Exhibit 99.1

WisdomTree Announces Third Quarter 2011 Results

35% growth in ETF AUM and 75% growth in revenues year over year

Company reports record $1.4 million net income, up 97% from prior quarter

$3.1 billion net inflows year to date representing 4.1% market share of industry flows

New York, NY – (BUSINESS WIRE) – October 27, 2011 – WisdomTree Investments, Inc. (NASDAQ: WETF), an exchange-traded fund (“ETF”) sponsor and asset manager, today reported net income of $1.4 million for the third quarter of 2011 as compared to a net loss of $1.5 million for the third quarter of 2010 and a net income of $0.7 million in the prior quarter. Revenue increased 75.1% from the third quarter of last year and 6.1% from the second quarter.

WisdomTree CEO Jonathan Steinberg commented, “I am pleased that WisdomTree generated record revenues and doubled net income from the prior quarter. These numbers represent solid results in a challenging market environment.”

Mr. Steinberg continued, “There continues to be significant interest in dividend based strategies as investors deal with volatile market conditions and historically low bond yields. Against this backdrop, we are extremely encouraged by the strong relative performance track records our equity strategies are generating.”

Mr. Steinberg concluded, “We achieved continued improvement in our year to date market share of industry inflows. We also continued to expand our international fixed income product line, adding the WisdomTree Euro Debt Fund and the WisdomTree Australia & New Zealand Debt Fund in the month of October.”

Assets Under Management

ETF assets under management (“AUM”) was $11.2 billion at September 30, 2011, down from $12.9 billion at June 30, 2011, primarily due to $1.9 billion of negative market movement. Despite a significant decline in global equity markets over the quarter, the Company still achieved positive net inflows of $179 million. A summary of the Company’s key operating and financial statistics are below:

 

1


Summary Operating and Financial Highlights

 

     As of and for the Three Months Ended     Change From  
     Sept. 30,     Jun. 30,     Sept. 30,     Jun. 30,     Sept. 30,  
     2011     2011     2010     2011     2010  

Operating Highlights (in millions):

          

ETF AUM

   $ 11,184      $ 12,934      $ 8,260        (13.5 %)      35.4

ETF inflows

   $ 179      $ 1,699      $ 1,161        nm        nm   

Average ETF AUM

   $ 12,762      $ 12,062      $ 7,055        5.8     80.9

Average ETF advisory fee

     0.55     0.55     0.56     —          (1.8 %) 

Market Share of industry inflows

     0.9     5.7     3.5     (4.8     (2.6

Financial Highlights (in thousands):

          

Revenues

   $ 17,736      $ 16,716      $ 10,130        6.1     75.1

Net income/(loss)

   $ 1,359      $ 689      ($ 1,517     97.2     nm   

 

     As of and for the Nine
Months Ended
    Change  
     Sept. 30,     Sept. 30,     Sept. 30,  
     2011     2010     2010  

Operating Highlights (in millions)

      

ETF AUM

   $ 11,184      $ 8,260        35.4

ETF inflows

   $ 3,142      $ 1,864        68.6

Average ETF AUM

   $ 11,706      $ 6,709        74.5

Average ETF advisory fee

     0.55     0.55     —     

Market share of industry inflows

     4.1     2.6     1.5   

Financial Highlights (in thousands)

      

Revenues

   $  48,985      $  28,199        73.7

Net income/(loss)

   $ 2,203      $ (6,969     nm   

Recent Business Highlights

In October 2011, the Company expanded its international fixed income product line, adding the WisdomTree Euro Debt Fund and the WisdomTree Australia & New Zealand Debt Fund.

Performance

82% of the $8.3 billion invested in our 34 equity ETFs on September 30, 2011 were in funds that, since their respective inceptions, outperformed their capitalization-weighted or competitive benchmarks through that date. 74%, or 25 of our 34 equity ETFs, outperformed their capitalization-weighted or competitive benchmarks since their respective inception through September 30, 2011. For more information about WisdomTree ETFs including standardized performance, please click here or visit www.wisdomtree.com.

