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WisdomTree: An Equity Play for the Growing ETF Industry


WisdomTree Investments (WETF) is a boutique exchange traded fund provider that has witnessed phenomenal growth as it capitalizes on timely investment strategies.

Due to the rising popularity of its strategy-based index ETF styles, the firm has seen net income surge 600%, and WETF shares have gained 81.1% so far this year. [WisdomTree Shares Rally on Higher Profit, ETF Flows]

WisdomTree, a publicly traded company that solely focuses on ETFs and the fifth largest U.S. ETF provider with $27.7 billion in assets under management, has found its specialty, carving out a thematic approach to various asset classes, writes Paul Baiocchi for Forbes.

Specifically, the fund provider is known for its dividend-focused products, with 27 of its 34 equity strategies based on some for of dividends.

The ETF provider has shied away from me-to products that would compete with larger providers based on fees. Looking at the range of offerings, WisdomTree has engineered a line of practical investment strategies, similar to actively managers and hedge funds, to provide an alternative to the traditional cap-weighted portfolios.

Some of WisdomTree’s largest offerings are going head-to-head on equal footing with some of the largest fund providers.

For example, the WisdomTree Japan Hedged Equity Fund (DXJ) has attracted $5.3 billion so far this year as investors sought a way to gain exposure to the rising Japanese markets after the Bank of Japan’s aggressive monetary policies while hedging against a depreciating yen. Now, DXJ has $7.6 billion in assets under management, according to IndexUniverse data, compared to the $10.4 billion iShares MSCI Japan Index Fund (EWJ) , which has gathered $4.1 billion in assets year-to-date. [Japan ETF Rakes in $5 Billion, Rallies to Highest Since July 2008]

For more information on the ETF industry, visit our current affairs category.

Max Chen contributed to this article.