WisdomTree has built its reputation on purposeful innovation rather than launching funds simply to fill market gaps. The asset manager now oversees nearly $85 billion in U.S. assets, focusing on solutions that address specific advisor pain points—understanding that investors increasingly seek comprehensive solutions over individual ticker symbols.
“Our track record shows, we don’t just talk about new ideas—we bring them to market, and we make them work for advisors,” Joe Grogan, Head of Distribution, Americas, at WisdomTree, says in an interview with The Wealth Advisor’s Scott Martin. “We don’t sell tickers,” he adds. “We sell solutions.”
Grogan outlines the firm’s approach to product development, its spearheading work in tokenization, and three funds that illustrate the firm’s innovation strategy. From floating-rate funds that sat dormant for years before becoming billion-dollar blockbusters to gold strategies achieving top rankings in Morningstar’s largest categories, WisdomTree’s patient approach to innovation demonstrates how forward-thinking product development can transform advisor practices.
Floating-Rate Solutions for Modern Fixed Income
WisdomTree launches between 20 and 30 funds annually, Grogan notes, acknowledging that not every product succeeds immediately. The firm’s Floating Rate Treasury Fund (ticker: USFR) exemplifies how patient capital and foresighted strategy can eventually pay off. Launched about seven years ago when rates remained near zero, the fund sat relatively dormant until the Federal Reserve began raising rates aggressively.
“We knew that at some point, rates were going to have to rise, and when they did, that fund became the fund of choice,” Grogan explains. USFR held approximately $19 billion as of June and attracts roughly $2 billion to $3 billion in annual inflows as advisors seek cash replacement strategies. “It was a big hit, big win,” he says.
USFR has emerged as a potential solution to a persistent challenge facing advisors managing fixed income portfolios: maintaining yield in a potentially declining rate environment while avoiding duration risk. This WisdomTree strategy addresses both considerations through its weekly reset mechanism tied to three-month Treasury bills, providing what Grogan describes as steady net asset value (NAV) performance with competitive yields. The fund tracks newly issued U.S. government floating-rate notes, designed to fluctuate with short-term rates at a spread over three-month Treasury bills.
Although USFR cannot technically be labeled a money market fund, its stable NAV behavior and short duration make it potentially attractive for advisors seeking alternatives to cash positions. Grogan notes that investors would need to extend out 10 years on the yield curve to match USFR’s current yield, making the one-week duration profile particularly appealing. “So, why not do something that’s a one-week duration, less volatility, steady NAV?”
When rates eventually decline, USFR’s yield will fall alongside those of other instruments across the curve, but Grogan emphasizes the strategy’s continuing relative advantage. “If I buy USFR and rates are lowering, my rate’s going to go down? Yes, but so is every rate along the curve, so it’s not just going to be you, it’s going to be everybody. And guess what? We’ll still be at one of the higher ends of the yield curve.”
The weekly reset feature allows holders to receive competitive rates without the duration risk associated with longer-term fixed income securities. “Let it reset for you. Don’t try to stick yourself into a Treasury and get a static note,” Grogan explains. “It’s certainly a great solution to a problem that everybody has.”
Gold Innovation Beyond Traditional Approaches
WisdomTree has developed two gold-focused ETFs that Grogan describes as “arguably the best funds that people haven’t really heard of yet.” Rather than offering traditional gold exposure or mining company stocks separately, both funds combine elements in innovative ways using futures contracts, seeking to enhance portfolio diversity and deliver capital-efficient strategies.
The WisdomTree Efficient Gold Plus Equity Strategy Fund (ticker: GDE) provides broad U.S. equity exposure with a gold overlay through futures contracts, representing what Grogan calls an “industry-first” structure. The strategy might serve as a core portfolio holding while adding inflation protection and diversification through its gold hedge component. GDE has achieved number one ranking in Morningstar’s large-cap blend category—the research firm’s largest category—across year-to-date, one-year, and three-year periods, carrying a five-star Morningstar rating.
The WisdomTree Efficient Gold Plus Gold Miners Strategy Fund (ticker: GDMN) takes a different approach by combining gold miners with leveraged gold futures exposure in a single fund. Rather than requiring advisors to choose between mining equities and commodities exposure, the strategy aims to provide an alternative that combines both. Year-to-date performance of approximately 94% as of late August has positioned GDMN as the top performer in commodities-focused categories across multiple time periods, Grogan points out.
“Why choose between miners and the metal when you can have both in a single strategy?” he asks. The fund’s structure reflects WisdomTree’s approach to capital efficiency, using what Grogan describes as “stacked” exposure to provide more than 100% allocation through appropriate leverage techniques. “We’re offering advisors equity growth, inflation protection, diversification in one capital-efficient package,” he says.
