WisdomTree launches two self-cancellable ETFs seeking annual returns of 6% to 9%
30 SEPT, 2026
By Joanna Piwko from RankiaPro Europe
WisdomTree makes the leap to the defined outcome ETF segment with the launch of two actively managed autocallable UCITS ETFs, which begin trading today on Xetra and Borsa Italiana with a TER of 0.65%.
The products bear the signature of Tom May's team, Global CIO, Outcome and Derivative Strategies at WisdomTree, which manages over 4 billion dollars in autocallable funds.
Two risk profiles with return objectives from 6% to 9%
The WisdomTree Defined Return Autocallable EUR Active UCITS ETF (DRTN) aims for an annualized return of 8-9%, while its defensive version, the WisdomTree Defensive Defined Return Autocallable EUR Active UCITS ETF (DRTD), aspires to a 6-7% annual. Both have distribution and accumulation classes.
| ETF | Class | Target Return | TER | Ticker | ISIN |
|---|---|---|---|---|---|
| WisdomTree Defined Return Autocallable EUR Active UCITS ETF | Distribution | 8-9% annual | 0.65% | DRTN | IE0005VCFMG0 |
| WisdomTree Defined Return Autocallable EUR Active UCITS ETF - EUR Acc | Accumulation | 8-9% annual | 0.65% | WDRT | IE000RAY1B92 |
| WisdomTree Defensive Defined Return Autocallable EUR Active UCITS ETF | Distribution | 6-7% annual | 0.65% | DRTD | IE000F4W1QI5 |
| WisdomTree Defensive Defined Return Autocallable EUR Active UCITS ETF - EUR Acc | Accumulation | 6-7% annual | 0.65% | WDRD | IE000C9LBYZ8 |
A diversified portfolio of autocallables versus structured products
The strategy relies on a diversified and actively managed exposure to autocallables on large-cap and high-liquidity indices, such as the EURO STOXX 50. The aim is to take advantage of both the equity risk premium and the volatility premium to offer a consistent return profile in different market environments.
Compared to structured securities, the format seeks to reduce the dependence on specific outcomes, mitigate the credit risk usually associated with these products, provide more transparency and eliminate the need to manage individual autocallable portfolios.
Active management and experience in derivatives are of particular importance in defined return strategies, as market conditions do not remain stable. Although investors have traditionally accessed these types of outcomes through structured product certificates, our diversified portfolio approach is designed to improve the consistency of results over time. By actively adjusting the underlying exposures, barrier levels, protection thresholds, term and overall design of the payment structure, the portfolio management team seeks to maximize the likelihood of achieving the desired returns compared to a purely static or index-based approach.
Tom May, Global CIO, Outcome and Derivative Strategies, WisdomTree
Pierre Debru, Head of Research, Europe at WisdomTree, also emphasizes that the ETF structure allows these strategies to be integrated into existing portfolio allocation processes more smoothly than traditional implementations.
Defined return ETFs can play a significant role in portfolios, as they help investors achieve more consistent return profiles throughout market cycles. By being offered through the ETF structure, these strategies can be integrated more smoothly into the existing portfolio allocation process than traditional implementations of structured products.
Pierre Debru, Head of Research, Europe, WisdomTree
Between 15 and 20 defined return strategies in 18 months
The management team joined WisdomTree following the acquisition of Atlantic House, bringing over 20 years of experience in autocallables and launched the first UCITS fund of this type in 2013. They have also designed custom solutions for more than 20,000 million euros.
The new ETFs complement the Atlantic House Defined Return range, valued at 4,000 million dollars. The firm frames them in the strong demand for strategies with more defined results and greater resilience to falls, a space in which defined return ETFs are gaining weight as an alternative to structured products.
Option-based ETFs are one of the fastest growing segments in asset and wealth management, as investors seek greater certainty in terms of results. This structural demand is generating a significant opportunity for differentiated and actively managed ETFs in Europe, as investors increasingly seek alternatives to traditional structured products. Our ambition is clear: leveraging the experience in options and defined return strategies obtained after the acquisition of Atlantic House, we intend to launch between 15 and 20 strategies globally in the next 18 months and become leaders in this sector.
Alexis Marinof, CEO, Europe, WisdomTree
