Category: Open Ended Investment Company
The Fund seeks to track the price and yield performance, before fees and expenses of the WisdomTree US Equity Income Index (the “Index”). The Index is a fundamentally weighted index and is comprised of the highest dividend yielding common stocks selected from the WisdomTree Dividend Index (the “Parent Index"). The share class seeks to deliver exposure to the Index while at the same time neutralising exposure to fluctuations of the US Dollar relative to the Euro by implementing a hedging methodology used in the WisdomTree US EUR Hedged Equity Income Index (the“Hedged Index”). Securities ranking highest on the Parent Index by dividend yield that meet the minimum market capitalisation and liquidity criteria of the Index are selected for inclusion within the Index. Securities are then weighted annually in the Index to reflect the proportionate share of the aggregate cash dividends each component company is projected to pay in the coming year, based on the most recently declared dividend per share. Companies projected to pay more dividends are more heavily weighted. The Index is "reconstituted" annually on the basis of the above eligibility and weighting methodology. At such time, the maximum weight of any security in the Index is capped and the maximum weight of any one sector in the Index is capped. A "passive management" (or indexing) investment approach will be employed and the Fund 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 and forward foreign exchange contracts that so far as possible and practicable replicate the currency hedging methodology of the Hedged Index. The currency hedging methodology consists of entering into forward exchange contracts (contracts between two parties to buy or sell a specific currency in the future at an agreed upon exchange rate) in order to hedge the US Dollar exposure arising as a result of the difference between the US Dollar and the Euro. 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 plc (the “Prospectus”). Shares of the Fund (“Shares”) are listed on one or more stock exchanges. Typically, only Authorised Participants (i.e. brokers) can purchase Shares from or sell Shares back to the Fund. Other investors can purchase and sell Shares on exchange on each day the relevant stock exchange is open. Distribution policy: Dividends will not be distributed to shareholders in respect of the shares of this class.