WisdomTree Investments (NasdaqGM: WETF) shares are getting a boost after the exchange traded fund manager posted record net inflows to its ETFs.
The New York-based company on Friday reported first-quarter net income of $1.1 million, up from $0.2 million in the year-ago quarter.
“”WisdomTree achieved the best quarter of net inflows in its history, taking in $2.3 billion, or 4.4% of the overall industry’s market share, and recorded 32% growth in revenues year-over-year,” said chief executive Jonathan Steinberg in the earnings release.
“This strong growth in net inflows was focused in our equity family and is even more impressive within the backdrop of $10 billion in outflows from traditional long-term equity mutual funds during the quarter,” the CEO added. “It is important to remember that while the ETF industry represents 10% of the total long-term assets in the U.S., it has taken in 50% of the net new inflows over the last five years.”
WisdomTree shares rallied about 6% on Friday after its quarterly update. The stock is the only “pure play” on the ETF business.
Steinberg in a recent interview with Yahoo Finance’s Breakout said the ETF industry is poised for “trillions and trillions” in future growth.
“The ETF is to the mutual fund, what the Internet is to the newspaper,” Steinberg told Breakout. “Because of the added functionality, full transparency, greater liquidity, greater tax efficiency, those characteristics are so important for investing. That’s why I think it’s a better mouse trap.”
Earlier this year, WisdomTree sold 1 million shares of common stock, while existing shareholders unloaded 13.4 million shares. [WisdomTree Launches Stock Offering]
WisdomTree Investments
