Multi-Asset Leveraged ETFs

Multi-asset leveraged ETFs are a way to diversify asset exposures while also taking on more risk – for ideally higher return.

These are for traders looking for higher returns who don’t want to manage the exposures and trades themselves, while also having higher risk tolerance.

They typically include equity futures, along with assets like bonds and gold, and strategies like merger arb and managed futures.

International exposure is also a common theme, such as equity exposure from emerging markets.

Leverage is applied at the portfolio level. They essentially act as more risk-balanced, leveraged portfolios within the context of a single ETF. 

The goal isn’t just magnified equity exposure, but a smoother risk profile than single-asset leveraged ETFs by combining assets with different economic sensitivities.

As they contain futures, time decay and tracking error isn’t a feature.

That said, the tradeoffs are real. Daily rebalancing, management fees (often close to 1% annual expense ratios), financing costs/futures roll yield effects, and correlation shifts/convergences during stress periods all matter more in a leveraged, multi-asset context. 

Outcomes depend heavily on market regime, volatility, and holding period.

Key Takeaways – Multi-Asset Leveraged ETFs

• GDE – Combines developed-market equity exposure with leveraged gold futures.
• GDMN – Stacks leveraged gold with gold miners. Creates a high-octane gold complex trade that can shine in strong bullion rallies.
• NTSE – Blends emerging-market equities with a Treasury futures overlay. Smooths EM drawdowns while keeping return potential higher than a plain EM equity allocation.
• NTSI – Provides developed international equity exposure paired with leveraged US Treasuries. Designed for capital-efficient non-US equity exposure that works best when bonds hedge equity risk.
• NTSX – Holds US large-cap equities with an intermediate Treasury futures overlay.
• RSBA – Combines bonds with merger arbitrage, so returns are driven mainly by deal spreads and completion risk rather than stock market direction. One of the cleaner equity diversifiers.
• RSBT – Pairs bonds with managed futures trend-following across global markets. Often gives the strongest diversification when sustained trends or equity drawdowns emerge.
• RSBY – Mixes bonds with futures yield strategies that harvest carry and structural premia.
• RSSB – Stacks global stocks and bonds in a leveraged balanced structure. Increases capital efficiency but leaves performance heavily influenced by global equity beta.
• RSST – Combines US equities with managed futures. Keeps most equity upside while adding a portion that can help during crises and ideally kick in to offset equity losses.
• RSSY – Pairs US equities with futures yield strategies for smoother returns and incremental income. Results remain largely equity-driven in most environments.
• HFGM – HFGM blends various assets together, primarily through futures, and adds leverage (roughly double the S&P 500) to create better absolute and risk-adjusted return.

Multi-Asset Leveraged ETFs

Here’s the list we’ll cover:

Also, HFGM is largely not something that shows up in these types of screens, but for all intents and purposes, it is a muti-asset leveraged ETF, so we’ll include it.

Let’s go through them individually:

GDE – WisdomTree Efficient Gold Plus Equity Strategy ETF

GDE is a mix of global equity exposure with leveraged gold exposure. 

It’s essentially levered 1.8x with 90/90 exposure to equities and gold.

The equity portion gains exposure to developed market stocks, while the gold sleeve applies leverage to gold futures. 

The intent is to combine growth-oriented assets with an FX, inflation, and crisis hedge, with heightened overall exposure through leverage.

The structure targets those who want gold exposure to diversify equities.

The key risks come from leverage, volatility drag, and correlation breakdowns. 

Gold usually diversifies equities, and you come up with little to no correlation.

But sometimes gold and equities fall together, then you have the leverage on top of that.

Correlations to traditional assets are relatively high:

Asset Correlations

GDMN – WisdomTree Efficient Gold Plus Gold Miners Strategy ETF

GDMN pairs leveraged exposure to gold with equity exposure to gold mining companies, creating a concentrated bet on the gold complex. 

