PROSPECTUS
July 30, 2012
as last revised March 25, 2013
International Equity ETFs
WisdomTree Trust
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WisdomTree International Equity ETFs*
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Developed World ex-U.S.
DEFA Fund (DWM)
DEFA Equity Income Fund (DTH)
Europe Hedged
Equity Fund (HEDJ)
(Formerly, International Hedged Equity Fund)
International LargeCap Dividend Fund (DOL)
International MidCap Dividend Fund (DIM)
International SmallCap Dividend Fund (DLS)
International Dividend ex-Financials Fund (DOO)
Europe SmallCap Dividend Fund (DFE)
Japan Hedged Equity Fund (DXJ)
Japan SmallCap Dividend Fund (DFJ)
Australia Dividend Fund (AUSE)
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Global/Global ex-U.S.
Global Equity Income Fund (DEW)
Global Natural Resources Fund (GNAT)
Global
ex-U.S. Growth Fund (DNL)
Global ex-U.S. Utilities Fund (DBU)
Global ex-U.S. Real Estate Fund (DRW)
Asia Pacific ex-Japan Fund (AXJL)
Commodity Country Equity Fund (CCXE)
Emerging/Frontier Markets
China Dividend ex-Financials Fund (CHXF)
Emerging Markets Equity Income Fund (DEM)
Emerging Markets SmallCap Dividend Fund (DGS)
Middle East Dividend Fund (GULF)
India Earnings Fund (EPI)
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*
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Principal U.S. Listing Exchange: NYSE Arca, Inc. (except GULF and CHXF are listed on NASDAQ).
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THE SECURITIES AND EXCHANGE COMMISSION (SEC) HAS NOT
APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
WisdomTree Trust
Table of Contents
INVESTMENT PRODUCTS:
n
ARE NOT FDIC INSURED
n
MAY LOSE VALUE
n
ARE NOT BANK
GUARANTEED
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WisdomTree Trust
Prospectus
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1
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WisdomTree DEFA Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Dividend Index of Europe, Far East Asia and Australasia (the WisdomTree DEFA Index).
Fees and Expenses of the Fund
The following table describes the fees and expenses you may pay if you buy and hold shares of the Fund. The fees are expressed as a percentage of the Funds average net assets.
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Shareholder Fees
(fees paid
directly from your investment)
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None
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Annual Fund
Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
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Management
Fees
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0.48
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%
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Distribution
and/or Service (12b-1) Fees
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None
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Other
Expenses
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0.00
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%
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Total Annual Fund Operating Expenses
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0.48
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%
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Example
The following example is intended to help retail investors compare the cost of investing in the Fund with the cost of investing in other funds. It
illustrates the hypothetical expenses that such investors would incur over various periods if they were to invest $10,000 in the Fund for the time periods indicated and then redeem all of the shares at the end of those periods. This example assumes
that the Fund provides a return of 5% a year and that operating expenses remain the same. This example does not include the brokerage commissions that retail investors may pay to buy and sell shares of the Fund. It also does not include transaction
fees on purchases and redemptions of Creation Units because these fees will not be imposed on retail investors. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
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1 Year
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3 Years
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5 Years
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10 Years
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$49
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$154
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$269
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$604
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Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 27% of the average value of its portfolio, excluding the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Funds capital shares.
Principal Investment Strategies of the Fund
The Fund employs a passive management or indexing investment approach designed to track the performance of the WisdomTree DEFA
Index. The Fund attempts to invest all, or substantially all, of its assets in the common stocks that make up the Index. The Fund generally uses a Representative Sampling strategy to achieve its investment objective, meaning it generally will invest
in a sample of the securities in the Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Index as a whole.
The WisdomTree DEFA Index is a fundamentally weighted Index that is comprised of dividend-paying companies in the industrialized world, excluding Canada and the United States, that pay regular cash
dividends. Eligibility requirements for the WisdomTree DEFA Index include: (i) incorporation in one of 16 developed European countries, Israel, Japan, Australia, New Zealand, Hong Kong or Singapore; (ii) payment of at least $5 million in cash
dividends on shares of common stock in the annual cycle prior to the annual Index rebalance; (iii) market capitalization of at least $100 million as of the Index rebalance; (iv) average daily dollar volume of at least $100,000 for three months
preceding the Index rebalance; and (v) trading of at least 250,000 shares per month for each of the six months preceding the Index rebalance. Companies are weighted in the Index based on annual cash dividends paid. The maximum weight of any one
sector and any one country in the Index, at the time of the Indexs annual rebalance, is capped at 25%. In response to market conditions, sector and country weights may fluctuate above 25% between annual Index rebalance dates.
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2
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WisdomTree Trust
Prospectus
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WisdomTree Investments, Inc., as index provider, currently uses Standard & Poors Global
Industry Classification Standards (S&P GICS) to define companies in each sector. The following sectors are included in the Index: consumer discretionary, consumer staples, energy, financials, health care, industrials, information
technology, materials, telecommunication services, and utilities. A sector is comprised of multiple industries. For example, the energy sector is comprised of companies in, among others, the natural gas, oil and petroleum industries.
Under normal circumstances, at least 95% of the Funds total assets (exclusive of collateral held from securities lending) will be invested in the
component securities of the Index. WisdomTree Asset Management, Inc. expects that, over time, the correlation between the Funds performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent the Funds Index concentrates (
i.e.
, holds 25% or more of its total assets) in the securities of a particular industry or group
of industries, the Fund will concentrate its investments to approximately the same extent as its Index.
Principal Risks of Investing in
the Fund
You can lose money on your investment in the Fund. The Fund is subject to the risks described below. Some or all of these risks
may adversely affect the Funds net asset value per share (NAV), trading price, yield, total return and/or its ability to meet its objectives. For more information about the risks of investing in the Fund, see the section in the
Funds prospectus titled Additional Investment Objective, Strategy and Risk Information.
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Investment Risk.
As with all investments, an investment in the Fund is subject to investment risk. Investors in the Fund could lose money,
including the possible loss of the entire principal amount of an investment, over short or long periods of time.
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Market Risk.
The trading prices of equity securities, fixed income securities, currencies, commodities and other instruments fluctuate in
response to a variety of factors. The Funds NAV and market price may fluctuate significantly in response to these and other factors. As a result, an investor could lose money over short or long periods of time.
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Shares of the Fund May Trade at Prices Other Than NAV.
As with all exchange-traded funds (ETFs), Fund shares may be bought and sold
in the secondary market at market prices. Although it is expected that the market price of the shares of the Fund will approximate the Funds NAV, there may be times when the market price of the shares is more than the NAV intra-day (premium)
or less than the NAV intra-day (discount). This risk is heightened in times of market volatility or periods of steep market declines.
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Currency Exchange Rate Risk.
The Fund may invest a relatively large percentage of its assets in investments denominated in non-U.S. currencies
or in securities that provide exposure to such currencies. Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of the Funds investment and the value of your Fund shares. Currency exchange
rates can be very volatile and can change quickly and unpredictably. As a result, the value of an investment in the Fund may change quickly and without warning and you may lose money.
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Financial Sector Risk.
The Fund may invest in companies in the financial sector, and therefore the performance of the Fund could be negatively
impacted by events affecting this sector. This sector can be significantly affected by changes in interest rates, government regulation, the rate of defaults on corporate, consumer and government debt, the availability and cost of capital, and
fallout from the housing and sub-prime mortgage crisis.
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Fiscal Policy Risk.
Any repeal of or failure to extend the current U.S. federal tax treatment of qualified dividend income could make certain
dividend-paying securities less appealing to investors and could have a negative impact on the performance of the Fund.
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Foreign Securities Risk.
Investments in non-U.S. securities involve certain risks that may not be present with investments in U.S. securities.
For example, investments in non-U.S. securities may be subject to risk of loss due to foreign currency fluctuations or to political or economic instability. Investments in non-U.S. securities also may be subject to withholding or other taxes and may
be subject to additional trading, settlement, custodial, and operational risks. These and other factors can make investments in the Fund more volatile and potentially less liquid than other types of investments.
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Geographic Investment Risk.
To the extent the Fund invests a significant portion of its assets in the securities of companies of a single
country or region, it is more likely to be impacted by events or conditions affecting that country or region. The Fund currently invests a significant portion of its assets in companies organized in the United Kingdom.
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Investment Style Risk.
The Fund invests in the securities included in, or representative of, its Index regardless of their investment merit. The
Fund does not attempt to outperform its Index or take defensive positions in declining markets. As a result, the Funds performance may be adversely affected by a general decline in the market segments relating to its Index.
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Issuer-Specific Risk.
Issuer-specific events, including changes in the financial condition of an issuer, can have a negative impact on the value
of the Fund.
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WisdomTree Trust
Prospectus
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3
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Large-Capitalization Investing.
The Fund may invest a relatively large percentage of its assets in the securities of large-capitalization
companies. As a result, the Funds performance may be adversely affected if securities of large-capitalization companies underperform securities of smaller-capitalization companies or the market as a whole. The securities of
large-capitalization companies may be relatively mature compared to smaller companies and therefore subject to slower growth during times of economic expansion.
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Mid-Capitalization Investing.
The Fund may invest in the securities of mid-capitalization companies. As a result, the Funds performance
may be adversely affected if securities of mid-capitalization companies underperform securities of other capitalization ranges or the market as a whole. Securities of smaller companies are often more vulnerable to market volatility than securities
of larger companies.
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Non-Correlation Risk.
As with all index funds, the performance of the Fund and its Index may differ from each other for a variety of reasons.
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Non-Diversification Risk.
Although the Fund intends to invest in a variety of securities and instruments, the Fund will be considered to be
non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. As a result, the Fund may be more exposed to the risks associated with and
developments affecting an individual issuer or a smaller number of issuers than a fund that invests more widely. This may increase the Funds volatility and cause the performance of a relatively smaller number of issuers to have a greater
impact on the Funds performance.
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Fund Performance
Historical Fund performance, which varies over time, can provide an indication of the risks of investing in the Fund. The bar chart that follows shows the annual total returns of the Fund for each full
calendar year since the Fund commenced operations. The table that follows the bar chart shows the Funds average annual total returns, both before and after taxes. This table also shows how the Funds performance compares to the WisdomTree
DEFA Index and that of a relevant broad-based securities index. Index returns do not reflect deductions for fees, expenses or taxes. All returns assume reinvestment of dividends and distributions. The Funds past performance (before and after
taxes) is not necessarily an indication of how the Fund will perform in the future.
The Funds year-to-date total return as of June 29, 2012 was 2.54%.
Best and Worst Quarter Returns (for the periods reflected in the bar chart above)
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Return
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Quarter/Year
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Highest
Return
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24.41
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%
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2Q/2009
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Lowest
Return
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(19.97
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)%
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4Q/2008
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After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Your actual after-tax returns will depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts. In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement
period.
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4
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WisdomTree Trust
Prospectus
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Average Annual Total Returns for the periods ending December 31, 2011
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WisdomTree DEFA
Fund
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1 Year
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5 Years
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Since Inception
(6/16/2006)
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Return Before
Taxes Based on NAV
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(9.28
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)%
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(4.26
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)%
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(0.09
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)%
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Return After
Taxes on Distributions
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(10.58
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)%
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(5.50
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)%
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(1.28
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)%
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Return After
Taxes on Distributions and Sale of Fund Shares
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(5.97
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)%
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(4.25
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)%
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(0.75
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)%
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MSCI EAFE Index
(Reflects no deduction for fees, expenses or taxes)
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(12.14
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)%
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(4.72
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)%
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(0.99
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)%
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WisdomTree DEFA
Index (Reflects no deduction for fees, expenses or taxes)
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(9.26
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)%
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(3.83
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)%
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0.37
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%
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Management
Investment Adviser and Sub-Adviser
WisdomTree Asset Management, Inc. serves as investment
adviser to the Fund. Mellon Capital Management Corporation serves as sub-adviser to the Fund.
Portfolio Managers
Karen Q. Wong, CFA, a Managing Director, Equity Index Strategies, has been a portfolio manager of the Fund since February 2008.
Richard A. Brown, CFA, a Director, Equity Portfolio Management, has been a portfolio manager of the Fund since February 2008.
Thomas J. Durante, CFA, a Director, Senior Portfolio Manager, Equity, has been a portfolio manager of the Fund since February 2008.
Buying and Selling Fund Shares
The Fund
is an ETF. This means that shares of the Fund are listed on a national securities exchange, such as NYSE Arca, and trade at market prices. Most investors will buy and sell shares of the Fund through brokers. Because Fund shares trade at market
prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount).
The Fund issues and redeems shares
at NAV only in large blocks of shares (Creation Units), which only institutions or large investors may purchase or redeem. Currently, Creation Units generally consist of 100,000 shares, though this may change from time to time. Creation
Units are not expected to consist of less than 50,000 shares. The Fund generally issues and redeems Creation Units in exchange for a portfolio of securities closely approximating the holdings of the Fund and/or a designated amount of U.S. cash.
Tax Information
The Fund
intends to make distributions that may be taxed as ordinary income or capital gains.
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WisdomTree Trust
Prospectus
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5
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WisdomTree DEFA Equity Income Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree DEFA Equity Income Index.
Fees and Expenses of the Fund
The following table describes the fees and expenses you may pay if you buy and hold shares of the Fund. The fees are expressed as a percentage of the Funds average net assets.
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Shareholder Fees
(fees paid
directly from your investment)
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None
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Annual Fund
Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
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Management
Fees
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0.58
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%
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Distribution
and/or Service (12b-1) Fees
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None
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Other
Expenses
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0.00
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%
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Total Annual Fund Operating Expenses
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0.58
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%
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Example
The following example is intended to help retail investors compare the cost of investing in the Fund with the cost of investing in other funds. It
illustrates the hypothetical expenses that such investors would incur over various periods if they were to invest $10,000 in the Fund for the time periods indicated and then redeem all of the shares at the end of those periods. This example assumes
that the Fund provides a return of 5% a year and that operating expenses remain the same. This example does not include the brokerage commissions that retail investors may pay to buy and sell shares of the Fund. It also does not include transaction
fees on purchases and redemptions of Creation Units because these fees will not be imposed on retail investors. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
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1 Year
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3 Years
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5 Years
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10 Years
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$59
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$186
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$324
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$726
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Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 32% of the average value of its portfolio, excluding the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Funds capital shares.
Principal Investment Strategies of the Fund
The Fund employs a passive management or indexing investment approach designed to track the performance of the WisdomTree DEFA
Equity Income Index. The Fund attempts to invest all, or substantially all, of its assets in the common stocks that make up the Index. The Fund generally uses a Representative Sampling strategy to achieve its investment objective, meaning it
generally will invest in a sample of the securities in the Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Index as a whole.
The WisdomTree DEFA Equity Income Index is a fundamentally weighted Index that is comprised of companies with high dividend yields selected from the
WisdomTree DEFA Index. The Index consists of companies incorporated in one of 16 developed European countries, Israel, Japan, Australia, New Zealand, Hong Kong or Singapore. At the annual Index rebalance, companies within the WisdomTree DEFA Index
with market capitalizations of at least $200 million and average daily trading volumes of at least $200,000 for the prior three months are ranked by dividend yield. Securities ranking in the highest 30% by dividend yield are selected for inclusion
within the WisdomTree DEFA Equity Income Index. Companies are weighted in the Index based on annual cash dividends paid. The maximum weight of any one sector and any one country in the Index, at the time of the Indexs annual rebalance, is
capped at 25%. In response to market conditions, sector and country weights may fluctuate above 25% between annual Index rebalance dates.
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6
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WisdomTree Trust
Prospectus
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WisdomTree Investments, Inc., as index provider, currently uses Standard & Poors Global
Industry Classification Standards (S&P GICS) to define companies in each sector. The following sectors are included in the Index: consumer discretionary, consumer staples, energy, financials, health care, industrials, information
technology, materials, telecommunication services, and utilities. A sector is comprised of multiple industries. For example, the energy sector is comprised of companies in, among others, the natural gas, oil and petroleum industries.
Under normal circumstances, at least 95% of the Funds total assets (exclusive of collateral held from securities lending) will be invested in the
component securities of the Index. WisdomTree Asset Management, Inc. expects that, over time, the correlation between the Funds performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent the Funds Index concentrates (
i.e.
, holds 25% or more of its total assets) in the securities of a particular industry or group
of industries, the Fund will concentrate its investments to approximately the same extent as its Index.
Principal Risks of Investing in
the Fund
You can lose money on your investment in the Fund. The Fund is subject to the risks described below. Some or all of these risks
may adversely affect the Funds net asset value per share (NAV), trading price, yield, total return and/or its ability to meet its objectives. For more information about the risks of investing in the Fund, see the section in the
Funds prospectus titled Additional Investment Objective, Strategy and Risk Information.
n
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Investment Risk.
As with all investments, an investment in the Fund is subject to investment risk. Investors in the Fund could lose money,
including the possible loss of the entire principal amount of an investment, over short or long periods of time.
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n
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Market Risk.
The trading prices of equity securities, fixed income securities, currencies, commodities and other instruments fluctuate in
response to a variety of factors. The Funds NAV and market price may fluctuate significantly in response to these and other factors. As a result, an investor could lose money over short or long periods of time.
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n
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Shares of the Fund May Trade at Prices Other Than NAV.
As with all exchange-traded funds (ETFs), Fund shares may be bought and sold
in the secondary market at market prices. Although it is expected that the market price of the shares of the Fund will approximate the Funds NAV, there may be times when the market price of the shares is more than the NAV intra-day (premium)
or less than the NAV intra-day (discount). This risk is heightened in times of market volatility or periods of steep market declines.
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n
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Currency Exchange Rate Risk.
The Fund may invest a relatively large percentage of its assets in investments denominated in non-U.S. currencies
or in securities that provide exposure to such currencies. Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of the Funds investment and the value of your Fund shares. Currency exchange
rates can be very volatile and can change quickly and unpredictably. As a result, the value of an investment in the Fund may change quickly and without warning and you may lose money.
|
n
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Financial Sector Risk.
The Fund may invest in companies in the financial sector, and therefore the performance of the Fund could be negatively
impacted by events affecting this sector. This sector can be significantly affected by changes in interest rates, government regulation, the rate of defaults on corporate, consumer and government debt, the availability and cost of capital, and
fallout from the housing and sub-prime mortgage crisis.
|
n
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|
Fiscal Policy Risk.
Any repeal of or failure to extend the current U.S. federal tax treatment of qualified dividend income could make certain
dividend-paying securities less appealing to investors and could have a negative impact on the performance of the Fund.
|
n
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|
Foreign Securities Risk.
Investments in non-U.S. securities involve certain risks that may not be present with investments in U.S. securities.
For example, investments in non-U.S. securities may be subject to risk of loss due to foreign currency fluctuations or to political or economic instability. Investments in non-U.S. securities also may be subject to withholding or other taxes and may
be subject to additional trading, settlement, custodial, and operational risks. These and other factors can make investments in the Fund more volatile and potentially less liquid than other types of investments.
|
n
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|
Geographic Investment Risk.
To the extent the Fund invests a significant portion of its assets in the securities of companies of a single
country or region, it is more likely to be impacted by events or conditions affecting that country or region. The Fund currently invests a significant portion of its assets in companies organized in Australia and the United Kingdom.
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Investment Style Risk.
The Fund invests in the securities included in, or representative of, its Index regardless of their investment merit. The
Fund does not attempt to outperform its Index or take defensive positions in declining markets. As a result, the Funds performance may be adversely affected by a general decline in the market segments relating to its Index.
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|
WisdomTree Trust
Prospectus
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7
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n
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Issuer-Specific Risk.
Issuer-specific events, including changes in the financial condition of an issuer, can have a negative impact on the value
of the Fund.
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n
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Large-Capitalization Investing.
The Fund may invest a relatively large percentage of its assets in the securities of large-capitalization
companies. As a result, the Funds performance may be adversely affected if securities of large-capitalization companies underperform securities of smaller-capitalization companies or the market as a whole. The securities of
large-capitalization companies may be relatively mature compared to smaller companies and therefore subject to slower growth during times of economic expansion.
|
n
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Non-Correlation Risk.
As with all index funds, the performance of the Fund and its Index may differ from each other for a variety of reasons.
|
n
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|
Non-Diversification Risk.
Although the Fund intends to invest in a variety of securities and instruments, the Fund will be considered to be
non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. As a result, the Fund may be more exposed to the risks associated with and
developments affecting an individual issuer or a smaller number of issuers than a fund that invests more widely. This may increase the Funds volatility and cause the performance of a relatively smaller number of issuers to have a greater
impact on the Funds performance.
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n
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Telecommunications Investing.
The Fund may invest in companies in the telecommunications industry. The telecommunications industry can be
significantly affected by, among other things, government intervention and regulation, technological innovations that make existing products and services obsolete, and consumer demand.
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Fund Performance
Historical Fund
performance, which varies over time, can provide an indication of the risks of investing in the Fund. The bar chart that follows shows the annual total returns of the Fund for each full calendar year since the Fund commenced operations. The table
that follows the bar chart shows the Funds average annual total returns, both before and after taxes. This table also shows how the Funds performance compares to the WisdomTree DEFA Equity Income Index and that of a relevant broad-based
securities index. Index returns do not reflect deductions for fees, expenses or taxes. All returns assume reinvestment of dividends and distributions. The Funds past performance (before and after taxes) is not necessarily an indication of how
the Fund will perform in the future.
The Funds year-to-date total return as of June 29, 2012 was 1.60%.
Best and Worst Quarter Returns (for the periods reflected in the bar chart above)
|
|
|
|
|
|
|
|
|
|
|
Return
|
|
|
Quarter/Year
|
|
Highest
Return
|
|
|
24.97
|
%
|
|
|
2Q/2009
|
|
Lowest
Return
|
|
|
(23.28
|
)%
|
|
|
4Q/2008
|
|
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Your actual after-tax returns will depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts. In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement
period.
|
|
|
8
|
|
WisdomTree Trust
Prospectus
|
Average Annual Total Returns for the periods ending December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree DEFA Equity Income
Fund
|
|
1 Year
|
|
|
5 Years
|
|
|
Since Inception
(6/16/2006)
|
|
Return Before
Taxes Based on NAV
|
|
|
(6.58
|
)%
|
|
|
(5.35
|
)%
|
|
|
(1.04
|
)%
|
Return After
Taxes on Distributions
|
|
|
(8.12
|
)%
|
|
|
(6.98
|
)%
|
|
|
(2.60
|
)%
|
Return After
Taxes on Distributions and Sale of Fund Shares
|
|
|
(4.20
|
)%
|
|
|
(5.36
|
)%
|
|
|
(1.76
|
)%
|
MSCI EAFE Value
Index (Reflects no deduction for fees, expenses or taxes)
|
|
|
(12.17
|
)%
|
|
|
(6.33
|
)%
|
|
|
(2.14
|
)%
|
WisdomTree DEFA
Equity Income Index (Reflects no deduction for fees, expenses or taxes)
|
|
|
(6.80
|
)%
|
|
|
(4.76
|
)%
|
|
|
(0.31
|
)%
|
Management
Investment Adviser and Sub-Adviser
WisdomTree Asset Management, Inc. serves as investment
adviser to the Fund. Mellon Capital Management Corporation serves as sub-adviser to the Fund.
Portfolio Managers
Karen Q. Wong, CFA, a Managing Director, Equity Index Strategies, has been a portfolio manager of the Fund since February 2008.
Richard A. Brown, CFA, a Director, Equity Portfolio Management, has been a portfolio manager of the Fund since February 2008.
Thomas J. Durante, CFA, a Director, Senior Portfolio Manager, Equity, has been a portfolio manager of the Fund since February 2008.
Buying and Selling Fund Shares
The Fund
is an ETF. This means that shares of the Fund are listed on a national securities exchange, such as NYSE Arca, and trade at market prices. Most investors will buy and sell shares of the Fund through brokers. Because Fund shares trade at market
prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount).
The Fund issues and redeems shares
at NAV only in large blocks of shares (Creation Units), which only institutions or large investors may purchase or redeem. Currently, Creation Units generally consist of 100,000 shares, though this may change from time to time. Creation
Units are not expected to consist of less than 50,000 shares. The Fund generally issues and redeems Creation Units in exchange for a portfolio of securities closely approximating the holdings of the Fund and/or a designated amount of U.S. cash.
Tax Information
The Fund
intends to make distributions that may be taxed as ordinary income or capital gains.
|
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|
|
|
WisdomTree Trust
Prospectus
|
|
|
9
|
|
WisdomTree Europe Hedged Equity Fund (Formerly, WisdomTree International Hedged
Equity Fund)
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Europe Hedged Equity Index.
Fees and Expenses of the Fund
The following table describes the fees and expenses you may pay if you buy and hold shares of the Fund. The fees are expressed as a percentage of the Funds average net assets.
|
|
|
|
|
Shareholder Fees
(fees paid
directly from your investment)
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
|
|
|
|
Management
Fees
|
|
|
0.58
|
%
|
Distribution
and/or Service (12b-1) Fees
|
|
|
None
|
|
Other
Expenses
|
|
|
0.00
|
%
|
Total Annual Fund Operating Expenses*
|
|
|
0.58
|
%
|
*
|
Expense information in the table has been restated to reflect current fees. On June 29, 2012, shareholders of the Fund approved a new Management Fee of 0.58%.
|
Example
The
following example is intended to help retail investors compare the cost of investing in the Fund with the cost of investing in other funds. It illustrates the hypothetical expenses that such investors would incur over various periods if they were to
invest $10,000 in the Fund for the time periods indicated and then redeem all of the shares at the end of those periods. This example assumes that the Fund provides a return of 5% a year and that operating expenses remain the same. This example does
not include the brokerage commissions that retail investors may pay to buy and sell shares of the Fund. It also does not include transaction fees on purchases and redemptions of Creation Units because these fees will not be imposed on retail
investors. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
|
3 Years
|
|
|
5 Years
|
|
|
10 Years
|
|
|
|
|
$59
|
|
|
|
$186
|
|
|
|
$324
|
|
|
|
$726
|
|
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 42% of the average value of its portfolio, excluding the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Funds capital shares.
Principal Investment Strategies of the Fund
The Fund employs a passive management or indexing investment approach designed to track the performance of the WisdomTree Europe
Hedged Equity Index. The Fund attempts to invest substantially all of its assets in the common stocks that make up the Index. The Fund generally uses a Representative Sampling strategy to achieve its investment objective, meaning it generally will
invest in a sample of the securities in the Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Index as a whole.
The WisdomTree Europe Hedged Equity Index is a dividend weighted index designed to provide exposure to European equity securities, particularly shares of European exporters, while at the same time
neutralizing exposure to fluctuations between the value of the U.S. dollar and the euro. The Fund invests in stocks of European companies with significant revenue from exports. These companies stand to benefit from weakness in the value of the euro
as this decreases the relative cost of the goods and services they are exporting. The Index and the Fund will consist of dividend paying companies that are domiciled in Europe and traded in euros, have at least $1 billion in market capitalization,
and derive at least 50% of their revenue from countries outside of Europe. Securities are weighted in the Index based on annual cash dividends paid; companies that pay more dividends are more heavily weighted. At the time of the Indexs annual
rebalance, the maximum weight of any single
|
|
|
10
|
|
WisdomTree Trust
Prospectus
|
security in the Index is capped at 5% and the maximum weight of any one sector and any one country in the Index, is capped at 25%. In response to market conditions, security, sector and country
weights may fluctuate above the specified cap between annual Index rebalance dates.
WisdomTree Investments, Inc., as index provider, currently
uses Standard & Poors Global Industry Classification Standards (S&P GICS) to define companies in each sector. The following sectors are included in the Index: consumer discretionary, consumer staples, energy,
financials, health care, industrials, information technology, materials, telecommunication services, and utilities. A sector is comprised of multiple industries. For example, the energy sector is comprised of companies in, among others, the natural
gas, oil and petroleum industries.
The Index hedges against fluctuations in the relative value of the euro against the U.S.
dollar. The Index is designed to have higher returns than an equivalent non-currency hedged investment when the U.S. dollar is going up in value relative to the euro. Conversely, the Index is designed to have lower returns than an equivalent
non-currency hedged investment when the U.S. dollar is falling in value relative to the euro.
Forward currency contracts or futures contracts
are used to offset the Funds exposure to the euro. A forward currency contract is a contract between two parties to buy or sell a specific currency in the future at an agreed-upon rate. A currency futures contract is a contract to exchange one
currency for another at a specified date in the future at an agreed upon exchange rate. The amount of forward contracts and futures contracts in the Fund is based on the aggregate exposure of the Fund and Index to the euro. While this approach is
designed to minimize the impact of currency fluctuations on Fund returns, it does not necessarily eliminate exposure to all currency fluctuations. The return of the forward currency contracts and currency futures contracts may not perfectly offset
the actual fluctuations of the euro relative to the U.S. dollar.
The Fund will normally invest at least 80% of its net assets, plus the amount
of any borrowings for investment purposes, in the types of investments suggested by its name. The Fund also may invest its assets in cash and cash equivalents, as well as in shares of other investment companies, forward contracts, futures contracts,
options on futures contracts, options, and swaps. WisdomTree Asset Management, Inc. expects that, over time, the correlation between the Funds performance and that of its Index, before fees and expenses, will be 95% or better.
To the extent the Funds Index concentrates (
i.e.
, holds 25% or more of its total assets) in the securities of a particular industry or group
of industries, the Fund will concentrate its investments to approximately the same extent as its Index.
Principal Risks of Investing in
the Fund
You can lose money on your investment in the Fund. The Fund is subject to the risks described below. Some or all of these risks
may adversely affect the Funds net asset value per share (NAV), trading price, yield, total return and/or its ability to meet its objectives. For more information about the risks of investing in the Fund, see the section in the
Funds prospectus titled Additional Investment Objective, Strategy and Risk Information.
n
|
|
Investment Risk.
As with all investments, an investment in the Fund is subject to investment risk. Investors in the Fund could lose money,
including the possible loss of the entire principal amount of an investment, over short or long periods of time.
|
n
|
|
Market Risk.
The trading prices of equity securities, fixed income securities, currencies, commodities and other instruments fluctuate in
response to a variety of factors. The Funds NAV and market price may fluctuate significantly in response to these and other factors. As a result, an investor could lose money over short or long periods of time.
|
n
|
|
Shares of the Fund May Trade at Prices Other Than NAV.
As with all exchange-traded funds (ETFs), Fund shares may be bought and sold
in the secondary market at market prices. Although it is expected that the market price of the shares of the Fund will approximate the Funds NAV, there may be times when the market price of the shares is more than the NAV intra-day (premium)
or less than the NAV intra-day (discount). This risk is heightened in times of market volatility or periods of steep market declines.
|
n
|
|
Cash Redemption Risk.
The Funds investment strategy will require it to redeem shares for cash or to otherwise include cash as part of its
redemption proceeds. The Fund may be required to sell or unwind portfolio investments in order to obtain the cash needed to distribute redemption proceeds. This may cause the Fund to recognize a capital gain that it might not have recognized if it
had made a redemption in-kind. As a result, the Fund may pay out higher annual capital gain distributions than if the in-kind redemption process was used.
|
n
|
|
Consumer Discretionary Investing.
The Fund may invest in companies in the consumer discretionary sector. This sector consists of, for example,
automobile, retail and media companies. The consumer discretionary sector of the economy can be significantly affected by, among other things, economic growth, worldwide demand and consumers disposable income levels and propensity to spend.
|
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
11
|
|
n
|
|
Consumer Staples Investing.
The Fund may invest in companies in the consumer staples sector. This sector can be significantly affected by, among
other things, changes in price and availability of underlying commodities, rising energy prices and global and economic conditions.
|
n
|
|
Currency Exchange Rate Risk.
The Fund uses various strategies to attempt to minimize the impact of changes in the value of the euro against the
U.S. dollar. These strategies may not be successful. In order to minimize transaction costs, or for other reasons, the Funds exposure to the euro may not be fully hedged at all times. Currency exchange rates can be very volatile and can change
quickly and unpredictably. Therefore, the value of an investment in a Fund may also go up or down quickly and unpredictably and investors may lose money.
|
n
|
|
Derivatives Investment Risk.
The Fund may invest in derivatives. Derivatives are financial instruments that derive their performance from an
underlying reference asset, such as a commodity, index, interest rate or inflation rate. The return on a derivative instrument may not correlate with the return of its underlying reference asset. Derivatives are subject to a number of risks
described elsewhere in the Funds prospectus, such as market risk and issuer-specific risk. Derivatives can be volatile and may be less liquid than other securities. As a result, the value of an investment in the Fund may change quickly and
without warning and you may lose money.
|
n
|
|
Fiscal Policy Risk.
Any repeal of or failure to extend the current U.S. federal tax treatment of qualified dividend income could make certain
dividend-paying securities less appealing to investors and could have a negative impact on the performance of the Fund.
|
n
|
|
Foreign Securities Risk.
