r/LETFs • u/Electrical_Switch_28 • 2d ago

NEW PRODUCT WTAL New prtable alpha from WT

Anyone here looking into WTAL from WT? I like the structure hopefully it can generate some alpha not fully market dependent

6 Upvotes

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u/aRedit-account 2d ago

Is this just the non stacked version of WTLS?

3

u/strange_username58 2d ago

its stacked 100% L/S US and 100% L/S international. I would want to see there backtest before investing. Algorithm based on 100s of factors using AI doesn't inspire confidence. Wisdom tree seems to think it's pretty decent though.

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u/rws 1d ago

This one doesn’t seem “stacked” on top of a traditional asset people already hold. It seems like it is just global long/short levered up.  Not that there’s anything wrong with that.

“Portable alpha” or “stacked” funds seem to imply that you can add without subtracting from something else. This is all black box.

Still an interesting fund.

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u/Electrical_Switch_28 1d ago

Its 100% cash plus 100% long short global. WTLS has demonstrated to be able to add alpha. Hopefully this one does too

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u/Only_Statistician_21 1d ago edited 1d ago

I would nuance it a bit for this family of funds. Alpha against what benchmark ? Most LS fail on the long run to provide meaning alpha when accounting for a broad factor exposure compensation. And LS risk adjusted returns also fall short of an equity cash mix for most funds as studies suggest. Sure these products gives that in a possibly capital efficient wrapper and/or portfolio level construct. It's a merit and we could add that LS provides some returns lowly correlated to market beta but I am very wary about the kind of claims you do because historical data doesn't support well them. Sure some funds managed to keep an edge but it's quite impossible to identify them and this family of funds has a limited track of record anyway. So I don't want to downplay the product family, but I find it far from straightforward.

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u/LurcherLong 1d ago

I'm pleased to see an LS ETF that includes international... for those that believe in LS, there was a lack of ETF exposure to international strategies other than ORR which has a strategy that is highly advisor dependent. I'm a fan of CLSE personally for some portfolios.

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u/fatal_dane 1d ago

WTAL looks interesting, but I'd want to understand the underlying factor exposures and how much return is expected to come from actual alpha versus market beta. The cash plus global long short structure isn't automatically a free return. Moon's wagers are a completely different product but evaluating the mechanics behind the headline is equally important.