Slappy White

WisdomTree: Riding the ETF Wave

Here's my own back of the envelope analysis using numbers from Yahoo Finance:

Assets under Management: $ 1 billion, Market Cap: $ 700 Million

If you think about it, to say Wisdomtree is fairly valued, you have to assume a value of $0.70 for every dollar *under management*. Since the "conservative" estimate is that they charge 50 basis points on AUM or $ 0.005 per $ 1.00 under management, you get to the point where this is just silly. Subtracting money paid to "advisors" for lending their good name to the operations of a discredited newsletter operator, and whatever Jono is skimming, and you get to the absurd.

Add to this that there are a dozen competitors in the market already and probably another hundred waiting in the wings.

For context, Janus, with $ 158 Billion under management, has a market cap of $ 4 Billion.

The people who are making the big money are the ones who have a basis in the cents, not at $ 9.00.

YMMV