 

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Third Quarter Financial Discussion

Revenues

Total revenues for the quarter increased 75.1% to a record $17.7 million as compared to the third quarter of 2010. This increase was primarily due to higher average assets under management from strong net ETF inflows. Average ETF assets under management were $12.8 billion in the third quarter of 2011, as compared to $7.1 billion in the third quarter of 2010. Total revenues increased 6.1% compared to the second quarter of 2011 primarily due to a 5.8% increase in average assets under management. We realized $0.2 billion in net inflows in the third quarter and a $1.9 billion reduction in our assets under management due to negative market movement. The average fee earned during the third and second quarters of 2011 was 0.55% as compared to the second quarter of 2010, when our average fee was 0.56%.

Expenses

Total expenses increased 40.6% to $16.4 million from $11.6 million in the third quarter of 2010 and increased 2.2% from $16.0 million in the second quarter of 2011.

 

 

Compensation and benefits expense increased 15.4% to $5.1 million compared to the third quarter of 2010 and 10.3% compared to the second quarter of 2011 primarily due to higher incentive compensation due to our positive operating results as well as higher headcount related expenses. Our headcount at the end of the third quarter of 2011 was 64 compared to 61 in the second quarter of 2011 and 56 in the third quarter of last year. Employee stock-based compensation decreased to $0.9 million in the third quarter of 2011 from $1.4 million in the third quarter of last year as equity awards granted in prior years became fully vested. Employee stock based compensation increased in the third quarter of 2011 from $0.8 million in the second quarter of 2011 as equity awards were granted to our sales force as part of their mid-year incentive compensation.

 

 

Fund management and administration expenses increased 42.7% to $5.1 million compared to the third quarter of 2010. This was primarily due to $1.2 million in higher portfolio management, fund administration and accounting, index licensing and distribution fees due to higher average assets under management. In addition we incurred $0.2 million in higher printing related fees. Fund management and administration expenses decreased 11.2% compared to the second quarter of 2011. Included in the second quarter of 2011 was a one-time charge of $0.7 million related to reimbursing the WisdomTree India ETF for excess fees collected by the Company as a result of overestimating the Company’s operating expense recapture fees for the India ETF’s fiscal year ended March 31, 2011. Also during the second quarter, the WisdomTree international equity funds rebalanced their portfolios leading to higher period transactional related fees of $0.2 million. Higher average assets under management led to an increase of $0.2 million in higher portfolio management and index licensing fees compared to the second quarter. Printing fees also increased $0.1 million compared to the second quarter.

 

 

Marketing and advertising expenses increased 22.3% to $0.9 million compared to the third quarter of 2010 primarily due to higher television and online related advertising expense. This expense decreased 32.9% compared to the second quarter of 2011 due to lower levels of advertising related activities in the third quarter.

 

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Sales and business development expenses increased 24.5% to $1.0 million compared to the third quarter of 2010 and 4.5% compared to the second quarter of 2011 due to higher levels of product development related activity.

 

 

Professional and consulting fees increased 85.3% to $1.5 million as compared to the third quarter of 2010 and 35.1% compared to the second quarter of 2011. Higher variable stock based compensation expense increased to $0.8 million in the third quarter compared to $0.5 million in the third quarter of last year and $0.7 million in the second quarter of 2011 primarily due to a higher price in our common stock. We incurred $0.2 million in fees related to our exchange listing compared to $0.1 million in the second quarter of 2011.

 

 

Third-party sharing arrangements expense increased to $1.8 million in the third quarter of 2011 compared to $0.6 million in the third quarter of last year and $1.5 million in the second quarter of this year. These increases were primarily due to profit sharing arrangements with the Bank of New York Mellon Corporation with respect to certain currency and fixed income ETFs as well as marketing fees paid to third parties due to higher average assets under management.

 

 

Other expenses increased 75.6% to $0.7 million compared to the third quarter of last year and 55.6% compared to the second quarter of 2011 primarily due to higher administration related expenses.

 

 

Occupancy, communication and equipment expenses and depreciation and amortization expenses all had relatively small dollar value changes compared to both periods.

Year-to-Date Results

Total revenues increased $20.8 million or 73.7% to $49.0 million for the nine months ended September 30, 2011 as compared to $28.2 million in the comparable period in 2010. This increase was primarily due to higher average assets under management, which increased 74.5% to $11.7 billion, which resulted primarily from $3.1 billion of net ETF inflows, partly offset by $1.8 billion in negative market movement.

