WisdomTree & Halo Launch SMA to Tame Market Volatility for Advisors

NEW YORK & CHICAGO – March 11, 2026 – Financial innovator WisdomTree and wealth-tech firm Halo Investing have joined forces to launch a new investment solution aimed squarely at one of the market's most persistent challenges: balancing growth with protection. The new Halo-WisdomTree Structured Income Strategy, a first-of-its-kind separately managed account (SMA), seeks to blend the institutional asset allocation of WisdomTree with Halo’s specialized structured notes, offering financial advisors a new tool designed to deliver income and buffered downside protection.

The launch arrives as advisors and their clients navigate an environment of heightened market volatility and search for more predictable outcomes. By combining traditional ETF-based models with options-based structured notes, the partners aim to deliver a sophisticated, risk-managed solution that was once the exclusive domain of institutional and ultra-high-net-worth investors.

The Rising Tide of Defined Outcomes

The collaboration is not happening in a vacuum. It taps directly into one of the fastest-growing segments in wealth management. Defined outcome investing—which provides market exposure up to a cap in exchange for a buffer against losses—has exploded in popularity. According to data from Morningstar, the defined outcome ETF category alone has swelled to over 400 funds managing nearly $78 billion in assets.

Industry analysts project this growth will continue its steep trajectory. Research from Cerulli Associates suggests assets in defined outcome ETFs could surge fivefold to $334 billion by 2030. This demand is fueled by an aging investor demographic, elevated market valuations, and a desire for investment tools that can provide a smoother ride through turbulent economic cycles. Advisors are increasingly turning to these strategies to meet client demands for equity participation without the full brunt of market declines.

“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,” said Jeremy Schwartz, Global Chief Investment Officer at WisdomTree, in the official announcement. The new SMA directly answers this call, moving beyond standard fund structures to offer a more customized and dynamic approach.

A Strategic Play for Diversification and Access

For WisdomTree, a firm that built its reputation on exchange-traded funds, this initiative represents a significant step in its broader strategic evolution. The company has been actively expanding its solutions platform to diversify revenue and deepen its relationships with financial advisors. This involves moving beyond traditional products and into scalable model portfolios, private asset exposure, and now, more complex SMA strategies. This launch follows other collaborations, including a recent effort with Quorus Inc. to offer its strategies in a tax-efficient SMA format, signaling a clear push to broaden how advisors can access its investment capabilities.

For Halo Investing, a technology firm founded in 2015 to democratize access to protective investment solutions, the partnership provides a powerful stamp of institutional credibility. By integrating WisdomTree’s renowned asset allocation models, Halo can enhance the appeal of its structured note platform to a wider audience of advisors who may have been hesitant to use such products on their own.

“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,” noted Dennis Monohan, Head of Investment Solutions at Halo and the manager of the new strategy. The strategy will be guided by Joe Tenaglia, Director of Model Portfolios at WisdomTree, ensuring a blend of tactical structured product management with strategic, long-term asset allocation.

Overcoming the Complexity Barrier

Despite the clear demand, structured products have historically faced significant adoption hurdles. The U.S. structured notes market hit a record of nearly $150 billion in 2024, yet many advisors remain wary. The products are often criticized for their complexity, potential illiquidity, and opaque fee structures. Regulatory bodies like the SEC and FINRA have issued numerous warnings about their suitability for retail investors, citing risks that can be easily concealed by aggressive marketing.

Key advisor pain points have included a lack of independent research, the difficulty of conducting due diligence, and the challenge of explaining intricate payout formulas to clients. The Halo-WisdomTree strategy appears engineered to address these concerns head-on. By packaging the notes within a professionally managed SMA framework and leveraging Halo’s technology platform for transparency, the firms hope to simplify the experience for advisors. The quarterly calibration, which aligns Halo's notes with WisdomTree’s ETF model, provides a disciplined, repeatable process that aims to build trust and confidence.

The strategy itself invests across U.S., international, and emerging markets and is available exclusively through the Halo platform. It aims to mirror an institutionally managed portfolio while incorporating the built-in yield enhancement and principal protection features of the structured notes. This hybrid approach is designed to give advisors a turnkey solution for a complex problem, saving them the time and risk of constructing such a portfolio themselves.

As the wealth management industry continues to evolve, the demand for solutions that offer both personalization and risk management is only set to grow. This collaboration is a clear indicator of the trend toward integrating sophisticated financial engineering with accessible technology platforms. The ultimate success of the Halo-WisdomTree Structured Income Strategy will hinge on its ability to prove to a skeptical advisor community that it can deliver on its promise of consistent, protected outcomes without the historical baggage of complexity and cost.