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WisdomTree Investments

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This article is about the investing company. For the video game company, see Wisdom Tree. For the film, see The Wisdom Tree.
WisdomTree Investments, Inc.
Company typePublic
IndustryInvestment Management
Founded2006[1]
HeadquartersNew York, New York, U.S.
Key people
Jonathan Steinberg, CEO and President
Products92 Exchange-Traded Funds (ETFs)
AUMGlobal $87 billion[2] (January 27, 2023)
Number of employees
204[3] (July 2018)
SubsidiariesBoost ETP
Websitehttps://www.wisdomtree.com

WisdomTree, Inc. is a global exchange-traded fund (ETF) and exchange-traded product (ETP) sponsor and asset manager with headquarters in New York. WisdomTree launched its first ETFs in June 2006, and became one of the major ETF providers in the United States.[4][5] WisdomTree sponsors different ETFs that span asset classes and countries worldwide. Categories include: U.S. and International Equity, Currency, Fixed Income and Alternatives.

WisdomTree manages approximately $87 billion in assets under management globally, as of January 27, 2023.[2]

WisdomTree’s common stock is listed on the New York Stock Exchange under the ticker WT. [2]

Company information

WisdomTree uses index-based funds to employ a weighted investment methodology, which weights securities on the basis of factors such as dividends or earnings, rather than using market capitalization.[6] According to WisdomTree, their utilization of a "differentiated" approach, employing a distinctive index-based methodology, helps deliver better risk-adjusted returns in long term.[7] The dividend-focused strategy is influenced by professor Jeremy Siegel's research showing dividend-paying companies tend to offer superior long-term performance with lower risk.[8]

WisdomTree offered 14 different ETFs as of 2013, that are transparently managed on a daily basis.[9] WisdomTree's relief enables the company to use its own indexes for certain ETFs, actively manage other ETFs and incorporate the use of derivatives in certain products, a process that allows the company to develop unique ETFs.[6] As of 2017, WisdomTree Investments had subsidiaries in US, Canada, Europe and Japan.[10]

History

WisdomTree, Inc. was incorporated by its chief executive officer and founder, Jonathan Steinberg, in Delaware as Financial Data Systems, Inc., on September 19, 1985. The company was inactive until October 1988 when it acquired the assets relating to what would become Individual Investor magazine, a monthly personal finance magazine.[1]

In December 1991, it completed an initial public offering and commenced trading on the Nasdaq Stock Market (NASDAQ). In 1993, the company's name was changed to Individual Investor Group, Inc. and throughout the 1990s it was a financial media company that published several magazines, including Individual Investor and Ticker, newsletters, as well as maintaining several online financial related websites. In addition, the company also began developing stock indexes.[1]

In 2002, the company's name was changed to Index Development Partners, Inc., and Jonathan Steinberg, along with Rayne Steinberg and Luciano Siracusano, continued development of the concepts for the company's fundamentally weighted index methodology. While this concept was being developed, the company sought to obtain financing to recapitalize and become an ETF sponsor.[1][4]

Between 2004 and 2005, the company obtained financing from a core group of investors including former hedge fund manager Michael Steinhardt, Professor Jeremy Siegel of The Wharton School of the University of Pennsylvania and James D Robinson IV with venture capital firm of RRE Ventures. Michael Steinhardt became Chairman and Professor Jeremy Siegel became the senior investment strategy advisor for the company.[1]

On September 21, 2005, the company's name was changed to WisdomTree Investments, Inc.[11] WisdomTree Investments, Inc. launched its first 20 ETFs in June 2006.[5] On July 26, 2011, WisdomTree listed on the NASDAQ Global Select Market under the ticker: WETF.[4][12]

In 2014, WisdomTree acquired a majority stake (75%) in London-based Boost ETP. The same year, it was reported that WisdomTree was going to invest $20 million in Boost to give it working capital to build out its European business.[13]

In 2016, the company was included on Forbes' list of America's 50 Most Trustworthy Financial Companies.[14] In 2019, it was reported by Bloomberg News that WisdomTree Investments was considering selling the company to J.P. Morgan Chase in 2018, however, the two companies failed to reach a mutually acceptable price.[15]

WisdomTree has been expanding into other digital assets, such as the launch of cryptocurrency ETPs in Europe, which are listed on the Swiss stock exchange. Other digital assets initiatives include WisdomTree’s Enhanced Commodity Strategy Fund (GCC), the first ETF to provide exposure to bitcoin futures, WisdomTree’s second investment in blockchain-based infrastructure provider Securrency Inc. and products like WisdomTree Crypto Mega Cap Equal Weight ETP, which is backed by physical assets including cryptocurrencies, as well as WisdomTree Crypto Market (BLOC) and WisdomTree Crypto Altcoins (WALT).[16]

In early 2022 ETFS Capital Limited, WisdomTree's largest single shareholder with a 10.5% stake, tried to take a seat on the board of WisdomTree. According to a 13D regulatory filing with the SEC from January 2022, ETFS Capital chairman Graham Tuckwell described what he saw as the underperformance of WisdomTree and said the company had “been unwilling to date to work constructively” toward giving him a seat on the board since discussions began. A March 8, 2022 13D filing disclosed that another WisdomTree investor, Lion Point Capital, supported ETFS Capital’s efforts to take a seat on the board. The filing revealed ETFS Capital and Lion Point Capital had entered into a Group Agreement to “seek changes to the composition of the board and management” of WisdomTree, with the intention to “work constructively with the issuer to arrive at a solution that puts the issuer in the best position to unlock value for the benefit of all stockholders”.[17]

