WisdomTree Reports Monthly Metrics for March 2024
- Record high AUM of $107.3 billion for the 5th consecutive month
- Over $1.2 billion in net inflows in March and nearly $2 billion YTD
- Trust company charter granted by the New York State Department of Financial Services
- Positive fee impact driven by higher fee funds
- Net inflows in 6 out of 8 major product categories
- Significant growth in Equity, Fixed Income, Commodities, and Cryptocurrency
- WisdomTree Prime™ to be available in 41 states and to approximately 75% of the U.S. population
- Detailed AUM and flow data available on the company's website
- None.
WisdomTree's announcement of a record high AUM of $107.3 billion for the fifth consecutive month is a strong indicator of the firm's growth trajectory. The net inflows of over $1.2 billion in March suggest robust investor confidence and an appetite for WisdomTree's product offerings. Notably, the higher fee funds have contributed significantly to this growth, which is likely to have a positive impact on the company's revenue streams. The 17% pace of YTD organic growth in the equity franchise is particularly impressive, outpacing many competitors in the asset management sector.
The granting of a trust company charter by the New York State Department of Financial Services is another strategic milestone for WisdomTree. This enables the company to expand its customer base in New York and offer products like stablecoins under enhanced legal protections. The expansion of WisdomTree Prime™ to cover approximately 75% of the U.S. population could potentially increase market share and diversify revenue sources. However, the performance of new products, particularly in the volatile cryptocurrency sector, should be monitored closely for risk exposure.
Investors should consider the annualized flow rates and net inflows across different asset classes, as they reflect investor sentiment and market trends. The positive inflows in equity, fixed income, commodities and cryptocurrency indicate a diversified growth strategy, while the negative flow in leveraged and inverse products may signal a shift in investor risk appetite or market dynamics.
From a financial perspective, the blended total average fee rate of 36 bps reported by WisdomTree is a critical metric for evaluating the company's profitability. As the firm continues to attract net inflows, especially in higher fee funds, the fee rate will play a pivotal role in driving revenue growth. The net inflows year-to-date (YTD) nearing $2 billion are a testament to the firm's effective product positioning and market capture.
The market move contribution of $3.216 billion to the AUM in March also highlights the positive market conditions that have benefited asset managers. For stakeholders, the sustained AUM growth combined with favorable market trends could lead to enhanced shareholder value. However, the reliance on market performance underscores the importance of risk management and the need to prepare for potential market downturns.
Investors should also consider the implications of the trust company charter, particularly the ability to offer new products under DFS supervision. While this presents new opportunities, it also introduces regulatory and compliance obligations that could impact operational costs and require strategic management.
The cryptocurrency sector is experiencing a significant surge in interest, as evidenced by the 85.0% monthly and 154.0% YTD annualized flow rates for WisdomTree's cryptocurrency products. This exceptional growth rate, though potentially lucrative, carries inherent market risks due to the volatility associated with digital assets. WisdomTree's entry into the New York market with a trust charter may provide a competitive edge by offering stablecoins and other services with increased legal security.
However, the regulatory landscape for cryptocurrencies is complex and rapidly evolving. The trust charter from the New York State Department of Financial Services positions WisdomTree favorably in terms of compliance, but the company must navigate these waters carefully to maintain investor trust and meet regulatory standards. The potential for regulatory changes could have significant implications for the company's cryptocurrency offerings and investor sentiment.
As the cryptocurrency market matures, WisdomTree's performance in this sector should be closely watched. Their ability to manage the associated risks and capitalize on the growing demand will be critical for their continued success and impact on their financial performance.
AUM of
Over
Granted trust company charter by
Monthly Commentary:
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Higher fee funds drove the over
$1.2 billion $2 billion - Generated net inflows in 6 of our 8 major product categories, including double-digit annualized flow growth in Equity, Fixed Income, Commodities and Cryptocurrency
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Our equity franchise (
U.S. + International Developed Markets + Emerging Markets) generated$2.4 billion 17% pace of YTD organic growth -
WisdomTree’s trust company charter granted by the
New York State Department of Financial Services (DFS) will enable WisdomTree Prime™ to onboardNew York resident customers, and also allows WisdomTree to offer products (like stablecoins) and perform services under DFS supervision with associated legal protections -
Including the forthcoming launch in
New York , WisdomTree Prime™ will be available in 41 states and to approximately75% of theU.S. population
As of March 31, 2024 |
AUM Rollforward
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International Dev. Mkt Equity |
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Emerging Market Equity |
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Fixed Income |
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Commodity & Currency |
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Alternatives |
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Cryptocurrency |
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Leveraged & Inverse |
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Total Net Flows |
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Market Move |
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Current Total AUM |
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Average Total AUM |
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Blended Total Average Fee Rate |
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36 bps |
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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 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) and, after the forthcoming launch in
WisdomTree currently has approximately
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/20240409009442/en/
Media Relations
WisdomTree, Inc.
Jessica Zaloom
+1.917.267.3735
jzaloom@wisdomtree.com
Natasha Ramsammy
+1.917.267.3798
nramsammy@wisdomtree.com / wisdomtree@fullyvested.com
Investor Relations
WisdomTree, Inc.
Jeremy Campbell
+1.646.522.2602
Jeremy.Campbell@wisdomtree.com
Source: WisdomTree, Inc.
