Weekly Trend Watch: Moving-Average ETFs Go Mainstream as Active Funds Set Records
Two ETFs that systematically follow moving-average signals — WisdomTree’s WAMA and WIMA — are now six months live and showing it’s possible to automate trend-following inside an ETF wrapper. Meanwhile, active ETF flows have already beaten 2025’s full-year record, and five new funds hit the U.S. market this week. Here is what ETF trend traders need to know.
The short version
- WisdomTree WAMA and WIMA — two ETFs that switch between equities and T-bills based on 200-day moving-average crossovers (expense ratios: 0.32% and 0.42%). WAMA has returned 8.19% NAV since its March 2026 inception.
- Active ETFs set a new record — year-to-date active equity ETF flows have already surpassed 2025’s full-year total (J.P. Morgan, September 2026).
- Five new ETFs launched in the week ending October 1 — including two emerging-markets bond funds and an absolute-return strategy fund.
- WisdomTree’s tokenized fund AUM crossed $1.2 billion, signaling growing demand for on-chain ETF infrastructure.
1. WisdomTree WAMA and WIMA: Moving-Average Trend Following in an ETF
WisdomTree launched the WisdomTree U.S. Adaptive Moving Average Fund (WAMA) and the WisdomTree International Adaptive Moving Average Fund (WIMA) on March 12, 2026 (BusinessWire, March 12, 2026). Both trade on the Nasdaq and are the first ETFs designed explicitly around 200-day simple moving average (SMA) crossover signals — the same tool many retail trend traders use manually.
How do WAMA and WIMA decide when to be in or out of the market?
The rule is straightforward:
- The fund enters a “long” (equity) position when its underlying index closes 1% above its 200-day SMA for two consecutive trading days.
- It exits equities and moves to U.S. Treasury bills when the index closes 1% below its 200-day SMA for two consecutive trading days.
That 1% buffer matters — it prevents whipsaw entries and exits when the index hovers near its moving average without conviction. WisdomTree calls this its “adaptive moving average” approach, and it applies the same logic to both the U.S. large-cap market (WAMA) and developed international markets (WIMA).
What are the expense ratios and how have they performed?
| Fund | Ticker | Expense Ratio | NAV Return (Since Inception, 8/31/2026) | Market Price Return (Since Inception) |
|---|---|---|---|---|
| WisdomTree U.S. Adaptive Moving Average Fund | WAMA | 0.32% | 8.19% | 8.14% |
| WisdomTree International Adaptive Moving Average Fund | WIMA | 0.42% | Not yet disclosed publicly | Not yet disclosed publicly |
Source: WisdomTree product page for WAMA, data as of August 31, 2026. The fund’s inception date is March 12, 2026. WIMA international performance data has not been published to the same level of detail.
Jeremy Schwartz, WisdomTree’s Global Chief Investment Officer, said at launch: “Markets don’t move in straight lines, and investors shouldn’t have to choose between staying invested and managing risk” (BusinessWire, March 12, 2026). The broader context: WisdomTree manages approximately $157.9 billion in assets globally as of the last reported period.
2. Active ETFs Just Broke Another Record
J.P. Morgan Asset Management’s Monthly Active ETF Monitor (September 2026) reports that year-to-date U.S. active equity ETF flows have already surpassed 2025’s full-year record. Active equity ETF flows as a percentage of total equity ETF flows now sit at 32%, also a new high.
The largest categories driving these flows:
- Equity derivative income ETFs — $44.8 billion in active flows year-to-date
- U.S. large caps — $41.6 billion in active flows
- Large cap value ETFs — a strong $5.9 billion in August alone
This is the second reference point in as many months confirming that actively managed ETFs (which includes trend-following and momentum strategies) are not a fringe category. An SEC Division of Economic and Risk Analysis paper (published February 2026) showed active ETF AUM grew from $122 billion in 2020 to $768 billion in 2024 — a 65% average annual growth rate. The trend has accelerated since.
3. Five New ETFs Hit the Market This Week
ETF Express reports that the week of September 24 to October 1, 2026 saw a “busy week” of U.S. ETF launches reflecting the rise of emerging markets (ETF Express, October 1, 2026). The new funds include:
| Ticker | Fund Name | Focus |
|---|---|---|
| TDEM | T. Rowe Price Dynamic Emerging Markets Bond ETF | Emerging-market bonds |
| CGFS | CG Flagship Equity ETF | Broad equity — flagship strategy |
| LCIV | Logan Capital International ETF | International equity |
| JQTY | Jensen U.S. Quality Index ETF | U.S. quality-companies index |
| DBAR | iMGP DBi Absolute Return ETF | Absolute return / market-neutral strategy |
| ENHE | iShares Enhanced Emerging Markets Equity Active ETF | Active emerging-markets equity |
For trend traders, the iMGP DBi Absolute Return ETF (DBAR) is worth watching. Absolute return strategies aim to produce positive returns regardless of market direction — conceptually similar to trend-following’s “go with the flow” ethos but expressed through a market-neutral lens.
