WisdomTree Quarterly Profit More than Triples

October 26th at 7:36am by John Spence

ETF manager WisdomTree Investments (NasdaqGM: WETF) on Friday said its third-quarter net income rose to $4.5 million from $1.4 million in the year-ago period on record revenue.

The New York-based firm said it gathered $1 billion in net inflows for the quarter.

“We achieved record revenues and net income and continue to see the power of the operating leverage in our business model,” said CEO Jonathan Steinberg in the earnings release.

WisdomTree’s ETF assets rose to $16.8 billion from $15 billion at the end of the second quarter.

The firm’s total revenue climbed to $21.7 million from $17.7 million in the third quarter of 2011. [WisdomTree Liquidating Three ETFs]

“At a time when many ETF sponsors are competing directly against each other in market capitalization-weighted, beta exposures, WisdomTree’s commitment to innovative, differentiated products has strengthened our competitive position in the industry,” Steinberg noted.

WisdomTree Director of Research Jeremy Schwartz recently told ETF Trends that investors should start diversifying away from cap-weighted strategies, and dividends are a compelling alternative.

A vast majority of the assets in the ETF industry are tied to one strategy: market-cap-weighted indices.

“People are starting to wonder if that’s a sensible thing,” Schwartz explained. “We don’t think that’s common sense.” [WisdomTree’s Jeremy Schwartz on Dividend ETFs]

WisdomTree shares are up about 4% year to date. [ETF Firm WidsomTree’s Shares Eye Breakout Before Q3 Earnings]

The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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