WisdomTree Profit Triples On Back Of DXJ

October 25, 2013

The pure-play publicly traded ETF company again rides the success of its Japan fund, ‘DXJ.’

WisdomTree Investments (Nasdaq: WETF), the only pure-play publicly traded ETF company, posted third-quarter net income that more than tripled from a year ago to $15 million, in part on continued strong inflows into the blockbuster WisdomTree Japan Hedged Equity Fund (DXJ | A-45).

DXJ, the most popular ETF in terms of inflows, was the leading edge of net inflows of $1.2 billion for WisdomTree in the quarter, the New York-based ETF firm said today in a press release. Again, it earned $15 million, or 11 cents a diluted share, compared with $4.5 million, or 3 cents a share in the same year-earlier period. Revenues rose 83 percent to $39.6 million from $21.7 million in the 2012 quarter.

DXJ, now an $11 billion ETF, gathered $920 million in fresh assets in the third quarter, and, in the first three quarters of 2013, the fund pulled in almost $9 billion, according to data compiled by IndexUniverse.

The company’s shares jumped 8.5 percent to $14.41 on the earnings news, the latest leg up for the fifth-biggest U.S. ETF company. Its stock has risen 133 percent this year due to the astonishing success of DXJ as well as litigation that ended well for the company late last year.


Chart courtesy of StockCharts.com

"WisdomTree continues to drive top line growth with $1.2 billion in net inflows in the quarter, comprised by balanced inflows across domestic, international and emerging market equity ETFs; as well as continued strength in our franchise-leading yen hedged Japan fund,” WisdomTree Chief Executive Officer Jonathan Steinberg said in the press release.

“We are effectively capitalizing on the greater awareness of our currency hedged equity family which is translating into significant asset growth in sister products. Importantly, we continue to position the company for future growth and have launched eight new ETFs so far this year," Steinberg said.

The company’s total assets under management are now about $33 billion, according to data compiled by IndexUniverse.


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