mind that commodity prices and corporate earnings may not move in the same direction.

Both commodity futures and mining company stocks can be highly volatile, and the possibility that the two asset classes weaken at the same time cannot be ruled out. Geopolitical factors, shifts in the demand outlook, production disruptions and currency movements can affect metals prices and the value of the holdings in complex ways.

The WDIG ETF is an actively managed ETF worth considering for investors who want combined exposure to strategic metals and rare earths stocks and futures. However, it is appropriate to first recognize the lack of any distribution history and the risk of thematic concentration, and to check whether you can tolerate the swings of the mining industry and the futures market.