Seeking Alpha

WisdomTree Investments, Inc. (WETF)

  • Fri, May. 1, 8:30 AM
    • Q1 net income of $12.1M or $0.09 per share vs. $9.6M and $0.07 in Q4, and $30.2M and $0.22 one year ago (the year-ago quarter included a $13.7M tax benefit). Included in Q1 earnings this year is a $1.8M or $0.01 per share loss on the company's European-listed ETP business acquired in April of 2014.
    • Q1 net inflows of $13.5B vs. $4.5B in Q4, and $500M of net outflows a year ago. Average AUM of $46.4B vs. $37.7B in Q4, $33.9B a year ago. Average advisory fee of 0.52% flat from last quarter, up one basis point from last year.
    • Market share of industry inflows of 23.8% vs. 3.8% in Q4. The Hedged Europe Equity Fund (HEDJ) surpassed $10B in AUM mid-quarter.
    • European-listed ETPs AUM of $334.6M vs. $181.2M in Q4. Net inflows of $174.2M vs. $98.2M.
    • Gross margins for U.S.-listed ETFs of 83.2% up 70 bps from Q4, up 460 bps from a year ago. Pretax margin of 38.3% up 50 bps from Q4, and slips 10 bps from a year ago.
    • Conference call at 9 ET
    • Previously: WisdomTree Investments EPS in-line, beats on revenue (May 1)
    • WETF -0.2% premarket
    | Comment!
  • Fri, May. 1, 8:27 AM
    • WisdomTree Investments (NASDAQ:WETF): Q1 EPS of $0.10 in-line.
    • Revenue of $60.14M (+40.1% Y/Y) beats by $0.38M.
    • Press Release
    | Comment!
  • Thu, Apr. 30, 5:30 PM
  • Thu, Apr. 30, 12:14 PM
    • A research piece from Ned Davis last week came down hard on WisdomTree's (NASDAQ:WETF) Europe Hedged Equity ETF (NYSEARCA:HEDJ), suggesting investors could have done a lot better buying a broad European stock fund and shorting the euro themselves.
    • It was an unfair comparison, says NDR in an update, noting HEDJ targets local stock market returns and does not layer on top of itself a short euro position. Had one actually shorted the euro alongside owning HEDJ this year, the return (more than 70%) would have been comparable to the NDR hypothetical of owning a broad European ETF and selling euros.
    • Previously: Hedged Europe ETF performance not so hot (April 24)
    | 1 Comment
  • Wed, Apr. 29, 2:53 PM
  • Fri, Apr. 24, 2:55 PM
    • Investors have rushed $13B into WisdomTree's (NASDAQ:WETF) Europe Hedged Equity ETF (NYSEARCA:HEDJ) this year, bringing AUM to $20B, and making it 2015's most popular ETF, the largest Europe ETF out there, and the largest currency-hedged ETF, according to Ned Davis Research.
    • The fund is also ahead 30% YTD - not too shabby. However, says NDR, all of the gains have come from the euro's depreciation. A strategy of buying the MSCI EMU Index (NYSEARCA:EZU) and shorting the euro would have returned 70% over the same period. In other words - amid a nice bull move in Europe - HEDJ's strategy of owning exporters, which should theoretically gain as the euro slides, hasn't worked (the fund must own mega-cap stocks deriving more than 50% of revenue from outside Europe).
    • What gives? First, Europe's exporters have been hit by exposure to struggling LatAm countries. Second, the companies in the HEDJ already hedge currency exposure, booking it as an expense. Finally, the valuation of stocks in HEDJ trade at a 52% premium to  a broad MSCI eurozone index.
    • Source: Barron's
    • Previously: WisdomTree stumbles as GMO questions value of currency-hedged ETFs (April 14)
    • Previously: WisdomTree hedged small-cap Europe ETF opens for business (March 4)
  • Wed, Apr. 22, 4:01 PM
    • "After an examination of three of the most successful currency hedged products, we believe first to market is far and away the most important driver of product success," says Susquehanna's Doug Sipkin, bullish on WisdomTree's (NASDAQ:WETF) ability to continue to pull in the lion's share of inflows into currency-hedged ETFs, even with rivals like Deutsche an BlackRock offering competing products.
    • Four of this year's top 10 ETF flow recipients this year are currency hedged, writes Chris Dieterich, with WisdomTree's Europe Hedged Equity Fund (NYSEARCA:HEDJ) pulling in $13B, Deutsche's EAFE Hedged Equity ETF (NYSEARCA:DBEF) $8.7B, WisdomTree's Japan Hedged Equity ETF (NYSEARCA:DXJ) $3.2B, and iShares' Currency Hedged MSCI EAFE ETF (NYSEARCA:HEFA) $2.3B.
    | 1 Comment
  • Tue, Apr. 14, 3:18 PM
    • While many investors cite volatility reduction as a rationale for currency hedging, a white paper from GMO's Catherine LeGraw argues: 1) Volatility may be cut over the short-term, but not over longer horizons; 2) Volatility benefits have been reduced over time as companies become more global; 3) Even if volatility is lowered for international holdings, it isn't reduced for the whole portfolio as the hedging simply makes holdings more correlated with U.S. stocks; 4) Hedging introduces leverage and hence tail risk (see the move in the Swiss franc).
    • WisdomTree (WETF -2.6%) has ridden a couple of star currency-hedged funds - DXJ and HEDJ to big profits.
    • There's also Deutsche's DBEF, and not surprisingly a bunch more have recently come to market like [[DBRE}} and DBIF. BlackRock this week filed for 11 new currency-hedged ETFs.
