Wisdom Short Duration Income ETF (SLWS)

Overview

WISD is a dynamic investment fund that specializes in global fixed-income securities, focusing on short-duration investments with a maturity of one year or less. The fund's diverse portfolio comprises both US and foreign bonds, which allows for a well-rounded exposure to various fixed-income markets. It strategically invests in a variety of instruments including debt securities, commercial paper, and mortgage-backed securities. Additionally, WISD includes a percentage of floating-rate securities and asset-backed securities such as collateralized loan obligations (CLOs) that are rated investment-grade. The fund maintains a cautious approach to risk management by limiting junk bond investments to no more than 15% of net assets, ensuring a diversified and relatively stable portfolio. As part of its strategy, WISD may invest a significant portion in foreign-denominated securities, with a cap on foreign currency exposure. The fund emphasizes active and frequent trading, which may result in a higher portfolio turnover rate. Since its conversion from a mutual fund to an actively managed ETF on November 11, 2025, WISD has commenced operations with an asset base of $368.81 million.

Products and Services

• US Bonds

  WISD invests in a range of US bonds, including government and corporate bonds, providing stable returns and capital preservation within the fixed-income sector.

• Foreign Bonds

  The fund allocates up to 50% of its portfolio to foreign-denominated securities, which includes bonds from various international issuers, enhancing geographical diversification.

• Debt Securities

  WISD engages in the purchase of various debt securities, such as notes and treasury bills, which offer relatively low risk and are essential for liquidity and short-term funding.

• Commercial Paper

  Investing in commercial paper allows WISD to access short-term unsecured promissory notes issued by corporations, yielding competitive interest with minimal risk.

• Mortgage-Backed Securities

  The portfolio includes mortgage-backed securities, which are backed by mortgage loans, enabling the fund to gain exposure to housing market performance.

• Floating-Rate Securities

  WISD incorporates floating-rate securities to protect against rising interest rates, making its investments less prone to interest rate volatility.

• Asset-Backed Securities

  The fund invests a portion of its assets in rated investment-grade asset-backed securities, such as CLOs, which provide enhanced yield while maintaining a controlled risk profile.

• Derivatives for Hedging

  WISD uses derivatives like treasury futures, bond futures, swaps, and credit default swaps to hedge against interest rate and currency risks, ensuring stability in its investment returns.

• Portfolio Management

  The active management of the fund is characterized by frequent trading, which may lead to a higher turnover rate, aimed at adapting to market conditions and maximizing investor returns.