Category: Open Ended Investment Company
The Fund seeks to track the price and yield performance, before fees and expenses of the WisdomTree Europe SmallCap Dividend UCITS Index (the “Index”). The Index is rule based and fundamentally weighted and is comprised of the small-capitalisation segment of the dividend paying companies from Europe, selected based on a composite risk score ("CRS") screening which is made up of two factors (quality and momentum) each carrying an equal weighting. To be included in the Index, companies must meet minimum market capitalisation and liquidity requirements, pay regular cash dividends on shares of its common stock in the 12 months preceding the annual reconstitution and be incorporated and listed in one of the European countries (i.e. Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland or the United Kingdom). The Index excludes companies based on environmental, social and governance criteria. Once the 300 largest companies by market capitalisation have been removed, companies ranking in the bottom 25% of the remaining market capitalisation from the eligible universe are selected. The companies are then ranked by CRS and those which do not fall in the bottom 10% of the CRS are selected for inclusion within the Index. Furthermore, a selected company might be removed from the Index if it is ranked in the top 5% based on dividend yield but falls in the bottom 50% of the CRS. The weight of each component company in the Index is calculated based on the aggregate cash dividends (the "Dividend Stream") and its CRS. The component companies with the top 20% CRS will have their Dividend Stream adjusted by 1.5x (the "Adjusted Dividend Stream"). Component companies are then weighted annually in the Index to reflect their proportionate share of the Adjusted Dividend Stream. Companies which pay more dividends and have higher CRS are more heavily weighted. The Index is "reconstituted" on an annual basis. In order to achieve its objective, the Fund will employ a "passive management" (or indexing) investment approach and will invest in a portfolio of equity securities that so far as possible and practicable consists of a representative sample of the component securities of the Index. As it may be difficult, expensive or otherwise inefficient to purchase all the securities in the Index, the Fund may also hold shares or other securities which produce a similar investment return to securities in the Index or may invest in collective investment schemes. The Fund may enter into repurchase/reverse repurchase agreements and stock lending arrangements solely for the purposes of efficient portfolio management, subject to the conditions and within the limits set out in the prospectus for WisdomTree Issuer ICAV (the “Prospectus”). Shares of the Fund (“Shares”) are listed on one or more stock exchanges. Typically, only Authorised Participants (i.e.