Investments in non-U.S. securities involve certain risks that may not be present with investments in U.S. securities.
For example, investments in non-U.S. securities may be subject to risk of loss due to foreign currency fluctuations or to political or economic instability. Investments in non-U.S. securities also may be subject to withholding or other taxes and may
be subject to additional trading, settlement, custodial, and operational risks. These and other factors can make investments in the Fund more volatile and potentially less liquid than other types of investments.
|
n
|
|
Geographic Concentration in Europe.
Because the Fund invests primarily in the securities of companies in Europe, the Funds performance is
expected to be closely tied to social, political, and economic conditions within Europe and to be more volatile than the performance of more geographically diversified funds. Most developed countries in Western Europe are members of the European
Union (EU), and many are also members of the European Monetary Union (EMU), which requires compliance with restrictions on inflation rates, deficits, and debt levels. Unemployment in certain European nations is historically high and several
countries face significant debt problems. These conditions can significantly affect every country in Europe. The Fund currently invests a significant portion of its assets in companies organized in Germany, France and the Netherlands.
|
n
|
|
Industrial Investing.
The Fund may invest in companies in the industrial sector. The industrial sector can be significantly affected by, among
other things, worldwide economy growth, supply and demand for specific products and services, rapid technological developments, and government regulation.
|
n
|
|
Investment Style Risk.
The Fund invests in the securities included in, or representative of, its Index regardless of their investment merit. The
Fund does not attempt to outperform its Index or take defensive positions in declining markets. As a result, the Funds performance may be adversely affected by a general decline in the market segments relating to its Index.
|
n
|
|
Issuer-Specific Risk.
Issuer-specific events, including changes in the financial condition of an issuer, can have a negative impact on the value
of the Fund.
|
n
|
|
Large-Capitalization Investing.
The Fund may invest a relatively large percentage of its assets in the securities of large-capitalization
companies. As a result, the Funds performance may be adversely affected if securities of large-capitalization companies underperform securities of smaller-capitalization companies or the market as a whole. The securities of
large-capitalization companies may be relatively mature compared to smaller companies and therefore subject to slower growth during times of economic expansion.
|
n
|
|
Mid-Capitalization Investing.
The Fund may invest in the securities of mid-capitalization companies. As a result, the Funds performance
may be adversely affected if securities of mid-capitalization companies underperform securities of other capitalization ranges or the market as a whole. Securities of smaller companies are often more vulnerable to market volatility than securities
of larger companies.
|
n
|
|
Non-Correlation Risk.
As with all index funds, the performance of the Fund and its Index may differ from each other for a variety of reasons.
|
n
|
|
Non-Diversification Risk.
Although the Fund intends to invest in a variety of securities and instruments, the Fund will be considered to be
non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. As a result, the Fund may be more exposed to the risks
|
|
|
|
12
|
|
WisdomTree Trust
Prospectus
|
|
associated with and developments affecting an individual issuer or a smaller number of issuers than a fund that invests more widely. This may increase the Funds volatility and cause the
performance of a relatively smaller number of issuers to have a greater impact on the Funds performance.
|
Fund
Performance
Historical Fund performance, which varies over time, can provide an indication of the risks of investing in the Fund. The bar
chart that follows shows the annual total returns of the Fund for each full calendar year since the Fund commenced operations. The table that follows the bar chart shows the Funds average annual total returns, both before and after taxes. This
table also shows how the Funds performance compares to the WisdomTree DEFA International Hedged Equity Index and that of a relevant broad-based securities index. Index returns do not reflect deductions for fees, expenses or taxes. All returns
assume reinvestment of dividends and distributions. The Funds past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.
The Funds name and objective changed effective August 29, 2012. Fund performance below reflects the investment objective of the Fund when it was the WisdomTree International Hedged Equity Fund
and tracked the performance, before fees and expenses, of the WisdomTree DEFA International Hedged Equity Index.
The Funds year-to-date total return as of June 29, 2012 was 3.67%.
Best and Worst Quarter Returns (for the period reflected in the bar chart above)
|
|
|
|
|
|
|
|
|
|
|
Return
|
|
|
Quarter/Year
|
|
Highest
Return
|
|
|
7.68
|
%
|
|
|
3Q/2010
|
|
Lowest
Return
|
|
|
(14.16
|
)%
|
|
|
3Q/2011
|
|
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Your actual after-tax returns will depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts. In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement
period.
Average Annual Total Returns for the periods ending December 31, 2011
|
|
|
|
|
|
|
|
|
WisdomTree Europe Hedged Equity
Fund*
|
|
1 Year
|
|
|
Since Inception
(12/31/2009)
|
|
Return Before
Taxes Based on NAV
|
|
|
(9.30
|
)%
|
|
|
(3.29
|
)%
|
Return After
Taxes on Distributions
|
|
|
(10.29
|
)%
|
|
|
(4.44
|
)%
|
Return After
Taxes on Distributions and Sale of Fund Shares
|
|
|
(6.01
|
)%
|
|
|
(3.41
|
)%
|
MSCI EAFE Local
Currency Index (Reflects no deduction for fees, expenses or taxes)
|
|
|
(12.15
|
)%
|
|
|
(4.05
|
)%
|
WisdomTree DEFA
International Hedged Equity Index (Reflects no deduction for fees,
expenses or taxes)
|
|
|
(9.06
|
)%
|
|
|
(2.67
|
)%
|
*
|
The Funds objective changed effective August 29, 2012. Prior to that date, the Fund sought to track the price and yield performance, before fees and expenses, of the
WisdomTree DEFA International Hedged Equity Index. As of August 29, 2012, the Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Europe Hedged Equity Index.
|
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
13
|
|
Management
Investment Adviser and Sub-Adviser
WisdomTree Asset Management, Inc. serves as investment
adviser to the Fund. Mellon Capital Management Corporation serves as sub-adviser to the Fund.
Portfolio Managers
Karen Q. Wong, CFA, a Managing Director, Equity Index Strategies, has been a portfolio manager of the Fund since December 2009.
Richard A. Brown, CFA, a Director, Equity Portfolio Management, has been a portfolio manager of the Fund since December 2009.
Thomas J. Durante, CFA, a Director, Senior Portfolio Manager, Equity, has been a portfolio manager of the Fund since December 2009.
Buying and Selling Fund Shares
The Fund
is an ETF. This means that shares of the Fund are listed on a national securities exchange, such as NYSE Arca, and trade at market prices. Most investors will buy and sell shares of the Fund through brokers. Because Fund shares trade at market
prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount).
The Fund issues and redeems shares
at NAV only in large blocks of shares (Creation Units), which only institutions or large investors may purchase or redeem. Currently, Creation Units generally consist of 100,000 shares, though this may change from time to time. Creation
Units are not expected to consist of less than 50,000 shares. The Fund generally issues and redeems Creation Units in exchange for a portfolio of securities closely approximating the holdings of the Fund and/or a designated amount of U.S. cash.
Tax Information
The Fund
intends to make distributions that may be taxed as ordinary income or capital gains.
|
|
|
14
|
|
WisdomTree Trust
Prospectus
|
WisdomTree International Dividend ex-Financials Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree International Dividend ex-Financials Index.
Fees and Expenses of the Fund
The following table describes the fees and expenses you may pay if you buy and hold shares of the Fund. The fees are expressed as a percentage of the Funds average net assets.
|
|
|
|
|
Shareholder Fees
(fees paid
directly from your investment)
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
|
|
|
|
Management
Fees
|
|
|
0.58
|
%
|
Distribution
and/or Service (12b-1) Fees
|
|
|
None
|
|
Other
Expenses
|
|
|
0.00
|
%
|
Total Annual Fund Operating Expenses
|
|
|
0.58
|
%
|
Example
The following example is intended to help retail investors compare the cost of investing in the Fund with the cost of investing in other funds. It
illustrates the hypothetical expenses that such investors would incur over various periods if they were to invest $10,000 in the Fund for the time periods indicated and then redeem all of the shares at the end of those periods. This example assumes
that the Fund provides a return of 5% a year and that operating expenses remain the same. This example does not include the brokerage commissions that retail investors may pay to buy and sell shares of the Fund. It also does not include transaction
fees on purchases and redemptions of Creation Units because these fees will not be imposed on retail investors. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
|
3 Years
|
|
|
5 Years
|
|
|
10 Years
|
|
|
|
|
$59
|
|
|
|
$186
|
|
|
|
$324
|
|
|
|
$726
|
|
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 28% of the average value of its portfolio, excluding the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Funds capital shares.
Principal Investment Strategies of the Fund
The Fund employs a passive management or indexing investment approach designed to track the performance of the WisdomTree
International Dividend ex-Financials Index. The Fund attempts to invest all, or substantially all, of its assets in the common stocks that make up the Index. The Fund generally uses a Representative Sampling strategy to achieve its investment
objective, meaning it generally will invest in a sample of the securities in the Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Index as a whole.
WisdomTree International Dividend ex-Financials Index is comprised of high dividend-yielding international stocks outside the financial sector. The Index
consists of companies outside the financial sector that are incorporated in one of 16 developed European countries, Israel, Japan, Australia, New Zealand, Hong Kong or Singapore. The Index is comprised of the 10 highest dividend-yielding companies
in each sector except financials, selected from the 300 largest companies by market value within the WisdomTree DEFA Index as of the annual Index rebalance. Securities are weighted in the Index based on dividend yield. The maximum weight of any one
sector and any one country in the Index, at the time of the Indexs annual rebalance, is capped at 25%. In response to market conditions, sector and country weights may fluctuate above 25% between annual Index rebalance dates.
WisdomTree Investments, Inc., as index provider, currently uses Standard & Poors Global Industry Classification Standards (S&P
GICS) to define companies in each sector. The following sectors are included in the Index: consumer discretionary,
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
15
|
|
consumer staples, energy, health care, industrials, information technology, materials, telecommunication services, and utilities. A sector is comprised of multiple industries. For example, the
energy sector is comprised of companies in, among others, the natural gas, oil and petroleum industries.
Under normal circumstances, at least
95% of the Funds total assets (exclusive of collateral held from securities lending) will be invested in the component securities of the Index. WisdomTree Asset Management, Inc. expects that, over time, the correlation between the Funds
performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent the Funds Index concentrates
(
i.e.
, holds 25% or more of its total assets) in the securities of a particular industry or group of industries, the Fund will concentrate its investments to approximately the same extent as its Index.
Principal Risks of Investing in the Fund
You can lose money on your investment in the Fund. The Fund is subject to the risks described below. Some or all of these risks may adversely affect the
Funds net asset value per share (NAV), trading price, yield, total return and/or its ability to meet its objectives. For more information about the risks of investing in the Fund, see the section in the Funds prospectus
titled Additional Investment Objective, Strategy and Risk Information.
n
|
|
Investment Risk.
As with all investments, an investment in the Fund is subject to investment risk. Investors in the Fund could lose money,
including the possible loss of the entire principal amount of an investment, over short or long periods of time.
|
n
|
|
Market Risk.
The trading prices of equity securities, fixed income securities, currencies, commodities and other instruments fluctuate in
response to a variety of factors. The Funds NAV and market price may fluctuate significantly in response to these and other factors. As a result, an investor could lose money over short or long periods of time.
|
n
|
|
Shares of the Fund May Trade at Prices Other Than NAV.
As with all exchange-traded funds (ETFs), Fund shares may be bought and sold
in the secondary market at market prices. Although it is expected that the market price of the shares of the Fund will approximate the Funds NAV, there may be times when the market price of the shares is more than the NAV intra-day (premium)
or less than the NAV intra-day (discount). This risk is heightened in times of market volatility or periods of steep market declines.
|
n
|
|
Currency Exchange Rate Risk.
The Fund may invest a relatively large percentage of its assets in investments denominated in non-U.S. currencies
or in securities that provide exposure to such currencies. Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of the Funds investment and the value of your Fund shares. Currency exchange
rates can be very volatile and can change quickly and unpredictably. As a result, the value of an investment in the Fund may change quickly and without warning and you may lose money.
|
n
|
|
Fiscal Policy Risk.
Any repeal of or failure to extend the current U.S. federal tax treatment of qualified dividend income could make certain
dividend-paying securities less appealing to investors and could have a negative impact on the performance of the Fund.
|
n
|
|
Foreign Securities Risk.
Investments in non-U.S. securities involve certain risks that may not be present with investments in U.S. securities.
For example, investments in non-U.S. securities may be subject to risk of loss due to foreign currency fluctuations or to political or economic instability. Investments in non-U.S. securities also may be subject to withholding or other taxes and may
be subject to additional trading, settlement, custodial, and operational risks. These and other factors can make investments in the Fund more volatile and potentially less liquid than other types of investments.
|
n
|
|
Geographic Investment Risk.
To the extent the Fund invests a significant portion of its assets in the securities of companies of a single
country or region, it is more likely to be impacted by events or conditions affecting that country or region.
|
n
|
|
Investment Style Risk.
The Fund invests in the securities included in, or representative of, its Index regardless of their investment merit. The
Fund does not attempt to outperform its Index or take defensive positions in declining markets. As a result, the Funds performance may be adversely affected by a general decline in the market segments relating to its Index.
|
n
|
|
Issuer-Specific Risk.
Issuer-specific events, including changes in the financial condition of an issuer, can have a negative impact on the value
of the Fund.
|
n
|
|
Large-Capitalization Investing.
The Fund may invest a relatively large percentage of its assets in the securities of large-capitalization
companies. As a result, the Funds performance may be adversely affected if securities of large-capitalization companies underperform securities of smaller-capitalization companies or the market as a whole. The securities of
large-capitalization companies may be relatively mature compared to smaller companies and therefore subject to slower growth during times of economic expansion.
|
|
|
|
16
|
|
WisdomTree Trust
Prospectus
|
n
|
|
Non-Correlation Risk.
As with all index funds, the performance of the Fund and its Index may differ from each other for a variety of reasons.
|
n
|
|
Non-Diversification Risk.
Although the Fund intends to invest in a variety of securities and instruments, the Fund will be considered to be
non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. As a result, the Fund may be more exposed to the risks associated with and
developments affecting an individual issuer or a smaller number of issuers than a fund that invests more widely. This may increase the Funds volatility and cause the performance of a relatively smaller number of issuers to have a greater
impact on the Funds performance.
|
n
|
|
Telecommunications Investing.
The Fund may invest in companies in the telecommunications industry. The telecommunications industry can be
significantly affected by, among other things, government intervention and regulation, technological innovations that make existing products and services obsolete, and consumer demand.
|
Fund Performance
Historical Fund
performance, which varies over time, can provide an indication of the risks of investing in the Fund. The bar chart that follows shows the annual total returns of the Fund for each full calendar year since the Fund commenced operations. The
table that follows the bar chart shows the Funds average annual total returns, both before and after taxes. This table also shows how the Funds performance compares to the WisdomTree International Dividend Top 100/International
Dividend ex-Financials Spliced Index and that of a relevant broad-based securities index. Index returns do not reflect deductions for fees, expenses or taxes. All returns assume reinvestment of dividends and distributions. The Funds past
performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.
The Funds name and
objective changed effective May 7, 2009. Fund performance prior to May 7, 2009 reflects the investment objective and style of the Fund when it was the WisdomTree International Dividend Top 100 Fund, and tracked the performance of the
WisdomTree International Dividend Top 100 Index.
The Funds year-to-date total return as of June 29, 2012 was (0.25)%.
Best and Worst Quarter Returns (for the periods reflected in the bar chart above)
|
|
|
|
|
|
|
|
|
|
|
Return
|
|
|
Quarter/Year
|
|
Highest
Return
|
|
|
26.30
|
%
|
|
|
2Q/2009
|
|
Lowest
Return
|
|
|
(24.86
|
)%
|
|
|
4Q/2008
|
|
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Your actual after-tax returns will depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts. In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement
period.
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
17
|
|
Average Annual Total Returns for the periods ending December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree International Dividend
ex-Financials Fund*
|
|
1 Year
|
|
|
5 Years
|
|
|
Since Inception
(6/16/2006)
|
|
Return Before
Taxes Based on NAV
|
|
|
(6.46
|
)%
|
|
|
(4.07
|
)%
|
|
|
0.71
|
%
|
Return After
Taxes on Distributions
|
|
|
(7.85
|
)%
|
|
|
(5.81
|
)%
|
|
|
(0.97
|
)%
|
Return After
Taxes on Distributions and Sale of Fund Shares
|
|
|
(4.13
|
)%
|
|
|
(4.41
|
)%
|
|
|
(0.38
|
)%
|
MSCI EAFE Value
Index (Reflects no deduction for fees, expenses or taxes)
|
|
|
(12.17
|
)%
|
|
|
(6.33
|
)%
|
|
|
(2.14
|
)%
|
WisdomTree
International Dividend Top 100/International Dividend ex-Financials Spliced Index** (Reflects no deduction for fees, expenses or taxes)
|
|
|
(5.65
|
)%
|
|
|
(3.63
|
)%
|
|
|
1.26
|
%
|
*
|
|
The Funds objective changed effective May 7, 2009. Prior to that date, the Fund sought to track the price and yield performance, before fees and expenses, of the
WisdomTree International Dividend Top 100 Index. After May 7, 2009, the Funds objective seeks to track the price and yield performance, before fees and expenses, of the WisdomTree International Dividend ex-Financials Index.
|
**
|
|
Reflects performance of the WisdomTree International Dividend Top 100 Index through May 7, 2009 and the WisdomTree International Dividend ex-Financials Index thereafter.
|
Management
Investment Adviser and Sub-Adviser
WisdomTree Asset Management, Inc. serves as investment
adviser to the Fund. Mellon Capital Management Corporation serves as sub-adviser to the Fund.
Portfolio Managers
Karen Q. Wong, CFA, a Managing Director, Equity Index Strategies, has been a portfolio manager of the Fund since February 2008.
Richard A. Brown, CFA, a Director, Equity Portfolio Management, has been a portfolio manager of the Fund since February 2008.
Thomas J. Durante, CFA, a Director, Senior Portfolio Manager, Equity, has been a portfolio manager of the Fund since February 2008.
Buying and Selling Fund Shares
The Fund
is an ETF. This means that shares of the Fund are listed on a national securities exchange, such as NYSE Arca, and trade at market prices. Most investors will buy and sell shares of the Fund through brokers. Because Fund shares trade at market
prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount).
The Fund issues and redeems shares
at NAV only in large blocks of shares (Creation Units), which only institutions or large investors may purchase or redeem. Currently, Creation Units generally consist of 100,000 shares, though this may change from time to time. Creation
Units are not expected to consist of less than 50,000 shares. The Fund generally issues and redeems Creation Units in exchange for a portfolio of securities closely approximating the holdings of the Fund and/or a designated amount of U.S. cash.
Tax Information
The Fund
intends to make distributions that may be taxed as ordinary income or capital gains.
|
|
|
18
|
|
WisdomTree Trust
Prospectus
|
WisdomTree International LargeCap Dividend Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree International LargeCap Dividend Index.
Fees and Expenses of the Fund
The following table describes the fees and expenses you may pay if you buy and hold shares of the Fund. The fees are expressed as a percentage of the Funds average net assets.
|
|
|
|
|
Shareholder Fees
(fees paid
directly from your investment)
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
|
|
|
|
Management
Fees
|
|
|
0.48
|
%
|
Distribution
and/or Service (12b-1) Fees
|
|
|
None
|
|
Other
Expenses
|
|
|
0.00
|
%
|
Total Annual Fund Operating Expenses
|
|
|
0.48
|
%
|
Example
The following example is intended to help retail investors compare the cost of investing in the Fund with the cost of investing in other funds. It
illustrates the hypothetical expenses that such investors would incur over various periods if they were to invest $10,000 in the Fund for the time periods indicated and then redeem all of the shares at the end of those periods. This example assumes
that the Fund provides a return of 5% a year and that operating expenses remain the same. This example does not include the brokerage commissions that retail investors may pay to buy and sell shares of the Fund. It also does not include transaction
fees on purchases and redemptions of Creation Units because these fees will not be imposed on retail investors. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
|
3 Years
|
|
|
5 Years
|
|
|
10 Years
|
|
|
|
|
$49
|
|
|
|
$154
|
|
|
|
$269
|
|
|
|
$604
|
|
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 23% of the average value of its portfolio, excluding the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Funds capital shares.
Principal Investment Strategies of the Fund
The Fund employs a passive management or indexing investment approach designed to track the performance of the WisdomTree
International LargeCap Dividend Index. The Fund attempts to invest all, or substantially all, of its assets in the common stocks that make up the Index. The Fund generally uses a Representative Sampling strategy to achieve its investment objective,
meaning it generally will invest in a sample of the securities in the Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Index as a whole.
The WisdomTree International LargeCap Dividend Index is a fundamentally weighted index that is comprised of the large-capitalization segment of the
dividend-paying market in the industrialized world outside the U.S. and Canada. Constituent companies are selected from the WisdomTree DEFA Index. The WisdomTree International LargeCap Dividend Index is comprised of the 300 largest companies ranked
by market capitalization from the WisdomTree DEFA Index, as of the annual Index rebalance. The Index consists of companies that are incorporated in one of 16 developed European countries, Israel, Japan, Australia, New Zealand, Hong Kong or
Singapore. Companies are weighted in the Index based on annual cash dividends paid. The maximum weight of any one sector and any one country in the Index, at the time of the Indexs annual rebalance, is capped at 25%. In response to market
conditions, sector and country weights may fluctuate above 25% between annual Index rebalance dates.
WisdomTree Investments, Inc., as index
provider, currently uses Standard & Poors Global Industry Classification Standards (S&P GICS) to define companies in each sector. The following sectors are included in the Index: consumer discretionary,
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
19
|
|
consumer staples, energy, financials, health care, industrials, information technology, materials, telecommunication services, and utilities. A sector is comprised of multiple industries. For
example, the energy sector is comprised of companies in, among others, the natural gas, oil and petroleum industries.
Under normal
circumstances, at least 95% of the Funds total assets (exclusive of collateral held from securities lending) will be invested in the component securities of the Index. WisdomTree Asset Management, Inc. expects that, over time, the correlation
between the Funds performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent the Funds
Index concentrates (
i.e.
, holds 25% or more of its total assets) in the securities of a particular industry or group of industries, the Fund will concentrate its investments to approximately the same extent as its Index.
Principal Risks of Investing in the Fund
You can lose money on your investment in the Fund. The Fund is subject to the risks described below. Some or all of these risks may adversely affect the
Funds net asset value per share (NAV), trading price, yield, total return and/or its ability to meet its objectives. For more information about the risks of investing in the Fund, see the section in the Funds prospectus
titled Additional Investment Objective, Strategy and Risk Information.
n
|
|
Investment Risk.
As with all investments, an investment in the Fund is subject to investment risk. Investors in the Fund could lose money,
including the possible loss of the entire principal amount of an investment, over short or long periods of time.
|
n
|
|
Market Risk.
The trading prices of equity securities, fixed income securities, currencies, commodities and other instruments fluctuate in
response to a variety of factors. The Funds NAV and market price may fluctuate significantly in response to these and other factors. As a result, an investor could lose money over short or long periods of time.
|
n
|
|
Shares of the Fund May Trade at Prices Other Than NAV.
As with all exchange-traded funds (ETFs), Fund shares may be bought and sold
in the secondary market at market prices. Although it is expected that the market price of the shares of the Fund will approximate the Funds NAV, there may be times when the market price of the shares is more than the NAV intra-day (premium)
or less than the NAV intra-day (discount). This risk is heightened in times of market volatility or periods of steep market declines.
|
n
|
|
Currency Exchange Rate Risk.
The Fund may invest a relatively large percentage of its assets in investments denominated in non-U.S. currencies
or in securities that provide exposure to such currencies. Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of the Funds investment and the value of your Fund shares. Currency exchange
rates can be very volatile and can change quickly and unpredictably. As a result, the value of an investment in the Fund may change quickly and without warning and you may lose money.
|
n
|
|
Financial Sector Risk.
The Fund may invest in companies in the financial sector, and therefore the performance of the Fund could be negatively
impacted by events affecting this sector. This sector can be significantly affected by changes in interest rates, government regulation, the rate of defaults on corporate, consumer and government debt, the availability and cost of capital, and
fallout from the housing and sub-prime mortgage crisis.
|
n
|
|
Fiscal Policy Risk.
Any repeal of or failure to extend the current U.S. federal tax treatment of qualified dividend income could make certain
dividend-paying securities less appealing to investors and could have a negative impact on the performance of the Fund.
|
n
|
|
Foreign Securities Risk.
Investments in non-U.S. securities involve certain risks that may not be present with investments in U.S. securities.
For example, investments in non-U.S. securities may be subject to risk of loss due to foreign currency fluctuations or to political or economic instability. Investments in non-U.S. securities also may be subject to withholding or other taxes and may
be subject to additional trading, settlement, custodial, and operational risks. These and other factors can make investments in the Fund more volatile and potentially less liquid than other types of investments.
|
n
|
|
Geographic Investment Risk.
To the extent the Fund invests a significant portion of its assets in the securities of companies of a single
country or region, it is more likely to be impacted by events or conditions affecting that country or region. The Fund currently invests a significant portion of its assets in companies organized in the United Kingdom.
|
n
|
|
Investment Style Risk.
The Fund invests in the securities included in, or representative of, its Index regardless of their investment merit. The
Fund does not attempt to outperform its Index or take defensive positions in declining markets. As a result, the Funds performance may be adversely affected by a general decline in the market segments relating to its Index.
|
n
|
|
Issuer-Specific Risk.
Issuer-specific events, including changes in the financial condition of an issuer, can have a negative impact on the value
of the Fund.
|
|
|
|
20
|
|
WisdomTree Trust
Prospectus
|
n
|
|
Large-Capitalization Investing.
The Fund invests primarily in the securities of large-capitalization companies. As a result, the Funds
performance may be adversely affected if securities of large-capitalization companies underperform securities of smaller-capitalization companies or the market as a whole. The securities of large-capitalization companies may be relatively mature
compared to smaller companies and therefore subject to slower growth during times of economic expansion.
|
n
|
|
Non-Correlation Risk.
As with all index funds, the performance of the Fund and its Index may differ from each other for a variety of reasons.
|
n
|
|
Non-Diversification Risk.
Although the Fund intends to invest in a variety of securities and instruments, the Fund will be considered to be
non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. As a result, the Fund may be more exposed to the risks associated with and
developments affecting an individual issuer or a smaller number of issuers than a fund that invests more widely. This may increase the Funds volatility and cause the performance of a relatively smaller number of issuers to have a greater
impact on the Funds performance.
|
n
|
|
Telecommunications Investing.
The Fund may invest in companies in the telecommunications industry. The telecommunications industry can be
significantly affected by, among other things, government intervention and regulation, technological innovations that make existing products and services obsolete, and consumer demand.
|
Fund Performance
Historical Fund
performance, which varies over time, can provide an indication of the risks of investing in the Fund. The bar chart that follows shows the annual total returns of the Fund for each full calendar year since the Fund commenced operations. The
table that follows the bar chart shows the Funds average annual total returns, both before and after taxes. This table also shows how the Funds performance compares to the WisdomTree International LargeCap Dividend Index and that of a
relevant broad-based securities index. Index returns do not reflect deductions for fees, expenses or taxes. All returns assume reinvestment of dividends and distributions. The Funds past performance (before and after taxes) is not necessarily
an indication of how the Fund will perform in the future.
The Funds year-to-date total return as of June 29, 2012 was 2.33%.
Best and Worst Quarter Returns (for the periods reflected in the bar chart above)
|
|
|
|
|
|
|
|
|
|
|
Return
|
|
|
Quarter/Year
|
|
Highest
Return
|
|
|
23.28
|
%
|
|
|
2Q/2009
|
|
Lowest
Return
|
|
|
(19.83
|
)%
|
|
|
4Q/2008
|
|
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Your actual after-tax returns will depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts. In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement
period.
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
21
|
|
Average Annual Total Returns for the periods ending December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree International LargeCap
Dividend Fund
|
|
1 Year
|
|
|
5 Years
|
|
|
Since Inception
(6/16/2006)
|
|
Return Before
Taxes Based on NAV
|
|
|
(7.90
|
)%
|
|
|
(4.28
|
)%
|
|
|
(0.29
|
)%
|
Return After
Taxes on Distributions
|
|
|
(9.27
|
)%
|
|
|
(5.61
|
)%
|
|
|
(1.57
|
)%
|
Return After
Taxes on Distributions and Sale of Fund Shares
|
|
|
(5.07
|
)%
|
|
|
(4.31
|
)%
|
|
|
(0.96
|
)%
|
MSCI EAFE Index
(Reflects no deduction for fees, expenses or taxes)
|
|
|
(12.14
|
)%
|
|
|
(4.72
|
)%
|
|
|
(0.99
|
)%
|
WisdomTree
International LargeCap Dividend Index (Reflects no deduction for fees, expenses or taxes)
|
|
|
(7.95
|
)%
|
|
|
(4.01
|
)%
|
|
|
0.04
|
%
|
Management
Investment Adviser and Sub-Adviser
WisdomTree Asset Management, Inc. serves as investment
adviser to the Fund. Mellon Capital Management Corporation serves as sub-adviser to the Fund.
Portfolio Managers
Karen Q. Wong, CFA, a Managing Director, Equity Index Strategies, has been a portfolio manager of the Fund since February 2008.
Richard A. Brown, CFA, a Director, Equity Portfolio Management, has been a portfolio manager of the Fund since February 2008.
Thomas J. Durante, CFA, a Director, Senior Portfolio Manager, Equity, has been a portfolio manager of the Fund since February 2008.
Buying and Selling Fund Shares
The Fund
is an ETF. This means that shares of the Fund are listed on a national securities exchange, such as NYSE Arca, and trade at market prices. Most investors will buy and sell shares of the Fund through brokers. Because Fund shares trade at market
prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount).
The Fund issues and redeems shares
at NAV only in large blocks of shares (Creation Units), which only institutions or large investors may purchase or redeem. Currently, Creation Units generally consist of 100,000 shares, though this may change from time to time. Creation
Units are not expected to consist of less than 50,000 shares. The Fund generally issues and redeems Creation Units in exchange for a portfolio of securities closely approximating the holdings of the Fund and/or a designated amount of U.S. cash.
Tax Information
The Fund
intends to make distributions that may be taxed as ordinary income or capital gains.
|
|
|
22
|
|
WisdomTree Trust
Prospectus
|
WisdomTree International MidCap Dividend Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree International MidCap Dividend Index.
Fees and Expenses of the Fund
The following table describes the fees and expenses you may
pay if you buy and hold shares of the Fund. The fees are expressed as a percentage of the Funds average net assets.
|
|
|
|
|
Shareholder Fees
(fees paid
directly from your investment)
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
|
|
|
|
Management
Fees
|
|
|
0.58
|
%
|
Distribution
and/or Service (12b-1) Fees
|
|
|
None
|
|
Other
Expenses
|
|
|
0.00
|
%
|
Total Annual Fund Operating Expenses
|
|
|
0.58
|
%
|
Example
The following example is intended to help retail investors compare the cost of investing in the Fund with the cost of investing in other funds. It
illustrates the hypothetical expenses that such investors would incur over various periods if they were to invest $10,000 in the Fund for the time periods indicated and then redeem all of the shares at the end of those periods. This example assumes
that the Fund provides a return of 5% a year and that operating expenses remain the same. This example does not include the brokerage commissions that retail investors may pay to buy and sell shares of the Fund. It also does not include transaction
fees on purchases and redemptions of Creation Units because these fees will not be imposed on retail investors. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
|
3 Years
|
|
|
5 Years
|
|
|
10 Years
|
|
|
|
|
$59
|
|
|
|
$186
|
|
|
|
$324
|
|
|
|
$726
|
|
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 47% of the average value of its portfolio, excluding the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Funds capital shares.
Principal Investment Strategies of the Fund
The Fund employs a passive management or indexing investment approach designed to track the performance of the WisdomTree
International MidCap Dividend Index. The Fund attempts to invest all, or substantially all, of its assets in the common stocks that make up the Index. The Fund generally uses a Representative Sampling strategy to achieve its investment objective,
meaning it generally will invest in a sample of the securities in the Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Index as a whole.
The WisdomTree International MidCap Dividend Index is a fundamentally weighted index that is comprised of the mid-capitalization segment of the
dividend-paying market in the industrialized world outside the U.S. and Canada. Constituent companies are selected from the WisdomTree DEFA Index. The Index consists of companies that are incorporated in one of 16 developed European countries,
Israel, Japan, Australia, New Zealand, Hong Kong or Singapore. The Index is comprised of the companies that compose the top 75% of the market capitalization of the WisdomTree DEFA Index, as of the annual Index rebalance, after the 300 largest
companies have been removed. Companies are weighted in the Index based on annual cash dividends paid. The maximum weight of any one sector and any one country in the Index, at the time of the Indexs annual rebalance, is capped at 25%. In
response to market conditions, sector and country weights may fluctuate above 25% between annual Index rebalance dates.
