WisdomTree Launches 2 ETFs on the Texas Stock Exchange, Bringing Hedge Fund-Style Long/Short Strategies to Everyday Investors

On October 8, 2026, WisdomTree announced the launch of the WisdomTree Efficient Long/Short U.S. SmallCap Equity Fund (TXSE:WSLS) and the WisdomTree Global Alpha Fund (TXSE:WTAL). Both funds have an expense ratio of 0.88%.

WisdomTree says the two funds give investors access to systematic long/short strategies “traditionally associated with hedge funds” through an ETF structure. They are WisdomTree’s first launches on the Texas Stock Exchange (TXSE), which already lists ETFs from other issuers.

How a Long/Short Fund Tries to Make Money

A long position makes money when a stock rises. A short position makes money when a stock falls. A fund that holds both can try to earn from the gap between the stocks it expects to do well and the ones it expects to lag.

A long/short strategy can seek returns from relative stock performance, but its sensitivity to the overall market depends on how the long and short exposures are balanced. WSLS also retains broad small-cap market exposure.

WisdomTree has used this approach before. The new funds build on the WisdomTree Efficient Long/Short U.S. Equity Fund (WTLS), which WisdomTree launched in January 2026.

WSLS Stacks a Stock-Picking Layer on Top of Small Caps

WSLS holds broad U.S. small-cap exposure, either through stocks or through derivatives (contracts whose value tracks an underlying asset), and on top of that core it runs a dynamic long/short “overlay,” which is a second strategy layered over the main holdings. WisdomTree’s thinking is that individual small-cap stocks have more widely spread returns, which may give its models more room to add value.

WTAL Aims to Earn Whether Markets Rise or Fall

WisdomTree says WTAL runs two long/short overlays: one in U.S. stocks and one in international stocks. According to WisdomTree, it gets that exposure through derivatives, including swaps (agreements in which two parties trade the returns of different assets), and holds Treasuries and cash as collateral.

WisdomTree says WTAL aims for a market-neutral return stream, meaning its results should come from how its stock picks perform against each other, with market direction playing a much smaller role. A traditional stock fund earns money when markets rise. WTAL is designed to earn from the spread between its winners and losers in any kind of market.

According to Jeremy Schwartz, WisdomTree’s Global Chief Investment Officer, “many investors want returns that don’t simply rise and fall with the broader market, but accessing those returns has often meant adding complexity to a portfolio.”

An Israeli Fintech Partner WisdomTree Partly Owns

Both funds pick investments using machine learning models developed by AlphaBeta. The models are trained on historical data to forecast a security’s return and/or risk. AlphaBeta is an Israeli fintech firm that specializes in quantitative and AI-driven strategies, and WisdomTree announced a strategic minority investment in the company in November 2025.

Leverage, Models and a Fee Hurdle

WisdomTree’s own disclosures list the risks. Both funds use derivatives, which create leverage, and the value of an investment may change quickly and without warning. Both are actively managed but rely heavily on quantitative models that may not perform as intended. WTAL also carries the added risks of investing in foreign stocks.

At WisdomTree’s stated 0.88% a year, each fund has to earn back its fee before an investor gets any benefit. That fee is far higher than many plain index funds charge, so the models have to produce enough extra return to cover the difference.

What to Look For Going Forward

Putting hedge fund-style strategies inside an ETF fixes the access problem. Anyone with a brokerage account can buy shares, with no high minimum investment. The harder question is whether the models can produce returns that support the fee and the leverage.

Over the coming months, investors can monitor asset growth, holdings, trading spreads, and shareholder reports, while assessing whether the strategies deliver adequate returns after expenses. For more on recent ETF launches on the same exchange, see our coverage of a new power-focused ETF that also sells calls.

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