Exchange traded fund (ETF) provider WisdomTree (Pink Sheets: WSDT) said it swung to a slight quarterly profit, which could boost interest in the stock, which trades on the pink sheets, following a recent run.
The firm reported net income of $0.2 million for the first quarter of 2011, compared with a net loss of $3.6 million in the first quarter of 2010 and a net loss of $0.6 million for the fourth quarter of 2010. [March ETF Performance Report.]
ETF assets under management reached a record $11.3 billion, up 14.1% from December 31, 2010. Net inflows were $1.3 billion in the first quarter which represented 4.7% market share of industry inflows. [ETF Growth Continues in First Quarter.]
WisdomTree CEO Jonathan Steinberg commented the firm is “continuing to expand and diversify our product offering by launching our second international fixed income ETF and launching our first alternative strategy ETF during the quarter.”
As of April 1, the company had $11.3 billion in managed ETF assets and $750 million of third-party licensed indexes, according to a recent report on WisdomTree by Gabelli & Co. It estimates the company will generate revenue of $76 million in 2011.
The Gabelli & Co. report also noted WisdomTree at the end of March filed a Form 10 announcing its intention to list on a major U.S. exchange. “We believe the increased trading liquidity and stricter reporting standards, from the expected June movement to a major exchange is a near term catalyst for the company,” the analysts wrote. They count WisdomTree as the eighth-largest ETF sponsor. “The company is capitalizing on the demand for currency and commodity funds.”