WisdomTree chief sees ETFs becoming long-term asset majority in future

By Aleesia Forni

Columbus, Ohio, Jan. 30 - WisdomTree Investments Inc.'s chief executive officer Jonathan Steinberg believes that exchange-traded funds should reasonably become the majority of long-term assets over the next 20 years.

This means that the ETF industry could have roughly $8 trillion in total assets.

To clarify this "bold statement," Steinberg added that while exchange-traded funds represent 10% of assets currently, they have taken in more than 50% of net inflows over the last five years.

"In 2011, ETFs took in 78% of the inflows," Steinberg said during the company's fourth-quarter earnings conference call on Monday. "This is the kind of dominance that will drive the ETF industry to the majority of assets."

Steinberg said ETFs represent "one of the great macro trends in investing," and WisdomTree is excited to be helping in telling their story.

"Structure matters," Steinberg said. "ETFs are a newer technology that offers investors a better investing experience."

The primary benefits of full transparency, better liquidity and greater tax efficiency are significant, according to Steinberg.

"There are enormous benefits to investors who use ETFs, and that truth has been powering the industry's growth," Steinberg said. "That is why I say ETFs are to mutual funds what the internet is to newspapers."

WisdomTree is a New York-based exchange-traded fund sponsor and asset manager.

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