4. WisdomTree Tokenized Fund AUM Crosses $1.2 Billion
Separately, WisdomTree announced (BusinessWire, September 29, 2026) that its tokenized fund assets have surpassed $1.2 billion. While tokenization is a separate topic from trend trading, the trend is relevant: ETF infrastructure is moving on-chain, which could eventually affect how trend signals are encoded, executed, and settled for systematic strategies.
5. What These Trends Mean for ETF Trend Traders
Three practical takeaways for anyone using trend-following or momentum strategies with ETFs:
Takeaway 1 — Moving-average ETFs are no longer theoretical
WAMA and WIMA prove that a systematic 200-day SMA crossover strategy can be packaged as a low-cost ETF. If you have been manually trading moving-average crossovers, these funds offer a “set and forget” alternative — though they use a more conservative 1% buffer than most retail strategies. You can treat them as a benchmark for your own crossover timing.
Takeaway 2 — The active ETF boom benefits systematic traders
As active ETF AUM grows, issuers are launching more rule-based and derivative-income products. More products mean more choice for trend traders who want to allocate across different signal types (moving average, momentum, carry, trend, absolute return) without building each strategy from scratch.
Takeaway 3 — Keep watching the new launches
The 6-fund launch week signals that issuers see demand for both emerging-markets exposure and absolute-return strategies. For trend traders, the iMGP DBi Absolute Return ETF (DBAR) may be the most relevant new entrant — and worth adding to your screener watchlist.
Quick Self-Check
Test your understanding of this week’s trends. Click each question to reveal the answer.
What triggers WAMA to move from equities to T-bills?
When the underlying index closes 1% below its 200-day simple moving average for two consecutive trading days, WAMA exits equities and shifts to U.S. Treasury bills.
How much has U.S. active ETF AUM grown since 2020?
Active ETF AUM grew from $122 billion in 2020 to $768 billion in 2024 — an average annual growth rate of 65% (SEC DERAP, February 2026). J.P. Morgan confirmed that year-to-date 2026 active equity flows have already surpassed the 2025 full-year total.
What is the expense ratio difference between WAMA and WIMA?
WAMA charges 0.32% (U.S. focus) while WIMA charges 0.42% (international developed markets). Both are competitive with other actively managed ETFs.
Frequently Asked Questions
Can I trade WAMA and WIMA in any brokerage account?
Yes. Both are listed on the Nasdaq and trade like any other U.S.-listed ETF. You can buy and sell shares through any major broker (TD Ameritrade, Fidelity, Schwab, Interactive Brokers, etc.) during regular market hours.
Are these funds guaranteed to outperform buy-and-hold?
No. WisdomTree’s own prospectus warns: “There can be no guarantee that the adaptive strategy will work as intended. The strategy may result in periods of underperformance, limit the Fund’s ability to participate in rising markets, and increase transaction costs.” Like any trend-following approach, moving-average ETFs can lag in strong, sustained rallies and may exit too late in sharp corrections.
What is the difference between an “active” ETF and a passive one?
A passive ETF tracks an index and only rebalances when the index changes composition. An active ETF uses a rules-based or discretionary strategy — like WAMA’s moving-average logic — to make allocation decisions. Active ETFs generally carry higher expense ratios but may offer downside protection or different return profiles.
How often will this Weekly Trend Watch be published?
This is the first edition of a recurring series. Editions will appear on TrendPilot when notable ETF trend-trading developments occur — new fund launches, strategy innovations, data releases, or market regime shifts that affect how trend traders should think about ETF allocation.
Where can I find more detail on the WAMA moving average strategy?
The WisdomTree product page (wisdomtree.com/us/products/equity/wama) contains the full fact sheet, prospectus, and performance data. The BusinessWire press release (March 12, 2026) has the original strategy description. For TrendPilot’s own guide to moving average crossover strategies, see our related articles.
Educational content only — not financial advice. Past performance does not guarantee future results. Trading involves risk of loss. Disclaimer · Affiliate Disclosure
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