WisdomTree: An Equity Play for the Growing ETF Industry
April 30th 2013 at 1:00pm by Tom Lydon
WisdomTree Investments (NasdaqGM: WETF) is a boutique exchange traded fund provider that has witnessed phenomenal growth as it capitalizes on timely investment strategies.
Due to the rising popularity of its strategy-based index ETF styles, the firm has seen net income surge 600%, and WETF shares have gained 81.1% so far this year. [WisdomTree Shares Rally on Higher Profit, ETF Flows]
WisdomTree, a publicly traded company that solely focuses on ETFs and the fifth largest U.S. ETF provider with $27.7 billion in assets under management, has found its specialty, carving out a thematic approach to various asset classes, writes Paul Baiocchi for Forbes.
Specifically, the fund provider is known for its dividend-focused products, with 27 of its 34 equity strategies based on some for of dividends.
The ETF provider has shied away from me-to products that would compete with larger providers based on fees. Looking at the range of offerings, WisdomTree has engineered a line of practical investment strategies, similar to actively managers and hedge funds, to provide an alternative to the traditional cap-weighted portfolios.
Some of WisdomTree’s largest offerings are going head-to-head on equal footing with some of the largest fund providers.
For example, the WisdomTree Japan Hedged Equity Fund (NYSEArca: DXJ) has attracted $5.3 billion so far this year as investors sought a way to gain exposure to the rising Japanese markets after the Bank of Japan’s aggressive monetary policies while hedging against a depreciating yen. Now, DXJ has $7.6 billion in assets under management, according to IndexUniverse data, compared to the $10.4 billion iShares MSCI Japan Index Fund (NYSEArca: EWJ), which has gathered $4.1 billion in assets year-to-date. [Japan ETF Rakes in $5 Billion, Rallies to Highest Since July 2008]
For more information on the ETF industry, visit our current affairs category.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, 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.