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How WisdomTree Has Expanded Its Assets under Management

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Assets under management

WisdomTree Investments (WETF) has assets under management of $58 billion, almost 99% of which is deployed in US-listed ETFs. In the first nine months of 2015, the company attracted the third highest flows of $19.5 billion in the US. The company has seen the highest organic growth of 49.5% in 2015, followed by Schwab (SCHW) with 36.5%, FirstTrust with 25.7%, and Vanguard with 12.5%. Among the publicly traded asset managers, BlackRock (BLK) has seen a growth of 6%. Federated (FII) ETFs’ inflows have expanded at 0.6%.

On an absolute basis, WisdomTree has attracted the third highest flows of $19.5 billion across its ETF offerings in the first nine months of 2015. iShares has attracted the highest at $59 billion, followed by Vanguard at $53.2 billion.

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Recent quarters

The third quarter of 2015 has been difficult for traditional as well as alternative asset managers mainly due to the decline in global equities as a result of concerns related to China, slowing emergings markets, and declining commodity prices. The industry (XLF) is grappling with slowing growth, anticipations of an interest rate hike, and a strong dollar. In 3Q15, WisdomTree also saw outflows of $0.7 billion as compared to inflows of $6.6 billion and $13 billion in the second and first quarter. In the first nine months of 2015, assets under management benefited from positive flows of $19.5 billion and 13.8% appreciation of holdings.

In the European market, WisdomTree’s assets under management stood at $696 million with net inflows of $628 million in the first nine months of 2015 as compared to $37 million in the first nine months of 2014. The company is benefiting from increased volatility in the European markets combined with quantitative easing from the Eurozone. The company is getting flows in European equity theme UCITS. WisdomTree is cross-listing additional funds into Switzerland and Italy to meet client demands.

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