Both strategies demonstrate how sophisticated futures-based construction might create enhanced exposure while maintaining liquidity. The capital-efficient design is designed to deliver comprehensive gold exposure without the operational complexity of managing separate positions across miners and physical gold investments.
Tokenization: The Next Frontier
WisdomTree has invested heavily in tokenization technology, positioning itself as a leader in a field that Grogan believes has the potential to be transformational for the investment industry over the next decade. The firm secured approval for nine tokenized funds and has already scaled a tokenized money market strategy to nearly $1 billion in assets.
“We’ve been at tokenization longer than anyone in our peer group. We blazed this trail six, seven, eight years ago, and we’re probably the furthest along. But it’s important to recognize that the whole industry is waking up to the fact that tokenization is real—and it is and will be transformative,” Grogan explains.
The technology offers the potential for 24/7 trading, instant settlement, and embedded KYC (know your customer anti-money laundering due diligence) capabilities within tokens themselves. Emphasizing the importance of proper oversight and regulation in decentralized finance (DeFi) applications, Grogan describes WisdomTree’s approach as “responsible, regulated DeFi.” As he explains, “You don’t want to just have DeFi. You want responsible, regulated DeFi.”
While acknowledging the technology remains in early stages, Grogan sees parallels to how ETFs disrupted mutual funds and notes that tokenization has the potential to fundamentally reshape current ETF structures.
“We’re looking at advances in what we can do for the ETF,” he says. “What can we do to the ETF that the ETF did to the mutual funds?”
Beyond Fee-Focused Decision-Making
Grogan frequently addresses advisor concerns about expense ratios, arguing that fee-only analysis misses critical factors affecting returns. After-fee performance represents the true measure of value, while factors such as bid-ask spreads and underlying liquidity can significantly impact trading efficiency.
“Too often, advisors zero in on fees alone, but the real measure is really the after-fee return. The fund is only expensive if the value isn’t there,” Grogan states. “That’s the mindset you have to have.” He emphasizes such key factors as spreads and liquidity, particularly when advisors need to execute large transactions during market stress.
“A tight spread means efficient trading,” he says. “You want to see that, while deep basket liquidity ensures you can transact even in volatile markets. That’s one of the most important things.”
WisdomTree’s capital markets group assists advisors with large transactions, offering multiple execution options including volume-weighted average price orders and direct broker relationships. The support proves particularly valuable during market stress when liquidity becomes paramount.
The firm’s ETF strategies demonstrate how sophisticated construction has the potential to justify management fees. Rather than competing solely on cost, WisdomTree focuses on delivering effective solutions that seek to justify their expense through performance and functionality.
“That’s why we designed funds like GDE and GDMN—to deliver strong after-fee returns with highly liquid exposures,” Grogan says. “It’s not about being the cheapest; it’s about being the most effective for the clients.”
Client-Driven Innovation and Partnership Strategy
WisdomTree’s product development process increasingly involves direct advisor input, with successful funds emerging from client conversations and specific requests. The firm’s philosophy centers on innovation geared toward client demand while anticipating future market needs. “We see an idea, we see a concept, we hear it from our clients. We build based on demand,” Grogan explains.
He recalls when a Canadian advisor’s suggestion led to the creation of the WisdomTree Japan Hedged Equity Fund (ticker: DXJ), which launched three months after initial discussions with approximately $45 million in seed capital, and the WisdomTree India Earnings Fund (ticker: EPI). “He was very much involved in our DXJ fund and our EPI fund, both great funds and great exposures over there, but he says, ‘No, I’d love to get a hedged version. Do you think you can do that?’” Grogan recounts.
The collaborative approach reflects WisdomTree’s dedication to serving as consultative partners rather than traditional wholesalers focused on individual product sales. The firm emphasizes building relationships through multiple product implementations rather than single transactions.
“It’s not the first product or service that you can work with them on—it’s the third and fourth that builds trust, builds a relationship, and builds a partnership that will last a long time,” Grogan believes.
WisdomTree’s growth from below $30 billion in U.S. assets during COVID-19’s early stages to current levels approaching $85 billion demonstrates how advisor-focused innovation can drive sustainable business expansion. The combination of what Grogan describes as having “the spirit of a fintech with the credibility of a full-scale asset manager” positions the firm compellingly in the marketplace.
“We’re nimble. We’re client centric. We deliver what advisors need, whether that’s innovative ETFs, digital tools, tokenized solutions. Most importantly, we marry innovation with real execution,” Grogan concludes.
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Additional Resources
- Contact WisdomTree
- GDE Fact Sheet
- GDMN Fact Sheet
- USFR Fact Sheet
- Demystifying Digital Assets: A Discussion with Forward-Thinking Advisors
- WisdomTree: The Modern Advisor
