WisdomTree Investments (WETF) has attracted continuous flows on the back of strong operating performance. In evaluating the performance of US-listed equity, fixed income, and alternative ETFs against actively managed and index-based mutual funds and ETFs, 91% of the $52.4 billion invested in ETFs and 55% of the company’s ETFs outperformed their comparable Morningstar average since inception as of September 30, 2015.
Over the past year, 43% of the company’s ETFs, or 84% of its assets under management (or AUM), outperformed their comparable Morningstar average. On a three-year basis, 40% of the company’s ETFs, or 80% of the AUM, outperformed their comparable Morningstar average.
In 3Q15, adverse market changes led to a decline of $7.7 billion in the assets under management. ETFs with the highest adverse changes include Japan Hedged Equity Fund (DXJ) at $3.0 billion, WisdomTree Europe Hedged Equity Fund (HEDJ) at $2.3 billion, and emerging market equity at $943 million.
In October 2015, market changes positively benefited assets under management by $4.5 billion. However, the company witnessed net client outflows of $94 million.
Average advisory fee
WisdomTree advisory fees for its ETFs are competitive and marginally above the industry average. The company charges lower fees in the US ETF market mainly due to higher competition from bigger players like BlackRock (BLK), Federated (FII), and Vanguard. For the US-listed ETFs, its average advisory fees stood at 0.53% in 3Q15, up by 2% as compared to 0.52% in the prior-year quarter. For the European-listed products, the company charged an average of 0.69% in 3Q15, down by 13% as compared to the 0.79% in the corresponding quarter last year. WisdomTree has increased transparency for its holdings and fees charged, which has led to a better response from investors.