WisdomTree’s Next Chapter – Buyback Wednesdays

This month when reviewing a list of companies that announced stock buybacks, one company that stood out is a small-cap asset manager turned ETF powerhouse that announced a $190 million share repurchase, representing 11% of its market cap.

WisdomTree (WT) has evolved from its modest beginnings in financial publishing to now managing $138 billion in assets. At the center of this transformation is its founder and CEO, Jonathan Steinberg, a visionary who has helped the company navigate market shifts and digital disruption.

His journey strongly reminds me of Murray Stahl, co-founder of Horizon Kinetics, whose contrarian roots in spin-off investing at Bankers Trust eventually blossomed into one of the most unconventional and successful asset managers in the U.S.

Horizon’s bets on energy names like Texas Pacific Land (TPL) helped its funds beat the market by a wide margin in certain years,  earning it a spot in The Wall Street Journal’s “Best Stock Fund Managers of 2022” list with returns of 31.9% for its Small Cap fund and 29.2% for Paradigm.

I’ve followed WisdomTree for nearly two decades, and I still remember writing about the company in December 2006, just a month after they announced they had crossed $1 billion in AUM. At the time, I admired their bold entry into ETFs, but I never imagined they would someday reach the scale and relevance they have today.

Both Steinberg and Stahl saw opportunity in what others dismissed. Where Stahl hunted unloved spin-offs and unconventional assets, Steinberg reinvented his publishing company into a financial innovator. As Stahl puts it,

“The philosophy is that if people hate it, that’s really your opportunity set. It doesn’t mean that they’re wrong to hate it, but if everybody thinks it’s wonderful, for me at least it’s not an opportunity. I leave it to other people because I’m not going to learn more about it than they already know.”

As traditional mutual funds fall out of favor, and the asset management landscape tilts toward model portfolios, passive vehicles, and tokenized funds, WisdomTree is right at the intersection of what’s next.

This convergence of history, leadership, and market structure is precisely why I am diving deeper into WisdomTree’s next chapter.

WisdomTree, Inc. (WT): $11.1 

Market Cap: $1.57B

Enterprise Value: $1.97B

Key Insights

• WisdomTree is an ETF issuer that earns a modest fee of a few basis points on large volumes of investor assets, and is now expanding into higher-margin areas such as digital funds and farmland to move beyond traditional ETF economics.
• The acquisition of Ceres Partners adds $1.85B+ in farmland assets, boosting exposure to private markets and increasing margin potential.
• Total AUM reached $137.6 billion in Q3 2025, up 8.8% quarter-over-quarter, supported by $2.2 billion in net inflows and market gains, representing 7% annualized organic growth rate.
• WisdomTree’s Portfolio Solutions segment has emerged as one of its fastest-growing businesses, with assets under advisement reaching $5.9 billion, a surge of over 50% year-to-date.
• The founder is still at the helm, providing continuity, strategic clarity, and long-term alignment.
• Q3 EPS grew 28% YoY, with 21% EPS growth year-to-date, reflecting operating leverage and product expansion.

WisdomTree has steadily grown into a global ETF sponsor, offering a broad lineup of funds across asset classes and geographies, including U.S. and international equities, fixed income, currencies, and alternative investments. The firm has also moved into digital assets, including the launch of cryptocurrency exchange-traded products (ETPs) in Europe, which are listed on the Swiss Stock Exchange.

ETPs are no longer an emerging trend. After more than two decades of evolution, the category has grown into a mainstream investment vehicle with aggregate AUM reaching a massive $13.8 trillion by 2024.

Year-to-date, WisdomTree has recorded $2.2 billion in inflows from the U.S., $3.3 billion from Europe, and approximately $523 million from digital assets, marking Europe as the top contributor. This trend was partly fueled by geopolitical shifts: during the Trump administration, the imposition of tariffs on U.S. imports from the EU as well as the scaling back of defense support for Europe, prompted investors to seek exposure to European sectors such as defense and infrastructure.

With nearly $50 billion in European AUM and strong revenue capture, WisdomTree has built a significant presence in the region. Notable contributors to European inflows included the firm’s gold and cryptocurrency ETPs, its European Defence UCITS ETF, and its tokenized money market fund. Management remains optimistic about future growth, citing strong underlying fundamentals and increasing synergies between the U.S. and European operations.