In a regulatory filing from March 14, 2022, WisdomTree issued a ‘poison pill’, officially known as a shareholder rights agreement, to prevents any investor from acquiring more than 10% of the common stock in the company until the day after the company’s annual general meeting in June or potentially until March 2023 if extended by a shareholder vote.[18]

In March, 2022, a WisdomTree was forced to redeem all shares of 3NIS, a leveraged ETP that moved inverse nickel prices. Due to a major short squeeze for the commodity, nickel prices shot up 250% in a few days and the ETF's daily price dropped below zero. A statement from WisdomTree said "Investors should not expect to get paid for the securities they hold."[19]

In May 2022, WisdomTree reached an agreement with ETFS Capital and Lion Point Capital. As part of the settlement agreement, WisdomTree expanded its Board of Directors from seven to nine directors and appointed two independent directors. In addition, WisdomTree terminated the ‘poison pill’ that had been issued in March 2022 and announced that the company would seek stockholder approval to declassify its Board of Directors at the 2022 Annual Meeting of stockholders.[20]

In October 2022, WisdomTree announced the transfer of the listing of its common stock to the New York Stock Exchange (NYSE) from The Nasdaq Global Select Market (Nasdaq). WisdomTree also announced changing its corporate name from WisdomTree Investments, Inc. to WisdomTree, Inc. effective November 7, 2022. WisdomTree common stock began trading on the NYSE at market open on November 7, 2022, under the new ticker symbol “WT”.[21]

Key financial statistics

Year ending Assets under management[1][6] Revenue[1][22]
31 December 2006 $1.52 billion $2.2 million
31 December 2007 $4.56 billion $20.9 million
31 December 2008 $3.18 billion $23.6 million
31 December 2009 $5.98 billion $22.1 million
31 December 2010 $9.89 billion $41.6 million
31 December 2011 $12.18 billion $65.2 million
31 December 2012 $18.30 billion $84.8 million
31 December 2013 $34.90 billion $149.5 million
31 December 2014 $39.30 billion $183.8 million
31 December 2015 $51.60 billion $298.9 million

See also

References

  1. ^ a b c d e f g "Form 10" (PDF). PDF. WisdomTree. Retrieved 12 December 2012.
  2. ^ a b c "WisdomTree faces revolt by largest shareholder". FT. 13 April 2023.
  3. ^ "WisdomTree Announces Third Quarter Earnings Results". Press Release. WisdomTree. Retrieved 24 July 2018.
  4. ^ a b c "Investor Relations". Website. WisdomTree. Retrieved 14 December 2012.
  5. ^ a b "U.S. Listed ETF Data - Assets" (PDF). PDF. ETF Industry Association. Retrieved 14 December 2012.
  6. ^ a b c "Annual Report on Form 10-K" (PDF). PDF. WisdomTree. Retrieved 14 December 2012.
  7. ^ Ludwig, Olly. "WisdomTree's Steinberg: True Self-Indexer". Index Universe. Retrieved 8 January 2013.
  8. ^ Jeremy Schwartz (2020). The Dividends of a Dividend Approach. Wisdom Tree Research
  9. ^ Lydon, Tom (28 November 2012). "Actively Managed ETFs Ready for Take-Off". ETF Trends. Retrieved 8 January 2013.
  10. ^ "WisdomTree Announces Changes to ETF Family". GlobeNewswire. March 1, 2017. Retrieved May 27, 2020.
  11. ^ "Index Development Partners, Inc. Announces Corporate Name Change to WisdomTree Investments, Inc". WisdomTree. 21 September 2005. Archived from the original on 8 February 2006. Retrieved 27 June 2017.
  12. ^ "NASDAQ: WETF". NASDAQ. Retrieved 8 January 2013.
  13. ^ Hampson, Rebecca. "WisdomTree Taps Into Europe With Purchase". ETF.com.
  14. ^ Dill, Kathryn (August 2, 2016). "America's 50 Most Trustworthy Financial Companies". Forbes. Retrieved May 27, 2020.
  15. ^ Li, Yun (February 11, 2019). "WisdomTree reportedly explored a sale to JP Morgan last year". CNBC.com. Retrieved May 30, 2020.
  16. ^ "WisdomTree launches its first bitcoin exchange-traded product". Reuters. 3 December 2019.
  17. ^ Gordon, Jamie. "Activist Investor Backs ETFS Capital Push For WisdomTree Board Seat". ETF.com. ETF.com. Retrieved 2 April 2022.
  18. ^ Gordon, Jamie. "WisdomTree issues 'poison pill' to prevent ETFS Capital board entry". ETF Stream. ETF Stream. Retrieved 3 April 2022.
  19. ^ Jackie Noblitt (March 10, 2022). Caught in the Commodity Rush, ETFs Get Crushed. Financial Advisor IQ, accessed 15 March 2022
  20. ^ "WisdomTree Deal Averts Proxy Battle". The Deal. 13 June 2022.
  21. ^ "WisdomTree to transfer listing to NYSE, trade under WT ticker symbol". Seeking Alpha. 22 October 2022.
  22. ^ "WisdomTree Announces Fourth Quarter and Year End 2011 Results" (PDF). PDF. WisdomTree. Retrieved 14 December 2012.
  • Official website
  • Business data for WisdomTree Investments, Inc.:
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