Total expenses increased $11.6 million or 33.0% to $46.8 million for the nine months ended September 30, 2011 as compared to $35.2 million in the comparable period in 2010. This increase was primarily due to higher fund management and administration expenses due to higher average asset balances, higher third-party sharing arrangements due to higher asset balances in our currency and fixed income ETFs, and higher marketing and advertising and sales and business development expenses to support our growth. We incurred $0.7 million in expenses related to our exchange listing and a one-time reimbursement of $0.7 million to the WisdomTree India ETF in the nine months ended September 30, 2011.

Balance Sheet

As of September 30, 2011, WisdomTree had total assets of $37.9 million which consisted primarily of cash and cash equivalents of $21.1 million and investments of $9.2 million. WisdomTree has no debt. There were approximately 116.0 million shares issued as of September 30, 2011. Fully diluted weighted average shares outstanding were 136.1 million as of September 30, 2011.

 

4


Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements that are based on our management’s belief and assumptions and on information currently available to our management. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue” or the negative of these terms or other comparable terminology. These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and which could materially affect results. Factors that may cause actual results to differ materially from current expectations include, among other things, the risks described below. If one or more of these or other risks or uncertainties occur, or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected by the forward-looking statements. No forward-looking statement is a guarantee of future performance. You should read this press release completely and with the understanding that our actual future results may be materially different from any future results expressed or implied by these forward-looking statements.

In particular, forward-looking statements in this press release may include statements about:

 

   

anticipated trends, conditions and investor sentiment in the global markets;

 

   

anticipated levels of inflows into and outflows out of our exchange traded funds;

 

   

our ability to deliver favorable rates of return to investors;

 

   

our ability to develop new products and services;

 

   

our ability to maintain current vendors or find new vendors to provide services to us at favorable costs;

 

   

competition in our business; and

 

   

the effect of laws and regulations that apply to our business.

 

5


Our business is subject to many risks and uncertainties, including without limitation:

 

   

We have only a limited operating history and, as a result, recent historical growth may not provide an accurate representation of the growth we may experience in the future, which may make it difficult to evaluate our future prospects.

 

   

Challenging market conditions associated with declining prices of securities can adversely affect our business by reducing the market value of the assets we manage or causing customers to sell their fund shares and trigger redemptions.

 

   

Fluctuations in the amount and mix of our AUM may negatively impact revenue and operating margin.

 

   

Most of our assets under management are held in ETFs that invest in foreign securities and we therefore have substantial exposure to foreign market conditions and are subject to currency exchange rate risks.

 

   

We derive a substantial portion of our revenue from products invested in emerging markets and are exposed to the market-specific political and economic risks as well as general investor sentiment regarding future growth of those markets.

 

   

We derive a substantial portion of our revenue from a limited number of products and, as a result, our operating results are particularly exposed to the performance of those funds, investor sentiment toward the strategies pursued by those funds and our ability to maintain the assets under management of those funds.

 

   

The WisdomTree ETFs have a limited track record and poor investment performance could cause our revenue to decline.

 

   

We depend on other third parties to provide many critical services to operate our business and the WisdomTree ETFs. The failure of key vendors to adequately provide such services could materially affect our operating business and harm our customers.

Other factors, such as general economic conditions, including currency exchange rate fluctuations, also may have an effect on the results of our operations. For a more complete description of the risks noted above and other risks that could cause our actual results to differ from our current expectations, please see the section entitled “Risk Factors” in the Company’s most recent filings under the Securities Act of 1933 and Securities Exchange Act of 1934.

The forward-looking statements in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments may cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. Therefore, these forward-looking statements do not represent our views as of any date other than the date of this press release.

Conference Call

WisdomTree will discuss its results and operational highlights during a conference call on Friday, October 28, 2011 at 9:00 a.m. ET. The call-in number will be (877) 303-7209. Anyone

 

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outside the U.S. or Canada should call (970) 315-0420. The slides used during the presentation will be available at www.wisdomtree.com/ir. For those unable to join the conference call at the scheduled time, an audio replay will be available on www.wisdomtree.com/ir.