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
23
|
|
WisdomTree Investments, Inc., as index provider, currently uses Standard & Poors Global
Industry Classification Standards (S&P GICS) to define companies in each sector. The following sectors are included in the Index: consumer discretionary, consumer staples, energy, financials, health care, industrials, information
technology, materials, telecommunication services, and utilities. A sector is comprised of multiple industries. For example, the energy sector is comprised of companies in, among others, the natural gas, oil and petroleum industries.
Under normal circumstances, at least 95% of the Funds total assets (exclusive of collateral held from securities lending) will be invested in the
component securities of the Index. WisdomTree Asset Management, Inc. expects that, over time, the correlation between the Funds performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent the Funds Index concentrates (
i.e.
, holds 25% or more of its total assets) in the securities of a particular industry or group
of industries, the Fund will concentrate its investments to approximately the same extent as its Index.
Principal Risks of Investing in
the Fund
You can lose money on your investment in the Fund. The Fund is subject to the risks described below. Some or all of these risks
may adversely affect the Funds net asset value per share (NAV), trading price, yield, total return and/or its ability to meet its objectives. For more information about the risks of investing in the Fund, see the section in the
Funds prospectus titled Additional Investment Objective, Strategy and Risk Information.
n
|
|
Investment Risk.
As with all investments, an investment in the Fund is subject to investment risk. Investors in the Fund could lose money,
including the possible loss of the entire principal amount of an investment, over short or long periods of time.
|
n
|
|
Market Risk.
The trading prices of equity securities, fixed income securities, currencies, commodities and other instruments fluctuate in
response to a variety of factors. The Funds NAV and market price may fluctuate significantly in response to these and other factors. As a result, an investor could lose money over short or long periods of time.
|
n
|
|
Shares of the Fund May Trade at Prices Other Than NAV.
As with all exchange-traded funds (ETFs), Fund shares may be bought and sold
in the secondary market at market prices. Although it is expected that the market price of the shares of the Fund will approximate the Funds NAV, there may be times when the market price of the shares is more than the NAV intra-day (premium)
or less than the NAV intra-day (discount). This risk is heightened in times of market volatility or periods of steep market declines.
|
n
|
|
Currency Exchange Rate Risk.
The Fund may invest a relatively large percentage of its assets in investments denominated in non-U.S. currencies
or in securities that provide exposure to such currencies. Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of the Funds investment and the value of your Fund shares. Currency exchange
rates can be very volatile and can change quickly and unpredictably. As a result, the value of an investment in the Fund may change quickly and without warning and you may lose money.
|
n
|
|
Financial Sector Risk.
The Fund may invest in companies in the financial sector, and therefore the performance of the Fund could be negatively
impacted by events affecting this sector. This sector can be significantly affected by changes in interest rates, government regulation, the rate of defaults on corporate, consumer and government debt, the availability and cost of capital, and
fallout from the housing and sub-prime mortgage crisis.
|
n
|
|
Fiscal Policy Risk.
Any repeal of or failure to extend the current U.S. federal tax treatment of qualified dividend income could make certain
dividend-paying securities less appealing to investors and could have a negative impact on the performance of the Fund.
|
n
|
|
Foreign Securities Risk.
Investments in non-U.S. securities involve certain risks that may not be present with investments in U.S. securities.
For example, investments in non-U.S. securities may be subject to risk of loss due to foreign currency fluctuations or to political or economic instability. Investments in non-U.S. securities also may be subject to withholding or other taxes and may
be subject to additional trading, settlement, custodial, and operational risks. These and other factors can make investments in the Fund more volatile and potentially less liquid than other types of investments.
|
n
|
|
Geographic Investment Risk.
To the extent the Fund invests a significant portion of its assets in the securities of companies of a single
country or region, it is more likely to be impacted by events or conditions affecting that country or region. The Fund currently invests a significant portion of its assets in companies organized in Japan and the United Kingdom.
|
n
|
|
Industrial Investing.
The Fund may invest in companies in the industrial sector. The industrial sector can be significantly affected by, among
other things, worldwide economy growth, supply and demand for specific products and services, rapid technological developments, and government regulation.
|
|
|
|
24
|
|
WisdomTree Trust
Prospectus
|
n
|
|
Investment Style Risk.
The Fund invests in the securities included in, or representative of, its Index regardless of their investment merit. The
Fund does not attempt to outperform its Index or take defensive positions in declining markets. As a result, the Funds performance may be adversely affected by a general decline in the market segments relating to its Index.
|
n
|
|
Issuer-Specific Risk.
Issuer-specific events, including changes in the financial condition of an issuer, can have a negative impact on the value
of the Fund.
|
n
|
|
Mid-Capitalization Investing.
The Fund invests primarily in securities of mid-capitalization companies. As a result, the Funds performance
may be adversely affected if securities of mid-capitalization companies underperform securities of other capitalization ranges or the market as a whole. Securities of smaller companies are often more vulnerable to market volatility than securities
of larger companies.
|
n
|
|
Non-Correlation Risk.
As with all index funds, the performance of the Fund and its Index may differ from each other for a variety of reasons.
|
n
|
|
Non-Diversification Risk.
Although the Fund intends to invest in a variety of securities and instruments, the Fund will be considered to be
non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. As a result, the Fund may be more exposed to the risks associated with and
developments affecting an individual issuer or a smaller number of issuers than a fund that invests more widely. This may increase the Funds volatility and cause the performance of a relatively smaller number of issuers to have a greater
impact on the Funds performance.
|
Fund Performance
Historical Fund performance, which varies over time, can provide an indication of the risks of investing in the Fund. The bar chart that follows shows the annual total returns of the Fund for each full
calendar year since the Fund commenced operations. The table that follows the bar chart shows the Funds average annual total returns, both before and after taxes. This table also shows how the Funds performance compares to the WisdomTree
International MidCap Dividend Index and that of a relevant broad-based securities index. Index returns do not reflect deductions for fees, expenses or taxes. All returns assume reinvestment of dividends and distributions. The Funds past
performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.
The Funds year-to-date total return as of June 29, 2012 was 3.31%.
Best and Worst Quarter Returns (for the periods reflected in the bar chart above)
|
|
|
|
|
|
|
|
|
|
|
Return
|
|
|
Quarter/Year
|
|
Highest
Return
|
|
|
27.01
|
%
|
|
|
2Q/2009
|
|
Lowest
Return
|
|
|
(19.35
|
)%
|
|
|
4Q/2008
|
|
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Your actual after-tax returns will depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts. In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement
period.
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
25
|
|
Average Annual Total Returns for the periods ending December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree International MidCap
Dividend Fund
|
|
1 Year
|
|
|
5 Years
|
|
|
Since Inception
(6/16/2006)
|
|
Return Before
Taxes Based on NAV
|
|
|
(13.41
|
)%
|
|
|
(3.78
|
)%
|
|
|
0.92
|
%
|
Return After
Taxes on Distributions
|
|
|
(14.59
|
)%
|
|
|
(5.05
|
)%
|
|
|
(0.32
|
)%
|
Return After
Taxes on Distributions and Sale of Fund Shares
|
|
|
(8.63
|
)%
|
|
|
(3.87
|
)%
|
|
|
0.08
|
%
|
MSCI EAFE Mid
Cap Index (Reflects no deduction for fees, expenses or taxes)
|
|
|
(14.09
|
)%
|
|
|
(5.42
|
)%
|
|
|
(1.22
|
)%
|
WisdomTree
International MidCap Dividend Index (Reflects no deduction for fees, expenses or taxes)
|
|
|
(13.73
|
)%
|
|
|
(3.89
|
)%
|
|
|
0.90
|
%
|
Management
Investment Adviser and Sub-Adviser
WisdomTree Asset Management, Inc. serves as investment
adviser to the Fund. Mellon Capital Management Corporation serves as sub-adviser to the Fund.
Portfolio Managers
Karen Q. Wong, CFA, a Managing Director, Equity Index Strategies, has been a portfolio manager of the Fund since February 2008.
Richard A. Brown, CFA, a Director, Equity Portfolio Management, has been a portfolio manager of the Fund since February 2008.
Thomas J. Durante, CFA, a Director, Senior Portfolio Manager, Equity, has been a portfolio manager of the Fund since February 2008.
Buying and Selling Fund Shares
The Fund
is an ETF. This means that shares of the Fund are listed on a national securities exchange, such as NYSE Arca, and trade at market prices. Most investors will buy and sell shares of the Fund through brokers. Because Fund shares trade at market
prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount).
The Fund issues and redeems shares
at NAV only in large blocks of shares (Creation Units), which only institutions or large investors may purchase or redeem. Currently, Creation Units generally consist of 100,000 shares, though this may change from time to time. Creation
Units are not expected to consist of less than 50,000 shares. The Fund generally issues and redeems Creation Units in exchange for a portfolio of securities closely approximating the holdings of the Fund and/or a designated amount of U.S. cash.
Tax Information
The Fund
intends to make distributions that may be taxed as ordinary income or capital gains.
|
|
|
26
|
|
WisdomTree Trust
Prospectus
|
WisdomTree International SmallCap Dividend Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree International SmallCap Dividend Index.
Fees and Expenses of the Fund
The following table describes the fees and expenses you may pay if you buy and hold shares of the Fund. The fees are expressed as a percentage of the Funds average net assets.
|
|
|
|
|
Shareholder Fees
(fees paid
directly from your investment)
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
|
|
|
|
Management
Fees
|
|
|
0.58
|
%
|
Distribution
and/or Service (12b-1) Fees
|
|
|
None
|
|
Other
Expenses
|
|
|
0.00
|
%
|
Total Annual Fund Operating Expenses
|
|
|
0.58
|
%
|
Example
The following example is intended to help retail investors compare the cost of investing in the Fund with the cost of investing in other funds. It
illustrates the hypothetical expenses that such investors would incur over various periods if they were to invest $10,000 in the Fund for the time periods indicated and then redeem all of the shares at the end of those periods. This example assumes
that the Fund provides a return of 5% a year and that operating expenses remain the same. This example does not include the brokerage commissions that retail investors may pay to buy and sell shares of the Fund. It also does not include transaction
fees on purchases and redemptions of Creation Units because these fees will not be imposed on retail investors. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
|
3 Years
|
|
|
5 Years
|
|
|
10 Years
|
|
|
|
|
$59
|
|
|
|
$186
|
|
|
|
$324
|
|
|
|
$726
|
|
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 52% of the average value of its portfolio, excluding the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Funds capital shares.
Principal Investment Strategies of the Fund
The Fund employs a passive management or indexing investment approach designed to track the performance of the WisdomTree
International SmallCap Dividend Index. The Fund attempts to invest all, or substantially all, of its assets in the common stocks that make up the Index. The Fund generally uses a Representative Sampling strategy to achieve its investment objective,
meaning it generally will invest in a sample of the securities in the Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Index as a whole.
The WisdomTree International SmallCap Dividend Index is a fundamentally weighted index that is comprised of the small-capitalization segment of the
dividend-paying market in the industrialized world outside the U.S. and Canada. Constituent companies are selected from the WisdomTree DEFA Index. The Index consists of companies that are incorporated in one of 16 developed European countries,
Israel, Japan, Australia, New Zealand, Hong Kong or Singapore. The Index is comprised of the companies that compose the bottom 25% of the market capitalization of the WisdomTree DEFA Index, as of the annual Index rebalance, after the 300 largest
companies have been removed. Companies are weighted in the Index based on annual cash dividends paid. The maximum weight of any one sector and any one country in the Index, at the time of the Indexs annual rebalance, is capped at 25%. In
response to market conditions, sector and country weights may fluctuate above 25% between annual Index rebalance dates.
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
27
|
|
WisdomTree Investments, Inc., as index provider, currently uses Standard & Poors Global
Industry Classification Standards (S&P GICS) to define companies in each sector. The following sectors are included in the Index: consumer discretionary, consumer staples, energy, financials, health care, industrials, information
technology, materials, telecommunication services, and utilities. A sector is comprised of multiple industries. For example, the energy sector is comprised of companies in, among others, the natural gas, oil and petroleum industries.
Under normal circumstances, at least 95% of the Funds total assets (exclusive of collateral held from securities lending) will be invested in the
component securities of the Index. WisdomTree Asset Management, Inc. expects that, over time, the correlation between the Funds performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent the Funds Index concentrates (
i.e.
, holds 25% or more of its total assets) in the securities of a particular industry or group
of industries, the Fund will concentrate its investments to approximately the same extent as its Index.
Principal Risks of Investing in
the Fund
You can lose money on your investment in the Fund. The Fund is subject to the risks described below. Some or all of these risks
may adversely affect the Funds net asset value per share (NAV), trading price, yield, total return and/or its ability to meet its objectives. For more information about the risks of investing in the Fund, see the section in the
Funds prospectus titled Additional Investment Objective, Strategy and Risk Information.
n
|
|
Investment Risk.
As with all investments, an investment in the Fund is subject to investment risk. Investors in the Fund could lose money,
including the possible loss of the entire principal amount of an investment, over short or long periods of time.
|
n
|
|
Market Risk.
The trading prices of equity securities, fixed income securities, currencies, commodities and other instruments fluctuate in
response to a variety of factors. The Funds NAV and market price may fluctuate significantly in response to these and other factors. As a result, an investor could lose money over short or long periods of time.
|
n
|
|
Shares of the Fund May Trade at Prices Other Than NAV.
As with all exchange-traded funds (ETFs), Fund shares may be bought and sold
in the secondary market at market prices. Although it is expected that the market price of the shares of the Fund will approximate the Funds NAV, there may be times when the market price of the shares is more than the NAV intra-day (premium)
or less than the NAV intra-day (discount). This risk is heightened in times of market volatility or periods of steep market declines.
|
n
|
|
Consumer Discretionary Investing.
The Fund may invest in companies in the consumer discretionary sector. This sector consists of, for example,
automobile, retail and media companies. The consumer discretionary sector of the economy can be significantly affected by, among other things, economic growth, worldwide demand and consumers disposable income levels and propensity to spend.
|
n
|
|
Currency Exchange Rate Risk.
The Fund may invest a relatively large percentage of its assets in investments denominated in non-U.S. currencies
or in securities that provide exposure to such currencies. Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of the Funds investment and the value of your Fund shares. Currency exchange
rates can be very volatile and can change quickly and unpredictably. As a result, the value of an investment in the Fund may change quickly and without warning and you may lose money.
|
n
|
|
Financial Sector Risk.
The Fund may invest in companies in the financial sector, and therefore the performance of the Fund could be negatively
impacted by events affecting this sector. This sector can be significantly affected by changes in interest rates, government regulation, the rate of defaults on corporate, consumer and government debt, the availability and cost of capital, and
fallout from the housing and sub-prime mortgage crisis.
|
n
|
|
Fiscal Policy Risk.
Any repeal of or failure to extend the current U.S. federal tax treatment of qualified dividend income could make certain
dividend-paying securities less appealing to investors and could have a negative impact on the performance of the Fund.
|
n
|
|
Foreign Securities Risk.
Investments in non-U.S. securities involve certain risks that may not be present with investments in U.S. securities.
For example, investments in non-U.S. securities may be subject to risk of loss due to foreign currency fluctuations or to political or economic instability. Investments in non-U.S. securities also may be subject to withholding or other taxes and may
be subject to additional trading, settlement, custodial, and operational risks. These and other factors can make investments in the Fund more volatile and potentially less liquid than other types of investments.
|
n
|
|
Geographic Investment Risk.
To the extent the Fund invests a significant portion of its assets in the securities of companies of a single
country or region, it is more likely to be impacted by events or conditions affecting that country or region. The Fund currently invests a significant portion of its assets in companies organized in Japan.
|
|
|
|
28
|
|
WisdomTree Trust
Prospectus
|
n
|
|
Industrial Investing.
The Fund may invest in companies in the industrial sector. The industrial sector can be significantly affected by, among
other things, worldwide economy growth, supply and demand for specific products and services, rapid technological developments, and government regulation.
|
n
|
|
Investment Style Risk.
The Fund invests in the securities included in, or representative of, its Index regardless of their investment merit. The
Fund does not attempt to outperform its Index or take defensive positions in declining markets. As a result, the Funds performance may be adversely affected by a general decline in the market segments relating to its Index.
|
n
|
|
Issuer-Specific Risk.
Issuer-specific events, including changes in the financial condition of an issuer, can have a negative impact on the value
of the Fund.
|
n
|
|
Non-Correlation Risk.
As with all index funds, the performance of the Fund and its Index may differ from each other for a variety of reasons.
|
n
|
|
Non-Diversification Risk.
Although the Fund intends to invest in a variety of securities and instruments, the Fund will be considered to be
non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. As a result, the Fund may be more exposed to the risks associated with and
developments affecting an individual issuer or a smaller number of issuers than a fund that invests more widely. This may increase the Funds volatility and cause the performance of a relatively smaller number of issuers to have a greater
impact on the Funds performance.
|
n
|
|
Small-Capitalization Investing.
The Fund invests primarily in the securities of small-capitalization companies. As a result, the Fund may be
more volatile than funds that invest in larger, more established companies. The securities of small-capitalization companies generally trade in lower volumes and are subject to greater and more unpredictable price changes than larger capitalization
stocks or the stock market as a whole. Small-capitalization companies may be particularly sensitive to changes in interest rates, government regulation, borrowing costs and earnings.
|
Fund Performance
Historical Fund
performance, which varies over time, can provide an indication of the risks of investing in the Fund. The bar chart that follows shows the annual total returns of the Fund for each full calendar year since the Fund commenced operations. The table
that follows the bar chart shows the Funds average annual total returns, both before and after taxes. This table also shows how the Funds performance compares to the WisdomTree International SmallCap Dividend Index and that of a relevant
broad-based securities index. Index returns do not reflect deductions for fees, expenses or taxes. All returns assume reinvestment of dividends and distributions. The Funds past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
The Funds year-to-date total return as of June 29, 2012 was 3.56%.
Best and Worst Quarter Returns (for the periods reflected in the bar chart above)
|
|
|
|
|
|
|
|
|
|
|
Return
|
|
|
Quarter/Year
|
|
Highest
Return
|
|
|
27.30
|
%
|
|
|
2Q/2009
|
|
Lowest
Return
|
|
|
(22.47
|
)%
|
|
|
4Q/2008
|
|
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Your actual after-tax returns will depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts. In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement
period.
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
29
|
|
Average Annual Total Returns for the periods ending December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree International SmallCap
Dividend Fund
|
|
1 Year
|
|
|
5 Years
|
|
|
Since Inception
(6/16/2006)
|
|
Return Before
Taxes Based on NAV
|
|
|
(12.15
|
)%
|
|
|
(3.44
|
)%
|
|
|
0.88
|
%
|
Return After
Taxes on Distributions
|
|
|
(13.28
|
)%
|
|
|
(4.66
|
)%
|
|
|
(0.30
|
)%
|
Return After
Taxes on Distributions and Sale of Fund Shares
|
|
|
(7.83
|
)%
|
|
|
(3.59
|
)%
|
|
|
0.06
|
%
|
MSCI EAFE Small
Cap Index (Reflects no deduction for fees, expenses or taxes)
|
|
|
(15.94
|
)%
|
|
|
(3.89
|
)%
|
|
|
(0.38
|
)%
|
WisdomTree
International SmallCap Dividend Index (Reflects no deduction for fees, expenses or taxes)
|
|
|
(12.48
|
)%
|
|
|
(3.04
|
)%
|
|
|
1.21
|
%
|
Management
Investment Adviser and Sub-Adviser
WisdomTree Asset Management, Inc. serves as investment
adviser to the Fund. Mellon Capital Management Corporation serves as sub-adviser to the Fund.
Portfolio Managers
Karen Q. Wong, CFA, a Managing Director, Equity Index Strategies, has been a portfolio manager of the Fund since February 2008.
Richard A. Brown, CFA, a Director, Equity Portfolio Management, has been a portfolio manager of the Fund since February 2008.
Thomas J. Durante, CFA, a Director, Senior Portfolio Manager, Equity, has been a portfolio manager of the Fund since February 2008.
Buying and Selling Fund Shares
The Fund
is an ETF. This means that shares of the Fund are listed on a national securities exchange, such as NYSE Arca, and trade at market prices. Most investors will buy and sell shares of the Fund through brokers. Because Fund shares trade at market
prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount).
The Fund issues and redeems shares
at NAV only in large blocks of shares (Creation Units), which only institutions or large investors may purchase or redeem. Currently, Creation Units generally consist of 100,000 shares, though this may change from time to time. Creation
Units are not expected to consist of less than 50,000 shares. The Fund generally issues and redeems Creation Units in exchange for a portfolio of securities closely approximating the holdings of the Fund and/or a designated amount of U.S. cash.
Tax Information
The Fund
intends to make distributions that may be taxed as ordinary income or capital gains.
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30
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WisdomTree Trust
Prospectus
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WisdomTree Europe SmallCap Dividend Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Europe SmallCap Dividend Index.
Fees and Expenses of the Fund
The following table describes the fees and expenses you may pay if you buy and hold shares of the Fund. The fees are expressed as a percentage of the Funds average net assets.
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Shareholder Fees
(fees paid
directly from your investment)
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None
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Annual Fund
Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
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Management
Fees
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0.58
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%
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Distribution
and/or Service (12b-1) Fees
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None
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Other
Expenses
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0.00
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%
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Total Annual Fund Operating Expenses
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0.58
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%
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Example
The following example is intended to help retail investors compare the cost of investing in the Fund with the cost of investing in other funds. It
illustrates the hypothetical expenses that such investors would incur over various periods if they were to invest $10,000 in the Fund for the time periods indicated and then redeem all of the shares at the end of those periods. This example assumes
that the Fund provides a return of 5% a year and that operating expenses remain the same. This example does not include the brokerage commissions that retail investors may pay to buy and sell shares of the Fund. It also does not include transaction
fees on purchases and redemptions of Creation Units because these fees will not be imposed on retail investors. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
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1 Year
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3 Years
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5 Years
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10 Years
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$59
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$186
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$324
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$726
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Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 58% of the average value of its portfolio, excluding the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Funds capital shares.
Principal Investment Strategies of the Fund
The Fund employs a passive management or indexing investment approach designed to track the performance of the WisdomTree Europe
SmallCap Dividend Index. The Fund attempts to invest all, or substantially all, of its assets in the common stocks that make up the Index. The Fund generally uses a Representative Sampling strategy to achieve its investment objective, meaning it
generally will invest in a sample of the securities in the Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Index as a whole.
The WisdomTree Europe SmallCap Dividend Index is a fundamentally weighted index that is comprised of the small-capitalization segment of the European
dividend-paying market. Constituent companies are selected from the WisdomTree Europe Dividend Index. The WisdomTree Europe SmallCap Dividend Index is comprised of the companies that compose the bottom 25% of the market capitalization of the
WisdomTree Europe Dividend Index after the 300 largest companies have been removed. Eligibility requirements for the WisdomTree Europe Dividend Index include: (i) incorporation and exchange listing in one of the following countries: Austria,
Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, or the United Kingdom (Europe); (ii) payment of at least $5 million in cash dividends on common shares in
the annual cycle prior to the annual Index rebalance; (iii) market capitalization of at least $100 million as of the Index rebalance; (iv) average daily dollar volume of at least $100,000 for three months preceding the Index rebalance; and
(v) trading of at least 250,000 shares per month for each of the six months preceding the Index rebalance. Companies are weighted in the Index based on annual cash dividends paid. The maximum
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WisdomTree Trust
Prospectus
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31
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weight of any one sector and any one country in the Index, at the time of the Indexs annual rebalance, is capped at 25%. In response to market conditions, sector and country weights may
fluctuate above 25% between annual Index rebalance dates.
WisdomTree Investments, Inc., as index provider, currently uses Standard &
Poors Global Industry Classification Standards (S&P GICS) to define companies in each sector. The following sectors are included in the Index: consumer discretionary, consumer staples, energy, financials, health care,
industrials, information technology, materials, telecommunication services, and utilities. A sector is comprised of multiple industries. For example, the energy sector is comprised of companies in, among others, the natural gas, oil and petroleum
industries.
Under normal circumstances, at least 95% of the Funds total assets (exclusive of collateral held from securities lending)
will be invested in the component securities of the Index. WisdomTree Asset Management, Inc. expects that, over time, the correlation between the Funds performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent the Funds Index concentrates (
i.e.
, holds 25% or more of its total assets) in the securities of a particular
industry or group of industries, the Fund will concentrate its investments to approximately the same extent as its Index.
Principal Risks
of Investing in the Fund
You can lose money on your investment in the Fund. The Fund is subject to the risks described below. Some or all
of these risks may adversely affect the Funds net asset value per share (NAV), trading price, yield, total return and/or its ability to meet its objectives. For more information about the risks of investing in the Fund, see the
section in the Funds prospectus titled Additional Investment Objective, Strategy and Risk Information.
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Investment Risk.
As with all investments, an investment in the Fund is subject to investment risk. Investors in the Fund could lose money,
including the possible loss of the entire principal amount of an investment, over short or long periods of time.
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Market Risk.
The trading prices of equity securities, fixed income securities, currencies, commodities and other instruments fluctuate in
response to a variety of factors. The Funds NAV and market price may fluctuate significantly in response to these and other factors. As a result, an investor could lose money over short or long periods of time.
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Shares of the Fund May Trade at Prices Other Than NAV.
As with all exchange-traded funds (ETFs), Fund shares may be bought and sold
in the secondary market at market prices. Although it is expected that the market price of the shares of the Fund will approximate the Funds NAV, there may be times when the market price of the shares is more than the NAV intra-day (premium)
or less than the NAV intra-day (discount). This risk is heightened in times of market volatility or periods of steep market declines.
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Consumer Discretionary Investing.
The Fund may invest in companies in the consumer discretionary sector. This sector consists of, for example,
automobile, retail and media companies. The consumer discretionary sector of the economy can be significantly affected by, among other things, economic growth, worldwide demand and consumers disposable income levels and propensity to spend.
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Currency Exchange Rate Risk.
The Fund may invest a relatively large percentage of its assets in investments denominated in non-U.S. currencies
or in securities that provide exposure to such currencies. Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of the Funds investment and the value of your Fund shares. Currency exchange
rates can be very volatile and can change quickly and unpredictably. As a result, the value of an investment in the Fund may change quickly and without warning and you may lose money.
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n
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Financial Sector Risk.
The Fund may invest in companies in the financial sector, and therefore the performance of the Fund could be negatively
impacted by events affecting this sector. This sector can be significantly affected by changes in interest rates, government regulation, the rate of defaults on corporate, consumer and government debt, the availability and cost of capital, and
fallout from the housing and sub-prime mortgage crisis.
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Fiscal Policy Risk.
Any repeal of or failure to extend the current U.S. federal tax treatment of qualified dividend income could make certain
dividend-paying securities less appealing to investors and could have a negative impact on the performance of the Fund.
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Foreign Securities Risk.
Investments in non-U.S. securities involve certain risks that may not be present with investments in U.S. securities.
For example, investments in non-U.S. securities may be subject to risk of loss due to foreign currency fluctuations or to political or economic instability. Investments in non-U.S. securities also may be subject to withholding or other taxes and may
be subject to additional trading, settlement, custodial, and operational risks. These and other factors can make investments in the Fund more volatile and potentially less liquid than other types of investments.
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Geographic Concentration in Europe.
Because the Fund invests primarily in the securities of companies in Europe, the Funds performance is
expected to be closely tied to social, political, and economic conditions within Europe and to be
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WisdomTree Trust
Prospectus
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more volatile than the performance of more geographically diversified funds. Most developed countries in Western Europe are members of the European Union (EU), and many are also members of the
European Monetary Union (EMU), which requires compliance with restrictions on inflation rates, deficits, and debt levels. Unemployment in certain European nations is historically high. In addition, the tight fiscal and monetary controls necessary to
join the EMU can significantly affect every country in Europe. The Fund currently invests a significant portion of its assets in companies organized in the United Kingdom.
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Industrial Investing.
The Fund may invest in companies in the industrial sector. The industrial sector can be significantly affected by, among
other things, worldwide economy growth, supply and demand for specific products and services, rapid technological developments, and government regulation.
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Investment Style Risk.
The Fund invests in the securities included in, or representative of, its Index regardless of their investment merit. The
Fund does not attempt to outperform its Index or take defensive positions in declining markets. As a result, the Funds performance may be adversely affected by a general decline in the market segments relating to its Index.
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Issuer-Specific Risk.
Issuer-specific events, including changes in the financial condition of an issuer, can have a negative impact on the value
of the Fund.
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Non-Correlation Risk.
As with all index funds, the performance of the Fund and its Index may differ from each other for a variety of reasons.
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Non-Diversification Risk.
Although the Fund intends to invest in a variety of securities and instruments, the Fund will be considered to be
non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. As a result, the Fund may be more exposed to the risks associated with and
developments affecting an individual issuer or a smaller number of issuers than a fund that invests more widely. This may increase the Funds volatility and cause the performance of a relatively smaller number of issuers to have a greater
impact on the Funds performance.
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Small-Capitalization Investing.
The Fund invests primarily in the securities of small-capitalization companies. As a result, the Fund may be
more volatile than funds that invest in larger, more established companies. The securities of small-capitalization companies generally trade in lower volumes and are subject to greater and more unpredictable price changes than larger capitalization
stocks or the stock market as a whole. Small-capitalization companies may be particularly sensitive to changes in interest rates, government regulation, borrowing costs and earnings.
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Fund Performance
Historical Fund
performance, which varies over time, can provide an indication of the risks of investing in the Fund. The bar chart that follows shows the annual total returns of the Fund for each full calendar year since the Fund commenced operations. The table
that follows the bar chart shows the Funds average annual total returns, both before and after taxes. This table also shows how the Funds performance compares to the WisdomTree Europe SmallCap Dividend Index and that of a relevant
broad-based securities index. Index returns do not reflect deductions for fees, expenses or taxes. All returns assume reinvestment of dividends and distributions. The Funds past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
The Funds year-to-date total return as of June 29, 2012 was 5.45%.
Best and Worst Quarter Returns (for the periods reflected in the bar chart above)
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Return
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Quarter/Year
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Highest
Return
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31.20
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%
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2Q/2009
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Lowest
Return
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(31.16
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)%
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4Q/2008
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WisdomTree Trust
Prospectus
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33
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After-tax returns are calculated using the historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your actual after-tax returns will depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through
tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the
measurement period.
Average Annual Total Returns for the periods ending December 31, 2011
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WisdomTree Europe SmallCap
Dividend Fund
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1 Year
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5 Years
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Since Inception
(6/16/2006)
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Return Before
Taxes Based on NAV
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(19.38
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)%
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(7.45
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)%
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(2.22
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)%
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Return After
Taxes on Distributions
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(20.78
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)%
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(9.35
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)%
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(4.07
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)%
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Return After
Taxes on Distributions and Sale of Fund Shares
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(12.40
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)%
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(7.17
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)%
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(2.87
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)%
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MSCI Europe
Small Cap Index (Reflects no deduction for fees, expenses or taxes)
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(20.12
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)%
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(5.39
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)%
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(0.17
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)%
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WisdomTree
Europe SmallCap Dividend Index (Reflects no deduction for fees, expenses or taxes)
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(18.73
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)%
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(7.32
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)%
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(1.96
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)%
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Management
Investment Adviser and Sub-Adviser
WisdomTree Asset Management, Inc. serves as investment
adviser to the Fund. Mellon Capital Management Corporation serves as sub-adviser to the Fund.
Portfolio Managers
Karen Q. Wong, CFA, a Managing Director, Equity Index Strategies, has been a portfolio manager of the Fund since February 2008.
Richard A. Brown, CFA, a Director, Equity Portfolio Management, has been a portfolio manager of the Fund since February 2008.
Thomas J. Durante, CFA, a Director, Senior Portfolio Manager, Equity, has been a portfolio manager of the Fund since February 2008.
Buying and Selling Fund Shares
The Fund
is an ETF. This means that shares of the Fund are listed on a national securities exchange, such as NYSE Arca, and trade at market prices. Most investors will buy and sell shares of the Fund through brokers. Because Fund shares trade at market
prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount).
The Fund issues and redeems shares
at NAV only in large blocks of shares (Creation Units), which only institutions or large investors may purchase or redeem. Currently, Creation Units generally consist of 100,000 shares, though this may change from time to time. Creation
Units are not expected to consist of less than 50,000 shares. The Fund generally issues and redeems Creation Units in exchange for a portfolio of securities closely approximating the holdings of the Fund and/or a designated amount of U.S. cash.