Miners tend to be more volatile than gold itself. You’re taking on operational risk and the unique cost structures of the miners. Plus, there’s equity market sensitivity on top of commodity prices.

The idea behind GDMN is that miners offer upside convexity during strong gold bull markets, while leveraged gold futures provide direct exposure to price movements. 

Together, the goal is to magnify gains when gold trends higher. Then it’s up to the allocator to choose how much exposure they want in the context of their portfolio.

This structure is nonetheless heavily sensitive to drawdowns. Gold miners can underperform gold for extended periods for lots of reasons – e.g., cost inflation, weak capital discipline, idiosyncratic risk. Leverage amplifies these issues. 

It performs best in clean, trending gold rallies with contained volatility.

You can see that the correlation to gold is relatively high:

Asset Correlations

NTSE – WisdomTree Emerging Markets Efficient Core ETF

NTSE combines emerging market equities with leveraged exposure to US Treasury futures. 

The idea is to offset the higher volatility and drawdowns typical of emerging markets with bond exposure – while using leverage to keep overall return potential competitive.

Treasuries are intended to cushion the equity selloffs, which are most effective during global growth scares (not necessarily inflation). 

So, the portfolio can deliver smoother returns than EM equities alone.

The main vulnerability is when both emerging markets and bonds sell off at the same time, such as during inflation shocks or sharp rate repricings. 

Currency risk, geopolitical risk, and capital flow sensitivity are a bigger part of EM equities than development market equities and naturally investors tolerate this because they expect extra compensation. 

Overall, NTSE works best in environments with moderate global growth, stable inflation, and functioning bond diversification.

Correlations are all relatively high:

Asset Correlations

NTSI – WisdomTree International Efficient Core ETF

NTSI gives you developed international equity exposure paired with US Treasury futures (again, leveraged). 

The goal here is to create a more capital-efficient international allocation. You get equity risk balanced with bond exposure and modest leverage to try to juice the return. 

Note that leverage costs are embedded in the futures contracts directly. 

For example, if the bonds the futures pertain to have a 4% cash yield, if the leverage cost is 3%, the backwardation of the curve over one year will show a 1% price gap. In other words, you can buy the forward-1-year contract 1% cheaper than the front month.

Compared to a traditional international equity ETF, NTSI typically has lower volatility and smaller drawdowns, but only if bonds retain their diversifying role. 

It can be used as a core allocation for those looking for a non-US equity exposure without full equity beta.

Risks center on inflation and interest rate shocks and correlation shifts. 

In periods when bonds and equities fall together, like 2022, the leveraged bond sleeve can actually detract meaningfully from returns. 

This is where other things come in to play to diversify better, such as commodities, gold, FX exposure, pair trades, shorts, etc.

The international equities in this fund are sensitive to dollar strength. 

So overall, NTSI is best in disinflationary or stable macro environments where bonds can hedge equity risk.

Asset Correlations

NTSX – WisdomTree U.S. Efficient Core ETF

NTSX is one of the most widely referenced levered risk-balanced ETFs. 

It holds US large-cap equities while overlaying leveraged exposure to intermediate US Treasury futures. 

The structure targets roughly 90 percent equity exposure and 60 percent bond exposure in notional terms.

The intent is to improve risk-adjusted returns relative to a standard 60/40 portfolio by using leverage instead of capital-heavy bond allocations. 

The flaw with the 60/40 is that you’re taking away from your stocks to allocate to lower-returning bonds.

You get the better risk-adjusted return but at the expense of lower returns in the long run.

The 90/60 construction keeps the stocks part almost all the way there while still benefiting from the bonds. 

Leverage costs are still embedded, so that’s a long-term drag. For example, if leverage costs are effectively 4% long-term, the 150% notional exposure means a 2% annual drag over time.

The Achilles’ heel is again inflation-driven bond losses. When rates rise sharply, the bond overlay can become a drag rather than a hedge. 

NTSX is best viewed as a structural allocation for specific macro regimes, not a universally superior replacement for traditional portfolios.