About WisdomTree

WisdomTree Investments, Inc. is a New York-based exchange-traded fund (“ETF”) sponsor and asset manager. WisdomTree currently offers 47 ETFs across Equities, Currency Income, Fixed Income and Alternatives asset classes. WisdomTree also licenses its indexes to third parties for proprietary products and offers a platform to promote the use of WisdomTree ETFs in 401(k) plans. WisdomTree currently has approximately $11.9 billion in ETF assets under management. For more information, please visit www.wisdomtree.com.

WisdomTree® is the marketing name for WisdomTree Investments, Inc. and its wholly owned subsidiaries WisdomTree Asset Management, Inc. and WisdomTree Retirement Services, Inc. WisdomTree Asset Management, Inc. is a registered investment advisor and is the investment advisor to the WisdomTree Trust and the WisdomTree ETFs. The WisdomTree Trust is a registered open-end investment company. Each WisdomTree ETF is a series of the WisdomTree Trust. WisdomTree Retirement Services, Inc. supports the use of the WisdomTree ETFs in retirement plans by financial professionals.

 

Media Contact:   WisdomTree Investor Relations Contacts
Stuart Bell   KCSA Strategic Communications
WisdomTree Investments, Inc.   Jeffrey Goldberger / Todd Fromer
+1 917.267.3702   +1 212.896.1249 / +1 212.896.1215
sbell@wisdomtree.com   jgoldberger@kcsa.com / tfromer@kcsa.com

This press release is not, and shall not constitute, an offer to sell or the solicitation of an offer to buy any of our securities, nor shall there be any sale of any of our securities, in any state in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state.

 

7


WISDOMTREE INVESTMENTS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(Unaudited)

 

     Three Months Ended     % Change From     For the Nine Months Ended  
     Sept. 30,
2011
    Jun. 30,
2011
    Sept. 30,
2010
    Jun. 30,
2011
    Sept. 30,
2010
    Sept. 30,
2011
    Sept. 30,
2010
    %
Change
 

Revenues

                

ETF advisory fees

   $ 17,554      $ 16,514      $ 9,860        6.3     78.0   $ 48,341      $ 27,456        76.1

Other income

     182        202        270        -9.9     -32.6     644        743        -13.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     17,736        16,716        10,130        6.1     75.1     48,985        28,199        73.7

Expenses

                

Compensation and benefits

     5,085        4,610        4,405        10.3     15.4     14,912        14,260        4.6

Fund management and administration

     5,093        5,736        3,569        -11.2     42.7     14,991        10,272        45.9

Marketing and advertising

     911        1,357        745        -32.9     22.3     3,240        2,331        39.0

Sales and business development

     954        913        766        4.5     24.5     2,612        1,972        32.5

Professional and consulting fees

     1,473        1,090        795        35.1     85.3     3,922        2,526        55.3

Occupancy, communication and equipment

     288        285        273        1.1     5.5     846        829        2.1

Depreciation and amortization

     68        67        80        1.5     -15.0     200        235        -14.9

Third party sharing arrangements

     1,794        1,512        609        18.7     194.6     4,434        1,485        198.6

Other

     711        457        405        55.6     75.6     1,625        1,258        29.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

     16,377        16,027        11,647        2.2     40.6     46,782        35,168        33.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income/(loss) before provision for income taxes

     1,359        689        (1,517     97.2 %     -189.6     2,203        (6,969 )     -131.6

Provision for income taxes

     625        317        —              1,013        —       

Tax benefit

     (625     (317     —              (1,013     —       
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income/(loss)

   $ 1,359      $ 689      $ (1,517     97.2     -189.6   $ 2,203      $ (6,969     -131.6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income/(loss) per share—basic

   $ 0.01      $ 0.01      $ (0.01       $ 0.02      $ (0.06  

Net income/(loss) per share—diluted

   $ 0.01      $ 0.01      $ (0.01       $ 0.02      $ (0.06  

Weighted average common shares—basic

     114,238        113,950        112,424            113,886        111,675     

Weighted average common shares—diluted

     136,075        134,887        112,424            135,615        111,675     


WISDOMTREE INVESTMENTS, INC.

