WisdomTree Asset Allocation Views

Equities

We continue to favor equities over bonds, with an emphasis on high-quality stocks that can offer a greater margin of safety than the more expensive, crowded names that dominate market cap-weighted indexes.
While the Magnificent 7+ have experienced significantly higher earnings growth in past years, forward growth estimates have converged with the rest of the S&P 500, while valuations remain at a steep premium.
We are over-weight in U.S. large caps, with tilts toward companies with attractive shareholder yield and profitability metrics.
Outside the U.S., we are under-weight in broad international developed and emerging markets with select over-weight allocations in Japan and India, where we see unique structural growth opportunities.
The recently approved fiscal package in Germany should accelerate the stagnant economic growth environment.

Source: WisdomTree, as of 3/31/25. Evaluations are subject to change as market conditions change. This is for illustration purposes only and does not represent investment advice. All evaluations are on a relative and not absolute basis. Red = a negative relative evaluation; gray = a neutral relative evaluation; green = a positive relative evaluation. Past performance does not guarantee future results.

Fixed Income

Uncertainty, moderate economic growth and slower-than-expected disinflation have kept the Fed in check so far, but mounting growth concerns have raised expectations for more aggressive rate cuts later this year.
With an expectation for a highly data dependent Fed, we remain neutral from a duration standpoint.
While the supportive environment for U.S. credit may endure, spread levels do not offer an overly attractive risk/reward trade-off.
We see better a valuation opportunity in securitized assets, and are over-weight in agency mortgage-backed securities.

Source: WisdomTree, as of 3/31/25. Evaluations are subject to change as market conditions change. This is for illustration purposes only and does not represent investment advice. All evaluations are on a relative and not absolute basis. Red = a negative relative evaluation; gray = a neutral relative evaluation; green = a positive relative evaluation. Past performance does not guarantee future results.

Alternatives

For investors that are hesitant to reduce their allocation to equities and fixed income, efficient core strategies may provide an innovative solution to free up capital for alternative strategies.
With the possibility that stock-bond correlations could remain in positive territory, we believe trend-following and other liquid alternative strategies can play an important role in multi-asset class portfolios.
We continue to favor strategies that seek to generate uncorrelated returns in periods of heightened volatility.

Source: WisdomTree, as of 3/31/25. Evaluations are subject to change as market conditions change. This is for illustration purposes only and does not represent investment advice. All evaluations are on a relative and not absolute basis. Red = a negative relative evaluation; gray = a neutral relative evaluation; green = a positive relative evaluation. Past performance does not guarantee future results.

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IMPORTANT INFORMATION

Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund before investing. For a prospectus or, if available, the summary prospectus containing this and other important information about the Fund, call 866.909.9473 or visit WisdomTree.com/investments. Read the prospectus or, if available, the summary prospectus carefully before investing.

There are risks associated with investing, including the possible loss of principal.

Foreign investing involves currency, political and economic risk. Investments in emerging markets, real estate, currency, fixed income and alternative investments include additional risks. Fixed income investments are subject to interest rate risk; their value will normally decline as interest rates rise. In addition, when interest rates fall income may decline. Fixed income investments are also subject to credit risk, the risk that the issuer of a bond will fail to pay interest and principal in a timely manner, or that negative perceptions of the issuers ability to make such payments will cause the price of that bond to decline. Securities with floating rates can be less sensitive to interest rate changes than securities with fixed interest rates but may decline in value. Investing in mortgage- and asset-backed securities involves interest rate, credit, valuation, extension and liquidity risks and the risk that payments on the underlying assets are delayed, prepaid, subordinated, or defaulted on.

This material contains the opinions of the authors, which are subject to change, and should not be considered or interpreted as a recommendation to participate in any particular trading strategy, or deemed to be an offer or sale of any investment product, and it should not be relied on as such. There is no guarantee that any strategies discussed will work under all market conditions. This material represents an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results. This material should not be relied upon as research or investment advice regarding any security in particular. The user of this information assumes the entire risk of any use made of the information provided herein.

Kevin Flanagan, Rick Harper, Jeremy Schwartz, and Jeff Weniger are registered representatives of Foreside Fund Services, LLC.

WisdomTree Funds are distributed by Foreside Fund Services, LLC.