As of late 2025, WisdomTree manages over 85 ETFs globally, reinforcing its reputation as a specialized tactical ETF provider. A prime example of its tactical edge lies in its suite of currency-hedged ETFs, which go beyond simple index tracking to actively manage currency risk alongside equity exposure.

For instance, the WisdomTree Dynamic Currency Hedged International Equity Fund doesn’t just seek international equity returns. It dynamically adjusts its currency hedging based on factors like momentum, valuation, and interest rate differentials. Similarly, the WisdomTree Europe Hedged Equity Fund provides targeted European equity exposure while systematically hedging euro-dollar risk.

Through these strategies, WisdomTree gives portfolio managers tools to tactically position around macro risks such as currency fluctuations, making it far more than a passive ETF shop.

Despite its diversification efforts, WisdomTree remains sensitive to market sentiment and capital flows, which contributed to share price weakness at the beginning of the year. However, its AUM mix with 17% in fixed income, 22% in commodities and currencies, and 4% in digital assets provides a degree of insulation in the event of a sharp equity market downturn.

Source: WisdomTree (10K)

Strategic Growth Through Innovation

WisdomTree continues to focus on organic growth, driven by its core ETF platform while expanding into digital assets and blockchain-based services. The firm offers next-generation products through its WisdomTree Prime digital wallet and Connect platform, enabling clients to spend, save, and invest in assets ranging from Bitcoin to gold and equities. WisdomTree Prime is now live with on-chain transfer capabilities, while Connect acts as a gateway for institutional investors to buy, hold, and move tokenised versions of regulated funds through blockchain wallets.

Source: WisdomTree (Investor Presentation)

As of Q3 2025, digital AUM reached approximately $600 million, with peak levels nearing $900 million, largely fueled by flows into its blockchain-enabled money market fund. These innovations come at a time when investors are increasingly embracing ETFs and digital solutions, creating a favorable backdrop for WisdomTree’s continued growth.

Now in its 12th year, Brown Brothers Harriman’s annual ETF survey offers a global perspective on ETF adoption and innovation, drawing insights from investors across the U.S., Europe, and Greater China. The findings are striking: 96% of respondents plan to increase their ETF allocations over the next 12 months, a sharp jump from 82% last year, a clear sign that ETFs have moved from trend to mainstay in portfolio construction.

This surge in demand positions WisdomTree particularly well. With its continued innovation in areas like digital assets, thematic ETFs, and tokenized funds, the firm is aligned with the evolving needs of investors and is well-placed to capitalize on the global shift toward ETF-centric strategies.

Recent Launches

On October 30, 2025, WisdomTree launched 14 tokenized funds on the Plume Network, a blockchain built for real‑world assets (RWAs) such as money‑market and bond products, marking a major step into on‑chain institutional finance. Among the launch funds is the Government Money Market Digital Fund, backed by a $10 million investment from Galaxy Digital.

In addition, WisdomTree is positioning itself for the rollout of a spot XRP ETF (a financial product that gives investors direct exposure to cryptocurrency XRP) alongside peers, which is expected to generate strong cash inflows and expand its digital‑asset product suite.

Graham Tuckwell and His Activist Role at WisdomTree

Graham Tuckwell, founder of ETF Securities and chair of ETFS Capital, is WisdomTree’s largest shareholder, holding ~18% of shares as of mid-2024. His activist campaign began after WisdomTree acquired ETF Securities’ European unit in 2018. Since 2022, Tuckwell has pushed for board changes and strategic redirection, opposing the firm’s pivot into decentralized finance. In 2023, he successfully removed former chair Frank Salerno. Now, he seeks to oust CEO Jonathan Steinberg, board chair Win Neuger, and director Anthony Bossone.

Tuckwell argues for a potential sale of the firm, citing governance and performance concerns. In August 2025, ETFS Capital revealed a new stake of 3.6%, intensifying its pressure campaign. WisdomTree has rejected the criticisms, urging investors to stay the course and back management. 

The Architect of WisdomTree: Jonathan Steinberg

Jonathan Steinberg founded WisdomTree in 1988 and has led it ever since, transforming it from a financial media firm into a global ETF leader. A former Bear Stearns M&A analyst, Steinberg brought his market instincts into publishing, serving as Editor-in-Chief of Individual Investor and Ticker magazines.