Tax Information
The Fund
intends to make distributions that may be taxed as ordinary income or capital gains.
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34
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WisdomTree Trust
Prospectus
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WisdomTree Global Equity Income Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Global Equity Income Index.
Fees and Expenses of the Fund
The following table describes the fees and expenses you may pay if you buy and hold shares of the Fund. The fees are expressed as a percentage of the Funds average net assets.
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Shareholder Fees
(fees paid
directly from your investment)
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None
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Annual Fund
Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
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Management
Fees
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0.58
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%
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Distribution
and/or Service (12b-1) Fees
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None
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Other
Expenses
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0.00
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%
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Total Annual Operating Expenses
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0.58
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%*
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*
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Acquired Fund Fees and Expenses (AFFE) related to business development companies were 0.01% as of March 31, 2012. As of March 22, 2013, the Fund no longer holds business
development companies. Thus, the expense information in the table reflects current fees.
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Example
The following example is intended to help retail investors compare the cost of investing in the Fund with the cost of investing in other funds. It
illustrates the hypothetical expenses that such investors would incur over various periods if they were to invest $10,000 in the Fund for the time periods indicated and then redeem all of the shares at the end of those periods. This example assumes
that the Fund provides a return of 5% a year and that operating expenses remain the same. This example does not include the brokerage commissions that retail investors may pay to buy and sell shares of the Fund. It also does not include transaction
fees on purchases and redemptions of Creation Units because these fees will not be imposed on retail investors. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
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1 Year
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3 Years
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5 Years
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10 Years
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$59
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$186
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$324
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$726
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Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 25% of the average value of its portfolio, excluding the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Funds capital shares.
Principal Investment Strategies of the Fund
The Fund employs a passive management or indexing investment approach designed to track the performance of the WisdomTree Global
Equity Income Index. The Fund attempts to invest all, or substantially all, of its assets in the common stocks that make up the Index. The Fund generally uses a Representative Sampling strategy to achieve its investment objective, meaning it
generally will invest in a sample of the securities in the Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Index as a whole.
The WisdomTree Global Equity Income Index is a fundamentally weighted index that is comprised of high dividend-yielding companies selected from the
WisdomTree Global Dividend Index, which is comprised of dividend-paying companies in the U.S., and developed and emerging markets throughout the world. As of the annual Index rebalance, companies with market capitalizations of at least $2 billion
are ranked by dividend yield and those companies in the top 30% by dividend yield are selected for inclusion in the Global Equity Income Index. Companies are weighted in the Index based on annual cash dividends paid. The maximum weight of any one
sector and any one country in the Index, at the time of the Indexs annual rebalance, is capped at 25%. In response to market conditions, sector and country weights may fluctuate above 25% between annual Index rebalance dates.
WisdomTree Investments, Inc., as index provider, currently uses Standard & Poors Global Industry Classification Standards (S&P
GICS) to define companies in each sector. The following sectors are included in the Index: consumer discretionary,
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WisdomTree Trust
Prospectus
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35
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consumer staples, energy, financials, health care, industrials, information technology, materials, telecommunication services, and utilities. A sector is comprised of multiple industries. For
example, the energy sector is comprised of companies in, among others, the natural gas, oil and petroleum industries.
Under normal
circumstances, at least 95% of the Funds total assets (exclusive of collateral held from securities lending) will be invested in the component securities of the Index. WisdomTree Asset Management, Inc. expects that, over time, the correlation
between the Funds performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent the Funds
Index concentrates (
i.e.
, holds 25% or more of its total assets) in the securities of a particular industry or group of industries, the Fund will concentrate its investments to approximately the same extent as its Index.
Principal Risks of Investing in the Fund
You can lose money on your investment in the Fund. The Fund is subject to the risks described below. Some or all of these risks may adversely affect the
Funds net asset value per share (NAV), trading price, yield, total return and/or its ability to meet its objectives. For more information about the risks of investing in the Fund, see the section in the Funds prospectus
titled Additional Investment Objective, Strategy and Risk Information.
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Investment Risk.
As with all investments, an investment in the Fund is subject to investment risk. Investors in the Fund could lose money,
including the possible loss of the entire principal amount of an investment, over short or long periods of time.
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Market Risk.
The trading prices of equity securities, fixed income securities, currencies, commodities and other instruments fluctuate in
response to a variety of factors. The Funds NAV and market price may fluctuate significantly in response to these and other factors. As a result, an investor could lose money over short or long periods of time.
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Shares of the Fund May Trade at Prices Other Than NAV.
As with all exchange-traded funds (ETFs), Fund shares may be bought and sold
in the secondary market at market prices. Although it is expected that the market price of the shares of the Fund will approximate the Funds NAV, there may be times when the market price of the shares is more than the NAV intra-day (premium)
or less than the NAV intra-day (discount). This risk is heightened in times of market volatility or periods of steep market declines.
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Capital Controls Risk.
Economic conditions, such as volatile currency exchange rates and interest rates, political events and other conditions
may, without prior warning, lead to foreign government intervention and the imposition of capital controls. Capital controls include the prohibition of, or restrictions on, the ability to transfer currency, securities or other assets.
Capital controls may impact the ability of the Fund to buy, sell or otherwise transfer securities or currency, adversely affect the trading market and price for shares of the Fund, and cause the Fund to decline in value.
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Cash Redemption Risk.
The Funds investment strategy will require it to redeem shares for cash or to otherwise include cash as part of its
redemption proceeds. The Fund may be required to sell or unwind portfolio investments in order to obtain the cash needed to distribute redemption proceeds. This may cause the Fund to recognize a capital gain that it might not have recognized if it
had made a redemption in-kind. As a result, the Fund may pay out higher annual capital gain distributions than if the in-kind redemption process was used.
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Currency Exchange Rate Risk.
The Fund may invest a relatively large percentage of its assets in investments denominated in non-U.S. currencies
or in securities that provide exposure to such currencies. Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of the Funds investment and the value of your Fund shares. Currency exchange
rates can be very volatile and can change quickly and unpredictably. As a result, the value of an investment in the Fund may change quickly and without warning and you may lose money.
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Emerging Markets Risk.
The Fund may invest in companies organized in emerging market nations. Investments in securities and instruments traded
in developing or emerging markets, or that provide exposure to such securities or markets, can involve additional risks relating to political, economic, or regulatory conditions not associated with investments in U.S. securities and instruments or
investments in more developed international markets. Such conditions may impact the ability of the Fund to buy, sell or otherwise transfer securities, adversely affect the trading market and price for Fund shares and cause the Fund to decline in
value.
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Financial Sector Risk.
The Fund may invest in companies in the financial sector, and therefore the performance of the Fund could be negatively
impacted by events affecting this sector. This sector can be significantly affected by changes in interest rates, government regulation, the rate of defaults on corporate, consumer and government debt, the availability and cost of capital, and
fallout from the housing and sub-prime mortgage crisis.
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n
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Fiscal Policy Risk.
Any repeal of or failure to extend the current U.S. federal tax treatment of qualified dividend income could make certain
dividend-paying securities less appealing to investors and could have a negative impact on the performance of the Fund.
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Foreign Securities Risk.
Investments in non-U.S. securities involve certain risks that may not be present with investments in U.S. securities.
For example, investments in non-U.S. securities may be subject to risk of loss due to foreign currency fluctuations or to political or economic instability. Investments in non-U.S. securities also may be subject to
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36
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WisdomTree Trust
Prospectus
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withholding or other taxes and may be subject to additional trading, settlement, custodial, and operational risks. These and other factors can make investments in the Fund more volatile and
potentially less liquid than other types of investments.
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Geographic Investment Risk.
To the extent the Fund invests a significant portion of its assets in the securities of companies of a single
country or region, it is more likely to be impacted by events or conditions affecting that country or region.
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Investment Style Risk.
The Fund invests in the securities included in, or representative of, its Index regardless of their investment merit. The
Fund does not attempt to outperform its Index or take defensive positions in declining markets. As a result, the Funds performance may be adversely affected by a general decline in the market segments relating to its Index.
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n
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Issuer-Specific Risk.
Issuer-specific events, including changes in the financial condition of an issuer, can have a negative impact on the value
of the Fund.
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Large-Capitalization Investing.
The Fund may invest a relatively large percentage of its assets in the securities of large-capitalization
companies. As a result, the Funds performance may be adversely affected if securities of large-capitalization companies underperform securities of smaller-capitalization companies or the market as a whole. The securities of
large-capitalization companies may be relatively mature compared to smaller companies and therefore subject to slower growth during times of economic expansion.
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Non-Correlation Risk.
As with all index funds, the performance of the Fund and its Index may differ from each other for a variety of reasons.
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Non-Diversification Risk.
Although the Fund intends to invest in a variety of securities and instruments, the Fund will be considered to be
non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. As a result, the Fund may be more exposed to the risks associated with and
developments affecting an individual issuer or a smaller number of issuers than a fund that invests more widely. This may increase the Funds volatility and cause the performance of a relatively smaller number of issuers to have a greater
impact on the Funds performance.
|
n
|
|
Telecommunications Investing.
The Fund may invest in companies in the telecommunications industry. The telecommunications industry can be
significantly affected by, among other things, government intervention and regulation, technological innovations that make existing products and services obsolete, and consumer demand.
|
Fund Performance
Historical Fund
performance, which varies over time, can provide an indication of the risks of investing in the Fund. The bar chart that follows shows the annual total returns of the Fund for each full calendar year since the Fund commenced operations. The table
that follows the bar chart shows the Funds average annual total returns, both before and after taxes. This table also shows how the Funds performance compares to the WisdomTree Europe Equity Income Index and that of a relevant
broad-based securities index. Index returns do not reflect deductions for fees, expenses or taxes. All returns assume reinvestment of dividends and distributions. The Funds past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
The Funds year-to-date total return as of June 29, 2012 was 3.11%.
Best and Worst Quarter Returns (for the periods reflected in the bar chart above)
|
|
|
|
|
|
|
|
|
|
|
Return
|
|
|
Quarter/Year
|
|
Highest
Return
|
|
|
27.28
|
%
|
|
|
2Q/2009
|
|
Lowest
Return
|
|
|
(24.50
|
)%
|
|
|
4Q/2008
|
|
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
37
|
|
After-tax returns are calculated using the historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your actual after-tax returns will depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through
tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the
measurement period.
Average Annual Total Returns for the periods ending December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree Global Equity Income
Fund*
|
|
1 Year
|
|
|
5 Years
|
|
|
Since Inception
(6/16/2006)
|
|
Return Before
Taxes Based on NAV
|
|
|
(2.86
|
)%
|
|
|
(4.05
|
)%
|
|
|
0.19
|
%
|
Return After
Taxes on Distributions
|
|
|
(4.38
|
)%
|
|
|
(5.69
|
)%
|
|
|
(1.39
|
)%
|
Return After
Taxes on Distributions and Sale of Fund Shares
|
|
|
(1.83
|
)%
|
|
|
(4.33
|
)%
|
|
|
(0.76
|
)%
|
MSCI Europe
Value/MSCI AC World Spliced Index** (Reflects no deduction for fees, expenses or taxes)
|
|
|
(7.35
|
)%
|
|
|
(5.15
|
)%
|
|
|
(0.57
|
)%
|
WisdomTree
Europe Equity Income/Global Equity Income Spliced Index*** (Reflects no deduction for fees, expenses or taxes)
|
|
|
(3.05
|
)%
|
|
|
(3.85
|
)%
|
|
|
0.53
|
%
|
|
*
|
|
The Funds objective changed effective June 19, 2009. Prior to that date, the Fund sought to track the price and yield performance, before fees and expenses, of the
WisdomTree Europe Equity Income Index. After June 19, 2009, the Funds objective seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Global Equity Income Index.
|
|
**
|
|
Reflects performance of the MSCI Europe Value Index through June 19, 2009 and the MSCI AC World Index thereafter.
|
***
|
|
Reflects performance of the WisdomTree Europe Equity Income Index through June 19, 2009 and the WisdomTree Global Equity Income Index thereafter.
|
Management
Investment Adviser and Sub-Adviser
WisdomTree Asset Management, Inc. serves as investment
adviser to the Fund. Mellon Capital Management Corporation serves as sub-adviser to the Fund.
Portfolio Managers
Karen Q. Wong, CFA, a Managing Director, Equity Index Strategies, has been a portfolio manager of the Fund since February 2008.
Richard A. Brown, CFA, a Director, Equity Portfolio Management, has been a portfolio manager of the Fund since February 2008.
Thomas J. Durante, CFA, a Director, Senior Portfolio Manager, Equity, has been a portfolio manager of the Fund since February 2008.
Buying and Selling Fund Shares
The Fund
is an ETF. This means that shares of the Fund are listed on a national securities exchange, such as NYSE Arca, and trade at market prices. Most investors will buy and sell shares of the Fund through brokers. Because Fund shares trade at market
prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount).
The Fund issues and redeems shares
at NAV only in large blocks of shares (Creation Units), which only institutions or large investors may purchase or redeem. Currently, Creation Units generally consist of 100,000 shares, though this may change from time to time. Creation
Units are not expected to consist of less than 50,000 shares. The Fund generally issues and redeems Creation Units in exchange for a portfolio of securities closely approximating the holdings of the Fund and/or a designated amount of U.S. cash.
Tax Information
The Fund
intends to make distributions that may be taxed as ordinary income or capital gains.
|
|
|
38
|
|
WisdomTree Trust
Prospectus
|
WisdomTree Japan Hedged Equity Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Japan Hedged Equity Index. The Fund seeks to provide Japanese equity returns while mitigating or
hedging against fluctuations between the value of the Japanese yen and the U.S. dollar.
Fees and Expenses of the Fund
The following table describes the fees and expenses you may pay if you buy and hold shares of the Fund. The fees are expressed as a percentage of the Funds average net assets.
|
|
|
|
|
Shareholder Fees
(fees paid
directly from your investment)
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
|
|
|
|
Management
Fees
|
|
|
0.48
|
%
|
Distribution
and/or Service (12b-1) Fees
|
|
|
None
|
|
Other
Expenses
|
|
|
0.00
|
%
|
Total Annual Fund Operating Expenses
|
|
|
0.48
|
%
|
Example
The following example is intended to help retail investors compare the cost of investing in the Fund with the cost of investing in other funds. It
illustrates the hypothetical expenses that such investors would incur over various periods if they were to invest $10,000 in the Fund for the time periods indicated and then redeem all of the shares at the end of those periods. This example assumes
that the Fund provides a return of 5% a year and that operating expenses remain the same. This example does not include the brokerage commissions that retail investors may pay to buy and sell shares of the Fund. It also does not include transaction
fees on purchases and redemptions of Creation Units because these fees will not be imposed on retail investors. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
|
3 Years
|
|
|
5 Years
|
|
|
10 Years
|
|
|
|
|
$49
|
|
|
|
$154
|
|
|
|
$269
|
|
|
|
$604
|
|
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 41% of the average value of its portfolio, excluding the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Funds capital shares.
Principal Investment Strategies of the Fund
The Fund employs a passive management or indexing investment approach designed to track the performance of the WisdomTree Japan
Hedged Equity Index. The Fund attempts to invest substantially all of its assets in the common stocks that make up the Index. The Fund generally uses a Representative Sampling strategy to achieve its investment objective, meaning it generally will
invest in a sample of securities in the Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Index as a whole.
The WisdomTree Japan Hedged Equity Index is designed to provide exposure to Japanese equity markets while at the same time neutralizing exposure to fluctuations of the Japanese yen relative to the U.S.
dollar. The Index consists of dividend-paying companies incorporated in Japan and traded on the Tokyo Stock Exchange that derive less than 80% of their revenue from sources in Japan. By excluding companies that derive 80% or more of their revenue
from Japan, the Index is tilted towards companies with a more significant global revenue base. The companies included in the Index typically have greater exposure to the value of global currencies and, in many cases, their business prospects
historically have improved when the value of the yen has declined and have weakened when the value of the yen has increased. Eligibility requirements include: (i) payment of at least $5 million in cash dividends on common shares in the annual
cycle prior to the annual Index rebalance; (ii) market capitalization of at least $100 million as of the Index rebalance; (iii) average daily dollar volume of at least $100,000 for the three months preceding the Index rebalance; and
(iv) trading of at least 250,000 shares per month for each of the six months preceding the Index rebalance. Companies are weighted in the Index based on annual cash dividends paid. At the
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
39
|
|
time of the Indexs annual rebalance, the maximum weight of any single security in the Index is capped at 5% and the maximum weight of any one sector in the Index is capped at 25%. In
response to market conditions, security and sector weights may fluctuate above the specified cap between annual Index rebalance dates.
WisdomTree Investments, Inc., as index provider, currently uses Standard & Poors Global Industry Classification Standards (S&P
GICS) to define companies in each sector. The following sectors are included in the Index: consumer discretionary, consumer staples, energy, financials, health care, industrials, information technology, materials, telecommunication services,
and utilities. A sector is comprised of multiple industries. For example, the energy sector is comprised of companies in, among others, the natural gas, oil and petroleum industries.
The Index hedges against fluctuations in the relative value of the Japanese yen against the U.S. dollar. The Index is designed to have higher returns than an equivalent non-currency hedged
investment when the yen is weakening relative to the U.S. dollar. Conversely, the Index is designed to have lower returns than an equivalent unhedged investment when the yen is rising relative to the U.S. dollar.
The Fund intends to enter into forward currency contracts or futures contracts designed to offset the Funds exposure to the Japanese yen. A forward
currency contract is a contract between two parties to buy or sell a specific currency in the future at an agreed upon exchange rate. The amount of forward contracts and futures contracts in the Fund is based on the aggregate exposure of the Fund
and Index to the Japanese yen. While this approach is designed to minimize the impact of currency fluctuations on Fund returns, it does not necessarily eliminate the Funds exposure to the yen. The return of the forward currency contracts and
currency futures contracts may not perfectly offset the actual fluctuations between the yen and the U.S. dollar.
The Fund will normally invest
at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in the types of investments suggested by its name. The Fund also may invest its assets in cash and cash equivalents, as well as in shares of other investment
companies, forward contracts, futures contracts, options on futures contracts, options, and swaps. WisdomTree Asset Management, Inc. expects that, over time, the correlation between the Funds performance and that of its Index, before fees and
expenses, will be 95% or better.
To the extent the Funds Index concentrates (
i.e.
, holds 25% or more of its total assets in the
securities of a particular industry or group of industries, the Fund will concentrate its investments to approximately the same extent as its Index.
Principal Risks of Investing in the Fund
You can lose money on your investment in the
Fund. The Fund is subject to the risks described below. Some or all of these risks may adversely affect the Funds net asset value per share (NAV), trading price, yield, total return and/or its ability to meet its objectives. For
more information about the risks of investing in the Fund, see the section in the Funds prospectus titled Additional Investment Objective, Strategy and Risk Information.
n
|
|
Investment Risk.
As with all investments, an investment in the Fund is subject to investment risk. Investors in the Fund could lose money,
including the possible loss of the entire principal amount of an investment, over short or long periods of time.
|
n
|
|
Market Risk.
The trading prices of equity securities, fixed income securities, currencies, commodities and other instruments fluctuate in
response to a variety of factors. The Funds NAV and market price may fluctuate significantly in response to these and other factors. As a result, an investor could lose money over short or long periods of time.
|
n
|
|
Shares of the Fund May Trade at Prices Other Than NAV.
As with all exchange-traded funds (ETFs), Fund shares may be bought and sold
in the secondary market at market prices. Although it is expected that the market price of the shares of the Fund will approximate the Funds NAV, there may be times when the market price of the shares is more than the NAV intra-day (premium)
or less than the NAV intra-day (discount). This risk is heightened in times of market volatility or periods of steep market declines.
|
n
|
|
Cash Redemption Risk.
The Funds investment strategy will require it to redeem shares for cash or to otherwise include cash as part of its
redemption proceeds. The Fund may be required to sell or unwind portfolio investments in order to obtain the cash needed to distribute redemption proceeds. This may cause the Fund to recognize a capital gain that it might not have recognized if it
had made a redemption in-kind. As a result, the Fund may pay out higher annual capital gain distributions than if the in-kind redemption process was used.
|
n
|
|
Currency Exchange Rate Risk.
The Fund uses various strategies to attempt to minimize the impact of changes in the value of the Japanese yen
against the U.S. dollar. These strategies may not be successful. In order to minimize transaction costs, or for other reasons, the Funds exposure to the yen may not be fully hedged at all times. Currency exchange rates can be very volatile and
can change quickly and unpredictably. Therefore, the value of an investment in the Fund may also go up or down quickly and unpredictably and investors may lose money.
|
|
|
|
40
|
|
WisdomTree Trust
Prospectus
|
n
|
|
Derivatives Investment Risk.
The Fund may invest in derivatives. Derivatives are financial instruments that derive their performance from an
underlying reference asset, such as a commodity, index, interest rate or inflation rate. The return on a derivative instrument may not correlate with the return of its underlying reference asset. Derivatives are subject to a number of risks
described elsewhere in the Funds prospectus, such as market risk and issuer-specific risk. Derivatives can be volatile and may be less liquid than other securities. As a result, the value of an investment in the Fund may change quickly and
without warning and you may lose money.
|
n
|
|
Financial Sector Risk.
The Fund may invest in companies in the financial sector, and therefore the performance of the Fund could be negatively
impacted by events affecting this sector. This sector can be significantly affected by changes in interest rates, government regulation, the rate of defaults on corporate, consumer and government debt, the availability and cost of capital, and
fallout from the housing and sub-prime mortgage crisis.
|
n
|
|
Fiscal Policy Risk.
Any repeal of or failure to extend the current U.S. federal tax treatment of qualified dividend income could make certain
dividend-paying securities less appealing to investors and could have a negative impact on the performance of the Fund.
|
n
|
|
Foreign Securities Risk.
Investments in non-U.S. securities involve certain risks that may not be present with investments in U.S. securities.
For example, investments in non-U.S. securities may be subject to risk of loss due to foreign currency fluctuations or to political or economic instability. Investments in non-U.S. securities also may be subject to withholding or other taxes and may
be subject to additional trading, settlement, custodial, and operational risks. These and other factors can make investments in the Fund more volatile and potentially less liquid than other types of investments.
|
n
|
|
Geographic Concentration in Japan.
Because the Fund invests primarily in the securities of companies in Japan, the Funds performance is
expected to be closely tied to social, political, and economic conditions within Japan and to be more volatile than the performance of more geographically diversified funds. The Japanese economy has only recently emerged from a prolonged economic
downturn. Since the year 2000, Japans economic growth rate has remained relatively low. The economy is characterized by government intervention and protectionism, an unstable financial services sector, and relatively high unemployment.
Economic growth is heavily dependent on international trade, government support of the financial services sector and other troubled sectors, and consistent government policy. The United States is Japans largest single trading partner, but
close to half of Japans trade is conducted with developing nations, almost all of which are in Southeast Asia. Slowdowns in the U.S. and China could have a negative impact on Japan. Exposure to China, in terms of both imports and exports, has
been increasing in recent years.
|
n
|
|
Industrial Investing.
The Fund may invest in companies in the industrial sector. The industrial sector can be significantly affected by, among
other things, worldwide economy growth, supply and demand for specific products and services, rapid technological developments, and government regulation.
|
n
|
|
Investment Style Risk.
The Fund invests in the securities included in, or representative of, its Index regardless of their investment merit. The
Fund does not attempt to outperform its Index or take defensive positions in declining markets. As a result, the Funds performance may be adversely affected by a general decline in the market segments relating to its Index.
|
n
|
|
Issuer-Specific Risk.
Issuer-specific events, including changes in the financial condition of an issuer, can have a negative impact on the value
of the Fund.
|
n
|
|
Large-Capitalization Investing.
The Fund may invest a relatively large percentage of its assets in the securities of large-capitalization
companies. As a result, the Funds performance may be adversely affected if securities of large-capitalization companies underperform securities of smaller-capitalization companies or the market as a whole. The securities of
large-capitalization companies may be relatively mature compared to smaller companies and therefore subject to slower growth during times of economic expansion.
|
n
|
|
Mid-Capitalization Investing.
The Fund may invest in the securities of mid-capitalization companies. As a result, the Funds performance
may be adversely affected if securities of mid-capitalization companies underperform securities of other capitalization ranges or the market as a whole. Securities of smaller companies are often more vulnerable to market volatility than securities
of larger companies.
|
n
|
|
Non-Correlation Risk.
As with all index funds, the performance of the Fund and its Index may differ from each other for a variety of reasons.
|
n
|
|
Non-Diversification Risk.
Although the Fund intends to invest in a variety of securities and instruments, the Fund will be considered to be
non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. As a result, the Fund may be more exposed to the risks associated with and
developments affecting an individual issuer or a smaller number of issuers than a fund that invests more widely. This may increase the Funds volatility and cause the performance of a relatively smaller number of issuers to have a greater
impact on the Funds performance.
|
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
41
|
|
Fund Performance
Historical Fund performance, which varies over time, can provide an indication of the risks of investing in the Fund. The bar chart that follows shows the annual total returns of the Fund for each full
calendar year since the Fund commenced operations. The table that follows the bar chart shows the Funds average annual total returns, both before and after taxes. This table also shows how the Funds performance compares to the WisdomTree
Japan Dividend/Japan Hedged Equity Spliced Index and that of a relevant broad-based securities index. Index returns do not reflect deductions for fees, expenses or taxes. All returns assume reinvestment of dividends and distributions. The
Funds past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.
The
Funds name and objective changed effective April 1, 2010. Fund performance prior to April 1, 2010 reflects the investment objective and style of the Fund when it was the WisdomTree Japan Total Dividend Fund, and tracked the
performance of the WisdomTree Japan Dividend Index.
The Funds year-to-date total return as of June 29, 2012 was 5.09%.
Best and Worst Quarter Returns (for the periods reflected in the bar chart above)
|
|
|
|
|
|
|
|
|
|
|
Return
|
|
|
Quarter/Year
|
|
Highest
Return
|
|
|
20.20
|
%
|
|
|
2Q/2009
|
|
Lowest
Return
|
|
|
(16.31
|
)%
|
|
|
1Q/2009
|
|
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Your actual after-tax returns will depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts. In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement
period.
Average Annual Total Returns for the periods ending December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree Japan Hedged Equity
Fund*
|
|
1 Year
|
|
|
5 Years
|
|
|
Since
Inception
(6/16/2006)
|
|
Return Before
Taxes Based on NAV
|
|
|
(15.22
|
)%
|
|
|
(9.07
|
)%
|
|
|
(6.71
|
)%
|
Return After
Taxes on Distributions
|
|
|
(15.88
|
)%
|
|
|
(9.57
|
)%
|
|
|
(7.19
|
)%
|
Return After
Taxes on Distributions and Sale of Fund Shares
|
|
|
(9.87
|
)%
|
|
|
(7.71
|
)%
|
|
|
(5.79
|
)%
|
MSCI
Japan/Japan Local Currency Spliced Index** (Reflects no deduction for fees, expenses and taxes)
|
|
|
(18.73
|
)%
|
|
|
(10.22
|
)%
|
|
|
(7.86
|
)%
|
WisdomTree
Japan Dividend/Japan Hedged Equity Spliced Index*** (Reflects no deduction for fees, expenses and taxes)
|
|
|
(14.81
|
)%
|
|
|
(9.01
|
)%
|
|
|
(6.70
|
)%
|
*
|
|
The Funds objective changed effective April 1, 2010. Prior to that date, the Fund sought to track the price and yield performance, before fees and expenses, of the
WisdomTree Japan Dividend Index. After April 1, 2010, the Funds objective seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Japan Hedged Equity Index.
|
**
|
|
Reflects performance of the MSCI Japan Index through April 1, 2010 and the MSCI Japan Local Currency Index thereafter.
|
***
|
|
Reflects performance of the WisdomTree Japan Dividend Index through April 1, 2010 and the WisdomTree Japan Hedged Equity Index thereafter.
|
|
|
|
42
|
|
WisdomTree Trust
Prospectus
|
Management
Investment Adviser and Sub-Adviser
WisdomTree Asset Management, Inc. serves as investment
adviser to the Fund. Mellon Capital Management Corporation serves as sub-adviser to the Fund.
Portfolio Managers
Karen Q. Wong, CFA, a Managing Director, Equity Index Strategies, has been a portfolio manager of the Fund since February 2008.
Richard A. Brown, CFA, a Director, Equity Portfolio Management, has been a portfolio manager of the Fund since February 2008.
Thomas J. Durante, CFA, a Director, Senior Portfolio Manager, Equity, has been a portfolio manager of the Fund since February 2008.
Buying and Selling Fund Shares
The Fund
is an ETF. This means that shares of the Fund are listed on a national securities exchange, such as NYSE Arca, and trade at market prices. Most investors will buy and sell shares of the Fund through brokers. Because Fund shares trade at market
prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount).
The Fund issues and redeems shares
at NAV only in large blocks of shares (Creation Units), which only institutions or large investors may purchase or redeem. Currently, Creation Units generally consist of 100,000 shares, though this may change from time to time. Creation
Units are not expected to consist of less than 50,000 shares. The Fund generally issues and redeems Creation Units in exchange for a portfolio of securities closely approximating the holdings of the Fund and/or a designated amount of U.S. cash.
Tax Information
The Fund
intends to make distributions that may be taxed as ordinary income or capital gains.
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
43
|
|
WisdomTree Japan SmallCap Dividend Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Japan SmallCap Dividend Index.
Fees and Expenses of the Fund
The following table describes the fees and expenses you may pay if you buy and hold shares of the Fund. The fees are expressed as a percentage of the Funds average net assets.
|
|
|
|
|
Shareholder Fees
(fees paid
directly from your investment)
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
|
|
|
|
Management
Fees
|
|
|
0.58
|
%
|
Distribution
and/or Service (12b-1) Fees
|
|
|
None
|
|
Other
Expenses
|
|
|
0.00
|
%
|
Total Annual Fund Operating Expenses
|
|
|
0.58
|
%
|
Example
The following example is intended to help retail investors compare the cost of investing in the Fund with the cost of investing in other funds. It
illustrates the hypothetical expenses that such investors would incur over various periods if they were to invest $10,000 in the Fund for the time periods indicated and then redeem all of the shares at the end of those periods. This example assumes
that the Fund provides a return of 5% a year and that operating expenses remain the same. This example does not include the brokerage commissions that retail investors may pay to buy and sell shares of the Fund. It also does not include transaction
fees on purchases and redemptions of Creation Units because these fees will not be imposed on retail investors. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
|
3 Years
|
|
|
5 Years
|
|
|
10 Years
|
|
|
|
|
$59
|
|
|
|
$186
|
|
|
|
$324
|
|
|
|
$726
|
|
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 36% of the average value of its portfolio, excluding the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Funds capital shares.
Principal Investment Strategies of the Fund
The Fund employs a passive management or indexing investment approach designed to track the performance of the WisdomTree Japan
SmallCap Dividend Index. The Fund attempts to invest all, or substantially all, of its assets in the common stocks that make up the Index. The Fund generally uses a Representative Sampling strategy to achieve its investment objective, meaning it
generally will invest in a sample of the securities in the Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Index as a whole.
The WisdomTree Japan SmallCap Dividend Index is comprised of dividend-paying small capitalization companies in Japan. To be eligible for inclusion in the
Index, a company must meet the following criteria: (i) be incorporated within Japan; (ii) have $5 million in cash dividends on common shares in the annual cycle prior to the annual Index rebalance; (iii) have a market capitalization of at least
$100 million as of the Index rebalance; (iv) have an average daily dollar volume of at least $100,000 for three months preceding the Index rebalance; and (v) have trading of at least 250,000 shares per month for each of the six months
preceding the Index rebalance. The Index is then created by removing the 300 largest companies by market capitalization from the list of eligible companies, as of the annual Index rebalance. The remaining companies are weighted in the Index based on
annual cash dividends paid. The maximum weight of any one sector in the Index, at the time of the Indexs annual rebalance, is capped at 25%. In response to market conditions, sector weights may fluctuate above 25% between annual Index
rebalance dates.
WisdomTree Investments, Inc., as index provider, currently uses Standard & Poors Global Industry
Classification Standards (S&P GICS) to define companies in each sector. The following sectors are included in the Index: consumer discretionary,
|
|
|
44
|
|
WisdomTree Trust
Prospectus
|
consumer staples, energy, financials, health care, industrials, information technology, materials, telecommunication services, and utilities. A sector is comprised of multiple industries. For
example, the energy sector is comprised of companies in, among others, the natural gas, oil and petroleum industries.
Under normal
circumstances, at least 95% of the Funds total assets (exclusive of collateral held from securities lending) will be invested in the component securities of the Index. WisdomTree Asset Management, Inc. expects that, over time, the correlation
between the Funds performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent the Funds
Index concentrates (
i.e.
