WisdomTree Investments

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WisdomTree Investments, Inc.
TypePublic
IndustryInvestment Management
Founded2006[1]
HeadquartersNew York, New York, U.S.
Key people
Jonathan Steinberg, CEO and President
Products92 Exchange-Traded Funds (ETFs)
AUMGlobal $77.8 billion[2] (January 20, 2021)
Number of employees
204[3](July 2018)
SubsidiariesBoost ETP
Websitehttps://www.wisdomtree.com

WisdomTree Investments, Inc. is a New York-based exchange-traded fund (ETF) and exchange-traded product (ETP) sponsor and asset manager. WisdomTree launched its first ETFs in June 2006, and became one of the major ETF providers in the United States.[4][5] WisdomTree sponsors different ETFs that span asset classes and countries worldwide. Categories include: U.S. and International Equity, Currency, Fixed Income and Alternatives.

WisdomTree's largest ETF in terms of AUM is the WisdomTree Europe Hedged Equity Fund NYSE: HEDJ, which had over $20.39 billion on December 28, 2015. The ETFs invests in European equities but hedges out currency risks due to the changing exchange rates between the US Dollar and the euro.[6][7] WisdomTree manages approximately $44.5 billion in ETF assets under management, as of February 23, 2016.[2] The WisdomTree common stock is listed on the NASDAQ Global Select Market under the ticker: Nasdaq: WETF.[4][8]

Company information[]

WisdomTree Investments uses index-based funds to employ a weighted investment methodology, which weights securities on the basis of factors such as dividends or earnings.[9] According to WisdomTree, their utilization of a "differentiated" approach, employing a distinctive index-based methodology, helps deliver better risk-adjusted returns in long term.[10]

WisdomTree offers 14 different ETFs, that are transparently managed on a daily basis.[11] WisdomTree's relief enables the company to use its own indexes for certain ETFs, actively manage other ETFs and incorporate the use of derivatives in certain products, a process that allows the company to develop unique ETFs.[9] As of 2017, WisdomTree Investments had subsidiaries in US, Canada, Europe and Japan.[12]

History[]

WisdomTree Investments, Inc. was incorporated by its chief executive officer and founder, Jonathan Steinberg, in Delaware as Financial Data Systems, Inc., on September 19, 1985, but was inactive until October 1988 when it acquired the assets relating to what would become Individual Investor magazine, a monthly personal finance magazine.[1]

In December 1991, it completed an initial public offering and commenced trading on the Nasdaq Stock Market (NASDAQ). In 1993, the company's name was changed to Individual Investor Group, Inc. and throughout the 1990s it was a financial media company that published several magazines, including Individual Investor and Ticker, newsletters, as well as maintaining several online financial related websites. In addition, the company also began developing stock indexes.[1]

Due to the economic downturn in the financial media industry in 2000 and 2001, the company sold its media properties in order to preserve its capital while it pursued a new business plan focusing on developing and licensing its stock indexes. The company's common stock was delisted from NASDAQ and began quotation on the over-the-counter market.[1]

In 2002, the company's name was changed to Index Development Partners, Inc., and Jonathan Steinberg, along with Rayne Steinberg and Luciano Siracusano, continued development of the concepts for the company's fundamentally weighted index methodology. While this concept was being developed, the company sought to obtain financing to recapitalize and become an ETF sponsor.[1][4]

Between 2004 and 2005, the company obtained financing from a core group of investors including former hedge fund manager Michael Steinhardt, Professor Jeremy Siegel of The Wharton School of the University of Pennsylvania and James D Robinson IV with venture capital firm of RRE Ventures. Michael Steinhardt became Chairman and Professor Jeremy Siegel became the senior investment strategy advisor for the company.[1]

On September 21, 2005, the company's name was changed to WisdomTree Investments, Inc.[13] WisdomTree Investments, Inc. launched its first 20 ETFs in June 2006.[5] On July 26, 2011, WisdomTree listed on the NASDAQ Global Select Market under the ticker: WETF.[4][8]

