WisdomTree Shares Rally on Higher Profit, ETF Flows

Shares of WisdomTree Investments (NasdaqGM: WETF) rose 5% in early trading Friday after the ETF provider said its first-quarter net income rose more than 600% from the year-ago period.

The firm has benefited from the biggest story of 2013 in ETFs: WisdomTree Japan Hedged Equity (NYSEArca: DXJ).

The specialized ETF is designed to invest in Japanese stocks but hedges its currency exposure to the yen. The fund has rallied 30% so far this year as Japan desperately tries to stoke inflation and weaken its currency.

DXJ is the best-selling ETF of 2013, raking in more than $5 billion.

Meanwhile, WisdomTree shares were up 78% so far this year through Thursday. [WisdomTree ETF Assets Grow as Shares Rally]

On Friday the company said its first-quarter net income rose to $7.9 million from $1.1 million in the same quarter of 2012.

“WisdomTree’s net inflows of $5.9 billion represented our best quarter yet and fueled a meaningful acceleration in our organic growth in 2013,” said Chief Executive Jonathan Steinberg. “At $27 billion in assets and the fifth largest U.S. ETF sponsor today, WisdomTree has reached an exciting point in our development.”

Noted former hedge fund manager Michael Steinhardt is WisdomTree’s chairman. [WisdomTree Japan ETF Creates ‘Windfall’]

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