🤝 BFF Take
VTI for Simplicity. NTSX for Sophisticated Investors Building Efficient Portfolios.
VTI (Vanguard Total Stock Market) holds the entire US stock market at 0.03%: 3,700 stocks, market-cap weighted. NTSX (WisdomTree US Efficient Core) holds 90% in S&P 500 futures and 10% in US Treasury bond futures, using leverage to approximate the return of a 60/40 stock-bond portfolio in a single ETF at 0.20%. The theory: by using 10% collateral to control 60% of bond exposure through futures, NTSX gets both equity returns and bond diversification without sacrificing equity return. In practice, NTSX has performed remarkably well when both stocks and bonds generate positive returns. In 2022, when both fell simultaneously, NTSX declined significantly, demonstrating that correlations between stocks and bonds can break. NTSX is a genuinely clever portfolio construction tool, but it requires understanding of leverage, futures roll costs, and stock-bond correlation regimes. Most investors are better served by VTI's simplicity.
📋 Quick Takeaways
🏗️NTSX: 90% S&P 500 + 10% Treasury futures = acts like 60/40, in one fund, at 0.20%. VTI: total US market, 0.03%.
⚠️NTSX uses leverage. In 2022 (stocks AND bonds fell together), NTSX dropped more than a simple equity fund due to combined losses.
🎯Simple total market: VTI. Sophisticated single-fund 60/40 alternative for those who understand futures-based leverage: NTSX.
📊 Data-Based Take: VTI has the lower fee
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
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Reviewed by a CFA® Charterholder · Data updated Jun 2026 · Educational only, not financial advice
NTSX
WisdomTree US Efficient Core ETF
VTI
Vanguard Total Stock Market ETF
📋 NTSX vs VTI — Key Facts Side by Side
| Metric |
NTSX |
VTI |
| Fund Name |
WisdomTree US Efficient Core ETF |
Vanguard Total Stock Market ETF |
| Issuer |
WisdomTree |
Vanguard |
| Tracks Index |
Active (90% S&P 500 + 10% Treasury futures) |
CRSP US Total Market Index |
| Expense Ratio |
0.20% |
0.03% ✓ |
| Cost per $10K/yr |
$20.00 |
$3.00 |
| AUM |
$2B |
$450B |
| Holdings |
508 |
3,700 |
| Inception |
2018 |
2001 |
| 1-Year Return |
+24.50% |
+25.10% |
| 3-Year Return |
+5.50% |
+9.60% |
| 5-Year Return |
+12.80% |
+15.20% |
| Avg Bid-Ask Spread |
0.05% |
0.00% |
Data from ETF BFF database. Returns are annualised. Not investment advice.
📊 NTSX vs VTI — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Should You Buy NTSX or VTI?
Choose if...
NTSX
- You already use WisdomTree and prefer staying within their fund family
Choose if...
VTI
- You want the lowest fees — saves ~$17/yr per $10K vs NTSX
- You want broader diversification (3,700 holdings vs 508)
- You want the entire US stock market — large, mid, and small cap in one fund
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❓ NTSX vs VTI — Frequently Asked Questions
How does NTSX work?
NTSX holds 90% of its assets in S&P 500 stocks (or futures) and uses the remaining 10% as collateral to buy US Treasury bond futures representing roughly 60% bond exposure. The result is a fund that behaves like a 90% stock + 60% bond portfolio in a single ETF, effectively a 1.5x levered version of a 60/40 portfolio. The leverage is on the bond side only; the equity exposure is unlevered.
Is NTSX safe?
NTSX uses leverage in the form of Treasury futures. It is not a leveraged equity ETF (like TQQQ), but it does use leverage on the bond side. In 2022, when both stocks and bonds fell together, one of the worst environments for 60/40 portfolios, NTSX lost more than a pure equity fund because it had both stock and bond losses compounded. NTSX is an appropriate tool for sophisticated investors who understand multi-asset risk; it is not appropriate as a core holding for investors who don't understand futures-based leverage.
Why would someone choose NTSX over a simple VTI + BND allocation?
NTSX achieves similar diversification to VTI + BND in a single ETF, which is particularly useful in accounts with contribution or holding constraints. It also allows an investor to maintain nearly 100% equity-equivalent participation (the 90% stock allocation) while still getting meaningful bond diversification, more capital-efficient than a traditional 60/40 which gives up 40% of equity upside. WisdomTree calls this "efficient core": same diversification, more equity-like returns.
What happened to NTSX in 2022?
In 2022, NTSX fell approximately 24%: more than the S&P 500 alone fell (about 18%). The reason: both stocks and long-duration Treasury bonds declined sharply as the Federal Reserve raised interest rates aggressively. NTSX's bond futures positions added to losses rather than offsetting them. This period revealed the key risk of NTSX: when stocks and bonds are positively correlated (both falling together), NTSX's portfolio construction works against investors rather than for them.
New to ETF investing? See answers to the most common ETF questions →
ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.