, holds 25% or more of its total assets) in the securities of a particular industry or group of industries, the Fund will concentrate its investments to approximately the same extent as its Index.
Principal Risks of Investing in the Fund
You can lose money on your investment in the Fund. The Fund is subject to the risks described below. Some or all of these risks may adversely affect the
Funds net asset value per share (NAV), trading price, yield, total return and/or its ability to meet its objectives. For more information about the risks of investing in the Fund, see the section in the Funds prospectus
titled Additional Investment Objective, Strategy and Risk Information.
n
|
|
Investment Risk.
As with all investments, an investment in the Fund is subject to investment risk. Investors in the Fund could lose money,
including the possible loss of the entire principal amount of an investment, over short or long periods of time.
|
n
|
|
Market Risk.
The trading prices of equity securities, fixed income securities, currencies, commodities and other instruments fluctuate in
response to a variety of factors. The Funds NAV and market price may fluctuate significantly in response to these and other factors. As a result, an investor could lose money over short or long periods of time.
|
n
|
|
Shares of the Fund May Trade at Prices Other Than NAV.
As with all exchange-traded funds (ETFs), Fund shares may be bought and sold
in the secondary market at market prices. Although it is expected that the market price of the shares of the Fund will approximate the Funds NAV, there may be times when the market price of the shares is more than the NAV intra-day (premium)
or less than the NAV intra-day (discount). This risk is heightened in times of market volatility or periods of steep market declines.
|
n
|
|
Consumer Discretionary Investing.
The Fund may invest in companies in the consumer discretionary sector. This sector consists of, for example,
automobile, retail and media companies. The consumer discretionary sector of the economy can be significantly affected by, among other things, economic growth, worldwide demand and consumers disposable income levels and propensity to spend.
|
n
|
|
Currency Exchange Rate Risk.
The Fund may invest a relatively large percentage of its assets in investments denominated in Japanese yen or in
securities that provide exposure to Japanese yen. Changes in currency exchange rates and the relative value of Japanese yen will affect the value of the Funds investment and the value of your Fund shares. Currency exchange rates can be very
volatile and can change quickly and unpredictably. As a result, the value of an investment in the Fund may change quickly and without warning and you may lose money.
|
n
|
|
Fiscal Policy Risk.
Any repeal of or failure to extend the current U.S. federal tax treatment of qualified dividend income could make certain
dividend-paying securities less appealing to investors and could have a negative impact on the performance of the Fund.
|
n
|
|
Foreign Securities Risk.
Investments in non-U.S. securities involve certain risks that may not be present with investments in U.S. securities.
For example, investments in non-U.S. securities may be subject to risk of loss due to foreign currency fluctuations or to political or economic instability. Investments in non-U.S. securities also may be subject to withholding or other taxes and may
be subject to additional trading, settlement, custodial, and operational risks. These and other factors can make investments in the Fund more volatile and potentially less liquid than other types of investments.
|
n
|
|
Geographic Concentration in Japan.
Because the Fund invests primarily in the securities of companies in Japan, the Funds performance is
expected to be closely tied to social, political, and economic conditions within Japan and to be more volatile than the performance of more geographically diversified funds. The Japanese economy has only recently emerged from a prolonged economic
downturn. Since the year 2000, Japans economic growth rate has remained relatively low. The economy is characterized by government intervention and protectionism, an unstable financial services sector, and relatively high unemployment.
Economic growth is heavily dependent on international trade, government support of the financial services sector and other troubled sectors, and consistent government policy. The United States is Japans largest single trading partner, but
close to half of Japans trade is conducted with developing nations, almost all of which are in Southeast Asia. Slowdowns in the U.S. and China could have a negative impact on Japan. Exposure to China, in terms of both imports and exports, has
been increasing in recent years.
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|
|
|
|
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WisdomTree Trust
Prospectus
|
|
|
45
|
|
n
|
|
Industrial Investing.
The Fund may invest in companies in the industrial sector. The industrial sector can be significantly affected by, among
other things, worldwide economy growth, supply and demand for specific products and services, rapid technological developments, and government regulation.
|
n
|
|
Investment Style Risk.
The Fund invests in the securities included in, or representative of, its Index regardless of their investment merit. The
Fund does not attempt to outperform its Index or take defensive positions in declining markets. As a result, the Funds performance may be adversely affected by a general decline in the market segments relating to its Index.
|
n
|
|
Issuer-Specific Risk.
Issuer-specific events, including changes in the financial condition of an issuer, can have a negative impact on the value
of the Fund.
|
n
|
|
Non-Correlation Risk.
As with all index funds, the performance of the Fund and its Index may differ from each other for a variety of reasons.
|
n
|
|
Non-Diversification Risk.
Although the Fund intends to invest in a variety of securities and instruments, the Fund will be considered to be
non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. As a result, the Fund may be more exposed to the risks associated with and
developments affecting an individual issuer or a smaller number of issuers than a fund that invests more widely. This may increase the Funds volatility and cause the performance of a relatively smaller number of issuers to have a greater
impact on the Funds performance.
|
n
|
|
Small-Capitalization Investing.
The Fund invests primarily in the securities of small-capitalization companies. As a result, the Fund may be
more volatile than funds that invest in larger, more established companies. The securities of small-capitalization companies generally trade in lower volumes and are subject to greater and more unpredictable price changes than larger capitalization
stocks or the stock market as a whole. Small-capitalization companies may be particularly sensitive to changes in interest rates, government regulation, borrowing costs and earnings.
|
Fund Performance
Historical Fund
performance, which varies over time, can provide an indication of the risks of investing in the Fund. The bar chart that follows shows the annual total returns of the Fund for each full calendar year since the Fund commenced operations. The table
that follows the bar chart shows the Funds average annual total returns, both before and after taxes. This table also shows how the Funds performance compares to the WisdomTree Japan SmallCap Dividend Index and that of a relevant
broad-based securities index. Index returns do not reflect deductions for fees, expenses or taxes. All returns assume reinvestment of dividends and distributions. The Funds past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
The Funds year-to-date total return as of June 29, 2012 was 2.98%.
Best and Worst Quarter Returns (for the periods reflected in the bar chart above)
|
|
|
|
|
|
|
|
|
|
|
Return
|
|
|
Quarter/Year
|
|
Highest
Return
|
|
|
23.03
|
%
|
|
|
2Q/2009
|
|
Lowest
Return
|
|
|
(16.07
|
)%
|
|
|
1Q/2009
|
|
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Your actual after-tax returns will depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts. In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement
period.
|
|
|
46
|
|
WisdomTree Trust
Prospectus
|
Average Annual Total Returns for the periods ending December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree Japan SmallCap Dividend
Fund
|
|
1 Year
|
|
|
5 Years
|
|
|
Since Inception
(6/16/2006)
|
|
Return Before
Taxes Based on NAV
|
|
|
(3.32
|
)%
|
|
|
(2.03
|
)%
|
|
|
(1.91
|
)%
|
Return After
Taxes on Distributions
|
|
|
(4.04
|
)%
|
|
|
(2.61
|
)%
|
|
|
(2.44
|
)%
|
Return After
Taxes on Distributions and Sale of Fund Shares
|
|
|
(2.16
|
)%
|
|
|
(2.05
|
)%
|
|
|
(1.92
|
)%
|
MSCI Japan
Small Cap Index (Reflects no deduction for fees,
expenses or taxes)
|
|
|
(3.89
|
)%
|
|
|
(2.84
|
)%
|
|
|
(3.13
|
)%
|
WisdomTree
Japan SmallCap Dividend Index (Reflects no deduction for fees, expenses or taxes)
|
|
|
(1.13
|
)%
|
|
|
(1.19
|
)%
|
|
|
(1.19
|
)%
|
Management
Investment Adviser and Sub-Adviser
WisdomTree Asset Management, Inc. serves as investment
adviser to the Fund. Mellon Capital Management Corporation serves as sub-adviser to the Fund.
Portfolio Managers
Karen Q. Wong, CFA, a Managing Director, Equity Index Strategies, has been a portfolio manager of the Fund since February 2008.
Richard A. Brown, CFA, a Director, Equity Portfolio Management, has been a portfolio manager of the Fund since February 2008.
Thomas J. Durante, CFA, a Director, Senior Portfolio Manager, Equity, has been a portfolio manager of the Fund since February 2008.
Buying and Selling Fund Shares
The Fund
is an ETF. This means that shares of the Fund are listed on a national securities exchange, such as NYSE Arca, and trade at market prices. Most investors will buy and sell shares of the Fund through brokers. Because Fund shares trade at market
prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount).
The Fund issues and redeems shares
at NAV only in large blocks of shares (Creation Units), which only institutions or large investors may purchase or redeem. Currently, Creation Units generally consist of 100,000 shares, though this may change from time to time. Creation
Units are not expected to consist of less than 50,000 shares. The Fund generally issues and redeems Creation Units in exchange for a portfolio of securities closely approximating the holdings of the Fund and/or a designated amount of U.S. cash.
Tax Information
The Fund
intends to make distributions that may be taxed as ordinary income or capital gains.
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
47
|
|
WisdomTree Global ex-U.S. Growth Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Global ex-U.S. Growth Index.
Fees and Expenses of the Fund
The following table describes the fees and expenses you may pay if you buy and hold shares of the Fund. The fees are expressed as a percentage of the Funds average net assets.
|
|
|
|
|
Shareholder Fees
(fees paid
directly from your investment)
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
|
|
|
|
Management
Fees
|
|
|
0.58
|
%
|
Distribution
and/or Service (12b-1) Fees
|
|
|
None
|
|
Other
Expenses
|
|
|
0.00
|
%
|
Acquired Fund
Fees and Expenses
|
|
|
0.01
|
%
|
Total Annual Fund Operating Expenses*
|
|
|
0.59
|
%
|
*
|
The Total Annual Fund Operating Expenses in this fee table may not correlate to the expense ratios in the Funds financial highlights and financial statements because the
financial highlights and financial statements reflect only the operating expenses of the Fund and do not include Acquired Fund Fees and Expenses, which are fees and expenses incurred indirectly by the Fund through its investments in certain
underlying investment companies.
|
Example
The following example is intended to help retail investors compare the cost of investing in the Fund with the cost of investing in other funds. It illustrates the hypothetical expenses that such investors
would incur over various periods if they were to invest $10,000 in the Fund for the time periods indicated and then redeem all of the shares at the end of those periods. This example assumes that the Fund provides a return of 5% a year and that
operating expenses remain the same. This example does not include the brokerage commission that retail investors may pay to buy and sell shares of the Fund. It also does not include the transaction fees on purchases and redemptions of Creation Units
because these fees will not be imposed on retail investors. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
|
3 Years
|
|
|
5 Years
|
|
|
10 Years
|
|
|
|
|
$60
|
|
|
|
$189
|
|
|
|
$329
|
|
|
|
$738
|
|
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 28% of the average value of its portfolio, excluding the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Funds capital shares.
Principal Investment Strategies of the Fund
The Fund employs a passive management or indexing investment approach designed to track the performance of the WisdomTree Global
ex-U.S. Growth Index. The Fund attempts to invest all, or substantially all, of its assets in the common stocks that make up the Index. The Fund generally uses a Representative Sampling strategy to achieve its investment objective, meaning it
generally will invest in a sample of the securities in the Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Index as a whole.
The WisdomTree Global ex-U.S. Growth Index is a fundamentally weighted index that is comprised of growth companies in the developed and emerging markets
outside of the United States. Eligibility requirements include: (i) payment of at least $5 million in cash dividends in the annual cycle prior to the annual Index rebalance and (ii) year-over-year percentage changes in earnings per share,
book value per share, sales per share and stock price (growth metrics). WisdomTree Investments, Inc. creates a growth score for each company based on the aforementioned growth metrics. The top 30% of companies with the
highest growth scores within the 1,000 largest companies by market capitalization are included in the Index. Companies are weighted in the Index based on annual cash dividends paid. The maximum weight of any one sector and any one country in
|
|
|
48
|
|
WisdomTree Trust
Prospectus
|
the Index, at the time of the Indexs annual rebalance, is capped at 25%. In response to market conditions, sector and country weights may fluctuate above 25% between annual Index rebalance
dates.
WisdomTree Investments, Inc., as index provider, currently uses Standard & Poors Global Industry Classification
Standards (S&P GICS) to define companies in each sector. The following sectors are included in the Index: consumer discretionary, consumer staples, energy, financials, health care, industrials, information technology, materials,
telecommunication services, and utilities. A sector is comprised of multiple industries. For example, the energy sector is comprised of companies in, among others, the natural gas, oil and petroleum industries.
Under normal circumstances, at least 95% of the Funds total assets (exclusive of collateral held from securities lending) will be invested in the
component securities of the Index. WisdomTree Asset Management, Inc. expects that, over time, the correlation between the Funds performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent the Funds Index concentrates (
i.e.
, holds 25% or more of its total assets) in the securities of a particular industry or group
of industries, the Fund will concentrate its investments to approximately the same extent as its Index.
Principal Risks of Investing in
the Fund
You can lose money on your investment in the Fund. The Fund is subject to the risks described below. Some or all of these risks
may adversely affect the Funds net asset value per share (NAV), trading price, yield, total return and/or its ability to meet its objectives. For more information about the risks of investing in the Fund, see the section in the
Funds prospectus titled Additional Investment Objective, Strategy and Risk Information.
n
|
|
Investment Risk.
As with all investments, an investment in the Fund is subject to investment risk. Investors in the Fund could lose money,
including the possible loss of the entire principal amount of an investment, over short or long periods of time.
|
n
|
|
Market Risk.
The trading prices of equity securities, fixed income securities, currencies, commodities and other instruments fluctuate in
response to a variety of factors. The Funds NAV and market price may fluctuate significantly in response to these and other factors. As a result, an investor could lose money over short or long periods of time.
|
n
|
|
Shares of the Fund May Trade at Prices Other Than NAV.
As with all exchange-traded funds (ETFs), Fund shares may be bought and sold
in the secondary market at market prices. Although it is expected that the market price of the shares of the Fund will approximate the Funds NAV, there may be times when the market price of the shares is more than the NAV intra-day (premium)
or less than the NAV intra-day (discount). This risk is heightened in times of market volatility or periods of steep market declines.
|
n
|
|
Capital Controls Risk.
Economic conditions, such as volatile currency exchange rates and interest rates, political events and other conditions
may, without prior warning, lead to foreign government intervention and the imposition of capital controls. Capital controls include the prohibition of, or restrictions on, the ability to transfer currency, securities or other assets.
Capital controls may impact the ability of the Fund to buy, sell or otherwise transfer securities or currency, adversely affect the trading market and price for shares of the Fund, and cause the Fund to decline in value.
|
n
|
|
Cash Redemption Risk.
The Funds investment strategy will require it to redeem shares for cash or to otherwise include cash as part of its
redemption proceeds. The Fund may be required to sell or unwind portfolio investments in order to obtain the cash needed to distribute redemption proceeds. This may cause the Fund to recognize a capital gain that it might not have recognized if it
had made a redemption in-kind. As a result, the Fund may pay out higher annual capital gain distributions than if the in-kind redemption process was used.
|
n
|
|
Consumer Staples Investing.
The Fund may invest in companies in the consumer staples sector. This sector can be significantly affected by, among
other things, changes in price and availability of underlying commodities, rising energy prices and global and economic conditions.
|
n
|
|
Currency Exchange Rate Risk.
The Fund may invest a relatively large percentage of its assets in investments denominated in non-U.S. currencies
or in securities that provide exposure to such currencies. Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of the Funds investment and the value of your Fund shares. Currency exchange
rates can be very volatile and can change quickly and unpredictably. As a result, the value of an investment in the Fund may change quickly and without warning and you may lose money.
|
n
|
|
Emerging Markets Risk.
The Fund may invest in companies organized in emerging market nations. Investments in securities and instruments traded
in developing or emerging markets, or that provide exposure to such securities or markets, can involve additional risks relating to political, economic, or regulatory conditions not associated with investments in U.S. securities and instruments or
investments in more developed international markets. Such conditions may impact the ability of the Fund to buy, sell or otherwise transfer securities, adversely affect the trading market and price for Fund shares and cause the Fund to decline in
value.
|
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
49
|
|
n
|
|
Energy Investing.
The Fund may invest in companies in the energy sector. The energy sector can be significantly affected by, among other things:
economic growth, worldwide demand, political instability in the Middle East, and volatile oil prices.
|
n
|
|
Fiscal Policy Risk.
Any repeal of or failure to extend the current U.S. federal tax treatment of qualified dividend income could make certain
dividend-paying securities less appealing to investors and could have a negative impact on the performance of the Fund.
|
n
|
|
Foreign Securities Risk.
Investments in non-U.S. securities involve certain risks that may not be present with investments in U.S. securities.
For example, investments in non-U.S. securities may be subject to risk of loss due to foreign currency fluctuations or to political or economic instability. Investments in non-U.S. securities also may be subject to withholding or other taxes and may
be subject to additional trading, settlement, custodial, and operational risks. These and other factors can make investments in the Fund more volatile and potentially less liquid than other types of investments.
|
n
|
|
Geographic Investment Risk.
To the extent the Fund invests a significant portion of its assets in the securities of companies of a single
country or region, it is more likely to be impacted by events or conditions affecting that country or region.
|
n
|
|
Investment Style Risk.
The Fund invests in the securities included in, or representative of, its Index regardless of their investment merit. The
Fund does not attempt to outperform its Index or take defensive positions in declining markets. As a result, the Funds performance may be adversely affected by a general decline in the market segments relating to its Index.
|
n
|
|
Issuer-Specific Risk.
Issuer-specific events, including changes in the financial condition of an issuer, can have a negative impact on the value
of the Fund.
|
n
|
|
Large-Capitalization Investing.
The Fund may invest a relatively large percentage of its assets in the securities of large-capitalization
companies. As a result, the Funds performance may be adversely affected if securities of large-capitalization companies underperform securities of smaller-capitalization companies or the market as a whole. The securities of
large-capitalization companies may be relatively mature compared to smaller companies and therefore subject to slower growth during times of economic expansion.
|
n
|
|
Mid-Capitalization Investing.
The Fund may invest in the securities of mid-capitalization companies. As a result, the Funds performance
may be adversely affected if securities of mid-capitalization companies underperform securities of other capitalization ranges or the market as a whole. Securities of smaller companies are often more vulnerable to market volatility than securities
of larger companies.
|
n
|
|
Non-Correlation Risk.
As with all index funds, the performance of the Fund and its Index may differ from each other for a variety of reasons.
|
n
|
|
Non-Diversification Risk.
Although the Fund intends to invest in a variety of securities and instruments, the Fund will be considered to be
non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. As a result, the Fund may be more exposed to the risks associated with and
developments affecting an individual issuer or a smaller number of issuers than a fund that invests more widely. This may increase the Funds volatility and cause the performance of a relatively smaller number of issuers to have a greater
impact on the Funds performance.
|
Fund Performance
Historical Fund performance, which varies over time, can provide an indication of the risks of investing in the Fund. The bar chart that follows shows the annual total returns of the Fund for each full
calendar year since the Fund commenced operations. The table that follows the bar chart shows the Funds average annual total returns, both before and after taxes. This table also shows how the Funds performance compares to the WisdomTree
Japan Equity Income/Global ex-U.S. Growth Spliced Index and that of a relevant broad-based securities index. Index returns do not reflect deductions for fees, expenses or taxes. All returns assume reinvestment of dividends and distributions. The
Funds past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.
The
Funds name and objective changed effective June 19, 2009. Fund performance prior to June 19, 2009 reflects the investment objective and style of the Fund when it was the WisdomTree Japan Equity Income Fund, and tracked the
performance of the WisdomTree Japan Equity Income Index.
|
|
|
50
|
|
WisdomTree Trust
Prospectus
|
The Funds year-to-date total return as of June 29, 2012 was 2.09%.
Best and Worst Quarter Returns (for the periods reflected in the bar chart above)
|
|
|
|
|
|
|
|
|
|
|
Return
|
|
|
Quarter/Year
|
|
Highest
Return
|
|
|
19.27
|
%
|
|
|
3Q/2010
|
|
Lowest
Return
|
|
|
(21.73
|
)%
|
|
|
3Q/2011
|
|
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Your actual after-tax returns will depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts. In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement
period.
Average Annual Total Returns for the periods ending December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree Global ex-U.S. Growth
Fund*
|
|
1 Year
|
|
|
5 Years
|
|
|
Since Inception
(6/16/2006)
|
|
Return Before
Taxes Based on NAV
|
|
|
(11.59
|
)%
|
|
|
(1.59
|
)%
|
|
|
1.08
|
%
|
Return After
Taxes on Distributions
|
|
|
(12.51
|
)%
|
|
|
(2.50
|
)%
|
|
|
0.19
|
%
|
Return After
Taxes on Distributions and Sale of Fund Shares
|
|
|
(7.50
|
)%
|
|
|
(1.87
|
)%
|
|
|
0.41
|
%
|
MSCI Japan
Value/MSCI AC World ex-USA Growth Spliced Index** (Reflects no deduction for fees, expenses or taxes)
|
|
|
(14.21
|
)%
|
|
|
(0.93
|
)%
|
|
|
1.42
|
%
|
WisdomTree
Japan Equity Income/Global ex-U.S. Growth Spliced Index*** (Reflects no deduction for fees, expenses or taxes)
|
|
|
(10.84
|
)%
|
|
|
(1.13
|
)%
|
|
|
1.56
|
%
|
*
|
|
The Funds objective changed effective June 19, 2009. Prior to that date, the Fund sought to track the price and yield performance, before fees and expenses, of the
WisdomTree Japan Equity Income Index. After June 19, 2009, the Funds objective seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Global ex-U.S. Growth Index.
|
**
|
|
Reflects performance of the MSCI Japan Value Index through June 19, 2009 and the MSCI AC World ex-USA Growth Spliced Index thereafter.
|
***
|
|
Reflects performance of the WisdomTree Japan Equity Income Index through June 19, 2009 and the WisdomTree Global ex-U.S. Growth Index thereafter.
|
Management
Investment Adviser and Sub-Adviser
WisdomTree Asset Management, Inc. serves as investment
adviser to the Fund. Mellon Capital Management Corporation serves as sub-adviser to the Fund.
Portfolio Managers
Karen Q. Wong, CFA, a Managing Director, Equity Index Strategies, has been a portfolio manager of the Fund since February 2008.
Richard A. Brown, CFA, a Director, Equity Portfolio Management, has been a portfolio manager of the Fund since February 2008.
Thomas J. Durante, CFA, a Director, Senior Portfolio Manager, Equity, has been a portfolio manager of the Fund since February 2008.
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
51
|
|
Buying and Selling Fund Shares
The Fund is an ETF. This means that shares of the Fund are listed on a national securities exchange, such as NYSE Arca, and trade at market prices. Most investors will buy and sell shares of the Fund
through brokers. Because Fund shares trade at market prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount).
The Fund issues and redeems shares at NAV only in large blocks of shares (Creation Units), which only institutions or large investors may purchase or redeem. Currently, Creation Units
generally consist of 100,000 shares, though this may change from time to time. Creation Units are not expected to consist of less than 50,000 shares. The Fund generally issues and redeems Creation Units in exchange for a portfolio of securities
closely approximating the holdings of the Fund and/or a designated amount of U.S. cash.
Tax Information
The Fund intends to make distributions that may be taxed as ordinary income or capital gains.
|
|
|
52
|
|
WisdomTree Trust
Prospectus
|
WisdomTree Asia Pacific ex-Japan Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Asia Pacific ex-Japan Index.
Fees and Expenses of the Fund
The following table describes the fees and expenses you may pay if you buy and hold shares of the Fund. The fees are expressed as a percentage of the Funds average net assets.
|
|
|
|
|
Shareholder Fees
(fees paid
directly from your investment)
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
|
|
|
|
Management
Fees
|
|
|
0.48
|
%
|
Distribution
and/or Service (12b-1) Fees
|
|
|
None
|
|
Other
Expenses
|
|
|
0.00
|
%
|
Acquired Fund
Fees and Expenses
|
|
|
0.02
|
%
|
Total Annual Fund Operating Expenses*
|
|
|
0.50
|
%
|
*
|
The Total Annual Fund Operating Expenses in this fee table may not correlate to the expense ratios in the Funds financial highlights and financial statements because the
financial highlights and financial statements reflect only the operating expenses of the Fund and do not include Acquired Fund Fees and Expenses, which are fees and expenses incurred indirectly by the Fund through its investments in certain
underlying investment companies.
|
Example
The following example is intended to help retail investors compare the cost of investing in the Fund with the cost of investing in other funds. It illustrates the hypothetical expenses that such investors
would incur over various periods if they were to invest $10,000 in the Fund for the time periods indicated and then redeem all of the shares at the end of those periods. This example assumes that the Fund provides a return of 5% a year and that
operating expenses remain the same. This example does not include the brokerage commission that retail investors may pay to buy and sell shares of the Fund. It also does not include the transaction fees on purchases and redemptions of Creation Units
because these fees will not be imposed on retail investors. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
|
3 Years
|
|
|
5 Years
|
|
|
10 Years
|
|
|
|
|
$51
|
|
|
|
$160
|
|
|
|
$280
|
|
|
|
$628
|
|
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 60% of the average value of its portfolio, excluding the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Funds capital shares.
Principal Investment Strategies of the Fund
The Fund employs a passive management or indexing investment approach designed to track the performance of the WisdomTree Asia
Pacific ex-Japan Index. The Fund attempts to invest all, or substantially all, of its assets in the common stocks that make up the Index. The Fund generally uses a Representative Sampling strategy to achieve its investment objective, meaning it
generally will invest in a sample of the securities in the Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Index as a whole.
The WisdomTree Asia Pacific ex-Japan Index is a fundamentally weighted Index that is comprised of dividend paying companies in the Asia Pacific ex-Japan
region. The WisdomTree Asia Pacific ex-Japan Index is comprised of the 300 largest companies ranked by market capitalization that meet the following eligibility criteria. Eligibility requirements include: (i) incorporation within one of the
following countries: Australia, China, Hong Kong, India, Indonesia, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan and Thailand; (ii) payment of at least $5 million in cash dividends on common shares in the annual cycle
prior to the annual Index rebalance; (iii) market capitalization of at least $100 million as of the Index rebalance; (iv) average daily dollar volume of at least $100,000 for the three months preceding the Index rebalance;
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
53
|
|
and (v) trading of at least 250,000 shares per month for each of the six months preceding the Index rebalance. Companies are weighted in the Index based on annual cash dividends paid. The
maximum weight of any one sector and any one country in the Index, at the time of the Indexs annual rebalance, is capped at 25%. In response to market conditions, sector and country weights may fluctuate above 25% between annual Index
rebalance dates.
WisdomTree Investments, Inc., as index provider, currently uses Standard & Poors Global Industry
Classification Standards (S&P GICS) to define companies in each sector. The following sectors are included in the Index: consumer discretionary, consumer staples, energy, financials, health care, industrials, information technology,
materials, telecommunication services, and utilities. A sector is comprised of multiple industries. For example, the energy sector is comprised of companies in, among others, the natural gas, oil and petroleum industries.
Under normal circumstances, at least 95% of the Funds total assets (exclusive of collateral held from securities lending) will be invested in the
component securities of the Index. WisdomTree Asset Management, Inc. expects that, over time, the correlation between the Funds performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent the Funds Index concentrates (
i.e.
, holds 25% or more of its total assets) in the securities of a particular industry or group
of industries, the Fund will concentrate its investments to approximately the same extent as its Index.
Principal Risks of Investing in
the Fund
You can lose money on your investment in the Fund. The Fund is subject to the risks described below. Some or all of these risks
may adversely affect the Funds net asset value per share (NAV), trading price, yield, total return and/or ability to meet its objectives. For more information about the risks of investing in the Fund, see the section in the
Funds prospectus titled Additional Investment Objective, Strategy and Risk Information.
n
|
|
Investment Risk.
As with all investments, an investment in the Fund is subject to investment risk. Investors in the Fund could lose money,
including the possible loss of the entire principal amount of an investment, over short or long periods of time.
|
n
|
|
Market Risk.
The trading prices of equity securities, fixed income securities, currencies, commodities and other instruments fluctuate in
response to a variety of factors. The Funds NAV and market price may fluctuate significantly in response to these and other factors. As a result, an investor could lose money over short or long periods of time.
|
n
|
|
Shares of the Fund May Trade at Prices Other Than NAV.
As with all exchange-traded funds (ETFs), Fund shares may be bought and sold
in the secondary market at market prices. Although it is expected that the market price of the shares of the Fund will approximate the Funds NAV, there may be times when the market price of the shares is more than the NAV intra-day (premium)
or less than the NAV intra-day (discount). This risk is heightened in times of market volatility or periods of steep market declines.
|
n
|
|
Capital Controls Risk.
Economic conditions, such as volatile currency exchange rates and interest rates, political events and other conditions
may, without prior warning, lead to foreign government intervention and the imposition of capital controls. Capital controls include the prohibition of, or restrictions on, the ability to transfer currency, securities or other assets.
Capital controls may impact the ability of the Fund to buy, sell or otherwise transfer securities or currency, adversely affect the trading market and price for shares of the Fund, and cause the Fund to decline in value.
|
n
|
|
Currency Exchange Rate Risk.
The Fund may invest a relatively large percentage of its assets in investments denominated in non-U.S. currencies
or in securities that provide exposure to such currencies. Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of the Funds investment and the value of your Fund shares. Currency exchange
rates can be very volatile and can change quickly and unpredictably. As a result, the value of an investment in the Fund may change quickly and without warning and you may lose money.
|
n
|
|
Emerging Markets Risk.
The Fund may invest in companies organized in emerging market nations. Investments in securities and instruments traded
in developing or emerging markets, or that provide exposure to such securities or markets, can involve additional risks relating to political, economic, or regulatory conditions not associated with investments in U.S. securities and instruments or
investments in more developed international markets. Such conditions may impact the ability of the Fund to buy, sell or otherwise transfer securities, adversely affect the trading market and price for Fund shares and cause the Fund to decline in
value.
|
n
|
|
Financial Sector Risk.
The Fund may invest in companies in the financial sector, and therefore the performance of the Fund could be negatively
impacted by events affecting this sector. This sector can be significantly affected by changes in interest rates, government regulation, the rate of defaults on corporate, consumer and government debt, the availability and cost of capital, and
fallout from the housing and sub-prime mortgage crisis.
|
|
|
|
54
|
|
WisdomTree Trust
Prospectus
|
n
|
|
Fiscal Policy Risk.
Any repeal of or failure to extend the current U.S. federal tax treatment of qualified dividend income could make certain
dividend-paying securities less appealing to investors and could have a negative impact on the performance of the Fund.
|
n
|
|
Foreign Securities Risk.
Investments in non-U.S. securities involve certain risks that may not be present with investments in U.S. securities.
For example, investments in non-U.S. securities may be subject to risk of loss due to foreign currency fluctuations or to political or economic instability. Investments in non-U.S. securities also may be subject to withholding or other taxes and may
be subject to additional trading, settlement, custodial, and operational risks. These and other factors can make investments in the Fund more volatile and potentially less liquid than other types of investments.
|
n
|
|
Investment in the Asia Pacific Region.
Because the Fund invests primarily in the securities of companies in the Asia Pacific region, the Fund
will be susceptible to loss due to adverse market, political, regulatory, and other events, such as natural disasters, affecting that region. While certain economies in this region are exemplars of growth and development, others have been and
continue to be subject, to some extent, to over-extension of credit, currency devaluations and restrictions, high unemployment, high inflation, decreased exports, and economic recessions. Each of these factors may impact the ability of the Fund to
buy, sell or otherwise transfer securities, adversely affect the trading market and price for Fund shares and cause the Fund to decline in value. The Fund currently invests a significant portion of its assets in companies organized in Australia and
Hong Kong.
|
n
|
|
Investment in Australia.
The Fund currently invests a significant portion of its assets in companies organized in Australia. The Australian
economy is dependent on the economies of Asian countries and on the price and demand for agricultural products and natural resources.
|
n
|
|
Large-Capitalization Investing.
The Fund may invest a relatively large percentage of its assets in the securities of large-capitalization
companies. As a result, the Funds performance may be adversely affected if securities of large-capitalization companies underperform securities of smaller-capitalization companies or the market as a whole. The securities of
large-capitalization companies may be relatively mature compared to smaller companies and therefore subject to slower growth during times of economic expansion.
|
n
|
|
Mid-Capitalization Investing.
The Fund may invest in the securities of mid-capitalization companies. As a result, the Funds performance
may be adversely affected if securities of mid-capitalization companies underperform securities of other capitalization ranges or the market as a whole. Securities of smaller companies are often more vulnerable to market volatility than securities
of larger companies.
|
n
|
|
Non-Diversification Risk.
