WisdomTree Launches WTPI: New Equity Premium Income Fund
WisdomTree, Inc. (NYSE: WT), a prominent global financial innovator specializing in exchange-traded funds (ETFs) and modern financial strategies, recently announced a strategic change concerning one of its key investment products. The firm has officially renamed the WisdomTree PutWrite Strategy Fund (PUTW) to the WisdomTree Equity Premium Income Fund, now trading under the new ticker WTPI. Despite the rebranding, the fund remains listed on the NYSE Arca exchange and continues to carry a competitive expense ratio of 0.44%.
This renaming marks more than just a change in nomenclature—it reflects an intentional shift in how the fund’s strategy and purpose are communicated to investors. The move aims to better align the fund’s name with its primary objective: to generate income by leveraging the volatility premium inherent in the options market, especially during times of economic uncertainty and heightened market fluctuations.
Investment Strategy Aligned for Today’s Market Climate
According to Jeremy Schwartz, Global Chief Investment Officer at WisdomTree, the timing of this update is significant. “Elevated market valuations have tempered expectations for outsized upside for the S&P 500 in 2025, especially with ongoing policy-related economic uncertainties,” Schwartz said. “We believe WTPI provides an attractive strategy for this environment, particularly for income-seeking investors.”
WTPI’s investment approach is centered around a systematic options-writing strategy. Specifically, the fund seeks to track the performance of the Volos U.S. Large Cap Target 2.5% PutWrite Index, before fees and expenses. This index employs a cash-secured put-writing strategy on the SPDR S&P 500 ETF Trust (SPY)—effectively selling put options every two weeks to collect premiums.
By targeting a 2.5% premium through bi-weekly put option sales, WTPI is constructed to generate steady, reliable income. This income potential is particularly appealing during periods when the broader equity markets are expected to move sideways or experience moderate drawdowns. This makes WTPI especially suited for flat-to-down markets, where traditional long-equity strategies may underperform.
How the Strategy Works
The core mechanism behind WTPI involves the sale of put options on the S&P 500 Index, with the aim of capturing income from the options’ premium. These options are sold in a cash-secured manner, meaning the fund holds sufficient collateral to cover the strike price of each option in case of market declines. This approach is based on the well-established principle that options tend to be overpriced due to the embedded “volatility premium”—investors are willing to pay a premium for downside protection, and WTPI capitalizes on that dynamic.
WTPI increases its exposure to equity markets through these derivatives, offering investors greater income potential without directly holding all the underlying equities. While this does mean exposure to equity volatility, the strategy is structured to harness that volatility to the investor’s advantage in the form of recurring option premiums.
A Solution for Income-Focused Portfolios
In a financial environment where traditional fixed income yields remain constrained and equities appear richly valued, investors are increasingly looking for alternative sources of yield. WTPI is designed to meet this need by offering a systematic, rules-based approach that emphasizes income generation over capital appreciation. It presents a differentiated option for those who seek exposure to equities but prefer a more income-oriented, risk-conscious strategy.
“The strategy behind WTPI not only targets steady income,” noted Schwartz, “but also offers downside mitigation by potentially outperforming traditional equities during periods of volatility or stagnation. It’s not just about growth—it’s about consistency and adapting to where the market is.”
Understanding the Risks
While WTPI presents an appealing profile for many investors, it is important to understand the risks involved. As with any fund that uses derivatives, there are unique challenges and considerations. WTPI will be investing in S&P 500 Index put options, which are inherently sensitive to market conditions, particularly implied volatility—a measure of the market’s expectations for future volatility.
When implied volatility increases, the value of put options (and hence the fund’s liabilities) also rises. This can cause a decrease in the fund’s net asset value (NAV). Additionally, though the fund’s return is enhanced by collecting option premiums, its potential upside is capped to those premiums. In contrast, its downside exposure is theoretically significant—potentially up to the entire strike price of the sold options.
Investors should also note that due to the fund’s derivative-based strategy, WTPI may experience higher capital gain distributions than more traditional ETFs. These tax consequences should be considered as part of an overall portfolio strategy.
A Forward-Looking Perspective
WisdomTree’s decision to reposition this fund underscores a broader trend in asset management: the demand for alternative income strategies that offer resilience amid macroeconomic headwinds. As interest rates fluctuate and global economic uncertainty persists—driven by factors like geopolitical instability, shifting central bank policies, and evolving regulatory landscapes—many investors are turning to ETFs like WTPI as part of a diversified, income-focused approach.
WTPI may appeal to investors such as:
- Retirees or those nearing retirement who are seeking income alternatives to bonds.
- Yield-focused portfolios looking to diversify beyond traditional fixed income.
- Advisors and institutions interested in volatility harvesting strategies.
- Investors preparing for choppy equity markets who still want some level of equity exposure without full directional risk.
How to Invest
Prospective investors are encouraged to review the fund’s prospectus for a comprehensive understanding of its investment objectives, risks, and associated costs. Both the full and summary prospectus can be accessed online at WisdomTree.com/investments or by calling 866.909.9473. Due diligence is especially important when evaluating funds that utilize derivatives, given their complexity and risk profile.
About WisdomTree
WisdomTree is a global financial innovator, offering a diverse suite of exchange-traded products (ETPs), models and solutions, as well as digital asset-related products. Our offerings empower investors to shape their financial future and equip financial professionals to grow their businesses. Leveraging the latest financial infrastructure, we create products that emphasize access, transparency and provide an enhanced user experience. Building on our heritage of innovation, we offer next-generation digital products and services related to tokenized real world assets and stablecoins, as well as our blockchain-native digital wallet, WisdomTree Prime® and institutional platform, WisdomTree Connect™.*
* The WisdomTree Prime digital wallet and digital asset services and WisdomTree Connect institutional platform are made available through WisdomTree Digital Movement, Inc., a federally registered money services business, state-licensed money transmitter and financial technology company (NMLS ID: 2372500) or WisdomTree Digital Trust Company, LLC, in select U.S. jurisdictions and may be limited where prohibited by law. WisdomTree Digital Trust Company, LLC is chartered as a limited purpose trust company by the New York State Department of Financial Services to engage in virtual currency business. Visit https://www.wisdomtreeprime.com, the WisdomTree Prime mobile app or https://wisdomtreeconnect.com for more information.
WisdomTree currently has approximately $116.5 billion in assets under management globally, as of April 3, 2025.
For more information about WisdomTree, WisdomTree Connect and WisdomTree Prime, visit: https://www.wisdomtree.com.
Please visit us on X at @WisdomTreeNews.
WisdomTree® is the marketing name for WisdomTree, Inc. and its subsidiaries worldwide.
