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Currency Hedged, Dividend ETFs Help WisdomTree Top $50B in Assets

ETFtrends.com

The currency hedged exchange traded fund boom and the ongoing growth of dividend funds are among the catalysts that have propelled WisdomTree (WETF) to over $50 billion in ETF assets under management.

To be precise, New York-based WisdomTree, the only publicly traded, pure play ETF sponsor, had $50.9 billion in assets under management as of March 6.

“WisdomTree is an ETF success story at the forefront of the biggest trends in asset management,” said WisdomTree CEO and President Steinberg in a statement. “While we are experiencing record inflows of $9.7 billion led by our pioneering currency hedged family this year, the foundation of our growth rests in our larger commitment to innovation in ETFs. We have been a consistent asset gatherer since launching our first ETFs in 2006, with growth accelerating in recent years.”

Indeed, the WisdomTree Europe Hedged Equity Fund (HEDJ) and the WisdomTree Japan Hedged Equity Fund (DXJ) have been key drivers of WisdomTree’s 2015 asset growth. As of March 10, the two ETFs had combined to bring over $10.5 billion in new assets this year.

No ETF has added more new assets this year than HEDJ, which is close to toppling the Vanguard FTSE Europe ETF (VGK) as the largest Europe ETF. DXJ and HEDJ currently combine for over $29 billion in assets under management. [Currency Hedged ETF Craze Just Starting]

While currency hedged ETFs are a hot theme, and likely to remain so as the dollar continues strengthening against other developed market currencies, other ETFs are also helping WisdomTree attract assets. [10 WisdomTree ETFs Hit $1B in Assets]

The company offers seven U.S-focused dividend ETFs and 14 international dividend funds, which offer exposure to developed, emerging and frontier markets. An extensive dividend lineup gives WisdomTree exposure to the fund segment that has been one of the primary drivers of asset growth in smart beta ETFs in recent years.

The WisdomTree LargeCap Dividend Fund (DLN) , WisdomTree Dividend ex-Financials Fund (DTN) , WisdomTree Equity Income Fund (DHS) , WisdomTree SmallCap Dividend Fund (DES) and the WisdomTree MidCap Dividend Fund (DON) each have more than $1 billion in assets under management.

Year-to-date, DES, DHS and DON have added a combined $407.4 million in new assets. The WisdomTree U.S. Dividend Growth Fund (DGRW) , which features one of the largest weights to Apple (AAPL) among U.S.-focused dividend ETFs, has accumulated $418 million in assets in just 22 months on the market.

DGRW has added $132.6 million of those assets this year.

WisdomTree MidCap Dividend Fund

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Tom Lydon’s clients own shares of Apple, DON and HEDJ.