It has almost perfect correlation to the S&P 500 but low correlation to bonds and gold:

Asset Correlations

RSBA – Return Stacked Bonds and Merger Arbitrage ETF

RSBA combines bond exposure with a merger arbitrage strategy.

Like practically everything on this list, it uses derivatives to stack return streams to make more efficient use of capital. 

The part bond portion provides more stability.

Merger arbitrage tries to earn the spread between a target company’s current share price and the announced acquisition price by betting that the deal will close as expected. 

Returns are driven by deal completion risk, timing, and financing conditions rather than broad market movements.

Merger arb is valued as a diversifier, though there’s still some correlation as it generally takes a good market for deal flow to take place.

Paired with bonds, the goal is to reduce drawdowns and improve tail risk characteristics.

Bond losses when rates rise faster than discounted or during inflationary periods can further complicate the results you could get out of this fund. 

As far as pure return maximization, it won’t give you that.

Asset Correlations

RSBT – Return Stacked Bonds and Managed Futures ETF

RSBT is similar in concept to RSBA. But it differs in implementation details, such as bond duration, futures allocation, and/or signal construction. 

Managed futures generally use trend-following signals across all liquid markets – commodities, rates, equities, and currencies.

The core idea remains stacking bond returns with systematic trend-following strategies.

Managed futures tend to perform well as a true diversifier. They aren’t dependent on stock/bond/gold/commodity returns.

Instead they perform best during sustained market trends and are designed to act as an offset during crisis periods. 

That said, managed futures can go through long flat or negative periods when markets are range-bound and they can’t capture trends. 

Also note that there are many pure managed futures ETFs on the market, such as DBMF, CTA, WTMF, and others. 

All of them have different constructions and implementations. For example, the CTA ETF adjusts better to trends, but at the expense of more volatility.

This ETF is designed for portfolios that already rely heavily on equity risk and need diversification in other ways. 

Managed futures can profit from rising or falling markets – provided the trends last long enough.

Performance depends heavily on trend strength and bond market conditions. During sideways or choppier markets with rising rates, returns can disappoint. 

RSBT functions best as a portfolio diversifier, not a standalone growth engine.

It requires patience across full market cycles.

Asset Correlations

RSBY – Return Stacked Bonds and Futures Yield ETF

RSBY blends bond exposure with futures-based income strategies. 

Unlike trend-following strategies, the goal of futures yield approaches is to harvest premia from structural market features.

The fund targets income investors without relying solely on credit or equity dividends. 

Bond exposure provides stability. Futures yield strategies try to add uncorrelated return streams.

Risks include periods when futures premia compress or reverse, as well as bond drawdowns during rate shocks. 

It’s most effective in stable or gently trending environments where carry and yield strategies can function as intended.

In its short history, it shows the strongest correlation to bonds.

Asset Correlations

RSSB – Return Stacked Global Stocks and Bonds ETF

RSSB stacks global equity exposure with bond futures. This creates a leveraged version of a global balanced portfolio. 

The goal of the fund is to deliver higher expected returns per dollar of capital by using derivatives rather than traditional cash allocations.

A global inflation shock or synchronized equity drawdown can hurt both legs at the same time.

Strong correlation to equities:

Asset Correlations

RSST – Return Stacked U.S. Stocks and Managed Futures ETF

RSST combines US equity exposure with managed futures, stacking two return streams that often behave differently in crises. 

Equities drive long-term growth. Managed futures’ goal is to provide convexity during sustained trends and drawdowns.

This ETF appeals to investors looking for equity exposure but with built-in crisis response characteristics. 

Managed futures have historically performed well during sharp equity selloffs and inflationary shocks. They key is for trends to form and last for the strategy to profit.

Strong correlation to stocks:

Asset Correlations

RSSY – Return Stacked U.S. Stocks and Futures Yield ETF

RSSY pairs US equities with futures-based yield strategies, which gives enhanced income and diversification alongside equity growth. 