CONSOLIDATED BALANCE SHEET

(in thousands, except per share amount)

 

     September 30,
2011
    December 31,
2010
 
     (Unaudited)        

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 21,052      $ 14,233   

Investments

     —          1,295   

Accounts receivable

     5,737        4,825   

Other current assets

     1,184        642   
  

 

 

   

 

 

 

Total current assets

     27,973        20,995   

Fixed assets, net

     640        756   

Investments

     9,233        7,300   

Other noncurrent assets

     59        91   
  

 

 

   

 

 

 

Total assets

   $ 37,905      $ 29,142   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

LIABILITIES

    

Current liabilities:

    

Fund management and administration payable

   $ 8,866      $ 5,714   

Compensation and benefits payable

     2,987        3,638   

Accounts payable and other liabilities

     2,810        2,263   
  

 

 

   

 

 

 

Total current liabilities

     14,663        11,615   

Other noncurrent liabilities

     186        292   
  

 

 

   

 

 

 

Total liabilities

     14,849        11,907   
  

 

 

   

 

 

 

STOCKHOLDERS’ EQUITY

    

Common stock, par value $0.01; 250,000 shares authorized:

    

issued: 115,963 and 115,291

     1,159        1,152   

outstanding: 114,520 and 113,132

    

Additional paid-in capital

     161,847        158,236   

Accumulated deficit

     (139,950     (142,153
  

 

 

   

 

 

 

Total stockholders’ equity

     23,056        17,235   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 37,905      $ 29,142   
  

 

 

   

 

 

 


WISDOMTREE INVESTMENTS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(Unaudited)

 

     Nine Months Ended  
     September 30,
2011
    September 30,
2010
 

Cash flows from operating activities

    

Net income/(loss)

   $ 2,203      $ (6,969

Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:

    

Depreciation, amortization and other

     200        235   

Stock-based compensation

     5,427        6,529   

Deferred rent

     (115     (70

Accretion to interest income

     79        (6

Net change in operating assets and liabilities:

    

Accounts receivable

     (912     (842

Other assets

     (510     88   

Fund management and administration payable

     3,152        760   

Compensation and benefits payable

     (651     (406

Accounts payable and other liabilities

     556        12   
  

 

 

   

 

 

 

Net cash provided by/(used in) operating activities

     9,429        (669
  

 

 

   

 

 

 

Cash flows from investing activities

    

Purchase of fixed assets

     (84     (87

Purchase of investments

     (5,833     (6,114

Proceeds from the redemption of investments

     5,116        7,183   
  

 

 

   

 

 

 

Net cash (used in)/provided by investing activities

     (801     982   
  

 

 

   

 

 

 

Cash flows from financing activities

    

Shares repurchased

     (2,130     —     

Proceeds from exercise of stock options

     321        1   
  

 

 

   

 

 

 

Net cash (used in)/provided by financing activities

     (1,809     1   
  

 

 

   

 

 

 

Net increase in cash and cash equivalents

     6,819        314   

Cash and cash equivalents—beginning of period

     14,233        11,476   
  

 

 

   

 

 

 

Cash and cash equivalents—end of period

   $ 21,052      $ 11,790   
  

 

 

   

 

 

 

Supplemental disclosure of cash flow information

    

Cash paid for income taxes

   $ 12      $ 11   
  

 

 

   

 

 

 

Non-cash investing and financing activities:

    

Cashless exercise of stock options

   $ 391      $ 60   
  

 

 

   

 

 

 


WisdomTree Investments, Inc.

Key Operating Statistics (Unaudited)

 

     Three Months Ended     For the Nine Months Ended  
     September 30,
2011
    June 30,
2011
    September 30,
2010
    September 30,
2011
    September 30,
2010
 

Total ETFs (in millions)

          

Beginning of period assets

     12,934        11,284        6,240        9,891        5,979   

Inflows/(outflows)

     179        1,699        1,161        3,142        1,864   

Market appreciation/(depreciation)

     (1,929     (49     859        (1,849     417   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

End of period assets

     11,184        12,934        8,260        11,184        8,260   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average assets during the period

     12,762        12,062        7,055        11,706        6,709   

ETF Industry and Market Share (in billions)

          

ETF industry net inflows

     21        30        33        78        73   

WisdomTre market share of industry inflow

     0.9     5.7     3.5     4.1     2.6

International Developed Equity ETFs (in millions)

          

