WisdomTree (NYSE:WT) launched two new ETFs on the Texas Stock Exchange, expanding its systematic long/short lineup. The WisdomTree Efficient Long/Short U.S. SmallCap Equity Fund (WSLS) targets U.S. small-cap stocks, combining broad small-cap exposure with a dynamic long/short overlay. The WisdomTree Global Alpha Fund (WTAL) uses long/short strategies across U.S. and international equities and aims for a more market-neutral return stream.

Both funds have a 0.88% expense ratio and use machine-learning models developed by Israeli fintech AlphaBeta to inform stock selection. The launches mark WisdomTree’s first ETFs on TXSE.

QUICK CONTEXT: Long-Short Strategies Move Into ETFs

WisdomTree’s latest launches reflect the growing push to bring strategies traditionally associated with hedge funds into more accessible ETF structures. WSLS is designed to retain broad participation in the U.S. small-cap market while layering a systematic stock-selection strategy on top, while WTAL takes the concept across U.S. and international equities. Both strategies rely heavily on quantitative models and derivatives, meaning investors get a more sophisticated structure than a conventional long-only equity ETF.

The products also highlight the increasing role of machine learning in systematic investing. AlphaBeta’s models are trained on historical data to assess expected returns and risk and identify relative opportunities for long/short portfolios. WisdomTree has been working with AlphaBeta since making a strategic minority investment in the fintech in November 2025.

Photo: Shutterstock