He pioneered WisdomTree’s indexing methodology, laying the groundwork for its first ETFs launched in 2006. Steinberg has worn many hats: CEO since 1988, board chair for over 15 years, and President through key growth periods. With over three decades at the helm, Steinberg remains the company’s strategic engine, focused on transforming how investors access markets, most recently through digital assets, blockchain, and tokenized funds.

WisdomTree Bets on Farmland with Ceres Deal

In early October, WisdomTree announced the acquisition of Ceres Partners, a U.S.-based alternative asset manager specializing in farmland investments, expanding its reach into private markets. The deal adds $1.85 billion in AUM across 545 farmland properties in 12 U.S. states, and brings exposure to long-term growth themes like solar energy, water rights, and AI infrastructure.

This move enhances product diversification, introduces a negatively correlated asset class, and is expected to improve revenue yield and operating margins by over 200 basis points. Ceres contributes roughly $39 million in annual revenue, nearly 9% of WisdomTree’s current run-rate, and is expected to strengthen long-term growth and client offering. The CEO is very optimistic about the new acquisition and stated,

“The completion of the acquisition of Ceres marks a transformative moment for WisdomTree. Our entry into private markets begins with farmland, a space where we can truly differentiate, establish leadership, and capture meaningful growth. By adding farmland to our product suite, we are expanding our reach into private markets and accelerating our long-term growth strategy. This acquisition provides investors with unique access to a resilient, inflation-protected asset class, while bringing on Ceres’ farmland platform, which has delivered net annualized returns of over 10% since inception. Ceres’ strong performance enhances our platform, strengthens diversification, and reinforces our commitment to building enduring value for clients and stockholders.”

WisdomTree acquired Ceres Partners for consideration consisting of $275 million in cash paid at closing, and earnout consideration of up to $225 million, payable in 2030, contingent upon Ceres achieving 12–22% CAGR in revenue over five years. The upfront consideration was funded from WisdomTree’s recently completed convertible senior notes offering.

Portfolio Solutions: WisdomTree’s Scalable Growth Engine

WisdomTree’s Portfolio Solutions business has become a key driver of its growth, offering advisors technology‑enabled, research‑driven tools that streamline portfolio construction, asset allocation, and practice management. These solutions include CIO‑managed model portfolios, custom asset‑allocation strategies, and managed accounts built for diversified exposure across equities, fixed income, commodities, and alternatives anchored by WisdomTree’s rules‑based ETFs.

Source: WisdomTree (Investor Presentation)

Adoption has accelerated meaningfully: assets under advisement reached $5.9 billion as of September 30, 2025, up more than 50% year‑to‑date, and over 2,500 advisors used the platform in 2024. With an addressable market of 300,000 advisors and $27 trillion in assets, Portfolio Solutions positions WisdomTree to scale meaningfully within the advisor ecosystem and capture a growing share of model‑driven investing.

Valuation

With a current market cap of $1.6 billion, WisdomTree trades at 16× forward P/E and 10× forward EV/EBITDA, both reflecting a roughly 20% discount to its 5-year historical averages. Given the company’s solid growth prospects, strong operating margins, and ongoing strategic initiatives in digital assets and private markets, this valuation appears compelling for long-term investors who don’t mind the volatility that will come from an inevitable bear market.

Capital Return

WisdomTree is maintaining its quarterly dividend at $0.03 per share, implying a modest ~1% yield, currently the lowest among peers. This suggests management is prioritizing share repurchases over dividends as its primary method of returning capital.

To that end, the company recently announced a $190 million buyback, representing roughly 11% of its market cap at the time of the announcement. While buyback activity was muted over the last 4–5 quarters, WisdomTree has been active over a longer window, reducing its outstanding share count by 17% over the past two years.

Peer Comparison 

WisdomTree remains the smallest by market cap among major asset management peers, yet it has outperformed most of them over the past three years. But momentum has slowed over the last year, allowing Invesco (IVZ) to pull ahead. WisdomTree continues to trade at a modest premium to traditional managers like T. Rowe Price (TROW), Janus Henderson (JHG), and Franklin Resources (BEN), which typically offer lower growth potential. The one outlier is BlackRock (BLK), which commands a much higher valuation due to its unmatched scale and alternatives exposure.