The futures yield typically sees returns from carry and structural/roll yield premia rather than directional bets.

This design can smooth returns during stable markets while maintaining upside exposure to equities. If you’re looking for alternatives to dividend-focused or yield carry strategies, it’s a possibility.

Falling equities and underperforming yield strategies are the main risks.

RSSY is best suited for environments with moderate volatility and stable risk premia.

Also strong correlation to stocks:

Asset Correlations

HFGM – Unlimited HFGM Global Macro ETF

HFGM allocates across multiple asset classes (stocks, bonds, commodities, FX) plus leverage as a way to perform in a wider range of market environments than pure equity or bond products. 

In its relatively short history, it has roughly double the volatility of the S&P 500.

It’s correlated quite heavily with stocks and gold and less to bonds.

Asset Correlations

Best Equity Diversifiers

Most everyone, from short-term traders to long-term investors, have plenty of long equity exposure.

Which of these are the best equity diversifiers?

Most of these funds still behave like equity with modifiers. 

Based on structure, correlations, and underlying return drivers, here’s our ranking.

The Clear Winners

These meaningfully reduce equity dependence and add return streams that don’t rely on stock market direction.

RSBT – Bonds + Managed Futures

This is the strongest true diversifier on the list. 

Managed futures have low structural dependence on equities and can profit in both rising and falling markets if trends last to see the payoff with that type of strategy. 

Correlation to SPY is modest, and it tends to perform best during crises, inflation shocks, and prolonged drawdowns. 

RSBA – Bonds + Merger Arbitrage

Merger arbitrage returns are driven by deal spreads and completion risk, not equity beta. Correlation to equities is generally low, though as we mentioned there’s still some dependence on a decent market for M&A deal flow. 

Returns are modest, but it provides stability and drawdown control when stocks struggle. 

Bottom line:

If the goal is to diversify equity exposure rather than amplify it, RSBT first, RSBA second.

Partial Diversifiers (Conditional, Regime-Dependent)

These diversify equities only when bonds or gold behave as expected.

GDE – Equity + Gold

Gold can diversify equities, but correlation can still rise during liquidity stress. 

GDE is a 90/90 stocks/gold funds, which helps juice returns, but fails when stocks and gold fall together. 

NTSE – EM Equity + Bonds

Diversifies US equities geographically and adds bond ballast, but EM risk dominates in stress periods. 

Still equity-heavy, just a different flavor.

NTSI – International Equity + Bonds

Provides geographic diversification but remains highly equity-driven. 

Bonds help in disinflationary regimes, hurt during inflation shocks.

NTSX – US Equity + Bonds

Improves risk-adjusted returns in the right regime but has near-equity correlation. 

Poor Equity Diversifiers (Mostly Equity in Disguise)

These remain highly correlated to stocks despite alternative overlays.

RSSB – Global Stocks + Bonds

Strong equity correlation and essentially levered global beta.

RSST – US Stocks + Managed Futures

Managed futures help in crises, but equity weight dominates. 

Diversifies tail risk to an extent, not day-to-day equity exposure.

RSSY – US Stocks + Futures Yield

Still strongly equity-linked. 

Futures yield smooths returns but doesn’t decouple equity risk.

GDMN – Gold + Gold Miners

This is a thematic commodity bet, not an equity diversifier. Miners behave like high-beta equities tied to gold.

Final Verdict

Best for diversifying equity exposure:

1. RSBT – strongest structural diversifier
2. RSBA – low-volatility, defensive diversifier

Useful but regime-dependent:

GDE, NTSE, NTSI, NTSX

Primarily equity exposure with overlays:

RSSB, RSST, RSSY, GDMN

Key takeaway

If a fund still lives or dies based on equity direction, it’s not a true diversifier. 

Only strategies with independent return drivers like managed futures and, to a lesser extent, merger arb reliably reduce equity risk in a leveraged, multi-asset context.