NTSZ: l'Home Country Bias (Teoricamente) PERFETTA!

After highlighting the historical limitations in terms of returns and volatility of the classic MSCI EMU index compared to a global equity index, a recent alternative solution is presented and analyzed in detail: WisdomTree's NTSZ ETF. This innovative instrument offers enhanced exposure to the European Monetary Union by applying the principle of capital efficiency: it invests 90% in eurozone equities and uses the remaining 10% as collateral to obtain, through constant-leverage futures contracts, a 60% notional exposure to government bonds denominated exclusively in euros. Through a historical reconstruction and data analysis on the Testfolio platform, it is demonstrated how this efficient structure allows for superior long-term compound returns and risk-adjusted metrics compared to pure continental equities, while also reducing maximum drawdown. Finally, a thorough examination of the underlying assets reveals that the NTSZ equity component, while applying ESG filters, guarantees an even higher level of diversification than the traditional MSCI EMU, focusing strictly on companies and sovereign bonds from the euro area only. __________________________________________________________________ Source:    • Come costruire un Portafoglio 90/60 (e per...      • NTSG: ottimo ETF, ma quei CRITERI ESG... p...      • CL2: Perché il 2x giornaliero NON RADDOPPI...      • Iper-diversificazione: perché avere 8200 a...      • AGGH: iShares Core Global Aggregate Bond U...      • VWCE dal 1969: 56 Anni di Dati (Analisi Co...   File Excel: https://drive.google.com/file/d/1_zQv... __________________________________________________________________ Reference playlist:    • Costi reali degli ETF: TER, tracking diffe...      • Hedging valutario: pro, contro e costi nas...   __________________________________________________________________ TIMESTAMP 0:00 - Exchange Rate Risk in Global Portfolios and the Rationality of Country Bias in the Eurozone 1:28 - Historical Limits of the MSCI EMU Index and the Introduction of WisdomTree NTSZ 4:11 - Capital Analysis NTSZ Efficiency: Replication with Futures and Leverage Costs 9:00 AM - Historical Backtest (2004-2026): Return Metrics and Risk-Adjusted Return Rolling 4:54 PM - Internal Component Analysis: Government Bond Allocation and ESG Equity Focus 12:19 PM - Final Considerations on Statistical Sustainability and Portfolio Positioning __________________________________________________________________ 📩 Contact me by email to discuss independent financial advice and how I can help you: [email protected]