WisdomTree Reports Monthly Metrics for February 2024
WisdomTree, Inc. (NYSE: WT) achieves record high AUM of $105 billion in February 2024, driven by net inflows and strong performance across various asset classes. The company's UCITS franchise in Europe shows significant growth, while its Cryptocurrency product suite gains traction with over $700 million AUM. Additionally, the launch of WisdomTree Prime™ Visa debit card adds payments functionality to digital assets for the first time.
WisdomTree's record high in global AUM is a strong indicator of the firm's growth trajectory and investor confidence. The consistent increase in AUM, particularly in higher fee funds, suggests a successful strategy in attracting capital to more lucrative products. This is likely to result in improved profit margins, given that higher fee funds contribute more significantly to the bottom line. The reported organic growth rate of 21% in the equity franchise is robust, especially compared to the industry average, which typically hovers in the mid-single digits. The UCITS franchise's 42% compound annual growth rate over five years highlights WisdomTree's effective expansion into European markets, which diversifies its revenue sources and reduces dependency on domestic markets.
However, the mixed performance across asset classes, with outflows in fixed income and commodity & currency funds, raises questions about market sentiment and potential rebalancing by investors. The significant inflows into cryptocurrency products are noteworthy, as they reflect the growing interest in digital assets, despite the volatility associated with this asset class. The launch of the WisdomTree Prime™ Visa debit card is an innovative step, integrating traditional financial services with digital assets, which could potentially attract a new customer segment and open up additional revenue streams.
The introduction of the WisdomTree Prime™ Visa debit card represents a strategic move to capitalize on the fintech revolution and the increasing demand for integrated financial solutions. By offering a payment solution that connects digital assets with everyday transactions, WisdomTree is positioning itself at the forefront of this emerging trend. This could increase the stickiness of their product offerings, as customers looking for a seamless experience between their investments and payments might be more inclined to consolidate their financial activities under WisdomTree's ecosystem.
Moreover, the data on net inflows and AUM growth provides valuable insights into market trends and investor preferences. The strong inflows into international developed market equities and emerging market equities suggest a risk-on investor sentiment and a search for growth opportunities outside the U.S. This shift may indicate a broader market trend where diversification and global exposure are becoming more appealing to investors, which could have implications for asset managers and the investment landscape as a whole.
The reported AUM figures from WisdomTree serve as a microcosm of the broader economic environment. The net inflows into equities, particularly in international and emerging markets, suggest optimism about global economic recovery and growth prospects. Conversely, the outflows from fixed income and commodities could be interpreted as a response to changing interest rate expectations and inflationary pressures, which typically lead investors to seek higher returns in the equity market.
The 36 basis points (bps) blended total average fee rate is a critical metric for assessing the company's revenue efficiency. In the context of the asset management industry, where fee compression has been a persistent trend, maintaining or increasing average fee rates is challenging. WisdomTree's ability to do so, especially with a focus on higher fee products, might reflect a competitive advantage in product differentiation and pricing power.
03/11/2024 - 08:00 AM
AUM hits record high for 4th consecutive month
WisdomTree Prime™ launches debit card to add payments functionality
NEW YORK --(BUSINESS WIRE)--
WisdomTree, Inc. (NYSE: WT), a global financial innovator, today released monthly metrics for February 2024, including assets under management (AUM) and flow data by asset class.
Monthly Commentary:
Global AUM ends February at a record $102.9 billion $105 billion
Higher fee funds drove over $500 million $780 million
Our equity franchise (U.S. + International Developed Markets + Emerging Markets) generated nearly ~$2 billion of YTD net inflows and a 21% pace of YTD organic growth
WisdomTree’s UCITS franchise, a strategic growth driver in our European business, ended February with a record high of $5.7 billion 42% compound annual growth rate over the past five years
Our Cryptocurrency product suite gathered over $100 million $700 million
WisdomTree Prime™ Visa debit card is now available to users , connecting payments functionality to digital assets for the first time
As of February 29, 2024
AUM Rollforward
Annualized Flow Rate
MTD
QTD / YTD
MTD
QTD / YTD
Beginning of Period Total AUM
$100,278
$100,124
Total Net Flows
U.S. Equity
($126
$271
(5.4% )
5.7%
International Dev. Mkt Equity
$1,020
$1,467
81.4%
59.3%
Emerging Market Equity
$13
$165
1.5%
9.4%
Fixed Income
$98
($244
5.9%
(7.0% )
Commodity & Currency
($533
($976
(32.4% )
(27.9% )
Alternatives
($5
$5
(14.9% )
7.9%
Cryptocurrency
$46
$105
123.5%
155.1%
Leveraged & Inverse
($2
($14
(1.7% )
(4.7% )
Total Net Flows
$512
$780
6.4%
4.8%
Market Move
$2,066
$1,952
Current Total AUM
$102,856
$102,856
Average Total AUM
$101,374
$100,512
Blended Total Average Fee Rate
36 bps
Source: https://ir.wisdomtree.com/
Please visit https://ir.wisdomtree.com/ for downloadable spreadsheets containing detailed AUM and flow data by asset class and fund broken out by daily, monthly, quarterly and annual timeframes.