    • LeGraw: "Currency management is a useful tool when done for the right reasons: because of a high-conviction view, or a desire to mitigate an identified risk exposure. We caution that a simple currency hedging strategy may not achieve these objectives.”
  • Thu, Apr. 9, 9:54 AM
    • The Japan Hedged Dividend Growth Fund (NYSEARCA:JHDG) aims to provide exposure to Japanese dividend-paying companies with growth characteristics, while hedging away currency moves. The net expense ratio is 0.43%.
    • WisdomTree (NASDAQ:WETF), of course, already has the Japan Hedged Equity Fund (NYSEARCA:DXJ) which has proven to be a big hit.
    • Source: Press release
    | Comment!
  • Thu, Mar. 19, 11:03 AM
  • Mon, Mar. 9, 1:08 PM
    • Size matters in the ETF business as fixed expenses are high, but the marginal cost of adding new AUM is minimal, and the $50B level is a way station towards WisdomTree's (WETF -0.1%) goal of $100B in assets.
    • Mainly thanks to its line of currency-hedged ETFs - particularly the Europe-focused HEDJ - WisdomTree has seen record inflows of $9.7B thus far this year.
    • Source: Press Release
    | Comment!
  • Thu, Mar. 5, 1:53 PM
    • "While WisdomTree (WETF +3.1%) is generating best-in-class flows, we believe another positive dynamic brewing reflects a favorable fee rate trend given assets under management mix shift," says Citi (presumably William Katz), boosting its price target on the buy-rated stock to $24 from $22.
    • This upswing comes at a time of flat/deteriorating trends for many peers, says Citi, giving WETF earnings upside surprise potential.
    • The shift/upswing Citi is referring to is the fast flow of funds into WisdomTree's currency-hedged funds (particularly the Europe hedged fund at the moment), which have higher than average fee rates.
    • Citi ups its 2015, 2016, and 2017 EPS estimates to $0.56, $0.85, and $1.18 from $0.52, $0.77, and $1.07, respectively.
  • Wed, Mar. 4, 10:12 AM
    • Complimenting its fast-growing-in-popularity hedged European large-cap, exporter-focused ETF HEDJ, WisdomTree (NASDAQ:WETF) launches the Europe Hedged SmallCap Equity ETF (NYSEARCA:EUSC), whose holdings theoretically will be more levered to local European economic growth.
    • Source: Press release
    • Good timing: Down 0.8% to $1.1008, the euro is at more than a decade-low vs. the greenback.
    | Comment!
  • Mon, Feb. 23, 3:58 PM
    • Helped along by the euro's relentless plunge, WisdomTree (NASDAQ:WETF) has another hit with its Europe Hedged Equity Fund (NYSEARCA:HEDJ). Its market cap of $11.2B is up more than 10-fold in one year, and trails current number one, the Vanguard FTSE Europe ETF (NYSEARCA:VGK) by just $1.2B in assets (as for Seeking Alpha subscribers, there are 1,777 for VGK vs. 337 for HEDJ).
    • "This is an excellent type of vehicle to go for with a currency in free- fall," says Interactive Brokers' Andrew Wilkinson, quickly summing up HEDJ's appeal.
    • Previously: WisdomTree a possible European QE winner (Feb. 20)
    | Comment!
  • Fri, Feb. 20, 11:59 AM
    • BAML's money manager survey earlier this week showed a rush of money heading into European stocks in wake of the ECB's QE program.
    • One possible beneficiary is WisdomTree Investments (NASDAQ:WETF), whose Japan Hedged Equity Fund (DXJ) saw billions of inflows in late 2012 and 2013 as a preferred vehicle for going long Japan but not the yen following the BOJ's massive QE program. The inflows helped WisdomTree become a 3-bagger in 2013.
    • Flows now look to be targeting a similar product WisdomTree has for Europe, the Europe Hedged Equity Fund (NYSEARCA:HEDJ). Deutsche has a European hedged equity fund as well, DBEF.
    • Previously: BAML on Europe: "Not a single bear left" (Feb. 17)
    | 1 Comment
  • Fri, Feb. 6, 7:40 AM
    • Q4 pretax income of $16.7M up 1.2% from one year ago. Included this quarter is a loss of $1.9M of $0.01 per share associated with the company's European-listed ETP business acquired in April. For the year, pretax income of $73.5M up 42.7% from 2013, up 52.6% excluding the results of the European-listed ETP business (pretax is used as comparison because no income taxes were paid prior to 2014).
    • U.S.-listed business: Q4 net inflows of $4.5B vs. $2.3B a year ago. Market share of industry inflows of 3.8% vs. 3.9%. AUM of $39.3B vs. $34.9B
    • European-listed business: Q4 net inflows of $98.2M vs. $19.2M in Q3. AUM of $181.2M vs. $123.2M
    • U.S.listed business gross margin of 82.5% up 430 basis points from a year ago. Pretax margin of 37.8% down 40 basis points.
    • CEO Jonathan Steinberg: "The success of the $2T ETF market is undeniable ... Don't be distracted by old debates like passive versus active, or new terminology like smart beta and liquid alts. The simple truth is that the ETF structure is just that, a structure by which you can access numerous asset classes and strategies."
    • Conference call at 9 ET
    • Previously: WisdomTree Investments misses by $0.01, beats on revenue (Feb. 6)
    • WETF flat premarket
    | Comment!
Visit Seeking Alpha's
WETF vs. ETF Alternatives
Company Description
WisdomTree Investments Inc, through its subsidiaries, operates as an ETF sponsor and asset manager. The Company offers Equity ETFs, International Hedged Equity ETFs, Currency ETFs, and Fixed Income ETFs.
Sector: Financial
Country: United States