WisdomTree Reports Monthly Metrics for January 2024

Rhea-AI Summary

WisdomTree, Inc. (WT) achieves record high AUM for the 3rd consecutive month with $1 billion net inflows in January 2024. The equity franchise shows 21% YTD organic growth, driven by strong flows into high fee funds like DXJ, EPI, and DGRW. Despite outflows in USFR, positive fee impact is observed. The launch of BTCW and expansion of WisdomTree Prime™ indicate strategic growth initiatives.

Insights

Market Research Analyst

The recent announcement by WisdomTree, Inc. regarding their AUM reaching a record high for the third consecutive month points to a significant trend in investor behavior and market sentiment. The 21% YTD organic growth in the equity franchise indicates a robust appetite for equity investments, particularly in U.S., International Developed and Emerging Markets. The positive net inflows into higher fee products, such as the Japan Hedged Equity Fund, India Earnings Fund and U.S. Quality Dividend Growth Fund, suggest investors are seeking diversified international exposure and are willing to pay a premium for specialized strategies.

It is important to note the strategic implications of the product mix shift towards higher fee funds. This could potentially lead to increased revenue for WisdomTree, given the higher fee rates associated with these funds. However, the outflows from the Floating Rate Treasury Fund could signal investor concerns about interest rate risks or a search for higher yields elsewhere. The launch of the WisdomTree Bitcoin Fund and the expansion of WisdomTree Prime™ reflect the company's efforts to innovate and capture market trends in cryptocurrency and digital finance services.

Financial Analyst

The data released by WisdomTree, Inc. provides insights into the company's financial health and growth trajectory. The annualized flow rate of 3.2% and the increase in AUM to $100,278 million are indicative of a positive trend in asset accumulation. The blended total average fee rate of 36 basis points (bps) is a critical metric for revenue projections. While the net inflows are a positive indicator, the market move of a $114 million decrease could be a concern if it reflects broader market volatility or a downturn.

Investors should consider the potential impact on WisdomTree's profitability from the mix of assets under management. The higher fee rates associated with certain funds could enhance profit margins, but this must be balanced against any potential increase in redemptions or shifts in investor preferences. The launch of new products like the Bitcoin Fund also suggests a forward-looking approach, but it comes with inherent risks associated with the volatile nature of cryptocurrencies.

Cryptocurrency Expert

The introduction of the WisdomTree Bitcoin Fund (BTCW) and the expansion of WisdomTree Prime™ are particularly noteworthy as they demonstrate WisdomTree's entry into the burgeoning field of cryptocurrency and digital asset management. The reported 168.2% annualized flow rate for cryptocurrency indicates a high level of investor interest in this new asset class. This can be seen as a response to increasing demand for cryptocurrency exposure within traditional investment portfolios.

However, the cryptocurrency market is known for its high volatility and regulatory uncertainty. The performance of the BTCW and its reception by nearly 70% of the U.S. population could be pivotal in determining the success of WisdomTree's strategic move into digital assets. While this could attract a new demographic of investors, it also exposes the company to the risks associated with digital asset price fluctuations and potential regulatory changes.

AUM hits record high for 3^rd consecutive month

Positive flow momentum in higher fee products

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

Monthly Commentary:

• Robust ~$1 billion of net inflows generated a 21% pace of YTD organic growth across the equity franchise (U.S. + International Developed Markets + Emerging Markets)
• Positive fee impact from strong flows into a mix of high fee funds such as Japan Hedged Equity Fund (DXJ) (0.48% fee rate, +$405 million net inflows), India Earnings Fund (EPI) (0.85% fee rate, +$226 million net inflows) and U.S. Quality Dividend Growth Fund (DGRW) (0.28% fee rate, +$248 million net inflows) outpace outflows in Floating Rate Treasury Fund (USFR) (0.15% fee rate, -$412 million net outflows)
• Outflows in Commodity & Currency category driven primarily by profit taking and de-risking in Oil and Gold products, partially offset by strength in Copper flows
• Launched WisdomTree Bitcoin Fund (BTCW) in the U.S.
• Expanded WisdomTree Prime™ to 38 states and nearly 70% of the U.S. population

As of January 31, 2024		AUM Rollforward ($ in millions)	Annualized Flow Rate
		MTD / QTD / YTD	MTD / QTD / YTD
Beginning of Period Total AUM		$100,124
Total Net Flows
U.S. Equity		$397	16.0%
International Dev. Mkt Equity		$447	34.9%
Emerging Market Equity		$152	16.7%
Fixed Income		($342)	(19.0%)
Commodity & Currency		($443)	(24.4%)
Alternatives		$9	29.4%
Cryptocurrency		$59	168.2%
Leveraged & Inverse		($12)	(7.6%)
Total Net Flows		$268	3.2%
Market Move		($114)
Current Total AUM		$100,278
Average Total AUM		$99,795
Blended Total Average Fee Rate		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-enabled 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. (NMLS ID: 2372500) in select U.S. jurisdictions and may be limited where prohibited by law. Visit https://www.wisdomtreeprime.com or the WisdomTree Prime mobile app for more information.

WisdomTree currently has approximately $100.3 billion in assets under management globally.

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

Please visit us on X, formerly known as Twitter, 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 28, 2023, 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/20240212187142/en/

Media Relations

WisdomTree, Inc.

Jessica Zaloom

+1.917.267.3735

jzaloom@wisdomtree.com / wisdomtree@fullyvested.com

Investor Relations

WisdomTree, Inc.

Jeremy Campbell

+1.646.522.2602

Jeremy.Campbell@wisdomtree.com

Source: WisdomTree, Inc.

FAQ

What is the ticker symbol for WisdomTree, Inc.?

The ticker symbol for WisdomTree, Inc. is WT.

What was the total AUM as of January 31, 2024?

The total AUM as of January 31, 2024 was $100,278 million.

Which funds experienced net inflows in January 2024?

Funds like DXJ, EPI, and DGRW experienced net inflows in January 2024.

What was the fee rate for Japan Hedged Equity Fund (DXJ)?

Japan Hedged Equity Fund (DXJ) had a fee rate of 0.48%.

What was the fee rate for India Earnings Fund (EPI)?

India Earnings Fund (EPI) had a fee rate of 0.85%.

Which category saw outflows driven by profit taking and de-risking?

The Commodity & Currency category saw outflows driven by profit taking and de-risking in Oil and Gold products.

What strategic growth initiatives were undertaken by WisdomTree, Inc. in January 2024?

WisdomTree, Inc. launched the WisdomTree Bitcoin Fund (BTCW) and expanded WisdomTree Prime™ to 38 states and nearly 70% of the U.S. population in January 2024.