Although the Fund intends to invest in a variety of securities and instruments, the Fund will be considered to be
non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. As a result, the Fund may be more exposed to the risks associated with and
developments affecting an individual issuer or a smaller number of issuers than a fund that invests more widely. This may increase the Funds volatility and cause the performance of a relatively smaller number of issuers to have a greater
impact on the Funds performance.
|
n
|
|
Telecommunications Investing.
The Fund may invest in companies in the telecommunications industry. The telecommunications industry can be
significantly affected by, among other things, government intervention and regulation, technological innovations that make existing products and services obsolete, and consumer demand.
|
Fund Performance
Historical Fund
performance, which varies over time, can provide an indication of the risks of investing in the Fund. The bar chart that follows shows the annual total returns of the Fund for each full calendar year since the Fund commenced operations. The table
that follows the bar chart shows the Funds average annual total returns, both before and after taxes. This table also shows how the Funds performance compares to the WisdomTree Pacific ex-Japan Dividend Index and that of a relevant
broad-based securities index. Index returns do not reflect deductions for fees, expenses or taxes. All returns assume reinvestment of dividends and distributions. The Funds past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
The Funds name and objective changed effective June 17, 2011. Fund
performance prior to June 17, 2011 reflects the investment objective and style of the Fund when it was the WisdomTree Pacific ex-Japan Total Dividend Fund, and tracked the performance of the WisdomTree Pacific ex-Japan Dividend Index.
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
55
|
|
The Funds year-to-date total return as of June 29, 2012 was 6.09%.
Best and Worst Quarter Returns (for the periods reflected in the bar chart above)
|
|
|
|
|
|
|
|
|
|
|
Return
|
|
|
Quarter/Year
|
|
Highest
Return
|
|
|
30.04
|
%
|
|
|
2Q/2009
|
|
Lowest
Return
|
|
|
(24.05
|
)%
|
|
|
4Q/2008
|
|
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Your actual after-tax returns will depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts. In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement
period.
Average Annual Total Returns for the periods ending December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree Asia Pacific ex-Japan
Fund*
|
|
1 Year
|
|
|
5 Years
|
|
|
Since
Inception
(6/16/2006)
|
|
Return Before
Taxes Based on NAV
|
|
|
(9.16
|
)%
|
|
|
3.44
|
%
|
|
|
7.66
|
%
|
Return After
Taxes on Distributions
|
|
|
(10.47
|
)%
|
|
|
1.69
|
%
|
|
|
5.97
|
%
|
Return After
Taxes on Distributions and Sale of Fund Shares
|
|
|
(5.94
|
)%
|
|
|
1.84
|
%
|
|
|
5.57
|
%
|
MSCI Pacific
ex-Japan/MSCI AC Asia Pacific ex-Japan Spliced Index** (Reflects no deduction for fees, expenses or taxes)
|
|
|
(15.07
|
)%
|
|
|
2.12
|
%
|
|
|
6.08
|
%
|
WisdomTree
Pacific ex-Japan Dividend/Asia Pacific ex-Japan Spliced Index*** (Reflects no deduction for fees, expenses or taxes)
|
|
|
(8.10
|
)%
|
|
|
4.70
|
%
|
|
|
9.01
|
%
|
*
|
|
The Funds objective changed effective June 17, 2011. Prior to that date, the Fund sought to track the price and yield performance, before fees and expenses, of the
WisdomTree Pacific ex-Japan Dividend Index. After June 17, 2011, the Funds objective seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Asia Pacific ex-Japan Index.
|
**
|
|
Reflects performance of the MSCI Pacific ex-Japan Index through June 17, 2011 and the MSCI AC Asia Pacific ex-Japan Index thereafter.
|
***
|
|
Reflects performance of the WisdomTree Pacific ex-Japan Dividend Index through June 17, 2011 and the WisdomTree Asia Pacific ex-Japan Index thereafter.
|
Management
Investment Adviser and Sub-Adviser
WisdomTree Asset Management, Inc. serves as investment
adviser to the Fund. Mellon Capital Management Corporation serves as sub-adviser to the Fund.
Portfolio Managers
Karen Q. Wong, CFA, a Managing Director, Equity Index Strategies, has been a portfolio manager of the Fund since February 2008.
Richard A. Brown, CFA, a Director, Equity Portfolio Management, has been a portfolio manager of the Fund since February 2008.
Thomas J. Durante, CFA, a Director, Senior Portfolio Manager, Equity, has been a portfolio manager of the Fund since February 2008.
|
|
|
56
|
|
WisdomTree Trust
Prospectus
|
Buying and Selling Fund Shares
The Fund is an ETF. This means that shares of the Fund are listed on a national securities exchange, such as NYSE Arca, and trade at market prices. Most investors will buy and sell shares of the Fund
through brokers. Because Fund shares trade at market prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount).
The Fund issues and redeems shares at NAV only in large blocks of shares (Creation Units), which only institutions or large investors may purchase or redeem. Currently, Creation Units
generally consist of 100,000 shares, though this may change from time to time. Creation Units are not expected to consist of less than 50,000 shares. The Fund generally issues and redeems Creation Units in exchange for a portfolio of securities
closely approximating the holdings of the Fund and/or a designated amount of U.S. cash.
Tax Information
The Fund intends to make distributions that may be taxed as ordinary income or capital gains.
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
57
|
|
WisdomTree Australia Dividend Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Australia Dividend Index.
Fees and Expenses of the Fund
The following table describes the fees and expenses you may pay if you buy and hold shares of the Fund. The fees are expressed as a percentage of the Funds average net assets.
|
|
|
|
|
Shareholder Fees
(fees paid
directly from your investment)
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
|
|
|
|
Management
Fees
|
|
|
0.58
|
%
|
Distribution
and/or Service (12b-1) Fees
|
|
|
None
|
|
Other
Expenses
|
|
|
0.00
|
%
|
Total Annual Fund Operating Expenses
|
|
|
0.58
|
%
|
Example
The following example is intended to help retail investors compare the cost of investing in the Fund with the cost of investing in other funds. It
illustrates the hypothetical expenses that such investors would incur over various periods if they were to invest $10,000 in the Fund for the time periods indicated and then redeem all of the shares at the end of those periods. This example assumes
that the Fund provides a return of 5% a year and that operating expenses remain the same. This example does not include the brokerage commission that retail investors may pay to buy and sell shares of the Fund. It also does not include the
transaction fees on purchases and redemptions of Creation Units because these fees will not be imposed on retail investors. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
|
3 Years
|
|
|
5 Years
|
|
|
10 Years
|
|
|
|
|
$59
|
|
|
|
$186
|
|
|
|
$324
|
|
|
|
$726
|
|
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 68% of the average value of its portfolio, excluding the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Funds capital shares.
Principal Investment Strategies of the Fund
The Fund employs a passive management or indexing investment approach designed to track the performance of the WisdomTree
Australia Dividend Index. The Fund attempts to invest all, or substantially all, of its assets in the common stocks that make up the Index. The Fund generally uses a Representative Sampling strategy to achieve its investment objective, meaning it
generally will invest in a sample of the securities in the Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Index as a whole.
The WisdomTree Australia Dividend Index is a fundamentally weighted index that is comprised of high-dividend yielding companies in Australia. The Index is
comprised of dividend paying companies incorporated in Australia with a minimum market capitalization of $1.0 billion as of the annual Index rebalance. The Index is comprised of the ten largest qualifying companies from each sector ranked by market
capitalization. Other eligibility criteria include: (i) payment of at least $5 million in cash dividends in the annual cycle prior to the annual Index rebalance and (ii) average daily dollar volume of at least $100,000 for three months
preceding the annual Index rebalance. Weighting is by dividend yield. The maximum weight of any one sector in the Index, at the time of the Indexs annual rebalance, is capped at 25%. In response to market conditions, sector weights may
fluctuate above 25% between annual Index rebalance dates.
WisdomTree Investments, Inc., as index provider, currently uses Standard &
Poors Global Industry Classification Standards (S&P GICS) to define companies in each sector. The following sectors are included in the Index: consumer discretionary,
|
|
|
58
|
|
WisdomTree Trust
Prospectus
|
consumer staples, energy, financials, health care, industrials, information technology, materials, telecommunication services, and utilities. A sector is comprised of multiple industries. For
example, the energy sector is comprised of companies in, among others, the natural gas, oil and petroleum industries.
Under normal
circumstances, at least 95% of the Funds total assets (exclusive of collateral held from securities lending) will be invested in the component securities of the Index. WisdomTree Asset Management, Inc. expects that, over time, the correlation
between the Funds performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent the Funds
Index concentrates (
i.e.
, holds 25% or more of its total assets) in the securities of a particular industry or group of industries, the Fund will concentrate its investments to approximately the same extent as its Index.
Principal Risks of Investing in the Fund
You can lose money on your investment in the Fund. The Fund is subject to the risks described below. Some or all of these risks may adversely affect the
Funds net asset value per share (NAV), trading price, yield, total return and/or its ability to meet its objectives. For more information about the risks of investing in the Fund, see the section in the Funds prospectus
titled Additional Investment Objective, Strategy and Risk Information.
n
|
|
Investment Risk.
As with all investments, an investment in the Fund is subject to investment risk. Investors in the Fund could lose money,
including the possible loss of the entire principal amount of an investment, over short or long periods of time.
|
n
|
|
Market Risk.
The trading prices of equity securities, fixed income securities, currencies, commodities and other instruments fluctuate in
response to a variety of factors. The Funds NAV and market price may fluctuate significantly in response to these and other factors. As a result, an investor could lose money over short or long periods of time.
|
n
|
|
Shares of the Fund May Trade at Prices Other Than NAV.
As with all exchange-traded funds (ETFs), Fund shares may be bought and sold
in the secondary market at market prices. Although it is expected that the market price of the shares of the Fund will approximate the Funds NAV, there may be times when the market price of the shares is more than the NAV intra-day (premium)
or less than the NAV intra-day (discount). This risk is heightened in times of market volatility or periods of steep market declines.
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n
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|
Consumer Discretionary Investing.
The Fund may invest in companies in the consumer discretionary sector. This sector consists of, for example,
automobile, retail and media companies. The consumer discretionary sector of the economy can be significantly affected by, among other things, economic growth, worldwide demand and consumers disposable income levels and propensity to spend.
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n
|
|
Currency Exchange Rate Risk.
The Fund may invest a relatively large percentage of its assets in investments denominated in Australian dollars or
in securities that provide exposure to Australian dollars. Changes in currency exchange rates and the relative value of the Australian dollar will affect the value of the Funds investment and the value of your Fund shares. Currency exchange
rates can be very volatile and can change quickly and unpredictably. As a result, the value of an investment in the Fund may change quickly and without warning and you may lose money.
|
n
|
|
Financial Sector Risk.
The Fund may invest in companies in the financial sector, and therefore the performance of the Fund could be negatively
impacted by events affecting this sector. This sector can be significantly affected by changes in interest rates, government regulation, the rate of defaults on corporate, consumer and government debt, the availability and cost of capital, and
fallout from the housing and sub-prime mortgage crisis.
|
n
|
|
Fiscal Policy Risk.
Any repeal of or failure to extend the current U.S. federal tax treatment of qualified dividend income could make certain
dividend-paying securities less appealing to investors and could have a negative impact on the performance of the Fund.
|
n
|
|
Foreign Securities Risk.
Investments in non-U.S. securities involve certain risks that may not be present with investments in U.S. securities.
For example, investments in non-U.S. securities may be subject to risk of loss due to foreign currency fluctuations or to political or economic instability. Investments in non-U.S. securities also may be subject to withholding or other taxes and may
be subject to additional trading, settlement, custodial, and operational risks. These and other factors can make investments in the Fund more volatile and potentially less liquid than other types of investments.
|
n
|
|
Investment in Australia.
Because the Fund invests primarily in the securities of companies in Australia, the Funds performance is expected
to be closely tied to social, political, and economic conditions within Australia and to be more volatile than the performance of more geographically diversified funds. The Australian economy is heavily dependent on the demand for commodities and
natural resources and declines in the demand for such products may have an adverse impact on the Funds returns. The Fund is susceptible to loss due to adverse market, political, regulatory, and other events affecting Australia. These events
may in turn adversely affect the trading market and price for Fund shares and cause the Fund to decline in value.
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Prospectus
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59
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n
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|
Large-Capitalization Investing.
The Fund may invest in the securities of large-capitalization companies. As a result, the Funds
performance may be adversely affected if securities of large-capitalization companies underperform securities of smaller-capitalization companies or the market as a whole. The securities of large-capitalization companies may be relatively mature
compared to smaller companies and therefore subject to slower growth during times of economic expansion.
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n
|
|
Mid-Capitalization Investing.
The Fund may invest in the securities of mid-capitalization companies. As a result, the Funds performance
may be adversely affected if securities of mid-capitalization companies underperform securities of other capitalization ranges or the market as a whole. Securities of smaller companies are often more vulnerable to market volatility than securities
of larger companies.
|
n
|
|
Non-Diversification Risk.
Although the Fund intends to invest in a variety of securities and instruments, the Fund will be considered to be
non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. As a result, the Fund may be more exposed to the risks associated with and
developments affecting an individual issuer or a smaller number of issuers than a fund that invests more widely. This may increase the Funds volatility and cause the performance of a relatively smaller number of issuers to have a greater
impact on the Funds performance.
|
n
|
|
Small-Capitalization Investing.
The Fund may invest in securities of small-capitalization companies. As a result, the Fund may be more volatile
than funds that invest in larger, more established companies. The securities of small-capitalization companies generally trade in lower volumes and are subject to greater and more unpredictable price changes than larger capitalization stocks or the
stock market as a whole. Small-capitalization companies may be particularly sensitive to changes in interest rates, government regulation, borrowing costs and earnings.
|
Fund Performance
Historical Fund performance, which varies over time, can provide an
indication of the risks of investing in the Fund. The bar chart that follows shows the annual total returns of the Fund for each full calendar year since the Fund commenced operations. The table that follows the bar chart shows the Funds
average annual total returns, both before and after taxes. This table also shows how the Funds performance compares to the WisdomTree Pacific ex-Japan Equity Income Index and that of a relevant broad-based securities index. Index returns do
not reflect deductions for fees, expenses or taxes. All returns assume reinvestment of dividends and distributions. The Funds past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the
future.
The Funds name and objective changed effective June 17, 2011. Fund performance prior to June 17, 2011 reflects the
investment objective and style of the Fund when it was the WisdomTree Pacific ex-Japan Equity Income Fund, and tracked the performance of the WisdomTree Pacific ex-Japan Equity Income Index.
The Funds year-to-date total return as of June 29, 2012 was 1.80%.
Best and Worst Quarter Returns (for the periods reflected in the bar chart above)
|
|
|
|
|
|
|
|
|
|
|
Return
|
|
|
Quarter/Year
|
|
Highest
Return
|
|
|
37.96
|
%
|
|
|
3Q/2009
|
|
Lowest
Return
|
|
|
(27.00
|
)%
|
|
|
4Q/2008
|
|
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Your actual after-tax returns will depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred
arrangements,
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WisdomTree Trust
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such as 401(k) plans or individual retirement accounts. In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund
shares at the end of the measurement period.
Average Annual Total Returns for the periods ending December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree Australia Dividend
Fund*
|
|
1 Year
|
|
|
5 Years
|
|
|
Since Inception
(6/16/2006)
|
|
Return Before
Taxes Based on NAV
|
|
|
(10.82
|
)%
|
|
|
2.64
|
%
|
|
|
6.85
|
%
|
Return After
Taxes on Distributions
|
|
|
(12.65
|
)%
|
|
|
0.37
|
%
|
|
|
4.67
|
%
|
Return After
Taxes on Distributions and Sale of Fund Shares
|
|
|
(6.98
|
)%
|
|
|
0.85
|
%
|
|
|
4.55
|
%
|
MSCI Pacific
ex-Japan Value/MSCI Australia Spliced Index** (Reflects no deduction for fees, expenses or taxes)
|
|
|
(10.11
|
)%
|
|
|
1.61
|
%
|
|
|
5.88
|
%
|
WisdomTree
Pacific ex-Japan Equity Income/Australia Dividend Spliced Index*** (Reflects no deduction for fees, expenses or taxes)
|
|
|
(10.52
|
)%
|
|
|
3.25
|
%
|
|
|
7.52
|
%
|
*
|
|
The Funds objective changed effective June 17, 2011. Prior to that date, the Fund sought to track the price and yield performance, before fees and expenses, of the
WisdomTree Pacific ex-Japan Equity Income Index. After June 17, 2011, the Funds objective seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Australia Dividend Index.
|
**
|
|
Reflects performance of the MSCI Pacific ex-Japan Value Index through June 17, 2011 and the MSCI Australia Index thereafter.
|
***
|
|
Reflects performance of the WisdomTree Pacific ex-Japan Equity Income Index through June 17, 2011 and the WisdomTree Australia Dividend Index thereafter.
|
Management
Investment Adviser and Sub-Adviser
WisdomTree Asset Management, Inc. serves as investment
adviser to the Fund. Mellon Capital Management Corporation serves as sub-adviser to the Fund.
Portfolio Managers
Karen Q. Wong, CFA, a Managing Director, Equity Index Strategies, has been a portfolio manager of the Fund since February 2008.
Richard A. Brown, CFA, a Director, Equity Portfolio Management, has been a portfolio manager of the Fund since February 2008.
Thomas J. Durante, CFA, a Director, Senior Portfolio Manager, Equity, has been a portfolio manager of the Fund since February 2008.
Buying and Selling Fund Shares
The Fund
is an ETF. This means that shares of the Fund are listed on a national securities exchange, such as NYSE Arca, and trade at market prices. Most investors will buy and sell shares of the Fund through brokers. Because Fund shares trade at market
prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount).
The Fund issues and redeems shares
at NAV only in large blocks of shares (Creation Units), which only institutions or large investors may purchase or redeem. Currently, Creation Units generally consist of 100,000 shares, though this may change from time to time. Creation
Units are not expected to consist of less than 50,000 shares. The Fund generally issues and redeems Creation Units in exchange for a portfolio of securities closely approximating the holdings of the Fund and/or a designated amount of U.S. cash.
Tax Information
The Fund
intends to make distributions that may be taxed as ordinary income or capital gains.
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Prospectus
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61
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WisdomTree China Dividend ex-Financials Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree China Dividend ex-Financials Index.
Fees and Expenses of the Fund
The following table describes the fees and expenses you may pay if you buy and hold shares of the Fund. The fees are expressed as a percentage of the Funds average net assets.
|
|
|
|
|
Shareholder Fees
(fees paid
directly from your investment)
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
|
|
|
|
Management
Fees
|
|
|
0.63
|
%
|
Distribution
and/or Service (12b-1) Fees
|
|
|
None
|
|
Other
Expenses*
|
|
|
0.00
|
%
|
Total Annual Fund Operating Expenses
|
|
|
0.63
|
%
|
*
|
Other Expenses are based on estimated amounts for the current fiscal year.
|
Example
The following example is intended to help retail investors compare the cost of
investing in the Fund with the cost of investing in other funds. It illustrates the hypothetical expenses that such investors would incur over various periods if they were to invest $10,000 in the Fund for the time periods indicated and then redeem
all of the shares at the end of those periods. This example assumes that the Fund provides a return of 5% a year and that operating expenses remain the same. This example does not include the brokerage commissions that retail investors may pay to
buy and sell shares of the Fund. It also does not include transaction fees on purchases and redemptions of Creation Units because these fees will not be imposed on retail investors. Although your actual costs may be higher or lower, based on these
assumptions, your costs would be:
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Funds performance. Because the Fund is newly organized,
portfolio turnover information is not yet available.
Principal Investment Strategies of the Fund
The Fund employs a passive management or indexing investment approach designed to track the performance of the WisdomTree China
Dividend ex-Financials Index. The Fund attempts to invest all, or substantially all, of its assets in the common stocks that make up the Index. The Fund generally uses a Representative Sampling strategy to achieve its investment objective, meaning
it generally will invest in a sample of the securities in the Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Index as a whole.
The WisdomTree China Dividend ex-Financials Index is comprised of dividend paying common stocks outside of the financial sector. The Index consists of the
ten largest stocks in each sector of the Chinese economy, other than the financial sector, that meet the Index criteria. Companies are eligible to be included in the Index if they have at least $1 billion in float-adjusted market capitalization, are
domiciled in China and are listed on the Hong Kong Stock Exchange. Float-adjusted means that the share amounts used in calculating the Index reflect only shares available to investors. Shares held by control groups, public companies and
government agencies are excluded. Companies are weighted in the Index based on annual cash dividends paid. Companies that pay higher dividends and meet specified liquidity and other criteria generally have a higher weight in the Index. At the time
of the Indexs annual rebalance, the maximum weight of any security in the Index is capped at 10% and the maximum weight of any one sector in the Index is capped at 25%. In response to market conditions, security weights may fluctuate above 10%
and sector weights may fluctuate above 25% between annual Index rebalance dates.
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WisdomTree Trust
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WisdomTree Investments, Inc., as index provider, currently uses Standard & Poors Global
Industry Classification Standards (S&P GICS) to define companies in each sector. The following sectors are included in the Index: consumer discretionary, consumer staples, energy, health care, industrials, information technology,
materials, telecommunication services, and utilities. A sector is comprised of multiple industries. For example, the energy sector is comprised of companies in, among others, the natural gas, oil and petroleum industries.
Under normal circumstances, at least 95% of the Funds total assets (exclusive of collateral held from securities lending) will be invested in the
component securities of the Index. WisdomTree Asset Management, Inc. expects that, over time, the correlation between the Funds performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent the Funds Index concentrates (
i.e.
, holds 25% or more of its total assets) in the securities of a particular industry or group
of industries, the Fund will concentrate its investments to approximately the same extent as its Index.
Principal Risks of Investing in
the Fund
You can lose money on your investment in the Fund. The Fund is subject to the risks described below. Some or all of these risks
may adversely affect the Funds net asset value per share (NAV), trading price, yield, total return and/or its ability to meet its objectives. For more information about the risks of investing in the Fund, see the section in the
Funds prospectus titled Additional Investment Objective, Strategy and Risk Information.
n
|
|
Investment Risk.
As with all investments, an investment in the Fund is subject to investment risk. Investors in the Fund could lose money,
including the possible loss of the entire principal amount of an investment, over short or long periods of time.
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|
Market Risk.
The trading prices of equity securities, fixed income securities, currencies, commodities and other instruments fluctuate in
response to a variety of factors. The Funds NAV and market price may fluctuate significantly in response to these and other factors. As a result, an investor could lose money over short or long periods of time.
|
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|
Shares of the Fund May Trade at Prices Other Than NAV.
As with all exchange-traded funds (ETFs), Fund shares may be bought and sold
in the secondary market at market prices. Although it is expected that the market price of the shares of the Fund will approximate the Funds NAV, there may be times when the market price of the shares is more than the NAV intra-day (premium)
or less than the NAV intra-day (discount). This risk is heightened in times of market volatility or periods of steep market declines.
|
n
|
|
Capital Controls Risk.
Economic conditions, such as volatile currency exchange rates and interest rates, political events and other conditions
may, without prior warning, lead to government intervention and the imposition of capital controls. Capital controls include the prohibition of, or restrictions on, the ability to transfer currency, securities or other assets. Capital
controls may impact the ability of the Fund to buy, sell or otherwise transfer securities or currency, adversely affect the trading market and price for shares of the Fund, and cause the Fund to decline in value.
|
n
|
|
Currency Exchange Rate Risk.
The Fund currently invests a relatively large percentage of its assets in investments denominated in Hong Kong
dollars, or in securities that provide exposure to such currency, currency exchange rates or interest rates denominated in such currency. Changes in currency exchange rates and the relative value of the Hong Kong dollar will affect the value of the
Funds investment and the value of your Fund shares. Currency exchange rates can be very volatile and can change quickly and unpredictably. As a result, the value of an investment in the Fund may change quickly and without warning and you may
lose money.
|
n
|
|
Emerging Markets Risk.
The Fund currently invests a relatively large percentage of its assets in securities and instruments that are traded in
developing or emerging markets or that provide exposure to such securities or markets. These investments can involve additional risks relating to political, economic, or regulatory conditions not associated with investments in U.S. securities and
instruments or investments in more developed international markets. Such conditions may impact the ability of the Fund to buy, sell or otherwise transfer securities, adversely affect the trading market and price for Fund shares, and cause the Fund
to decline in value.
|
n
|
|
Energy Investing.
The Fund may invest in companies in the energy sector. The energy sector can be significantly affected by, among other things:
economic growth, worldwide demand, political instability in the Middle East, and volatile oil prices.
|
n
|
|
Fiscal Policy Risk.
Any repeal of or failure to extend the current U.S. federal tax treatment of qualified dividend income could make certain
dividend-paying securities less appealing to investors and could have a negative impact on the performance of the Fund.
|
n
|
|
Foreign Securities Risk.
Investments in non-U.S. securities involve certain risks that may not be present with investments in U.S. securities.
For example, investments in non-U.S. securities may be subject to risk of loss due to foreign
|
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
63
|
|
|
currency fluctuations or to political or economic instability. Investments in non-U.S. securities also may be subject to withholding or other taxes and may be subject to additional trading,
settlement, custodial, and operational risks. These and other factors can make investments in the Fund more volatile and potentially less liquid than other types of investments.
|
n
|
|
Geographic Concentration in China.
Because the Fund concentrates its investments in China, the Funds performance is expected to be closely
tied to social, political, and economic conditions within China and to be more volatile than the performance of more geographically diversified funds. The government of China maintains strict currency controls in order to achieve economic, trade and
political objectives and regularly intervenes in the currency market. The Chinese government also plays a major role in the countrys economic policies regarding foreign investments. Foreign investors are subject to the risk of loss from
expropriation or nationalization of their investment assets and property, governmental restrictions on foreign investments and the repatriation of capital invested. In addition, the rapid growth rate of the Chinese economy over the past several
years may not continue, and the trend toward economic liberalization and disparities in wealth may result in social disorder, including violence and labor unrest. These and other factors could have a negative impact on the Funds performance
and increase the volatility of an investment in the Fund.
|
n
|
|
Investment Style Risk.
The Fund invests in the securities included in, or representative of, its Index regardless of their investment merit. The
Fund does not attempt to outperform its Index or take defensive positions in declining markets. As a result, the Funds performance may be adversely affected by a general decline in the market segments relating to its Index.
|
n
|
|
Issuer-Specific Risk.
Issuer-specific events, including changes in the financial condition of an issuer, can have a negative impact on the value
of the Fund.
|
n
|
|
Large-Capitalization Investing.
The Fund may invest a relatively large percentage of its assets in the securities of large-capitalization
companies. As a result, the Funds performance may be adversely affected if securities of large-capitalization companies underperform securities of smaller-capitalization companies or the market as a whole. The securities of
large-capitalization companies may be relatively mature compared to smaller companies and therefore subject to slower growth during times of economic expansion.
|
n
|
|
Mid-Capitalization Investing.
The Fund may invest in the securities of mid-capitalization companies. As a result, the Funds performance
may be adversely affected if securities of mid-capitalization companies underperform securities of other capitalization ranges or the market as a whole. Securities of smaller companies are often more vulnerable to market volatility than securities
of larger companies.
|
n
|
|
Non-Correlation Risk.
As with all index funds, the performance of the Fund and its Index may differ from each other for a variety of reasons.
|
n
|
|
Non-Diversification Risk.
Although the Fund intends to invest in a variety of securities and instruments, the Fund will be considered to be
non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. As a result, the Fund may be more exposed to the risks associated with and
developments affecting an individual issuer or a smaller number of issuers than a fund that invests more widely. This may increase the Funds volatility and cause the performance of a relatively smaller number of issuers to have a greater
impact on the Funds performance.
|
Fund Performance
The Fund is new and therefore does not have a performance history.
Management
Investment Adviser and Sub-Adviser
WisdomTree Asset Management, Inc. serves as investment
adviser to the Fund. Old Mutual Global Index Trackers (Proprietary) Limited serves as sub-adviser to the Fund.
Portfolio Managers
Kingsley Williams, Deputy Chief Investment Officer, has been a portfolio manager of the Fund since its inception.
Anver Dollie, Deputy Chief Investment Officer, has been a portfolio manager of the Fund since its inception.
Nonhlanhla Dube has been a portfolio manager of the Fund since its inception.
Buying and Selling Fund Shares
The Fund is an ETF. This means that shares of the Fund are
listed on a national securities exchange, such as NASDAQ, and trade at market prices. Most investors will buy and sell shares of the Fund through brokers. Because Fund shares trade at market prices rather than NAV, shares may trade at a price
greater than NAV (premium) or less than NAV (discount).
|
|
|
64
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WisdomTree Trust
Prospectus
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The Fund issues and redeems shares at NAV only in large blocks of shares (Creation Units), which
only institutions or large investors may purchase or redeem. Creation Units generally consist of 50,000 shares, though this may change from time to time. The Fund generally issues and redeems Creation Units in exchange for a portfolio of securities
closely approximating the holdings of the Fund and/or a designated amount of U.S. cash.
Tax Information
The Fund intends to make distributions that may be taxed as ordinary income or capital gains.
|
|
|
|
|
WisdomTree Trust
Prospectus
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|
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65
|
|
WisdomTree Emerging Markets Equity Income Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Emerging Markets Equity Income Index.
Fees and Expenses of the Fund
The following table describes the fees and expenses you may pay if you buy and hold shares of the Fund. The fees are expressed as a percentage of the Funds average net assets.
|
|
|
|
|
Shareholder Fees
(fees paid
directly from your investment)
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
|
|
|
|
Management
Fees
|
|
|
0.63
|
%
|
Distribution
and/or Service (12b-1) Fees
|
|
|
None
|
|
Other
Expenses
|
|
|
0.00
|
%
|
Total Annual Fund Operating Expenses
|
|
|
0.63
|
%
|
Example
The following example is intended to help retail investors compare the cost of investing in the Fund with the cost of investing in other funds. It
illustrates the hypothetical expenses that such investors would incur over various periods if they were to invest $10,000 in the Fund for the time periods indicated and then redeem all of the shares at the end of those periods. This example assumes
that the Fund provides a return of 5% a year and that operating expenses remain the same. This example does not include the brokerage commissions that retail investors may pay to buy and sell shares of the Fund. It also does not include transaction
fees on purchases and redemptions of Creation Units because these fees will not be imposed on retail investors. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
|
3 Years
|
|
|
5 Years
|
|
|
10 Years
|
|
|
|
|
$64
|
|
|
|
$202
|
|
|
|
$351
|
|
|
|
$786
|
|
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 37% of the average value of its portfolio, excluding the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Funds capital shares.
Principal Investment Strategies of the Fund
The Fund employs a passive management or indexing investment approach designed to track the performance of the WisdomTree
Emerging Markets Equity Income Index. The Fund attempts to invest all, or substantially all, of its assets in the common stocks that make up the Index. The Fund generally uses a Representative Sampling strategy to achieve its investment objective,
meaning it generally will invest in a sample of the securities in the Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Index as a whole.
The WisdomTree Emerging Markets Equity Income Index is a fundamentally weighted index that is comprised of the highest dividend yielding stocks selected
from the WisdomTree Emerging Markets Dividend Index. As of the annual Index rebalance, companies within the WisdomTree Emerging Markets Dividend Index are ranked by dividend yield. Securities ranking in the highest 30% by dividend yield are selected
for inclusion within the WisdomTree Emerging Markets Equity Income Index. Eligibility requirements for the WisdomTree Emerging Markets Dividend Index include: (i) payment of at least $5 million in cash dividends on common shares in the annual
cycle prior to the annual Index rebalance; (ii) market capitalization of at least $200 million as of the Index rebalance; (iii) average daily trading volume of at least $200,000 for each of the six months preceding the Index rebalance;
(iv) incorporation within one of 18 emerging market nations (Argentina, Brazil, Chile, China, Czech Republic, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey); and
(v) trading of at least 250,000 shares per month for each of the six months preceding the Index rebalance. Companies are weighted in the Index based on annual cash dividends paid. The maximum
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WisdomTree Trust
Prospectus
|
weight of any one sector and any one country in the Index, at the time of the Indexs annual rebalance, is capped at 25%. In response to market conditions, sector and country weights may
fluctuate above 25% between annual Index rebalance dates.
WisdomTree Investments, Inc., as index provider, currently uses Standard &
Poors Global Industry Classification Standards (S&P GICS) to define companies in each sector. The following sectors are included in the Index: consumer discretionary, consumer staples, energy, financials, health care,
industrials, information technology, materials, telecommunication services, and utilities. A sector is comprised of multiple industries. For example, the energy sector is comprised of companies in, among others, the natural gas, oil and petroleum
industries.
