Profile: WisdomTree Investments Inc (WETF.OQ)
20 Jul 2017
WisdomTree Investments, Inc., incorporated on September 19, 1985, is an asset management company that focuses on exchange-traded funds (ETFs). The Company's family of ETFs includes funds that track its own indexes, funds that track third party indexes and actively managed funds. The Company operates as an exchange traded products (ETP) sponsor and asset manager providing investment advisory services in the United States, Europe, Canada and Japan. These activities are reported in its U.S. Business and International Business segments. The U.S. Business segment comprises the United States business and Japan sales office, which primarily engages in selling its United States listed ETFs to Japanese institutions. The International Business segment comprises its European business and Canadian business, which launched its first six ETFs.
The Company distributes its ETFs through a range of channels within the asset management industry, including brokerage firms, registered investment advisors and institutional investors. Its index-based funds employ a fundamental weighted investment methodology, which weights securities on the basis of factors, such as dividends or earnings, whereas other ETF industry indexes use a capitalization weighted methodology. In addition, it also offers actively managed ETFs, which are ETFs that are not based on a particular index but rather are actively managed with complete transparency into the ETF's portfolio on a daily basis. The WisdomTree ETFs are listed on The New York Stock Exchange (NYSE) Arca, the National Association of Securities Dealers Automated Quotation System (NASDAQ) Market and the BATS Exchange. As of December 31, 2016, the Company offered a family of 94 ETFs. Its portfolio of the United States listed products includes International Hedged Equity ETFs, Equity ETFs, Fixed Income ETFs, Currency ETFs, Alternative Strategy ETFs and Commodity ETFs. Its portfolio of Non-the United States listed products include WisdomTree UCITS ETFs, Boost ETPs and Canadian ETFs.
International Hedged Equity ETFs
The Company offers International Hedged Equity ETFs that provide exposure to a specified international equity market while hedging the currency exposure of that market relative to the United States dollar. Its international hedged equity ETFs are sub-advised by Mellon Capital, a subsidiary of The Bank of New York Mellon Corporation (BNY Mellon).
The Company offers equity ETFs that offer access to the securities of large, mid and small-cap companies located in the United States, international developed markets and emerging markets, as well as particular market sectors and styles. The Company's equity ETFs track its own indexes, the majority of which are fundamentally weighted as opposed to market capitalization weighted indexes, which assign more weight to stocks with the highest market capitalizations. These fundamentally weighted indexes focus on securities of companies that pay regular cash dividends or on securities of companies that have generated positive cumulative earnings over a certain period. The Company's equity ETFs are sub-advised by Mellon Capital.
Fixed Income ETFs
The Company offers international fixed income ETFs that invest in emerging market countries, Asia Pacific ex-Japan countries or European countries. These ETFs are denominated in either local or the United States currencies. The Company's suite of Rising Rate Bond ETFs is based on fixed income benchmarks it licenses from third parties. Its fixed income ETFs are sub-advised by either Mellon Capital, Western Asset Management, a subsidiary of Legg Mason, or Voya Investment Management, a subsidiary of Voya Financial Inc.
The Company offers currency ETFs that provide investors with exposure to developed and emerging markets currencies, including the Chinese Yuan and the Brazilian Real. It also has a United States Dollar Bullish Fund licensing a Bloomberg index. Currency ETFs invest in the United States money market securities, forward currency contracts and swaps, and seek to achieve the total returns reflective of both money market rates in selected countries available to foreign investors and changes to the value of these currencies relative to the United States dollar. The Company's currency ETFs are sub-advised by Mellon Capital and Western Asset Management.
Alternative Strategy ETFs and Commodity ETFs
The Company operates a managed futures strategy ETF and a global real return ETF. Its managed futures strategy ETF and long/short and bearish U.S. equity ETFs are sub-advised by Mellon Capital and its global real return ETF is sub-advised by Western Asset Management. The Company's commodity ETFs includes the WisdomTree Continuous Commodity Index Fund.
WisdomTree UCITS ETFs
As of December 31, 2016, the Company launched 16 UCITS ETFs, and for some have created additional currency-hedged share classes, on the London Stock Exchange, Borsa Italiana, Deutsche Borse and SIX Swiss Exchange. It provides exposure to large and small-cap European and the United States equities and emerging markets.
Boost ETPs and Canadian ETFs
As of December 31, 2016, there were 68 ETPs on the European platform. The Company listed six WisdomTree branded Canadian ETFs, as of December 31, 2016.
The Company competes with Charles Schwab & Co., Vanguard, State Street Bank and Trust Company, and iShares.
WisdomTree Investments Inc
245 Park Ave Fl 35
NEW YORK NY 10167-0002