* Earlier this month, WisdomTree, Inc. launched the WisdomTree Quantum Computing Fund (WQTM) on the Chicago Board Options Exchange, providing investors targeted access to the expanding quantum computing sector with an expense ratio of 0.45%.
* The introduction of WQTM marks WisdomTree's move into next-generation technology investing, blending exposure to quantum pioneers and broader tech companies while underlining the firm's product innovation.
* We'll explore how the addition of a quantum computing ETF could impact WisdomTree's outlook on revenue growth and future business diversification.
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WisdomTree Investment Narrative Recap
To be a shareholder in WisdomTree, it's important to believe in continued demand for innovative thematic and technology-focused ETFs, as well as the company's ability to diversify revenue beyond traditional investment strategies. The recent launch of the Quantum Computing Fund (WQTM) demonstrates the firm's commitment to product innovation, but its near-term impact on revenue growth and key catalysts related to AUM expansion appears limited, for now, the biggest risk remains the potential for fee compression across the industry.
Of the company's recent announcements, the September launch of the WisdomTree Private Credit and Alternative Income Digital Fund (CRDT) stands out as particularly relevant. With both WQTM and CRDT, WisdomTree is expanding into highly specialized asset classes, supporting the ongoing catalyst of global AUM and fee growth through differentiated offerings. Yet, while these launches boost diversification, investors should keep in mind that...
Read the full narrative on WisdomTree (it's free!)
WisdomTree's outlook projects $600.8 million in revenue and $227.8 million in earnings by 2028. This implies a 10.6% annual revenue growth rate and an increase in earnings of $168.2 million from the current $59.6 million.
Uncover how WisdomTree's forecasts yield a $14.79 fair value, a 13% upside to its current price.
Exploring Other Perspectives
Community fair value targets for WisdomTree run from US$6.40 to US$14.79, based on 2 user-submitted estimates from the Simply Wall St Community. Against this broad range, fee compression remains a concern that could affect margins and profit growth, making it essential to weigh multiple viewpoints on future performance.
Explore 2 other fair value estimates on WisdomTree - why the stock might be worth as much as 13% more than the current price!