WisdomTree Reports Monthly Metrics for August 2024

Rhea-AI Summary

WisdomTree (NYSE: WT) reported its monthly metrics for August 2024, highlighting record assets under management (AUM) of over $111 billion while maintaining a 37bps fee rate. The company saw inflows in U.S. equity products and cryptocurrencies, offset by outflows in Japan Hedged Equity Fund (DXJ) and European commodity products. Notable figures include:

- Total AUM reached $111,192 million as of August 31, 2024
- U.S. Equity net flows: $209 million (7.4% annualized flow rate)
- Cryptocurrency net flows: $164 million (212.2% annualized flow rate)
- International Dev. Mkt Equity net outflows: $881 million (-53.3% annualized flow rate)
- Commodity & Currency net outflows: $519 million (-28.0% annualized flow rate)

The report also shows year-to-date total net flows of $831 million, representing a 1.2% annualized flow rate.

Positive

• Record AUM of $111,192 million achieved
• Maintained a competitive 37bps blended total average fee rate
• Strong inflows in U.S. Equity ($209 million) and Cryptocurrency ($164 million) segments
• Positive year-to-date total net flows of $831 million
• Alternatives and Leveraged & Inverse segments showed high annualized flow rates of 69.5% and 48.4% respectively

Negative

• Significant outflows in International Dev. Mkt Equity (-$881 million) and Commodity & Currency (-$519 million) segments
• Negative total net flows of -$919 million for the month
• Quarterly net outflows of -$1,499 million

Insights

Financial Analyst

WisdomTree's August 2024 metrics reveal a mixed bag of results. The company achieved a record AUM of $111.192 billion, a positive indicator of overall growth. However, the total net flows were negative at -$919 million for the month, signaling some challenges in certain asset classes.

The standout performers were U.S. Equity with $209 million inflows and Cryptocurrency with $164 million inflows, showing strong investor interest in these sectors. Conversely, International Developed Market Equity saw significant outflows of $881 million, primarily due to the Japan Hedged Equity Fund (DXJ). This suggests a shift in investor sentiment away from certain international markets.

The blended fee rate of 37 bps remains competitive, but maintaining this rate while growing AUM will be important for revenue growth. The 212.2% annualized flow rate in Cryptocurrency is particularly noteworthy, indicating strong momentum in this emerging asset class.

Market Research Analyst

WisdomTree's August metrics provide insights into current market trends. The outflows in European commodity products suggest a risk-off sentiment in that region, possibly due to economic uncertainties. This contrasts with the inflows in U.S. equity products, indicating a preference for domestic markets among investors.

The significant growth in Cryptocurrency AUM (212.2% annualized flow rate) reflects the increasing mainstream acceptance of digital assets. This trend could position WisdomTree well in the evolving financial landscape. However, the outflows in Fixed Income (-$524 million QTD) might indicate concerns about interest rates and inflation.

The positive performance in Alternatives and Leveraged & Inverse products suggests that some investors are seeking non-traditional strategies in the current market environment. This diversification in product offerings could help WisdomTree navigate varying market conditions and investor preferences.

Investment Strategist

WisdomTree's August metrics reveal interesting shifts in investor behavior and market dynamics. The record AUM of $111.192 billion is a positive headline, but the underlying flows tell a more nuanced story. The stark contrast between U.S. Equity inflows and International Developed Market Equity outflows suggests a 'home bias' among investors, possibly driven by global economic uncertainties.

The strong performance in Cryptocurrency (212.2% annualized flow rate) is particularly noteworthy. This could be a significant growth driver for WisdomTree if the trend continues, but it also exposes the company to the volatility associated with this asset class. The outflows in Commodity & Currency (-$519 million) might reflect changing inflation expectations or a stronger dollar outlook.

While the overall net flows were negative for August, the year-to-date net flows remain positive at $831 million. This suggests that WisdomTree's diverse product lineup is helping to balance out sectoral shifts in investor preferences, which could be important for long-term stability and growth.

Record Assets Under Management

Blended Fee Rate of 37bps

NEW YORK--(BUSINESS WIRE)-- WisdomTree, Inc. (NYSE: WT), a global financial innovator, today released monthly metrics for August 2024, including assets under management (AUM) and flow data by asset class.

Monthly Commentary:

• WisdomTree achieved record AUM of over $111 billion while maintaining a 37bps fee rate
• Inflows in U.S. equity products and cryptocurrencies were offset by outflows in Japan Hedged Equity Fund (DXJ) and risk-off positioning in European commodity products

