WisdomTree Q2 Assets Rise on European Flows and Gains
- The New York-based company’s second-quarter AUM jumped $10.3B, driven by European gains.
- The purchase of farmland manager Ceres provided entry to private markets.
- U.S. assets rose 5.8% in the quarter.
WisdomTree Inc. (WT), a top-20 ETF issuer, said second-quarter assets under management jumped 8.9% from the previous quarter, mostly due to market gains and inflows in its Europe-listed exchange-traded products.
The New York-based company’s global assets rose $10.3 billion from quarter to quarter, to $126.1 billion, WisdomTree said in a statement. About two-thirds of the gain was due to asset values being lifted by riding equity markets while the rest was inflows. From the year-earlier period, global AUM rose 15%.
Assets in its U.S. business, which are more than double those of the European side of the company, jumped $4.64 billion, a 5.8% gain, to $85.2 billion. More than two-thirds of the gain in AUM was due to market increases, as inflows dipped by $737 million to $1.11 billion.
From the year-earlier period, inflows into the company’s 81 U.S. exchange-traded funds were little changed.
European Assets Surge
Among its 285 European exchange-traded products, second-quarter assets rose 15%, or $5.4 billion, to $40.5 billion, mostly on market gains. Assets have soared 35% from last year’s second-quarter figure of $30 billion.
In the U.S., investors poured into equity markets as the economy emerged from a brief bear market, surging to record highs. WisdomTree’s lagging U.S. inflows relative to its European business are reflected in its largest fund, the $18.8 billion WisdomTree Floating Rate Treasury Fund (USFR), a safe-harbor fixed-income fund, which pulled in $184.8 million during the quarter, down from $272.6 million last year.
WisdomTree's Largest Funds
| Ticker | Fund | Issuer | AUM | Expense Ratio | 3-Month Total Return |
| USFR | WisdomTree Floating Rate Treasury Fund | WisdomTree, Inc. | $18.80B | 0.15% | 1.2% |
| DGRW | WisdomTree US Quality Dividend Growth Fund | WisdomTree, Inc. | $16.08B | 0.28% | 10.0% |
| DLN | WisdomTree U.S. LargeCap Dividend Fund | WisdomTree, Inc. | $5.13B | 0.28% | 8.8% |
| DON | WisdomTree U.S. MidCap Dividend Fund | WisdomTree, Inc. | $3.70B | 0.38% | 7.9% |
| DXJ | WisdomTree Japan Hedged Equity Fund | WisdomTree, Inc. | $3.59B | 0.48% | 11.2% |
Source: etf.com & FactSet
During a quarter in which investors poured billions into large crypto and leveraged ETFs, the company’s second-largest U.S. fund, the $16.1 billion WisdomTree US Quality Dividend Growth Fund (DGRW), pulled in $208.5 million, down from last year’s $277.4 million. WisdomTree’s spot bitcoin fund, the $185 WisdomTree Bitcoin Fund (BTCW), saw outflows of $56.4 billion.
Ceres Acquisition
WisdomTree also said it’s entering private markets with the purchase of Ceres Partners, a farmland manager based in South Bend, Indiana. The company said in a statement that Ceres manages $1.85 billion in assets, including 545 U.S. farmland properties in 12 states, and has delivered a 10.3% net average annual total return since its inception in 2007.