Beginning of period assets

     2,619        2,613        1,674        2,062        1,953   

Inflows/(outflows)

     50        33        (20     564        (32

Market appreciation/(depreciation)

     (370     (27     246        (327     (21
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

End of period assets

     2,299        2,619        1,900        2,299        1,900   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average assets during the period

     2,488        2,596        1,794        2,434        1,957   

Emerging Markets Equity ETFs (in millions)

          

Beginning of period assets

     3,988        3,759        1,728        3,780        1,431   

Inflows/(outflows)

     102        344        707        506        1,043   

Market appreciation/(depreciation)

     (860     (115     361        (1,056     322   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

End of period assets

     3,230        3,988        2,796        3,230        2,796   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average assets during the period

     3,719        3,863        2,153        3,733        1,741   

International Sector Equity ETFs (in millions)

          

Beginning of period assets

     248        252        190        249        358   

Inflows/(outflows)

     7        1        20        1        (105

Market appreciation/(depreciation)

     (53     (5     37        (48     (6
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

End of period assets

     202        248        247        202        247   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average assets during the period

     234        258        218        246        259   

US Equity ETFs (in millions)

          

Beginning of period assets

     2,612        2,218        1,406        2,057        1,330   

Inflows/(outflows)

     241        374        211        668        368   

Market appreciation/(depreciation)

     (330     20        162        (202     81   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

End of period assets

     2,523        2,612        1,779        2,523        1,779   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average assets during the period

     2,528        2,364        1,540        2,352        1,484   

Currency ETFs (in millions)

          

Beginning of period assets

     1,896        1,467        1,242        1,179        907   

Inflows/(outflows)

     (566     382        (19     87        328   

Market appreciation/(depreciation)

     (136     47        43        (72     31   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

End of period assets

     1,194        1,896        1,266        1,194        1,266   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average assets during the period

     1,786        1,677        1,224        1,599        1,226   

International Fixed Income ETFs (in millions)

          

Beginning of period assets

     1,379        902        —          564        —     

Inflows/(outflows)

     280        442        262        1,057        262   

Market appreciation/(depreciation)

     (166     35        10        (128     10   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

End of period assets

     1,493        1,379        272        1,493        272   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average assets during the period

     1,780        1,195        126        1,218        42   

Alternative Strategy ETFs (in millions)

          

Beginning of period assets

     192        73        —          —          —     

Inflows/(outflows)

     65        123        —          259        —     

Market appreciation/(depreciation)

     (14     (4     —          (16     —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

End of period assets

     243        192        —          243        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average assets during the period

     227        109        —          124        —     

Average ETF assets during the period

          

Emerging markets equity ETFs

     29     32     31     32     26

International developed equity ETFs

     20     21     25     21     29

US equity ETFs

     20     20     22     20     22

Currency ETFs

     14     14     17     14     18

International fixed income ETFs

     14     10     2     10     1

International sector equity ETFs

     2     2     3     2     4

Alternative strategy ETFs

     1     1     0     1     0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     100     100     100     100     100
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average ETF advisory fee during the period

          

Alternative strategy ETFs

     0.95     0.95     —          —          —     

Emerging markets equity ETFs

     0.69     0.70     0.76     0.70     0.76

International sector equity ETFs

     0.58     0.58     0.58     0.58     0.58

International fixed income ETFs

     0.55     0.55     0.55     0.55     0.55

International developed equity ETFs

     0.54     0.54     0.55     0.54     0.55

Currency ETFs

     0.49     0.49     0.48     0.49     0.48

US equity ETFs

     0.34     0.34     0.34     0.34     0.34
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Blended total

     0.55     0.55     0.56     0.55     0.55
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Number of ETFs—end of the period

          

International developed equity ETFs

     14        14        14        14        14   

US equity ETFs

     12        12        12        12        12   

Currency ETFs

     9        9        9        9        9   

Emerging markets equity ETFs

     4        4        4        4        4   

International sector equity ETFs

     4        4        4        4        4   

International fixed income ETFs

     2        2        1        2        1   

Alternative strategy ETFs

     2        1        —          2        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     47        46        44        47        44   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Headcount

     64        61        56        64        56   

Note: Previously issued statistics may be restated due to trade adjustments

Source: Industry data—Bloomberg, WisdomTree