Under normal circumstances, at least 95% of the Funds total assets (exclusive of collateral held from securities lending)
will be invested in the component securities of the Index. WisdomTree Asset Management, Inc. expects that, over time, the correlation between the Funds performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent the Funds Index concentrates (
i.e.
, holds 25% or more of its total assets) in the securities of a particular
industry or group of industries, the Fund will concentrate its investments to approximately the same extent as its Index.
Principal Risks
of Investing in the Fund
You can lose money on your investment in the Fund. The Fund is subject to the risks described below. Some or all
of these risks may adversely affect the Funds net asset value per share (NAV), trading price, yield, total return and/or its ability to meet its objectives. For more information about the risks of investing in the Fund, see the
section in the Funds prospectus titled Additional Investment Objective, Strategy and Risk Information.
n
|
|
Investment Risk.
As with all investments, an investment in the Fund is subject to investment risk. Investors in the Fund could lose money,
including the possible loss of the entire principal amount of an investment, over short or long periods of time.
|
n
|
|
Market Risk.
The trading prices of equity securities, fixed income securities, currencies, commodities and other instruments fluctuate in
response to a variety of factors. The Funds NAV and market price may fluctuate significantly in response to these and other factors. As a result, an investor could lose money over short or long periods of time.
|
n
|
|
Shares of the Fund May Trade at Prices Other Than NAV.
As with all exchange-traded funds (ETFs), Fund shares may be bought and sold
in the secondary market at market prices. Although it is expected that the market price of the shares of the Fund will approximate the Funds NAV, there may be times when the market price of the shares is more than the NAV intra-day (premium)
or less than the NAV intra-day (discount). This risk is heightened in times of market volatility or periods of steep market declines.
|
n
|
|
Basic Materials Investing.
The Fund may invest in companies in the basic materials sector. This sector includes, for example, metals and mining,
chemicals and forest product companies. This sector can be significantly affected by, among other things, commodity price volatility, demand for basic materials, world economic growth, depletion of natural resources, technological progress, and
government regulations.
|
n
|
|
Capital Controls Risk.
Economic conditions, such as volatile currency exchange rates and interest rates, political events and other conditions
may, without prior warning, lead to foreign government intervention and the imposition of capital controls. Capital controls include the prohibition of, or restrictions on, the ability to transfer currency, securities or other assets.
Capital controls may impact the ability of the Fund to buy, sell or otherwise transfer securities or currency, adversely affect the trading market and price for shares of the Fund, and cause the Fund to decline in value.
|
n
|
|
Cash Redemption Risk.
The Funds investment strategy will require it to redeem shares for cash or to otherwise include cash as part of its
redemption proceeds. The Fund may be required to sell or unwind portfolio investments in order to obtain the cash needed to distribute redemption proceeds. This may cause the Fund to recognize a capital gain that it might not have recognized if it
had made a redemption in-kind. As a result, the Fund may pay out higher annual capital gain distributions than if the in-kind redemption process was used.
|
n
|
|
Currency Exchange Rate Risk.
The Fund may invest a relatively large percentage of its assets in investments denominated in non-U.S. currencies
or in securities that provide exposure to such currencies. Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of the Funds investment and the value of your Fund shares. Currency exchange
rates can be very volatile and can change quickly and unpredictably. As a result, the value of an investment in the Fund may change quickly and without warning and you may lose money.
|
n
|
|
Emerging Markets Risk.
The Fund invests primarily in companies organized in emerging market nations. Investments in securities and instruments
traded in developing or emerging markets, or that provide exposure to such securities or markets, can involve additional risks relating to political, economic, or regulatory conditions not associated with investments in U.S. securities and
instruments or investments in more developed international markets. Such conditions may impact the ability of the Fund to buy, sell or otherwise transfer securities, adversely affect the trading market and price for Fund shares and cause the Fund to
decline in value.
|
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
67
|
|
n
|
|
Energy Investing.
The Fund may invest in companies in the energy sector. The energy sector can be significantly affected by, among other things:
economic growth, worldwide demand, political instability in the Middle East, and volatile oil prices.
|
n
|
|
Financial Sector Risk.
The Fund may invest in companies in the financial sector, and therefore the performance of the Fund could be negatively
impacted by events affecting this sector. This sector can be significantly affected by changes in interest rates, government regulation, the rate of defaults on corporate, consumer and government debt, the availability and cost of capital, and
fallout from the housing and sub-prime mortgage crisis.
|
n
|
|
Fiscal Policy Risk.
Any repeal of or failure to extend the current U.S. federal tax treatment of qualified dividend income could make certain
dividend-paying securities less appealing to investors and could have a negative impact on the performance of the Fund.
|
n
|
|
Foreign Securities Risk.
Investments in non-U.S. securities involve certain risks that may not be present with investments in U.S. securities.
For example, investments in non-U.S. securities may be subject to risk of loss due to foreign currency fluctuations or to political or economic instability. Investments in non-U.S. securities also may be subject to withholding or other taxes and may
be subject to additional trading, settlement, custodial, and operational risks. These and other factors can make investments in the Fund more volatile and potentially less liquid than other types of investments.
|
n
|
|
Geographic Investment Risk.
To the extent the Fund invests a significant portion of its assets in the securities of companies of a single
country or region, it is more likely to be impacted by events or conditions affecting that country or region. The Fund currently invests a significant portion of its assets in companies organized in Taiwan.
|
n
|
|
Large-Capitalization Investing.
The Fund may invest a relatively large percentage of its assets in the securities of large-capitalization
companies. As a result, the Funds performance may be adversely affected if securities of large-capitalization companies underperform securities of smaller-capitalization companies or the market as a whole. The securities of
large-capitalization companies may be relatively mature compared to smaller companies and therefore subject to slower growth during times of economic expansion.
|
n
|
|
Mid-Capitalization Investing.
The Fund may invest in the securities of mid-capitalization companies. As a result, the Funds performance
may be adversely affected if securities of mid-capitalization companies underperform securities of other capitalization ranges or the market as a whole. Securities of smaller companies are often more vulnerable to market volatility than securities
of larger companies.
|
n
|
|
Non-Diversification Risk.
Although the Fund intends to invest in a variety of securities and instruments, the Fund will be considered to be
non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. As a result, the Fund may be more exposed to the risks associated with and
developments affecting an individual issuer or a smaller number of issuers than a fund that invests more widely. This may increase the Funds volatility and cause the performance of a relatively smaller number of issuers to have a greater
impact on the Funds performance.
|
n
|
|
Telecommunications Investing.
The Fund may invest in companies in the telecommunications industry. The telecommunications industry can be
significantly affected by, among other things, government intervention and regulation, technological innovations that make existing products and services obsolete, and consumer demand.
|
Fund Performance
Historical Fund
performance, which varies over time, can provide an indication of the risks of investing in the Fund. The bar chart that follows shows the annual total returns of the Fund for each full calendar year since the Fund commenced operations. The table
that follows the bar chart shows the Funds average annual total returns, both before and after taxes. This table also shows how the Funds performance compares to the WisdomTree Emerging Markets Equity Income Index and that of a relevant
broad-based securities index. Index returns do not reflect deductions for fees, expenses or taxes. All returns assume reinvestment of dividends and distributions. The Funds past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
|
|
|
68
|
|
WisdomTree Trust
Prospectus
|
The Funds year-to-date total return as of June 29, 2012 was 2.20%.
Best and Worst Quarter Returns (for the period reflected in the bar chart above)
|
|
|
|
|
|
|
|
|
|
|
Return
|
|
|
Quarter/Year
|
|
Highest
Return
|
|
|
26.76
|
%
|
|
|
2Q/2009
|
|
Lowest
Return
|
|
|
(21.24
|
)%
|
|
|
4Q/2008
|
|
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Your actual after-tax returns will depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts. In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement
period.
Average Annual Total Returns for the periods ending December 31, 2011
|
|
|
|
|
|
|
|
|
WisdomTree Emerging Markets Equity
Income Fund
|
|
1 Year
|
|
|
Since Inception
(7/13/2007)
|
|
Return Before
Taxes Based on NAV
|
|
|
(9.78
|
)%
|
|
|
4.31
|
%
|
Return After
Taxes on Distributions
|
|
|
(11.12
|
)%
|
|
|
2.83
|
%
|
Return After
Taxes on Distributions and Sale of Fund Shares
|
|
|
(6.34
|
)%
|
|
|
2.76
|
%
|
MSCI Emerging
Markets Index (Reflects no deduction for fees, expenses or taxes)
|
|
|
(18.42
|
)%
|
|
|
(2.70
|
)%
|
WisdomTree
Emerging Markets Equity Income Index (Reflects no deduction for fees,
expenses or taxes)
|
|
|
(9.34
|
)%
|
|
|
5.19
|
%
|
Management
Investment Adviser and Sub-Adviser
WisdomTree Asset Management, Inc. serves as investment
adviser to the Fund. Mellon Capital Management Corporation serves as sub-adviser to the Fund.
Portfolio Managers
Karen Q. Wong, CFA, a Managing Director, Equity Index Strategies, has been a portfolio manager of the Fund since February 2008.
Richard A. Brown, CFA, a Director, Equity Portfolio Management, has been a portfolio manager of the Fund since February 2008.
Thomas J. Durante, CFA, a Director, Senior Portfolio Manager, Equity, has been a portfolio manager of the Fund since February 2008.
Buying and Selling Fund Shares
The Fund
is an ETF. This means that shares of the Fund are listed on a national securities exchange, such as NYSE Arca, and trade at market prices. Most investors will buy and sell shares of the Fund through brokers. Because Fund shares trade at market
prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount).
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
69
|
|
The Fund issues and redeems shares at NAV only in large blocks of shares (Creation Units), which
only institutions or large investors may purchase or redeem. Currently, Creation Units generally consist of 100,000 shares, though this may change from time to time. Creation Units are not expected to consist of less than 50,000 shares. The Fund
generally issues and redeems Creation Units in exchange for a portfolio of securities closely approximating the holdings of the Fund and/or a designated amount of U.S. cash.
Tax Information
The Fund intends to make distributions that may be taxed as ordinary
income or capital gains.
|
|
|
70
|
|
WisdomTree Trust
Prospectus
|
WisdomTree Emerging Markets SmallCap Dividend Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Emerging Markets SmallCap Dividend Index.
Fees and Expenses of the Fund
The following table describes the fees and expenses you may pay if you buy and hold shares of the Fund. The fees are expressed as a percentage of the Funds average net assets.
|
|
|
|
|
Shareholder Fees
(fees paid
directly from your investment)
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
|
|
|
|
Management
Fees
|
|
|
0.63
|
%
|
Distribution
and/or Service (12b-1) Fees
|
|
|
None
|
|
Other
Expenses
|
|
|
0.00
|
%
|
Acquired Fund
Fees and Expenses
|
|
|
0.01
|
%
|
Total Annual Fund Operating Expenses*
|
|
|
0.64
|
%
|
*
|
The Total Annual Fund Operating Expenses in this fee table may not correlate to the expense ratios in the Funds financial highlights and financial statements because the
financial highlights and financial statements reflect only the operating expenses of the Fund and do not include Acquired Fund Fees and Expenses, which are fees and expenses incurred indirectly by the Fund through its investments in certain
underlying investment companies.
|
Example
The following example is intended to help retail investors compare the cost of investing in the Fund with the cost of investing in other funds. It illustrates the hypothetical expenses that such investors
would incur over various periods if they were to invest $10,000 in the Fund for the time periods indicated and then redeem all of the shares at the end of those periods. This example assumes that the Fund provides a return of 5% a year and that
operating expenses remain the same. This example does not include the brokerage commissions that retail investors may pay to buy and sell shares of the Fund. It also does not include transaction fees on purchases and redemptions of Creation Units
because these fees will not be imposed on retail investors. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
|
3 Years
|
|
|
5 Years
|
|
|
10 Years
|
|
|
|
|
$65
|
|
|
|
$205
|
|
|
|
$357
|
|
|
|
$798
|
|
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 53% of the average value of its portfolio, excluding the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Funds capital shares.
Principal Investment Strategies of the Fund
The Fund employs a passive management or indexing investment approach designed to track the performance of the WisdomTree
Emerging Markets SmallCap Dividend Index. The Fund attempts to invest all, or substantially all, of its assets in the common stocks that make up the Index. The Fund generally uses a Representative Sampling strategy to achieve its investment
objective, meaning it generally will invest in a sample of the securities in the Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Index as a whole.
The WisdomTree Emerging Markets SmallCap Dividend Index is a fundamentally weighted index that is comprised of primarily small cap stocks selected from
the WisdomTree Emerging Markets Dividend Index. Companies included in the WisdomTree Emerging Markets SmallCap Dividend Index fall within the bottom 10% of total market capitalization of the WisdomTree Emerging Markets Dividend Index as of the
annual Index rebalance. Eligibility requirements for the WisdomTree Emerging Markets Dividend Index include: (i) payment of at least $5 million in cash dividends on common shares in the annual cycle prior to the annual Index rebalance;
(ii) market capitalization of at least $200 million as of the Index rebalance; (iii) average daily trading volume of at least $200,000 for each of the six months preceding the Index rebalance;
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
71
|
|
(iv) incorporation within one of 18 emerging market nations (Argentina, Brazil, Chile, China, Czech Republic, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Philippines, Poland, Russia,
South Africa, Taiwan, Thailand, and Turkey); and (v) trading of at least 250,000 shares per month for each of the six months preceding the Index rebalance. Companies are weighted in the Index based on annual cash dividends paid. The maximum
weight of any one sector and any one country in the Index, at the time of the Indexs annual rebalance, is capped at 25%. In response to market conditions, sector and country weights may fluctuate above 25% between annual Index rebalance dates.
WisdomTree Investments, Inc., as index provider, currently uses Standard & Poors Global Industry Classification Standards
(S&P GICS) to define companies in each sector. The following sectors are included in the Index: consumer discretionary, consumer staples, energy, financials, health care, industrials, information technology, materials,
telecommunication services, and utilities. A sector is comprised of multiple industries. For example, the energy sector is comprised of companies in, among others, the natural gas, oil and petroleum industries.
Under normal circumstances, at least 95% of the Funds total assets (exclusive of collateral held from securities lending) will be invested in the
component securities of the Index. WisdomTree Asset Management, Inc. expects that, over time, the correlation between the Funds performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent the Funds Index concentrates (
i.e.
, holds 25% or more of its total assets) in the securities of a particular industry or group
of industries, the Fund will concentrate its investments to approximately the same extent as its Index.
Principal Risks of Investing in
the Fund
You can lose money on your investment in the Fund. The Fund is subject to the risks described below. Some or all of these risks
may adversely affect the Funds net asset value per share (NAV), trading price, yield, total return and/or its ability to meet its objectives. For more information about the risks of investing in the Fund, see the section in the
Funds prospectus titled Additional Investment Objective, Strategy and Risk Information.
n
|
|
Investment Risk.
As with all investments, an investment in the Fund is subject to investment risk. Investors in the Fund could lose money,
including the possible loss of the entire principal amount of an investment, over short or long periods of time.
|
n
|
|
Market Risk.
The trading prices of equity securities, fixed income securities, currencies, commodities and other instruments fluctuate in
response to a variety of factors. The Funds NAV and market price may fluctuate significantly in response to these and other factors. As a result, an investor could lose money over short or long periods of time.
|
n
|
|
Shares of the Fund May Trade at Prices Other Than NAV.
As with all exchange-traded funds (ETFs), Fund shares may be bought and sold
in the secondary market at market prices. Although it is expected that the market price of the shares of the Fund will approximate the Funds NAV, there may be times when the market price of the shares is more than the NAV intra-day (premium)
or less than the NAV intra-day (discount). This risk is heightened in times of market volatility or periods of steep market declines.
|
n
|
|
Capital Controls Risk.
Economic conditions, such as volatile currency exchange rates and interest rates, political events and other conditions
may, without prior warning, lead to foreign government intervention and the imposition of capital controls. Capital controls include the prohibition of, or restrictions on, the ability to transfer currency, securities or other assets.
Capital controls may impact the ability of the Fund to buy, sell or otherwise transfer securities or currency, adversely affect the trading market and price for shares of the Fund, and cause the Fund to decline in value.
|
n
|
|
Cash Redemption Risk.
The Funds investment strategy will require it to redeem shares for cash or to otherwise include cash as part of its
redemption proceeds. The Fund may be required to sell or unwind portfolio investments in order to obtain the cash needed to distribute redemption proceeds. This may cause the Fund to recognize a capital gain that it might not have recognized if it
had made a redemption in-kind. As a result, the Fund may pay out higher annual capital gain distributions than if the in-kind redemption process was used.
|
n
|
|
Currency Exchange Rate Risk.
The Fund may invest a relatively large percentage of its assets in investments denominated in non-U.S. currencies
or in securities that provide exposure to such currencies. Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of the Funds investment and the value of your Fund shares. Currency exchange
rates can be very volatile and can change quickly and unpredictably. As a result, the value of an investment in the Fund may change quickly and without warning and you may lose money.
|
n
|
|
Emerging Markets Risk.
The Fund invests primarily in companies organized in emerging market nations. Investments in securities and instruments
traded in developing or emerging markets, or that provide exposure to such securities or markets, can involve additional risks relating to political, economic, or regulatory conditions not associated with investments in U.S. securities and
instruments or investments in more developed international markets. Such conditions may impact the ability of the Fund to buy, sell or otherwise transfer securities, adversely affect the trading market and price for Fund shares and cause the Fund to
decline in value.
|
|
|
|
72
|
|
WisdomTree Trust
Prospectus
|
n
|
|
Financial Sector Risk.
The Fund may invest in companies in the financial sector, and therefore the performance of the Fund could be negatively
impacted by events affecting this sector. This sector can be significantly affected by changes in interest rates, government regulation, the rate of defaults on corporate, consumer and government debt, the availability and cost of capital, and
fallout from the housing and sub-prime mortgage crisis.
|
n
|
|
Fiscal Policy Risk.
Any repeal of or failure to extend the current U.S. federal tax treatment of qualified dividend income could make certain
dividend-paying securities less appealing to investors and could have a negative impact on the performance of the Fund.
|
n
|
|
Foreign Securities Risk.
Investments in non-U.S. securities involve certain risks that may not be present with investments in U.S. securities.
For example, investments in non-U.S. securities may be subject to risk of loss due to foreign currency fluctuations or to political or economic instability. Investments in non-U.S. securities also may be subject to withholding or other taxes and may
be subject to additional trading, settlement, custodial, and operational risks. These and other factors can make investments in the Fund more volatile and potentially less liquid than other types of investments.
|
n
|
|
Geographic Investment Risk.
To the extent the Fund invests a significant portion of its assets in the securities of companies of a single
country or region, it is more likely to be impacted by events or conditions affecting that country or region. The Fund currently invests a significant portion of its assets in companies organized in Taiwan.
|
n
|
|
Industrial Investing.
The Fund may invest in companies in the industrial sector. The industrial sector can be significantly affected by, among
other things, worldwide economy growth, supply and demand for specific products and services, rapid technological developments, and government regulation.
|
n
|
|
Mid-Capitalization Investing.
The Fund may invest in the securities of mid-capitalization companies. As a result, the Funds performance
may be adversely affected if securities of mid-capitalization companies underperform securities of other capitalization ranges or the market as a whole. Securities of smaller companies are often more vulnerable to market volatility than securities
of larger companies.
|
n
|
|
Non-Diversification Risk.
Although the Fund intends to invest in a variety of securities and instruments, the Fund will be considered to be
non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. As a result, the Fund may be more exposed to the risks associated with and
developments affecting an individual issuer or a smaller number of issuers than a fund that invests more widely. This may increase the Funds volatility and cause the performance of a relatively smaller number of issuers to have a greater
impact on the Funds performance.
|
n
|
|
Small-Capitalization Investing.
The Fund invests primarily in securities of small-capitalization companies. As a result, the Fund may be more
volatile than funds that invest in larger, more established companies. The securities of small-capitalization companies generally trade in lower volumes and are subject to greater and more unpredictable price changes than larger capitalization
stocks or the stock market as a whole. Small-capitalization companies may be particularly sensitive to changes in interest rates, government regulation, borrowing costs and earnings.
|
Fund Performance
Historical Fund
performance, which varies over time, can provide an indication of the risks of investing in the Fund. The bar chart that follows shows the annual total returns of the Fund for each full calendar year since the Fund commenced operations. The table
that follows the bar chart shows the Funds average annual total returns, both before and after taxes. This table also shows how the Funds performance compares to the WisdomTree Emerging Markets SmallCap Dividend Index and that of a
relevant broad-based securities index. Index returns do not reflect deductions for fees, expenses or taxes. All returns assume reinvestment of dividends and distributions. The Funds past performance (before and after taxes) is not necessarily
an indication of how the Fund will perform in the future.
The Funds year-to-date total return as of June 29, 2012 was 6.08%.
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
73
|
|
Best and Worst Quarter Returns (for the period reflected in the bar chart above)
|
|
|
|
|
|
|
|
|
|
|
Return
|
|
|
Quarter/Year
|
|
Highest
Return
|
|
|
34.32
|
%
|
|
|
2Q/2009
|
|
Lowest
Return
|
|
|
(22.02
|
)%
|
|
|
3Q/2011
|
|
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Your actual after-tax returns will depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts. In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement
period.
Average Annual Total Returns for the periods ending December 31, 2011
|
|
|
|
|
|
|
|
|
WisdomTree Emerging Markets
SmallCap Dividend Fund
|
|
1 Year
|
|
|
Since Inception
(10/30/2007)
|
|
Return Before
Taxes Based on NAV
|
|
|
(20.58
|
)%
|
|
|
(1.76
|
)%
|
Return After
Taxes on Distributions
|
|
|
(21.63
|
)%
|
|
|
(3.00
|
)%
|
Return After
Taxes on Distributions and Sale of Fund Shares
|
|
|
(13.34
|
)%
|
|
|
(2.24
|
)%
|
MSCI Emerging
Markets SmallCap Index (Reflects no deduction for fees, expenses or taxes)
|
|
|
(27.18
|
)%
|
|
|
(6.15
|
)%
|
WisdomTree
Emerging Markets SmallCap Dividend Index (Reflects no deduction for fees, expenses or taxes)
|
|
|
(19.90
|
)%
|
|
|
(0.68
|
)%
|
Management
Investment Adviser and Sub-Adviser
WisdomTree Asset Management, Inc. serves as investment
adviser to the Fund. Mellon Capital Management Corporation serves as sub-adviser to the Fund.
Portfolio Managers
Karen Q. Wong, CFA, a Managing Director, Equity Index Strategies, has been a portfolio manager of the Fund since February 2008.
Richard A. Brown, CFA, a Director, Equity Portfolio Management, has been a portfolio manager of the Fund since February 2008.
Thomas J. Durante, CFA, a Director, Senior Portfolio Manager, Equity, has been a portfolio manager of the Fund since February 2008.
Buying and Selling Fund Shares
The Fund
is an ETF. This means that shares of the Fund are listed on a national securities exchange, such as NYSE Arca, and trade at market prices. Most investors will buy and sell shares of the Fund through brokers. Because Fund shares trade at market
prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount).
The Fund issues and redeems shares
at NAV only in large blocks of shares (Creation Units), which only institutions or large investors may purchase or redeem. Currently, Creation Units generally consist of 100,000 shares, though this may change from time to time. Creation
Units are not expected to consist of less than 50,000 shares. The Fund generally issues and redeems Creation Units in exchange for a portfolio of securities closely approximating the holdings of the Fund and/or a designated amount of U.S. cash.
Tax Information
The Fund
intends to make distributions that may be taxed as ordinary income or capital gains.
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74
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WisdomTree Trust
Prospectus
|
WisdomTree Middle East Dividend Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Middle East Dividend Index.
Fees and Expenses of the Fund
The following table describes the fees and expenses you may pay if you buy and hold shares of the Fund. The fees are expressed as a percentage of the Funds average net assets.
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Shareholder Fees
(fees paid
directly from your investment)
|
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None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
|
|
|
|
Management
Fees
|
|
|
0.88
|
%
|
Distribution
and/or Service (12b-1) Fees
|
|
|
None
|
|
Other
Expenses
|
|
|
0.00
|
%
|
Total Annual Fund Operating Expenses*
|
|
|
0.88
|
%
|
*
|
Expense information in the table has been restated to reflect current fees. On June 29, 2012, shareholders of the Fund approved a new Management Fee of 0.88%.
|
Example
The
following example is intended to help retail investors compare the cost of investing in the Fund with the cost of investing in other funds. It illustrates the hypothetical expenses that such investors would incur over various periods if they were to
invest $10,000 in the Fund for the time periods indicated and then redeem all of the shares at the end of those periods. This example assumes that the Fund provides a return of 5% a year and that operating expenses remain the same. This example does
not include the brokerage commissions that retail investors may pay to buy and sell shares of the Fund. It also does not include transaction fees on purchases and redemptions of Creation Units because these fees will not be imposed on retail
investors. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
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1 Year
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3 Years
|
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5 Years
|
|
|
10 Years
|
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|
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$90
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|
|
|
$281
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|
|
|
$488
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|
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|
$1,084
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Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 37% of the average value of its portfolio, excluding the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Funds capital shares.
Principal Investment Strategies of the Fund
The Fund employs a passive management or indexing investment approach designed to track the performance of the WisdomTree Middle
East Dividend Index. The Fund attempts to invest all, or substantially all, of its assets in the common stocks that make up the Index. The Fund generally uses a Representative Sampling strategy to achieve its investment objective, meaning it
generally will invest in a sample of the securities in the Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Index as a whole.
The WisdomTree Middle East Dividend Index is a fundamentally weighted index that is comprised of companies in the Middle East region that pay regular cash
dividends on shares of common stock. Eligible companies are ranked by market capitalization and the 100 largest companies by market capitalization are selected for inclusion. Eligibility requirements include: (i) incorporation within Bahrain,
Egypt, Kuwait, Jordan, Morocco, Oman, Qatar, or the United Arab Emirates; (ii) payment of at least $5 million in cash dividends on common shares in the annual cycle prior to the annual Index rebalance; (iii) market capitalization of at
least $200 million as of the Index rebalance; (iv) average daily volume of at least $200,000 for each of the six months prior to the Index rebalance; and (v) trading of at least 250,000 shares per month for each of the six months preceding
the Index rebalance. The Middle East Dividend Index is weighted by cash dividends paid. If, at the time of the annual Index rebalance, any country has a weight of over 33% of the Index, the weight of such country shall be reduced to 25% at the
annual Index rebalance. In response to market conditions, country weights may fluctuate above 33% between annual Index rebalance dates.
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WisdomTree Trust
Prospectus
|
|
|
75
|
|
WisdomTree Investments, Inc., as index provider, currently uses Standard & Poors Global
Industry Classification Standards (S&P GICS) to define companies in each sector. The following sectors are included in the Index: consumer discretionary, consumer staples, energy, financials, health care, industrials, information
technology, materials, telecommunication services, and utilities. A sector is comprised of multiple industries. For example, the energy sector is comprised of companies in, among others, the natural gas, oil and petroleum industries.
Under normal circumstances, at least 95% of the Funds total assets (exclusive of collateral held from securities lending) will be invested in the
component securities of the Index. WisdomTree Asset Management, Inc. expects that, over time, the correlation between the Funds performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent the Funds Index concentrates (
i.e.
, holds 25% or more of its total assets) in the securities of a particular industry or group
of industries, the Fund will concentrate its investments to approximately the same extent as its Index.
Principal Risks of Investing in
the Fund
You can lose money on your investment in the Fund. The Fund is subject to the risks described below. Some or all of these risks
may adversely affect the Funds net asset value per share (NAV), trading price, yield, total return and/or its ability to meet its objectives. For more information about the risks of investing in the Fund, see the section in the
Funds prospectus titled Additional Investment Objective, Strategy and Risk Information.
n
|
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Investment Risk.
As with all investments, an investment in the Fund is subject to investment risk. Investors in the Fund could lose money,
including the possible loss of the entire principal amount of an investment, over short or long periods of time.
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n
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Market Risk.
The trading prices of equity securities, fixed income securities, currencies, commodities and other instruments fluctuate in
response to a variety of factors. The Funds NAV and market price may fluctuate significantly in response to these and other factors. As a result, an investor could lose money over short or long periods of time.
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Shares of the Fund May Trade at Prices Other Than NAV.
As with all exchange-traded funds (ETFs), Fund shares may be bought and sold
in the secondary market at market prices. Although it is expected that the market price of the shares of the Fund will approximate the Funds NAV, there may be times when the market price of the shares is more than the NAV intra-day (premium)
or less than the NAV intra-day (discount). This risk is heightened in times of market volatility or periods of steep market declines.
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n
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Capital Controls Risk.
Economic conditions, such as volatile currency exchange rates and interest rates, political events and other conditions
may, without prior warning, lead to foreign government intervention and the imposition of capital controls. Capital controls include the prohibition of, or restrictions on, the ability to transfer currency, securities or other assets.
Capital controls may impact the ability of the Fund to buy, sell or otherwise transfer securities or currency, adversely affect the trading market and price for shares of the Fund, and cause the Fund to decline in value.
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n
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Cash Redemption Risk.
The Funds investment strategy will require it to redeem shares for cash or to otherwise include cash as part of its
redemption proceeds. The Fund may be required to sell or unwind portfolio investments in order to obtain the cash needed to distribute redemption proceeds. This may cause the Fund to recognize a capital gain that it might not have recognized if it
had made a redemption in-kind. As a result, the Fund may pay out higher annual capital gain distributions than if the in-kind redemption process was used.
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n
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Currency Exchange Rate Risk.
The Fund may invest a relatively large percentage of its assets in investments denominated in non-U.S. currencies
or in securities that provide exposure to such currencies. Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of the Funds investment and the value of your Fund shares. Currency exchange
rates can be very volatile and can change quickly and unpredictably. As a result, the value of an investment in the Fund may change quickly and without warning and you may lose money.
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n
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|
Emerging Markets Risk.
The Fund may invest a relatively large percentage of its assets in companies organized in emerging market nations.
Investments in securities and instruments traded in developing or emerging markets, or that provide exposure to such securities or markets, can involve additional risks relating to political, economic, or regulatory conditions not associated with
investments in U.S. securities and instruments or investments in more developed international markets. Such conditions may impact the ability of the Fund to buy, sell or otherwise transfer securities, adversely affect the trading market and price
for Fund shares and cause the Fund to decline in value.
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n
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Financial Sector Risk.
The Fund may invest in companies in the financial sector, and therefore the performance of the Fund could be negatively
impacted by events affecting this sector. This sector can be significantly affected by changes in interest rates, government regulation, the rate of defaults on corporate, consumer and government debt, the availability and cost of capital, and
fallout from the housing and sub-prime mortgage crisis.
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|
76
|
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WisdomTree Trust
Prospectus
|
n
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|
Fiscal Policy Risk.
Any repeal of or failure to extend the current U.S. federal tax treatment of qualified dividend income could make certain
dividend-paying securities less appealing to investors and could have a negative impact on the performance of the Fund.
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n
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|
Foreign Securities Risk.
Investments in non-U.S. securities involve certain risks that may not be present with investments in U.S. securities.
For example, investments in non-U.S. securities may be subject to risk of loss due to foreign currency fluctuations or to political or economic instability. Investments in non-U.S. securities also may be subject to withholding or other taxes and may
be subject to additional trading, settlement, custodial, and operational risks. These and other factors can make investments in the Fund more volatile and potentially less liquid than other types of investments.
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n
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Investment in the Middle East Region.
The Fund invests primarily in the securities of companies in Middle Eastern countries. Certain Middle
Eastern markets are only in the earliest stages of development and may be considered frontier markets. Financial markets in the Middle East generally are less liquid and more volatile than other markets, including markets in developing
and emerging economies. There is a high concentration of market capitalization and trading volume in a small number of issuers representing a limited number of industries. Securities may have limited marketability and be subject to erratic price
movements. Certain economies in the Middle East depend to a significant degree upon exports of primary commodities such as oil. A sustained decrease in commodity prices could have a significant negative impact on all aspects of the economy in the
region. Middle Eastern governments have exercised and continue to exercise substantial influence over many aspects of the private sector. In certain cases, the government owns or controls many companies, including the largest in the country.
Accordingly, governmental actions in the future could have a significant effect on economic conditions in Middle Eastern countries. This could affect private sector companies and the Fund, as well as the value of securities in the Funds
portfolio. Further, substantial limitations may exist in certain Middle Eastern countries with respect to the Funds ability to protect its legal interests and its ability to repatriate its investment, investment income or capital gains. The
Fund could be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of capital, as well as by the application to the Fund of any restrictions on investment. Procedures concerning transaction
settlement and dividend collection may be less reliable than in developed markets and larger emerging markets. Countries in the Middle East have been, and may continue to be, impacted by political instability, war, terrorist activities and
religious, ethnic and/or socioeconomic unrest. These and other factors make investing in frontier market countries significantly riskier than investing in developed market or emerging market countries. The Fund currently invests a significant
portion of its assets in the securities of companies in the United Arab Emirates, Kuwait and Qatar.
