WisdomTree, Inc. (NYSE:WT), a global financial innovator, today announced a strategic minority investment of $2.5 million in AlphaBeta ETF Ltd, an Israeli financial technology company focused on quantitative and AI investment strategies.
The investment lays the foundation for a strategic partnership to expand the use of WisdomTree’s AI-driven research and technology throughout its investment process.
WisdomTree’s investment will provide access to AlphaBeta’s platform, team, technology, models and a network of academics to expand its research toolbox and deepen its AI-powered investment bench. It drives WisdomTree’s AI adoption across the enterprise beyond productivity and efficiency, integrating AI into the heart of its business – research, index design and portfolio management – to improve investor outcomes.
The partnership is expected to focus on the development of investment strategies and create a path to launch AI-based strategies in ETF format, combining the sophistication and performance characteristics of hedge funds with the accessibility, transparency and liquidity of ETFs.
“WisdomTree’s partnership with AlphaBeta marks an important milestone in our mission to deliver the next generation of investment strategies,” said Jeremy Schwartz, Global Chief Investment Officer, WisdomTree. “By leveraging their AI-driven research into factor-based investment strategies alongside our ETF expertise, we aim to develop powerful new tools for investors – strategies with the sophistication of hedge funds delivered in the accessible, transparent and liquid ETF wrapper that WisdomTree is known for.”
“WisdomTree has always been a proponent of innovation, and this partnership places us at the forefront of the AI revolution in asset management,” said Rafi Aviav, Chief Operating Officer, Europe, WisdomTree. “AlphaBeta’s unique technology and research capabilities, together with our global ETF platform, will allow us to bring differentiated solutions to market faster and expand the opportunities we offer investors across Europe and beyond.”
This strategic investment and partnership further strengthens WisdomTree’s position as a leader in ETF innovation and supports the continued expansion of the differentiated solutions and value it provides to clients worldwide.