WisdomTree and Halo Target Market Risk with New Structured Income SMA

NEW YORK and CHICAGO – March 11, 2026 – In a move signaling a significant evolution in portfolio construction, global asset manager WisdomTree and fintech innovator Halo Investing have joined forces to launch the Halo-WisdomTree Structured Income Strategy. The new offering is a first-of-its-kind defined outcome separately managed account (SMA) designed to provide financial advisors with a sophisticated tool for generating income while buffering against market downturns.

The collaboration merges WisdomTree's institutional asset allocation expertise with Halo's technology-driven platform for structured notes, creating a scalable solution for advisors seeking to navigate increasingly uncertain market environments. The strategy aims to deliver a combination of income, enhanced risk-adjusted returns, and a predefined level of downside protection, addressing a critical need for clients, particularly those nearing or in retirement.

Meeting a Surge in Advisor Demand

The launch arrives as the demand for risk-managed investment solutions reaches a fever pitch. The defined outcome category, primarily dominated by buffer ETFs, has experienced explosive growth. Industry research from firms like Cerulli Associates projected that defined outcome ETFs, which stood at nearly $78 billion in assets at the end of 2025, could swell to over $334 billion by 2030. This rapid expansion underscores a fundamental shift in investor and advisor priorities toward predictability and capital preservation.

Financial advisors are increasingly on the front lines, tasked with helping clients balance the need for equity market participation with a prudent approach to risk. Demographic tailwinds, with a generation of Baby Boomers transitioning from wealth accumulation to decumulation, have amplified the call for strategies that can provide steady income and shield portfolios from volatility. Defined outcome products are designed to meet this challenge by offering a contractual buffer against a certain percentage of losses over a specific period, in exchange for a cap on potential upside.

“Our collaboration with Halo marks another important step in expanding our solutions platform for financial advisors,” said Jeremy Schwartz, Global Chief Investment Officer at WisdomTree, in the official announcement. “In an environment where investors are seeking income and greater resilience, this strategy is designed to help advisors pursue more consistent outcomes while managing risk.”

A New Blueprint for Portfolio Construction

What sets the Halo-WisdomTree Structured Income Strategy apart is its structure as a separately managed account. While defined outcome ETFs have gained significant traction, the SMA wrapper offers a different set of advantages, including greater potential for customization, tax management, and direct ownership of the underlying securities. This structure can be particularly appealing for high-net-worth clients and advisors building holistic, personalized portfolios.

The strategy is calibrated quarterly, leveraging a model portfolio from WisdomTree Asset Management alongside a selection of income-focused structured notes sourced through the Halo platform. This dynamic approach allows the portfolio to adapt to changing market conditions. The strategy, which invests across U.S., international, and emerging markets, is managed by Dennis Monohan, Head of Investment Solutions at Halo, with strategic allocation guidance from Joe Tenaglia, Director of Model Portfolios at WisdomTree.

By embedding structured notes—hybrid securities that combine debt elements with derivatives—directly into an SMA, the strategy moves beyond the typical stock-and-bond allocation. It creates an outcome-oriented solution that mirrors an institutional ETF-based model but with built-in features for yield enhancement and principal protection.

“This defined outcome strategy helps advisors solve for clients seeking income while managing equity exposure,” noted Monohan. “Collaborating with WisdomTree allows us to combine structured note innovation with institutional asset allocation expertise, giving advisors confidence in a category that has historically been less accessible.”

WisdomTree's Strategic Evolution Beyond ETFs

This launch is more than just a new product for WisdomTree; it is a clear manifestation of the firm's broader strategic pivot. Long known as a pioneer in the ETF space, WisdomTree is actively diversifying its business to become a more comprehensive solutions provider for financial professionals. This initiative represents a concerted effort to expand revenue streams and deepen advisor relationships by offering a wider array of investment vehicles.

The firm's evolution is visible across several fronts. It has been steadily building out its model portfolio and SMA capabilities, underscored by another recent collaboration with Quorus Inc. to provide its strategies in a tax-efficient SMA format. Beyond traditional public markets, WisdomTree has also made significant inroads into alternative and digital assets. Its 2025 acquisition of Ceres Partners, a manager of U.S. farmland, added approximately $1.9 billion in private assets and opened up a new, higher-fee revenue channel.

Furthermore, the company has established a footprint in the digital asset ecosystem with its WisdomTree Prime digital wallet and the WisdomTree Connect institutional platform. These moves collectively demonstrate a forward-looking strategy to build a diversified, multi-faceted platform that equips advisors for the future of wealth management. The partnership with Halo fits seamlessly into this vision, leveraging an external technology leader to scale a sophisticated offering.

The Technology Democratizing Complex Finance

Underpinning this entire strategy is the technological engine provided by Halo Investing. Historically, structured notes were the domain of private banks and institutional investors, often criticized for their complexity, opacity, and high barriers to entry. Fintech platforms like Halo have been instrumental in changing that narrative by creating a centralized, transparent marketplace for these products.

By democratizing access, Halo's platform empowers independent advisors to utilize tools that were previously out of reach. It streamlines the process of sourcing, executing, and managing structured notes, mitigating many of the operational and educational hurdles that have historically limited their adoption. The platform's ability to support a scalable, repeatable SMA strategy is crucial to the partnership's success, allowing a wide network of advisors to implement the defined outcome solution for their clients.

This collaboration between an established asset manager and a disruptive fintech firm exemplifies a powerful trend in the financial services industry. As advisors seek more differentiated tools and clients demand more tailored outcomes, such partnerships are becoming essential for delivering innovation at scale. The Halo-WisdomTree strategy thus stands at the intersection of three major forces: the advisor-led demand for risk management, the strategic evolution of asset managers, and the democratizing power of financial technology.