WisdomTree Reports Monthly Metrics for March 2024

Rhea-AI Summary

WisdomTree, Inc. (WT) achieves a record high AUM of $107.3 billion for the 5th consecutive month with over $1.2 billion in net inflows in March. The company received a trust company charter from the New York State Department of Financial Services, allowing it to expand its services and offerings. The monthly metrics for March 2024 show positive fee impact and net inflows across various asset classes, with significant growth in Equity, Fixed Income, Commodities, and Cryptocurrency.

Positive

• Record high AUM of $107.3 billion for the 5th consecutive month
• Over $1.2 billion in net inflows in March and nearly $2 billion YTD
• Trust company charter granted by the New York State Department of Financial Services
• Positive fee impact driven by higher fee funds
• Net inflows in 6 out of 8 major product categories
• Significant growth in Equity, Fixed Income, Commodities, and Cryptocurrency
• WisdomTree Prime™ to be available in 41 states and to approximately 75% of the U.S. population
• Detailed AUM and flow data available on the company's website

Negative

• None.

Insights

Market Research Analyst

WisdomTree's announcement of a record high AUM of $107.3 billion for the fifth consecutive month is a strong indicator of the firm's growth trajectory. The net inflows of over $1.2 billion in March suggest robust investor confidence and an appetite for WisdomTree's product offerings. Notably, the higher fee funds have contributed significantly to this growth, which is likely to have a positive impact on the company's revenue streams. The 17% pace of YTD organic growth in the equity franchise is particularly impressive, outpacing many competitors in the asset management sector.

The granting of a trust company charter by the New York State Department of Financial Services is another strategic milestone for WisdomTree. This enables the company to expand its customer base in New York and offer products like stablecoins under enhanced legal protections. The expansion of WisdomTree Prime™ to cover approximately 75% of the U.S. population could potentially increase market share and diversify revenue sources. However, the performance of new products, particularly in the volatile cryptocurrency sector, should be monitored closely for risk exposure.

Investors should consider the annualized flow rates and net inflows across different asset classes, as they reflect investor sentiment and market trends. The positive inflows in equity, fixed income, commodities and cryptocurrency indicate a diversified growth strategy, while the negative flow in leveraged and inverse products may signal a shift in investor risk appetite or market dynamics.

Financial Analyst

From a financial perspective, the blended total average fee rate of 36 bps reported by WisdomTree is a critical metric for evaluating the company's profitability. As the firm continues to attract net inflows, especially in higher fee funds, the fee rate will play a pivotal role in driving revenue growth. The net inflows year-to-date (YTD) nearing $2 billion are a testament to the firm's effective product positioning and market capture.

The market move contribution of $3.216 billion to the AUM in March also highlights the positive market conditions that have benefited asset managers. For stakeholders, the sustained AUM growth combined with favorable market trends could lead to enhanced shareholder value. However, the reliance on market performance underscores the importance of risk management and the need to prepare for potential market downturns.

Investors should also consider the implications of the trust company charter, particularly the ability to offer new products under DFS supervision. While this presents new opportunities, it also introduces regulatory and compliance obligations that could impact operational costs and require strategic management.

Cryptocurrency Market Specialist

The cryptocurrency sector is experiencing a significant surge in interest, as evidenced by the 85.0% monthly and 154.0% YTD annualized flow rates for WisdomTree's cryptocurrency products. This exceptional growth rate, though potentially lucrative, carries inherent market risks due to the volatility associated with digital assets. WisdomTree's entry into the New York market with a trust charter may provide a competitive edge by offering stablecoins and other services with increased legal security.

However, the regulatory landscape for cryptocurrencies is complex and rapidly evolving. The trust charter from the New York State Department of Financial Services positions WisdomTree favorably in terms of compliance, but the company must navigate these waters carefully to maintain investor trust and meet regulatory standards. The potential for regulatory changes could have significant implications for the company's cryptocurrency offerings and investor sentiment.

As the cryptocurrency market matures, WisdomTree's performance in this sector should be closely watched. Their ability to manage the associated risks and capitalize on the growing demand will be critical for their continued success and impact on their financial performance.

AUM of $107.3 billion sets record high for 5^th consecutive month

Over $1.2 billion of net inflows in March

Granted trust company charter by New York State Department of Financial Services

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

Monthly Commentary:

• Higher fee funds drove the over $1.2 billion of net inflows in March and nearly $2 billion of net inflows YTD, generating a positive fee impact
• Generated net inflows in 6 of our 8 major product categories, including double-digit annualized flow growth in Equity, Fixed Income, Commodities and Cryptocurrency
• Our equity franchise (U.S. + International Developed Markets + Emerging Markets) generated $2.4 billion of YTD net inflows and a 17% pace of YTD organic growth
• WisdomTree’s trust company charter granted by the New York State Department of Financial Services (DFS) will enable WisdomTree Prime™ to onboard New York resident customers, and also allows WisdomTree to offer products (like stablecoins) and perform services under DFS supervision with associated legal protections
• Including the forthcoming launch in New York, WisdomTree Prime™ will be available in 41 states and to approximately 75% of the U.S. population

As of March 31, 2024	AUM Rollforward ($ in millions)		Annualized Flow Rate
	MTD	QTD / YTD	MTD	QTD / YTD
Beginning of Period Total AUM	$102,804	$100,124
Total Net Flows
U.S. Equity	$265	$536	10.3%	7.4%
International Dev. Mkt Equity	$131	$1,599	8.9%	42.6%
Emerging Market Equity	$52	$217	5.6%	8.1%
Fixed Income	$230	($14)	13.0%	(0.3%)
Commodity & Currency	$516	($460)	30.4%	(8.7%)
Alternatives	($1)	$4	(3.4%)	4.0%
Cryptocurrency	$53	$158	85.0%	154.0%
Leveraged & Inverse	($36)	($50)	(23.8%)	(11.2%)
Total Net Flows	$1,210	$1,990	13.9%	8.0%
Market Move	$3,216	$5,116
Current Total AUM	$107,230	$107,230
Average Total AUM	$105,514	$102,266
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 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) and, after the forthcoming launch in New York, through 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 $106.9 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 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/20240409009442/en/

Media Relations

WisdomTree, Inc.

Jessica Zaloom

+1.917.267.3735

jzaloom@wisdomtree.com

Natasha Ramsammy

+1.917.267.3798

nramsammy@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 AUM for WisdomTree, Inc. in March 2024?

WisdomTree, Inc. achieved a record high AUM of $107.3 billion in March 2024.

How much net inflows did WisdomTree, Inc. receive in March?

WisdomTree, Inc. received over $1.2 billion in net inflows in March.

Which department granted WisdomTree, Inc. a trust company charter?

WisdomTree, Inc. was granted a trust company charter by the New York State Department of Financial Services.

In how many states will WisdomTree Prime™ be available?

WisdomTree Prime™ will be available in 41 states.

What percentage of the U.S. population will have access to WisdomTree Prime™?

Approximately 75% of the U.S. population will have access to WisdomTree Prime™.

Where can detailed AUM and flow data by asset class be found?

Detailed AUM and flow data by asset class can be found on the company's website.

What was the total net flows for WisdomTree, Inc. in March?

The total net flows for WisdomTree, Inc. in March were $1.2 billion.

Which asset class showed the highest growth in net inflows for WisdomTree, Inc.?

Cryptocurrency showed the highest growth in net inflows for WisdomTree, Inc.

What was the pace of YTD organic growth for WisdomTree, Inc.?

WisdomTree, Inc. experienced a 17% pace of YTD organic growth.