Despite its size, WisdomTree leads peers with projected forward revenue growth of over 18%, ranks #3 in profitability (49.3% gross margin, 21.1% net margin), and has the highest return on equity at 25.7%. These fundamentals help justify its valuation premium relative to most of its competitors.

Q3 Highlights

WisdomTree delivered another solid quarter, highlighted by record firm-wide AUM, strong net inflows and continued execution across all areas of its business.

Source: WisdomTree (Investor Presentation)

• The firm achieved a record $137.2 billion in AUM, including $88.3  billion in the U.S., $48.2 billion in Europe, and $600 million in digital assets.
• Operating revenue rose 11.5% QoQ, driven by higher average AUM and increased revenue from European ETPs, while expenses rose just 2.5% from the prior quarter, reflecting disciplined cost management.
• EPS grew 28% YoY in Q3, with YTD EPS up 21%, and adjusted net income reached $34.5 million ($0.23/share). 
• Client engagement also improved, with more advisors adopting WisdomTree solutions and using a greater number of its products.

Risks

• WisdomTree operates in a highly cyclical industry, with revenue and earnings closely tied to market sentiment and asset prices. In downturns, falling markets directly reduce AUM, squeezing margins and making it harder to deliver earnings growth. This cyclicality remains one of the firm’s most fundamental structural risks.
• Competition in the ETF space also continues to intensify, with fee pressure from giants like Vanguard and BlackRock limiting room for pricing power and market share gains.
• Another key risk is WisdomTree’s reliance on third-party providers like JP Morgan, Swissquote, and HSBC for custody of digital assets and precious metals, as well as on external vendors for portfolio infrastructure. Any disruption in these services could materially impact operations.

Bottom Line

WisdomTree is a diversified asset manager best known for its ETFs, with balanced exposure across fixed income, commodities, currencies, and digital assets. The firm’s expansion into private assets through the acquisition of Ceres Partners, along with continued leadership in tokenization, positions WisdomTree for long-term, technology-driven growth and sustained value creation. But as with most asset managers, market drawdowns remain a lingering risk. When markets fall, AUM and revenues drop in tandem, creating a double whammy. This cyclical sensitivity keeps a lid on valuation multiples, even during periods of strong growth and innovation.

I will continue to track WisdomTree to see if a market dislocation provides a good opportunity to start a position in the company.

Welcome to edition 107 of Buyback Wednesdays, a monthly series that tracks the top stock buyback announcements during the prior month. The companies in the list below are the ones that announced the most significant buybacks as a percentage of their market caps. They are not the largest buybacks in absolute dollar terms. A word of caution. Some of these companies could be low-volume small-cap or micro-cap stocks with a market cap below $2 billion.

The number of companies announcing share buybacks has remained stable this month at 86, compared to 80 in the previous month.

1. Sharps Technology, Inc. (STSS): $3.08

On October 2, 2025, the Board of Directors of this medical device company announced that it had approved a new $100 million stock repurchase agreement, equal to around 57% of its market cap at announcement.

2. Keros Therapeutics, Inc. (KROS): $17.55

On October 20, 2025, the Board of Directors of this clinical-stage biopharmaceutical company announced that it has entered into stock purchase agreements with certain entities affiliated with ADAR1 Capital Management and  Pontifax Venture Capital to repurchase the shares of the Company’s common stock held by both the parties for $17.75 per share for a total of $194.4 million, equal to around 27% of its market cap at announcement.

3. Murphy USA Inc. (MUSA): $368.64 

On October 29, 2025, the Board of Directors of a motor fuel products company announced that it had approved a new $2 billion share repurchase agreement. This represents around 26% of its market cap at announcement.

4. KB Home (KBH): $58.37

On October 27, 2025, the Board of Directors of this homebuilder authorized a new $1 billion share repurchase program, equal to around 24.5% of its market cap at announcement. 

5. Nano Labs Ltd  (NA): $5.04

 On October  15, 2025, the Board of Directors of this integrated circuit design company authorized a new $25 million share repurchase program, equal to around 20% of its market cap at announcement. 

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