WisdomTree launched in 2006. They now offer 78 ETFs with AUM totaling $39B. I first learned of them through Jeremy Schwartz, whom I met briefly thanks to Wesley Gray at one of AlphaArchitect’s Democratizing Quant conferences and again at #MFTF last year. Jeremy’s title is Executive Vice President, Global Head of Research. I’ve always found him thoughtful, down-to-earth and very approachable. He’s a Wharton grad, which is probably one reason the firm maintains a close relationship with famed Professor Jeremy Siegel.
The firm espouses a strategy called “Modern Alpha,” which combines “the outperformance potential of active management with all of the advantages of passive management to create ETFs designed to perform.”
Through July nearly 2/3rds of WisdomTree funds have beaten their peers since launch, by 1% annualized on average. As such, WidsomTree earns an “Upper” rating on MFO’s Fund Family Scorecard. It helps that its average ER is just 0.43% annual.
Its family of funds is outperforming numerous other fund families, including AllianceBernstein, BNY Mellon, Brighthouse, Deutchse, Eaton Vance, Federated, First Trust, Global X, Goldman Sachs, Ivy, Mainstay, NorthernTrust, Proshare, Prudential, SunAmerca, Van Eck, Voya, Wells Fargo, Aberdeen, AQR, Guggenheim, ProFunds, Putnam, Russell, and Transamerica.
Below are risk and return metrics on all its funds (3 months or older), since launch through July. You’ll find eight MFO Great Owls, meaning these funds have returned top quintile risk adjusted returns (based on Martin) the past 3, 5, and lifetime years (less than 10 in WisdomTree’s case). The list is sorted first by risk (volatility), lowest to highest, and then by annualized return versus peer, highest to lowest.
Some of its most popular funds by AUM are also the best performing, including WisdomTree US MidCap Dividend (DON), Europe Hedged Equity (HEDJ), US Quality Dividend Growth (DGRW), International SmallCap Dividend (DLS), US MidCap (EZM), International Equity (DWM), US SmallCap (EES), Europe SmallCap Dividend (DFE), and International Hedged Quality Dividend Growth (IHDG).