In 2014, WisdomTree acquired a majority stake (75%) in London-based Boost ETP. The same year, it was reported that WisdomTree will invest $20 million in Boost to give it working capital to build out its European business.[14]

In 2016, the company was included on Forbes' list of America's 50 Most Trustworthy Financial Companies.[15] In a statement, regarding the list inclusion, Steinberg, wrote, "This recognition underscores WisdomTree’s commitment to raising the standard of transparency in financial services through the exchange-traded funds we offer, as well as our unrivaled corporate operating disclosure."[16] In 2019, it was reported by Bloomberg News that WisdomTree Investments was considering selling the company to J.P. Morgan Chase in 2018, however, the two companies failed to reach a mutually acceptable price.[17]

Key financial statistics[]

Year ending Assets under management[1][9] Revenue[1][18]
31 December 2006 $1.52 billion $2.2 million
31 December 2007 $4.56 billion $20.9 million
31 December 2008 $3.18 billion $23.6 million
31 December 2009 $5.98 billion $22.1 million
31 December 2010 $9.89 billion $41.6 million
31 December 2011 $12.18 billion $65.2 million
31 December 2012 $18.30 billion $84.8 million
31 December 2013 $34.90 billion $149.5 million
31 December 2014 $39.30 billion $183.8 million
31 December 2015 $51.60 billion $298.9 million

See also[]

References[]

  1. ^ a b c d e f g h "Form 10" (PDF). PDF. WisdomTree. Retrieved 12 December 2012.
  2. ^ a b "All ETFs". Website. WisdomTree. Retrieved 21 January 2021.
  3. ^ "WisdomTree Announces Third Quarter Earnings Results". Press Release. WisdomTree. Retrieved 24 July 2018.
  4. ^ a b c d "Investor Relations". Website. WisdomTree. Retrieved 14 December 2012.
  5. ^ a b "U.S. Listed ETF Data - Assets" (PDF). PDF. ETF Industry Association. Retrieved 14 December 2012.
  6. ^ "All ETFs". WisdomTree.
  7. ^ "WisdomTree Japan Hedged Equity Fund". WisdomTree.
  8. ^ a b "NASDAQ: WETF". NASDAQ. Retrieved 8 January 2013.
  9. ^ a b c "Annual Report on Form 10-K" (PDF). PDF. WisdomTree. Retrieved 14 December 2012.
  10. ^ Ludwig, Olly. "WisdomTree's Steinberg: True Self-Indexer". Index Universe. Retrieved 8 January 2013.
  11. ^ Lydon, Tom. "Actively Managed ETFs Ready for Take-Off". ETF Trends. Retrieved 8 January 2013.
  12. ^ "WisdomTree Announces Changes to ETF Family". GlobeNewswire. March 1, 2017. Retrieved May 27, 2020.
  13. ^ "Index Development Partners, Inc. Announces Corporate Name Change to WisdomTree Investments, Inc". WisdomTree. 21 September 2005. Archived from the original on 8 February 2006. Retrieved 27 June 2017.
  14. ^ Hampson, Rebecca. "WisdomTree Taps Into Europe With Purchase". ETF.com.
  15. ^ Dill, Kathryn (August 2, 2016). "America's 50 Most Trustworthy Financial Companies". Forbes. Retrieved May 27, 2020.
  16. ^ "WisdomTree Investments, Inc. Named to Forbes'® 2016 List of "America's 50 Most Trustworthy Financial Companies". GlobeNewswire. August 30, 2016. Retrieved May 27, 2020.
  17. ^ Li, Yun (February 11, 2019). "WisdomTree reportedly explored a sale to JP Morgan last year". CNBC.com. Retrieved May 30, 2020.
  18. ^ "WisdomTree Announces Fourth Quarter and Year End 2011 Results" (PDF). PDF. WisdomTree. Retrieved 14 December 2012.

External links[]

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