A Billion-Dollar Bid for an ETF Manager Is a Good Sign for WisdomTree Investments

Exchange-traded funds are the future, and everyone wants in on the party. The only problem is the venue is sold out, and tickets are selling at billion-dollar prices.

Invesco (NYSE: IVZ) is nearing a deal that would value Guggenheim's ETF business at more than $1 billion, according to The Wall Street Journal. That could be a boon for WisdomTree Investments (NASDAQ: WETF) shareholders, who have been on a wild roller-coaster ride since the company listed on the Nasdaq for the second time in 2011.

Guggenheim's ETF business, should it sell, could mean WisdomTree is worthy of an even higher valuation than the market gives it today.

Source: Fool.com