Content and data provided by various third parties and Fidelity − Terms of Use | Help/Glossary
Research > ETFs > ETF / ETP Commentary > 

Work With WAMA for Moving Average Simplicity

BY | ETF Database
11:12 am ET 06/01/26 | 9 VIEWS
Moving averages are among the most important and useful technical indicators for traders. However, many novice market participants feel daunted by the concept. Moving averages are also extremely relevant to long-term investors and many still don’t know where to start implementing these critical signals in their portfolios.The U.S. Adaptive Moving Average Fund (WAMA) closes those gaps. WAMA, which debuted on March 12, tracks the WisdomTree U.S. Adaptive Moving Average Index. The strategy also employs a concept that’s easy to digest for investors of all stripes. When the index’s observed moving average is conducive to equity ownership, the ETF leans into stocks. When bearish signals flash, the strategy adapts, increasing its exposure to T-bills. The point is that WAMA does the “homework” for advisors and investors. Ultimately, this makes it much easier to embrace one of the vital tools of technical analysis. “Moving averages are a common way for technical traders to begin the process of price analysis. It is often one of the first indicators that traders will add to their charts and will serve as a measure on its own or in comparison with other indicators,” according to CME Group.Understanding WAMA UtilityFor investors pondering WAMA’s utility, it pays to understand the usefulness of moving averages themselves. Fortunately, that objective is easy to accomplish. “Moving averages are often used to compare where the current price of the underlying instrument is in relation to support and resistance on a chart. When price moves down to a moving average line or up to a moving average line, traders can use this as a signal that price might stop or retrace at that point,” added CME. Importantly, WAMA’s methodology focuses on the 200-day moving average. That’s relevant to end users because shorter-term moving averages can be bumpier, which subjects market participants to unclear signals and unnecessary noise. “The 200-day simple moving average (SMA) is a widely used technical indicator that helps traders and analysts identify long-term market trends. It represents the average closing price of an asset over the past 200 trading days and is plotted as a smooth line on a price chart,” noted Investopedia. WAMA’s ex-US counterpart is the WisdomTree International Adaptive Moving Average Fund (WIMA). For more news, information, and analysis, visit the Modern Alpha Content Hub.DisclosuresThis article was prepared as part of WisdomTree’s general paid sponsorship of VettaFi | ETF Trends. This specific content within and any opinions expressed therein belong solely to VettaFi and do not reflect the opinion or analysis of WisdomTree, its employees, or its affiliates. Content published on VettaFi | ETF Trends is provided for educational purposes only and should not be considered investment or tax advice. For investment or tax advice, please consult a financial professional.  WisdomTree is an independent company, unaffiliated with VettaFi | ETF Trends. WisdomTree has not been involved with the preparation of the content supplied by VettaFi | ETF Trends. It does not guarantee, or assume any responsibility for its content.

More Commentary

Checking the Style Box: Fidelity's Systematic 'Beta-Plus' Lineup
BY | ETF Database
5:38 am ET 06/01/26 | 46 VIEWS
How BBB-B CLOs Seek to Outshine High Yield Corporates in 2026
BY | ETF Database
8:54 am ET 06/01/26 | 18 VIEWS
Beyond the AI Boom: Human Infrastructure Exposure With 3 ETFs
BY | ETF Database
7:54 am ET 06/01/26 | 52 VIEWS
View more Commentary

Search Commentary

Enter Keyword(s)
Filter Results

Performance data shown is past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. For standard quarterly performance, go to the fund's Snapshot page by clicking on the ETF/ETP's symbol.

ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.

For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.

FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.

News, commentary (including "Related Symbols") and events are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.

Any data, charts and other information provided on this page are intended to help self-directed investors evaluate exchange traded products (ETPs), including, but limited to exchange traded funds (ETFs) and exchange traded notes (ETNs). Criteria and inputs entered, including the choice to make ETP comparisons, are at the sole discretion of the user and are solely for the convenience of the user. Analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information supplied or obtained from this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating ETPs. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.

Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.