There’s an ETF that caught my eye recently – the WisdomTree US Core Efficient Fund (NTSX). It offers a prudent 1.5x leverage on a traditional 60/40 US portfolio with investments in both US equities and US treasuries to create a more optimal portfolio. Here’s why it’s interesting:

• It takes a traditional 60/40 portfolio and applies 1.5x leverage on it
• Inherent leverage within the ETF means no margin calls from your broker
• It has a higher Sharpe ratio compared to a 100% equities portfolio

Every investor looks for ways to balance risks and returns. The traditional sweet spot is the 60/40 portfolio – 60% to stocks (equities) and 40% to bonds (fixed income). This allocation has been tried-and-tested over multiple decades and has resulted in decent results for those that have stuck with it. Over the past 25 years, the simple 60/40 portfolio returned about 9% annually. However, we are moving towards an environment of lower yields for both equities and bonds, potentially making retirement a greater challenge for investors....