As of August 31, 2024	AUM Rollforward ($ in millions)			Annualized Flow Rate
	MTD	QTD	YTD	MTD	QTD	YTD
Beginning of Period Total AUM	$110,962	$109,686	$100,124
Total Net Flows
U.S. Equity	$209	$285	$1,042	7.4%	5.3%	5.4%
International Dev. Mkt Equity	($881)	($913)	$1,940	(53.3%)	(27.8%)	19.3%
Emerging Market Equity	($23)	$133	$407	(2.2%)	6.6%	5.7%
Fixed Income	$27	($524)	($302)	1.5%	(14.4%)	(2.1%)
Commodity & Currency	($519)	($792)	($2,750)	(28.0%)	(21.3%)	(19.3%)
Alternatives	$26	$48	$66	69.5%	67.8%	26.3%
Cryptocurrency	$164	$172	$405	212.2%	121.1%	147.0%
Leveraged & Inverse	$78	$92	$24	48.4%	28.4%	2.0%
Total Net Flows	($919)	($1,499)	$831	(9.8%)	(8.1%)	1.2%
Market Move	$1,150	$3,005	$10,237
Current Total AUM	$111,192	$111,192	$111,192
Average Total AUM	$109,125	$110,139	$106,482
Blended Total Average Fee Rate		37 bps	36 bps

Source: https://ir.wisdomtree.com/

Please visit https://ir.wisdomtree.com/ for downloadable spreadsheets containing detailed AUM and flow data by asset class and fund broken out by daily, monthly, quarterly and annual timeframes.

About WisdomTree

WisdomTree is a global financial innovator, offering a well-diversified suite of exchange-traded products (ETPs), models, solutions and products leveraging blockchain technology. We empower investors and consumers to shape their future and support financial professionals to better serve their clients and grow their businesses. WisdomTree is leveraging the latest financial infrastructure to create products that provide access, transparency and an enhanced user experience. Building on our heritage of innovation, we are also developing and have launched next-generation digital products, services and structures, including digital or blockchain-enabled mutual funds and tokenized assets, as well as our blockchain-native digital wallet, WisdomTree Prime^®.*

*The WisdomTree Prime digital wallet and digital asset services are made available through WisdomTree Digital Movement, Inc., a federally registered money services business, state-licensed money transmitter and financial technology company (NMLS ID: 2372500) or WisdomTree Digital Trust Company, LLC, in select U.S. jurisdictions and may be limited where prohibited by law. WisdomTree Digital Trust Company, LLC is chartered as a limited purpose trust company by the New York State Department of Financial Services to engage in virtual currency business. Visit https://www.wisdomtreeprime.com or the WisdomTree Prime mobile app for more information.

WisdomTree currently has approximately $108 billion in assets under management globally.

For more information about WisdomTree and WisdomTree Prime, visit: https://www.wisdomtree.com.

Please visit us on X at @WisdomTreeNews.

WisdomTree^® is the marketing name for WisdomTree, Inc. and its subsidiaries worldwide.

PRODUCTS AND SERVICES AVAILABLE VIA WISDOMTREE PRIME:
NOT FDIC INSURED | NO BANK GUARANTEE | NOT A BANK DEPOSIT | MAY LOSE VALUE | NOT SIPC PROTECTED | NOT INSURED BY ANY GOVERNMENT AGENCY

The products and services available through the WisdomTree Prime app are not endorsed, indemnified or guaranteed by any regulatory agency.

Cautionary Statement Regarding Forward-Looking Statements

This press release may contain a number of “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our ability to achieve our financial and business plans, goals and objectives and drive stockholder value, including with respect to our ability to successfully implement our strategy relating to WisdomTree Prime^®, our ability to continue to make achievements in AUM, levels of net inflows and other risk factors discussed from time to time in WisdomTree’s filings with the Securities and Exchange Commission (“SEC”), including those factors discussed under the caption “Risk Factors” in our most recent annual report on Form 10-K, filed with the SEC on February 23, 2024, and in subsequent reports filed with or furnished to the SEC. These forward-looking statements are based on WisdomTree’s management’s current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside WisdomTree’s management’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Forward-looking statements included in this release speak only as of the date of this release. WisdomTree does not undertake any obligation to update its forward-looking statements to reflect events or circumstances after the date of this release except as may be required by the federal securities laws.

Category: Business Update

View source version on businesswire.com: https://www.businesswire.com/news/home/20240911246545/en/

Media Relations

WisdomTree, Inc.

Natasha Ramsammy

+1.917.267.3798

nramsammy@wisdomtree.com / wisdomtree@fullyvested.com

Investor Relations

WisdomTree, Inc.

Jeremy Campbell

+1.917.267.3859

Jeremy.Campbell@wisdomtree.com

Source: WisdomTree, Inc.

FAQ

What was WisdomTree's (WT) total AUM as of August 31, 2024?

WisdomTree's (WT) total Assets Under Management (AUM) reached $111,192 million as of August 31, 2024, marking a record high for the company.

How did WisdomTree's (WT) U.S. Equity and Cryptocurrency segments perform in August 2024?

In August 2024, WisdomTree's (WT) U.S. Equity segment saw net inflows of $209 million, while the Cryptocurrency segment had net inflows of $164 million, with annualized flow rates of 7.4% and 212.2% respectively.

What were the main areas of outflows for WisdomTree (WT) in August 2024?

The main areas of outflows for WisdomTree (WT) in August 2024 were the International Developed Market Equity segment with -$881 million and the Commodity & Currency segment with -$519 million in net outflows.

What was WisdomTree's (WT) blended total average fee rate in August 2024?

WisdomTree's (WT) blended total average fee rate in August 2024 was 37 basis points (bps).