WisdomTree Launches New Eurozone Efficient Core ETF on the London Stock Exchange

The ETF responds to the growing demand for capital-efficient multi-asset instruments and represents the latest evolution of the traditional 60/40 portfolio. The product tracks the performance, before fees and expenses, of the WisdomTree Eurozone Efficient Core UCITS Index, with a total expense ratio (TER) of 0.20%.

A Smart Leveraged Portfolio

The underlying index provides 90% exposure to large and mid-cap Eurozone equities, combined with 60% exposure to Eurozone government bond futures. The latter component is funded by using the remaining 10% of the portfolio as cash collateral. The selected futures have maturities ranging from 2 to 30 years, and the exposures are rebalanced quarterly.

This structure results in a leveraged portfolio that is more capital-efficient than a traditional approach. The strategy is based on solid academic foundations and modern portfolio theory, which posits that the optimal portfolio for a given risk level is a leveraged version of the one with the best Sharpe ratio.

Words from WisdomTree

Pierre Debru, Head of Research, Europe, WisdomTree, commented:
” The newest addition to our Efficient Core UCITS ETF line-up reinforces our commitment to delivering innovative portfolio construction tools. Complementing the existing range, this strategy helps investors make the most of the capital they deploy. By combining equity market exposure with capital efficiency in a single ETF, it can act as a core equity replacement while freeing up capital for diversification or alternative investments. It’s a more innovative and flexible way to build long-term portfolios”

Alexis Marinof, CEO, Europe WisdomTree, added:
“Our mission is to deliver innovative solutions that add genuine value to investors’ portfolios. As an innovative ETF issuer, WisdomTree has a strong heritage of bringing strategies to market that solve real challenges and provide lasting benefits, whether enhancing efficiency, improving diversification, or offering new ways to capture long-term growth. Our focus is on intelligent innovation that helps investors build stronger, more resilient portfolios for the future and that’s exactly what the Efficient Core ETF range does.”

Context and Availability

The WisdomTree Eurozone Efficient Core UCITS ETF joins an existing range with $1.8 billion in assets and follows the launch of the WisdomTree US Efficient Core UCITS ETF (NTSX) and the WisdomTree Global Efficient Core UCITS ETF (NTSG), both of which have been well-received by the market.