WisdomTree Investments

WisdomTree Investments, Inc.
Public company
Traded as NASDAQ: WETF
Industry Investment Management
Founded 2006[1]
Headquarters New York, New York, U.S.
Key people
 Jonathan Steinberg, CEO and President
Products 92 Exchange-Traded Funds (ETFs)
AUM Global $44.6 billion [2] (December 8, 2015)
Number of employees
 177[3](October 31, 2015)
Subsidiaries Boost ETP
Website (http://www.wisdomtree.com)

WisdomTree Investments, Inc. (NASDAQ: WETF) 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 is currently the industry’s fifth largest ETF provider in the United States.[4][5] WisdomTree sponsors 92 distinct ETFs that span asset classes and countries around the world. 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 was one of the pioneers for the concept of fundamentally weighted ETFs and active ETFs and is currently an industry leader in both categories.[4][8] WisdomTree is the only publicly traded asset manager exclusively focused on the ETP industry. 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][9] In 2014, WisdomTree acquired a majority stake (75%) in London-based Boost ETP. WisdomTree will invest $20 million in Boost to give it working capital to build out its European business.[10]

Company information

WisdomTree believes that its differentiated approach, employing a distinctive index-based methodology, delivers better risk adjusted returns over the long term.[11] The company’s index-based funds employ a fundamental weighted investment methodology, which weights securities on the basis of factors such as dividends or earnings, whereas most other ETF indexes use a capitalization weighted methodology.[12]

WisdomTree offers 14 different actively managed ETFs, which are ETFs that are not based on a particular index but rather are actively managed with complete transparency into the ETF’s portfolio on a daily basis.[13] WisdomTree's exemptive 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, thereby allowing the company to develop certain ETFs not yet offered by other sponsors.[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. 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 maintained 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 de-listed 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 Luciano Siracusano, currently Executive Vice President – Head of Sales & Chief Investment Strategist, 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]

In 2005, the company’s name was changed to WisdomTree Investments, Inc. 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][9]

Key financial statistics

Year Ending Assets Under Management[1][12] Revenue[1][14]
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. 1 2 3 4 5 6 7 8 "Form 10" (PDF). PDF. WisdomTree. Retrieved 12 December 2012.
  2. 1 2 "All ETFs". Website. WisdomTree. Retrieved 15 February 2014.
  3. ↑ "WisdomTree Announces Third Quarter Earnings Results". Press Release. WisdomTree. Retrieved 28 October 2013.
  4. 1 2 3 4 5 "Investor Relations". Website. WisdomTree. Retrieved 14 December 2012.
  5. 1 2 "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. ↑ Woolley, Scott (7 January 2008). "His Own Man". Forbes Magazine. 181 (1): 48–49. Retrieved 14 December 2012.
  9. 1 2 "NASDAQ: WETF". NASDAQ. Retrieved 8 January 2013.
  10. ↑ Hampson, Rebecca. "WisdomTree Taps Into Europe With Purchase". ETF.com.
  11. ↑ Ludwig, Olly. "WisdomTree's Steinberg: True Self-Indexer". Index Universe. Retrieved 8 January 2013.
  12. 1 2 3 "Annual Report on Form 10-K" (PDF). PDF. WisdomTree. Retrieved 14 December 2012.
  13. ↑ Lydon, Tom. "Actively Managed ETFs Ready for Take-Off". ETF Trends. Retrieved 8 January 2013.
  14. ↑ "WisdomTree Announces Fourth Quarter and Year End 2011 Results" (PDF). PDF. WisdomTree. Retrieved 14 December 2012.
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