Advisors Add Gold via Capital-Efficient 90/60 ETFs

Advisors are using capital-efficient exchange-traded funds that follow a 90/60 structure to add gold exposure without selling core equity or bond holdings, presenters said at a VettaFi and WisdomTree event. The structure uses a small cash allocation to collateralize futures overlays, allowing managers to layer gold on top of core positions.

Under the 90/60 framework, about 90% of fund assets provide equity exposure while roughly 10% of capital is used to collateralize 60% notional exposure in futures. Presenters noted that arrangement can produce about $150 of market exposure for every $100 invested, creating room to add diversifiers without cutting stock or Treasury allocations.

The discussion took place at “The Efficient Core: How to Set Your Portfolio Up for Success in Today’s Environment.” Andrew Okrongly, director of model portfolios at WisdomTree, and Jeff Weniger, head of equity strategy at WisdomTree, described how the approach maintains broad market participation while adding a futures overlay for risk-reducing assets.

Speakers cited specific funds that use the efficient-core design, including the WisdomTree U.S. Efficient Core Fund (NTSX) and the WisdomTree Efficient Gold Plus Equity Strategy (GDE). NTSX combines broad equity exposure with a Treasury futures overlay; GDE pairs equity exposure with a gold futures overlay. In both cases, a portion of cash is posted as collateral to support the futures positions.

Weniger characterized the current inflation environment as a “middle ground,” driven by oil price swings on one side and a weak housing market on the other. He pointed to stronger consumer resilience backed by wage gains since 2008 and said ongoing earnings strength supports a constructive view on the S&P 500 into 2026.

Kirsten Chang, senior research analyst at VettaFi, noted a common behavioral challenge: investors often find it hard to hold diversifiers when equities are performing well, which can lead to trimming those positions after market rebounds.

Organizers disclosed that the presentation and related materials were prepared as part of WisdomTree’s paid sponsorship of VettaFi. VettaFi provided the analysis and opinions expressed at the session; WisdomTree said those views do not represent its own analysis and that it was not involved in preparing the content.