About WisdomTree
WisdomTree is a global financial innovator, offering a well-diversified suite of exchange-traded products (ETPs), models, solutions and products leveraging blockchain-enabled technology. We empower investors and consumers to shape their future and support financial professionals to better serve their clients and grow their businesses. WisdomTree is leveraging the latest financial infrastructure to create products that provide access, transparency and an enhanced user experience. Building on our heritage of innovation, we are also developing and have launched next-generation digital products, services and structures, including digital or blockchain-enabled mutual funds and tokenized assets, as well as our blockchain-native digital wallet, WisdomTree Prime™.*
*The WisdomTree Prime digital wallet and digital asset services are made available through WisdomTree Digital Movement, Inc. (NMLS ID: 2372500) in select U.S. jurisdictions and may be limited where prohibited by law. Visit https://www.wisdomtreeprime.com or the WisdomTree Prime mobile app for more information.
WisdomTree currently has approximately $105.2 billion
For more information about WisdomTree and WisdomTree Prime™, visit: https://www.wisdomtree.com .
Please visit us on X, formerly known as Twitter, at @WisdomTreeNews.
WisdomTree® is the marketing name for WisdomTree, Inc. and its subsidiaries worldwide.
PRODUCTS AND SERVICES AVAILABLE VIA WISDOMTREE PRIME:
NOT FDIC INSURED | NO BANK GUARANTEE | NOT A BANK DEPOSIT | MAY LOSE VALUE | NOT SIPC PROTECTED | NOT INSURED BY ANY GOVERNMENT AGENCY
The products and services available through the WisdomTree Prime app are not endorsed, indemnified or guaranteed by any regulatory agency.
Cautionary Statement Regarding Forward-Looking Statements
This press release may contain a number of “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our ability to achieve our financial and business plans, goals and objectives and drive stockholder value, including with respect to our ability to successfully implement our strategy relating to WisdomTree Prime™, our ability to continue to make achievements in AUM, levels of net inflows and other risk factors discussed from time to time in WisdomTree’s filings with the Securities and Exchange Commission (“SEC”), including those factors discussed under the caption “Risk Factors” in our most recent annual report on Form 10-K, filed with the SEC on February 23, 2024, and in subsequent reports filed with or furnished to the SEC. These forward-looking statements are based on WisdomTree’s management’s current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside WisdomTree’s management’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Forward-looking statements included in this release speak only as of the date of this release. WisdomTree does not undertake any obligation to update its forward-looking statements to reflect events or circumstances after the date of this release except as may be required by the federal securities laws.
Category: Business Update
View source version on businesswire.com: https://www.businesswire.com/news/home/20240311861867/en/
Media Relations
jzaloom@wisdomtree.com / wisdomtree@fullyvested.com
Investor Relations
Jeremy.Campbell@wisdomtree.com
Source: WisdomTree, Inc.
What is the ticker symbol for WisdomTree, Inc.?
The ticker symbol for WisdomTree, Inc. is WT.
What was the total AUM for WisdomTree, Inc. in February 2024?
WisdomTree, Inc. had a record AUM of over $105 billion in February 2024.
What drove net inflows for WisdomTree, Inc. in February 2024?
Higher fee funds drove over $500 million of net inflows in February for WisdomTree, Inc.
How much net inflows did WisdomTree, Inc.'s equity franchise generate in YTD?
WisdomTree, Inc.'s equity franchise generated nearly ~$2 billion of YTD net inflows.
What was the AUM for WisdomTree, Inc.'s UCITS franchise in February 2024?
WisdomTree, Inc.'s UCITS franchise ended February with a record high of $5.7 billion in AUM.
How much net inflows did WisdomTree, Inc.'s Cryptocurrency product suite gather in YTD?
WisdomTree, Inc.'s Cryptocurrency product suite gathered over $100 million of YTD net inflows.
What new product did WisdomTree, Inc. launch in February 2024?
WisdomTree, Inc. launched the WisdomTree Prime™ Visa debit card in February 2024.
