WisdomTree Reports Big Strides In Q1 Earnings

by on April 30, 2010

Publicly-traded ETF issuer WisdomTree discussed its impressive first quarter earnings on Friday, noting that a continued surge in asset levels resulted in a strong start to 2010. Cash inflows into WisdomTree ETFs were $582 million in the first quarter, primarily into emerging markets products. That figure includes the $152 in outflows related to the closure of ten ETFs in late March, so aggregate inflows into ongoing ETFs actually exceeded $700 million. ““We are off to a strong start in the second quarter with an impressive $423 million in net inflows already captured as of April 29, 2010,” said CEO Jonathan Steinberg in a press release. “On the back of this progress, the Company has further strengthened its financial position and is now generating positive cash-flow.”

WisdomTree is perhaps bests known for its fundamentals-weighted equity indexes, but the firm’s currency products have grabbed a share of the spotlight in recent months. According to data from the National Stock Exchange, currency ETFs saw net cash outflows of about $1.2 billion in the first quarter. But the eight currency ETFs from WisdomTree saw aggregate inflows of nearly $400 million in the first quarter, led by the WisdomTree Dreyfus Chinese Yuan Fund (CYB) and WisdomTree Dreyfus Emerging Currency Fund (CEW), which took in $222 million and $176 million, respectively, in the first three months of 2010.

According to WisdomTree, the unique set-up of company’s currency funds, all of which are actively managed, is driving the interest. WisdomTree’s currency products are true 1940 Act ETFs, offering potential advantages over ETNs (iPath products) and currency grantor trusts (CurrencyShares products). “We feel structure matters,” said CEO Jonathan Steinberg during the conference call on Friday (see more on the differences between these currency ETF structures here).

WisdomTree also said during the call it expects to continue launching new products this year, noting registration statements for a real return fund and emerging markets debt fund, among others.

See the company’s financial highlights here and a lists of all WisdomTree ETFs here.

Disclosure: No positions at time of writing.