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n
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Non-Diversification Risk.
Although the Fund intends to invest in a variety of securities and instruments, the Fund will be considered to be
non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. As a result, the Fund may be more exposed to the risks associated with and
developments affecting an individual issuer or a smaller number of issuers than a fund that invests more widely. This may increase the Funds volatility and cause the performance of a relatively smaller number of issuers to have a greater
impact on the Funds performance.
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Small-Capitalization Investing.
The Fund invests a relatively large percentage of its assets in securities of small-capitalization companies. As
a result, the Fund may be more volatile than funds that invest in larger, more established companies. The securities of small-capitalization companies generally trade in lower volumes and are subject to greater and more unpredictable price
changes than larger capitalization stocks or the stock market as a whole. Small-capitalization companies may be particularly sensitive to changes in interest rates, government regulation, borrowing costs and earnings.
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n
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Telecommunications Investing.
The Fund may invest in companies in the telecommunications industry. The telecommunications industry in the Middle
East can be significantly affected by, among other things, commodity prices, government intervention and regulation, technological innovations that make existing products and services obsolete, and consumer demand.
|
Fund Performance
Historical Fund
performance, which varies over time, can provide an indication of the risks of investing in the Fund. The bar chart that follows shows the annual total returns of the Fund for each full calendar year since the Fund commenced operations. The table
that follows the bar chart shows the Funds average annual total returns, both before and after taxes. This table also shows how the Funds performance compares to the WisdomTree Middle East Dividend Index and that of a relevant
broad-based securities index. Index returns do not reflect deductions for fees, expenses or taxes. All returns assume reinvestment of dividends and distributions. The Funds past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
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|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
77
|
|
The Funds year-to-date total return as of June 29, 2012 was (1.42)%.
Best and Worst Quarter Returns (for the period reflected in the bar chart above)
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|
|
|
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|
|
|
|
Return
|
|
|
Quarter/Year
|
|
Highest
Return
|
|
|
19.30
|
%
|
|
|
2Q/2009
|
|
Lowest
Return
|
|
|
(11.85
|
)%
|
|
|
1Q/2009
|
|
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Your actual after-tax returns will depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts. In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement
period.
Average Annual Total Returns for the periods ending December 31, 2011
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|
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|
WisdomTree Middle East Dividend
Fund
|
|
1 Year
|
|
|
Since Inception
(7/16/2008)
|
|
Return Before
Taxes Based on NAV
|
|
|
(8.44
|
)%
|
|
|
(10.53
|
)%
|
Return After
Taxes on Distributions
|
|
|
(10.05
|
)%
|
|
|
(11.69
|
)%
|
Return After
Taxes on Distributions and Sale of Fund Shares
|
|
|
(5.42
|
)%
|
|
|
(9.38
|
)%
|
MSCI Arabian
Markets ex-Saudi Arabia Index (Reflects no deduction for fees, expenses or taxes)
|
|
|
(19.06
|
)%
|
|
|
(16.28
|
)%
|
WisdomTree
Middle East Dividend Index (Reflects no deduction for fees, expenses or taxes)
|
|
|
(8.34
|
)%
|
|
|
(8.44
|
)%
|
Management
Investment Adviser and Sub-Adviser
WisdomTree Asset Management, Inc. serves as investment
adviser to the Fund. Mellon Capital Management Corporation serves as sub-adviser to the Fund.
Portfolio Managers
Karen Q. Wong, CFA, a Managing Director, Equity Index Strategies, has been a portfolio manager of the Fund since July 2008.
Richard A. Brown, CFA, a Director, Equity Portfolio Management, has been a portfolio manager of the Fund since July 2008.
Thomas J. Durante, CFA, a Director, Senior Portfolio Manager, Equity, has been a portfolio manager of the Fund since July 2008.
Buying and Selling Fund Shares
The Fund
is an ETF. This means that shares of the Fund are listed on a national securities exchange, such as NYSE Arca, and trade at market prices. Most investors will buy and sell shares of the Fund through brokers. Because Fund shares trade at market
prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount).
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78
|
|
WisdomTree Trust
Prospectus
|
The Fund issues and redeems shares at NAV only in large blocks of shares (Creation Units), which
only institutions or large investors may purchase or redeem. Currently, Creation Units generally consist of 100,000 shares, though this may change from time to time. Creation Units are not expected to consist of less than 50,000 shares. The Fund
generally issues and redeems Creation Units solely in exchange for an amount of cash.
Tax Information
The Fund intends to make distributions that may be taxed as ordinary income or capital gains.
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|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
79
|
|
WisdomTree India Earnings Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree India Earnings Index.
Fees and Expenses of the Fund
The following table describes the fees and expenses you may pay if you buy and hold shares of the Fund. The fees are expressed as a percentage of the Funds average net assets.
|
|
|
|
|
Shareholder Fees
(fees paid
directly from your investment)
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
|
|
|
|
Management
Fees
|
|
|
0.83
|
%
|
Distribution
and/or Service (12b-1) Fees
|
|
|
None
|
|
Other
Expenses
|
|
|
0.00
|
%
|
Total Annual Fund Operating Expenses*
|
|
|
0.83
|
%
|
*
|
Expense information in the table has been restated to reflect current fees. On August 8, 2012, shareholders of the Fund approved a new Management Fee of 0.83%.
|
Example
The
following example is intended to help retail investors compare the cost of investing in the Fund with the cost of investing in other funds. It illustrates the hypothetical expenses that such investors would incur over various periods if they were to
invest $10,000 in the Fund for the time periods indicated and then redeem all of the shares at the end of those periods. This example assumes that the Fund provides a return of 5% a year and that operating expenses remain the same. This example does
not include the brokerage commissions that retail investors may pay to buy and sell shares of the Fund. It also does not include transaction fees on purchases and redemptions of Creation Units because these fees will not be imposed on retail
investors. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
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1 Year
|
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3 Years
|
|
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5 Years
|
|
|
10 Years
|
|
|
|
|
$85
|
|
|
|
$265
|
|
|
|
$460
|
|
|
|
$1,025
|
|
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 32% of the average value of its portfolio, excluding the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Funds capital shares.
Principal Investment Strategies of the Fund
The Fund employs a passive management or indexing investment approach designed to track the performance of the WisdomTree India
Earnings Index. The Fund attempts to invest all, or substantially all, of its assets in the common stocks that make up the Index. The Fund generally uses a Representative Sampling strategy to achieve its investment objective, meaning it generally
will invest in a sample of the securities in the Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Index as a whole.
The WisdomTree India Earnings Index is a fundamentally weighted index that is comprised of companies incorporated and traded in India that are profitable and that are eligible to be purchased by foreign
investors as of the annual Index rebalance. Eligibility requirements include: (i) incorporation within India; (ii) listing on a major Indian stock exchange; (iii) earnings of at least $5 million during the fiscal year prior to the
Index rebalance; (iv) market capitalization of at least $200 million as of the Index rebalance; (v) trading of at least 250,000 shares per month for each of the six months prior to the Index rebalance; (vi) average daily dollar volume
of at least $200,000 for each of the six months preceding the Index rebalance; and (vii) price to earnings ratio of at least 2 as of the Index rebalance.
The initial weight of a component in the Index at the annual rebalance is based on reported net income in the most recent fiscal year prior to the annual Index rebalance. The reported net income number is
then multiplied by a second factor developed by Standard & Poors called the Investability Weighting Factor (IWF). The IWF is used to scale the earnings generated by each company by restrictions on shares
available to be purchased. The product of the reported net income and
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80
|
|
WisdomTree Trust
Prospectus
|
IWF is known at the Earnings Factor. Companies are weighted by the proportion of each individual earnings factor relative to the sum of all earnings factors within the WisdomTree
India Earnings Index. The maximum weight of any one sector in the Index, at the time of the Indexs annual rebalance, is capped at 25%. In response to market conditions, sector weights may fluctuate above 25% between annual Index rebalance
dates.
WisdomTree Investments, Inc., as index provider, currently uses Standard & Poors Global Industry Classification
Standards (S&P GICS) to define companies in each sector. The following sectors are included in the Index: consumer discretionary, consumer staples, energy, financials, health care, industrials, information technology, materials,
telecommunication services, and utilities. A sector is comprised of multiple industries. For example, the energy sector is comprised of companies in, among others, the natural gas, oil and petroleum industries.
Under normal circumstances, at least 95% of the Funds total assets (exclusive of collateral held from securities lending) will be invested in the
component securities of the Index. WisdomTree Asset Management, Inc. expects that, over time, the correlation between the Funds performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent the Funds Index concentrates (
i.e.
, holds 25% or more of its total assets) in the securities of a particular industry or group
of industries, the Fund will concentrate its investments to approximately the same extent as its Index.
Principal Risks of Investing in
the Fund
You can lose money on your investment in the Fund. The Fund is subject to the risks described below. Some or all of these risks
may adversely affect the Funds net asset value per share (NAV), trading price, yield, total return and/or its ability to meet its objectives. For more information about the risks of investing in the Fund, see the section in the
Funds prospectus titled Additional Investment Objective, Strategy and Risk Information.
n
|
|
Investment Risk.
As with all investments, an investment in the Fund is subject to investment risk. Investors in the Fund could lose money,
including the possible loss of the entire principal amount of an investment, over short or long periods of time.
|
n
|
|
Market Risk.
The trading prices of equity securities, fixed income securities, currencies, commodities and other instruments fluctuate in
response to a variety of factors. The Funds NAV and market price may fluctuate significantly in response to these and other factors. As a result, an investor could lose money over short or long periods of time.
|
n
|
|
Shares of the Fund May Trade at Prices Other Than NAV.
As with all exchange-traded funds (ETFs), Fund shares may be bought and sold
in the secondary market at market prices. Although it is expected that the market price of the shares of the Fund will approximate the Funds NAV, there may be times when the market price of the shares is more than the NAV intra-day (premium)
or less than the NAV intra-day (discount). This risk is heightened in times of market volatility or periods of steep market declines.
|
n
|
|
Capital Controls Risk.
Economic conditions, such as volatile currency exchange rates and interest rates, political events and other conditions
may, without prior warning, lead to foreign government intervention and the imposition of capital controls. Capital controls include the prohibition of, or restrictions on, the ability to transfer currency, securities or other assets.
Capital controls may impact the ability of the Fund to buy, sell or otherwise transfer securities or currency, adversely affect the trading market and price for shares of the Fund, and cause the Fund to decline in value.
|
n
|
|
Cash Redemption Risk.
The Funds investment strategy will require it to redeem shares for cash or to otherwise include cash as part of its
redemption proceeds. The Fund may be required to sell or unwind portfolio investments in order to obtain the cash needed to distribute redemption proceeds. This may cause the Fund to recognize a capital gain that it might not have recognized if it
had made a redemption in-kind. As a result, the Fund may pay out higher annual capital gain distributions than if the in-kind redemption process was used.
|
n
|
|
Currency Exchange Rate Risk.
The Fund may invest a relatively large percentage of its assets in investments denominated in India rupees or in
securities that provide exposure to Indian rupees. Changes in currency exchange rates and the relative value of the Indian rupee will affect the value of the Funds investment and the value of your Fund shares. Currency exchange rates can be
very volatile and can change quickly and unpredictably. As a result, the value of an investment in the Fund may change quickly and without warning and you may lose money.
|
n
|
|
Emerging Markets Risk.
The Fund invests primarily in companies organized in an emerging market nation. Investments in securities and instruments
traded in developing or emerging markets, or that provide exposure to such securities or markets, can involve additional risks relating to political, economic, or regulatory conditions not associated with investments in U.S. securities and
instruments or investments in more developed international markets. Such conditions may impact the ability of the Fund to buy, sell or otherwise transfer securities, adversely affect the trading market and price for Fund shares and cause the Fund to
decline in value.
|
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
81
|
|
n
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Energy Investing.
The Fund may invest in companies in the energy sector. The energy sector can be significantly affected by, among other things:
economic growth, worldwide demand, political instability in the Middle East, and volatile oil prices.
|
n
|
|
Financial Sector Risk.
The Fund may invest in companies in the financial sector, and therefore the performance of the Fund could be negatively
impacted by events affecting this sector. This sector can be significantly affected by changes in interest rates, government regulation, the rate of defaults on corporate, consumer and government debt, the availability and cost of capital, and
fallout from the housing and sub-prime mortgage crisis.
|
n
|
|
Fiscal Policy Risk.
Any repeal of or failure to extend the current U.S. federal tax treatment of qualified dividend income could make certain
dividend-paying securities less appealing to investors and could have a negative impact on the performance of the Fund.
|
n
|
|
Foreign Securities Risk.
Investments in non-U.S. securities involve certain risks that may not be present with investments in U.S. securities.
For example, investments in non-U.S. securities may be subject to risk of loss due to foreign currency fluctuations or to political or economic instability. Investments in non-U.S. securities also may be subject to withholding or other taxes and may
be subject to additional trading, settlement, custodial, and operational risks. These and other factors can make investments in the Fund more volatile and potentially less liquid than other types of investments.
|
n
|
|
Geographic Concentration Risk (India).
Because the Fund invests primarily in the securities of companies in a single country, it will be
impacted by events or conditions affecting that country. Political and economic conditions and changes in regulatory, tax, or economic policy in India could significantly affect the market in that country and in surrounding or related countries and
have a negative impact on the Funds performance. The Indian economy may differ favorably or unfavorably from the U.S. economy in such respects as the rate of growth of gross domestic product, the rate of inflation, capital reinvestment,
resource self-sufficiency and balance of payments position. The Indian government has exercised and continues to exercise significant influence over many aspects of the economy, and the number of public sector enterprises in India is substantial.
Accordingly, Indian government actions in the future could have a significant effect on the Indian economy.
|
Despite recent downturns, the Indian economy has experienced generally sustained growth during the last several years. There are no
guarantees this will continue. While the Indian government has implemented economic structural reforms with the objective of liberalizing Indias exchange and trade policies, reducing the fiscal deficit, controlling inflation, promoting a sound
monetary policy, reforming the financial sector, and placing greater reliance on market mechanisms to direct economic activity, there can be no assurance that these policies will continue or that the economic recovery will be sustained. Religious
and border disputes persist in India. In addition, India has experienced civil unrest and hostilities with neighboring countries such as Pakistan. The Indian government has confronted separatist movements in several Indian states. Investment and
repatriation restrictions in India may impact the ability of the Fund to track its Index. Each of the factors described above could have a negative impact on the Funds performance and increase the volatility of the Fund.
n
|
|
Large-Capitalization Investing.
The Fund may invest a relatively large percentage of its assets in the securities of large-capitalization
companies. As a result, the Funds performance may be adversely affected if securities of large-capitalization companies underperform securities of smaller-capitalization companies or the market as a whole. The securities of
large-capitalization companies may be relatively mature compared to smaller companies and therefore subject to slower growth during times of economic expansion.
|
n
|
|
Mid-Capitalization Investing.
The Fund may invest in the securities of mid-capitalization companies. As a result, the Funds performance
may be adversely affected if securities of mid-capitalization companies underperform securities of other capitalization ranges or the market as a whole. Securities of smaller companies are often more vulnerable to market volatility than securities
of larger companies.
|
n
|
|
Non-Diversification Risk.
Although the Fund intends to invest in a variety of securities and instruments, the Fund will be considered to be
non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. As a result, the Fund may be more exposed to the risks associated with and
developments affecting an individual issuer or a smaller number of issuers than a fund that invests more widely. This may increase the Funds volatility and cause the performance of a relatively smaller number of issuers to have a greater
impact on the Funds performance.
|
n
|
|
Small-Capitalization Investing.
The Fund may invest in the securities of small-capitalization companies. As a result, the Fund may be more
volatile than funds that invest in larger, more established companies. The securities of small-capitalization companies generally trade in lower volumes and are subject to greater and more unpredictable price changes than larger capitalization
stocks or the stock market as a whole. Small-capitalization companies may be particularly sensitive to changes in interest rates, government regulation, borrowing costs and earnings.
|
|
|
|
82
|
|
WisdomTree Trust
Prospectus
|
Fund Performance
Historical Fund performance, which varies over time, can provide an indication of the risks of investing in the Fund. The bar chart that follows shows the annual total returns of the Fund for each full
calendar year since the Fund commenced operations. The table that follows the bar chart shows the Funds average annual total returns, both before and after taxes. This table also shows how the Funds performance compares to the WisdomTree
India Earnings Index and that of a relevant broad-based securities index. Index returns do not reflect deductions for fees, expenses or taxes. All returns assume reinvestment of dividends and distributions. The Funds past performance (before
and after taxes) is not necessarily an indication of how the Fund will perform in the future.
The Funds year-to-date total return as of June 29, 2012 was 9.02%.
Best and Worst Quarter Returns (for the period reflected in the bar chart above)
|
|
|
|
|
|
|
|
|
|
|
Return
|
|
|
Quarter/Year
|
|
Highest
Return
|
|
|
57.62
|
%
|
|
|
2Q/2009
|
|
Lowest
Return
|
|
|
(20.38
|
)%
|
|
|
3Q/2011
|
|
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Your actual after-tax returns will depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts. In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement
period.
Average Annual Total Returns for the periods ending December 31, 2011
|
|
|
|
|
|
|
|
|
WisdomTree India Earnings
Fund
|
|
1 Year
|
|
|
Since Inception
(2/22/2008)
|
|
Return Before
Taxes Based on NAV
|
|
|
(40.60
|
)%
|
|
|
(10.87
|
)%
|
Return After
Taxes on Distributions
|
|
|
(40.77
|
)%
|
|
|
(11.08
|
)%
|
Return After
Taxes on Distributions and Sale of Fund Shares
|
|
|
(26.37
|
)%
|
|
|
(9.09
|
)%
|
MSCI India
Index (Reflects no deduction for fees, expenses or taxes)
|
|
|
(37.17
|
)%
|
|
|
(10.10
|
)%
|
WisdomTree
India Earnings Index (Reflects no deduction for fees, expenses or taxes)
|
|
|
(39.87
|
)%
|
|
|
(9.52
|
)%
|
Management
Investment Adviser and Sub-Adviser
WisdomTree Asset Management, Inc. serves as investment
adviser to the Fund. Mellon Capital Management Corporation serves as sub-adviser to the Fund.
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
83
|
|
Portfolio Managers
Karen Q. Wong, CFA, a Managing Director, Equity Index Strategies, has been a portfolio manager of the Fund since February 2008.
Richard A. Brown, CFA, a Director, Equity Portfolio Management, has been a portfolio manager of the Fund since February 2008.
Thomas J. Durante, CFA, a Director, Senior Portfolio Manager, Equity, has been a portfolio manager of the Fund since February 2008.
Buying and Selling Fund Shares
The Fund is an ETF. This means that shares of the Fund are
listed on a national securities exchange, such as NYSE Arca, and trade at market prices. Most investors will buy and sell shares of the Fund through brokers. Because Fund shares trade at market prices rather than NAV, shares may trade at a price
greater than NAV (premium) or less than NAV (discount).
The Fund issues and redeems shares at NAV only in large blocks of shares
(Creation Units), which only institutions or large investors may purchase or redeem. Currently, Creation Units generally consist of 100,000 shares, though this may change from time to time. Creation Units are not expected to consist of
less than 50,000 shares. The Fund generally issues and redeems Creation Units solely in exchange for an amount of cash.
Tax Information
The Fund intends to make distributions that may be taxed as ordinary income or capital gains.
|
|
|
84
|
|
WisdomTree Trust
Prospectus
|
WisdomTree Commodity Country Equity Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Commodity Country Equity Index.
Fees and Expenses of the Fund
The following table describes the fees and expenses you may pay if you buy and hold shares of the Fund. The fees are expressed as a percentage of the Funds average net assets.
|
|
|
|
|
Shareholder Fees
(fees paid
directly from your investment)
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
|
|
|
|
Management
Fees
|
|
|
0.58
|
%
|
Distribution
and/or Service (12b-1) Fees
|
|
|
None
|
|
Other
Expenses
|
|
|
0.00
|
%
|
Total Annual Fund Operating Expenses
|
|
|
0.58
|
%
|
Example
The following example is intended to help retail investors compare the cost of investing in the Fund with the cost of investing in other funds. It
illustrates the hypothetical expenses that such investors would incur over various periods if they were to invest $10,000 in the Fund for the time periods indicated and then redeem all of the shares at the end of those periods. This example assumes
that the Fund provides a return of 5% a year and that operating expenses remain the same. This example does not include the brokerage commission that retail investors may pay to buy and sell shares of the Fund. It also does not include the
transaction fees on purchases and redemptions of Creation Units because these fees will not be imposed on retail investors. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
|
3 Years
|
|
|
5 Years
|
|
|
10 Years
|
|
|
|
|
$59
|
|
|
|
$186
|
|
|
|
$324
|
|
|
|
$726
|
|
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 116% of the average value of its portfolio, excluding the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Funds capital shares.
Principal Investment Strategies of the Fund
The Fund employs a passive management or indexing investment approach designed to track the performance of the WisdomTree
Commodity Country Equity Index. The Fund attempts to invest all, or substantially all, of its assets in the common stocks that make up the Index. The Fund generally uses a Representative Sampling strategy to achieve its investment objective, meaning
it generally will invest in a sample of the securities in the Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Index as a whole.
The WisdomTree Commodity Country Equity Index is a fundamentally weighted index that is comprised of dividend-paying companies from commodity
countries selected from the WisdomTree Global Dividend Index. Commodity Countries are defined for these purposes as those countries whose economic success is commonly identified with the production and export of commodities (such as precious
metals, oil, agricultural products or other raw materials). The WisdomTree Commodity Country Index is comprised of companies from the following eight commodity countries: Australia, Brazil, Canada, Chile, New Zealand, Norway, Russia, and South
Africa. Each country has an allocation of approximately 12.5% within the Index as of the annual Index rebalance. Companies are weighted within each country allocation based on annual cash dividends paid. A maximum of 20 companies are eligible to be
included from any individual country. The maximum weight of any one sector and any one country in the Index, at the time of the Indexs annual rebalance, is capped at 25%. In response to market conditions, sector and country weights may
fluctuate above 25% between annual Index rebalance dates.
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
85
|
|
WisdomTree Investments, Inc., as index provider, currently uses Standard & Poors Global
Industry Classification Standards (S&P GICS) to define companies in each sector. The following sectors are included in the Index: consumer discretionary, consumer staples, energy, financials, health care, industrials, information
technology, materials, telecommunication services, and utilities. A sector is comprised of multiple industries. For example, the energy sector is comprised of companies in, among others, the natural gas, oil and petroleum industries.
Under normal circumstances, at least 95% of the Funds total assets (exclusive of collateral held from securities lending) will be invested in the
component securities of the Index. WisdomTree Asset Management, Inc. expects that, over time, the correlation between the Funds performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent the Funds Index concentrates (
i.e.
, holds 25% or more of its total assets) in the securities of a particular industry or group
of industries, the Fund will concentrate its investments to approximately the same extent as its Index.
Principal Risks of Investing in
the Fund
You can lose money on your investment in the Fund. The Fund is subject to the risks described below. Some or all of these risks
may adversely affect the Funds net asset value per share (NAV), trading price, yield, total return and/or its ability to meet its objectives. For more information about the risks of investing in the Fund, see the section in the
Funds prospectus titled Additional Investment Objective, Strategy and Risk Information.
n
|
|
Investment Risk.
As with all investments, an investment in the Fund is subject to investment risk. Investors in the Fund could lose money,
including the possible loss of the entire principal amount of an investment, over short or long periods of time.
|
n
|
|
Market Risk.
The trading prices of equity securities, fixed income securities, currencies, commodities and other instruments fluctuate in
response to a variety of factors. The Funds NAV and market price may fluctuate significantly in response to these and other factors. As a result, an investor could lose money over short or long periods of time.
|
n
|
|
Shares of the Fund May Trade at Prices Other Than NAV.
As with all exchange-traded funds (ETFs), Fund shares may be bought and sold
in the secondary market at market prices. Although it is expected that the market price of the shares of the Fund will approximate the Funds NAV, there may be times when the market price of the shares is more than the NAV intra-day (premium)
or less than the NAV intra-day (discount). This risk is heightened in times of market volatility or periods of steep market declines.
|
n
|
|
Capital Controls Risk.
Economic conditions, such as volatile currency exchange rates and interest rates, political events and other conditions
may, without prior warning, lead to foreign government intervention and the imposition of capital controls. Capital controls include the prohibition of, or restrictions on, the ability to transfer currency, securities or other assets.
Capital controls may impact the ability of the Fund to buy, sell or otherwise transfer securities or currency, adversely affect the trading market and price for shares of the Fund, and cause the Fund to decline in value.
|
n
|
|
Cash Redemption Risk.
The Funds investment strategy will require it to redeem shares for cash or to otherwise include cash as part of its
redemption proceeds. The Fund may be required to sell or unwind portfolio investments in order to obtain the cash needed to distribute redemption proceeds. This may cause the Fund to recognize a capital gain that it might not have recognized if it
had made a redemption in-kind. As a result, the Fund may pay out higher annual capital gain distributions than if the in-kind redemption process was used.
|
n
|
|
Commodity Country Risk.
The Fund invests primarily in investments designed to provide exposure to equity securities of selected
commodity-producing countries. As the demand for, or price of, such commodities increases, money tends to flow into the country. This generally lifts the countrys economic prospects and supports the value of such equity securities. Conversely,
declines in the demand for, or price of, such commodities historically have contributed to declines in the economies of such countries and the value of such securities. Such declines may occur quickly and without warning and may negatively impact
the value of the Fund and your investment.
|
n
|
|
Currency Exchange Rate Risk.
The Fund may invest a relatively large percentage of its assets in investments denominated in non-U.S. currencies
or in securities that provide exposure to such currencies. Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of the Funds investment and the value of your Fund shares. Currency exchange
rates can be very volatile and can change quickly and unpredictably. As a result, the value of an investment in the Fund may change quickly and without warning and you may lose money.
|
n
|
|
Emerging Markets Risk.
The Fund may invest in companies organized in emerging market nations. Investments in securities and instruments traded
in developing or emerging markets, or that provide exposure to such securities or markets, can involve additional risks relating to political, economic, or regulatory conditions not associated with investments in U.S. securities and instruments or
investments in more developed international markets. Such conditions may impact the ability of the Fund to buy, sell or otherwise transfer securities, adversely affect the trading market and price for Fund shares and cause the Fund to decline in
value.
|
|
|
|
86
|
|
WisdomTree Trust
Prospectus
|
n
|
|
Energy Investing.
The Fund may invest in companies in the energy sector. The energy sector can be significantly affected by, among other things:
economic growth, worldwide demand, political instability in the Middle East, and volatile oil prices.
|
n
|
|
Financial Sector Risk.
The Fund may invest in companies in the financial sector, and therefore the performance of the Fund could be negatively
impacted by events affecting this sector. This sector can be significantly affected by changes in interest rates, government regulation, the rate of defaults on corporate, consumer and government debt, the availability and cost of capital, and
fallout from the housing and sub-prime mortgage crisis.
|
n
|
|
Fiscal Policy Risk.
Any repeal of or failure to extend the current U.S. federal tax treatment of qualified dividend income could make certain
dividend-paying securities less appealing to investors and could have a negative impact on the performance of the Fund.
|
n
|
|
Foreign Securities Risk.
Investments in non-U.S. securities involve certain risks that may not be present with investments in U.S. securities.
For example, investments in non-U.S. securities may be subject to risk of loss due to foreign currency fluctuations or to political or economic instability. Investments in non-U.S. securities also may be subject to withholding or other taxes and may
be subject to additional trading, settlement, custodial, and operational risks. These and other factors can make investments in the Fund more volatile and potentially less liquid than other types of investments.
|
n
|
|
Geographic Concentration Risk.
To the extent the Fund invests a significant portion of its assets in the securities of companies of a single
country or region, it is more likely to be impacted by events or conditions affecting that country or region.
|
n
|
|
Large-Capitalization Investing.
The Fund may invest a relatively large percentage of its assets in the securities of large-capitalization
companies. As a result, the Funds performance may be adversely affected if securities of large-capitalization companies underperform securities of smaller-capitalization companies or the market as a whole. The securities of
large-capitalization companies may be relatively mature compared to smaller companies and therefore subject to slower growth during times of economic expansion.
|
n
|
|
Mid-Capitalization Investing.
The Fund may invest in the securities of mid-capitalization companies. As a result, the Funds performance
may be adversely affected if securities of mid-capitalization companies underperform securities of other capitalization ranges or the market as a whole. Securities of smaller companies are often more vulnerable to market volatility than securities
of larger companies.
|
n
|
|
Non-Diversification Risk.
Although the Fund intends to invest in a variety of securities and instruments, the Fund will be considered to be
non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. As a result, the Fund may be more exposed to the risks associated with and
developments affecting an individual issuer or a smaller number of issuers than a fund that invests more widely. This may increase the Funds volatility and cause the performance of a relatively smaller number of issuers to have a greater
impact on the Funds performance.
|
n
|
|
Small-Capitalization Investing.
The Fund may invest in the securities of small-capitalization companies. As a result, the Fund may be more
volatile than funds that invest in larger, more established companies. The securities of small-capitalization companies generally trade in lower volumes and are subject to greater and more unpredictable price changes than larger capitalization
stocks or the stock market as a whole. Small-capitalization companies may be particularly sensitive to changes in interest rates, government regulation, borrowing costs and earnings.
|
Fund Performance
Historical Fund
performance, which varies over time, can provide an indication of the risks of investing in the Fund. The bar chart that follows shows the annual total returns of the Fund for each full calendar year since the Fund commenced operations. The table
that follows the bar chart shows the Funds average annual total returns, both before and after taxes. This table also shows how the Funds performance compares to the WisdomTree International Basic Materials Sector Index and that of a
relevant broad-based securities index. Index returns do not reflect deductions for fees, expenses or taxes. All returns assume reinvestment of dividends and distributions. The Funds past performance (before and after taxes) is not necessarily
an indication of how the Fund will perform in the future.
The Funds name and objective changed effective June 17, 2011. Fund
performance prior to June 17, 2011 reflects the investment objective and style of the Fund when it was the WisdomTree International Basic Materials Sector Fund, and tracked the performance of the WisdomTree International Basic Materials Sector
Index.
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
87
|
|
The Funds year-to-date total return as of June 29, 2012 was 3.98%.
Best and Worst Quarter Returns (for the periods reflected in the bar chart above)
|
|
|
|
|
|
|
|
|
|
|
Return
|
|
|
Quarter/Year
|
|
Highest
Return
|
|
|
31.37
|
%
|
|
|
2Q/2009
|
|
Lowest
Return
|
|
|
(33.31
|
)%
|
|
|
3Q/2008
|
|
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Your actual after-tax returns will depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts. In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement
period.
Average Annual Total Returns for the periods ending December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree Commodity Country
Equity Fund*
|
|
1 Year
|
|
|
5 Years
|
|
|
Since Inception
(10/13/2006)
|
|
Return Before
Taxes Based on NAV
|
|
|
(10.31
|
)%
|
|
|
2.55
|
%
|
|
|
4.75
|
%
|
Return After
Taxes on Distributions
|
|
|
(11.32
|
)%
|
|
|
1.52
|
%
|
|
|
3.74
|
%
|
Return After
Taxes on Distributions and Sale of Fund Shares
|
|
|
(6.68
|
)%
|
|
|
1.52
|
%
|
|
|
3.44
|
%
|
S&P
Developed ex-U.S. BMI Materials Sector/MSCI AC World ex-USA Spliced Index** (Reflects no deduction for fees, expenses or taxes)
|
|
|
(16.82
|
)%
|
|
|
n/a
|
|
|
|
(2.89
|
)%
|
WisdomTree
International Basic Materials Sector/Commodity Country Equity Spliced Index*** (Reflects no deduction for fees, expenses or taxes)
|
|
|
(9.78
|
)%
|
|
|
3.30
|
%
|
|
|
5.56
|
%
|
*
|
|
The Funds objective changed effective June 17, 2011. Prior to that date, the Fund sought to track the price and yield performance, before fees and expenses, of the
WisdomTree International Basic Materials Sector Index. After June 17, 2011, the Funds objective seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Commodity Country Equity Index.
|
**
|
|
The inception date of the S&P Developed ex-U.S. BMI Sector Index is April 1, 2008. Accordingly, Since Inception data for this index is as of April 1,
2008 rather than the inception date of the Fund. Reflects performance of the S&P Developed ex-U.S. BMI Materials Sector Index through June 17, 2011, and the MSCI AC World ex-USA Index thereafter.
|
|
***
|
|
Reflects performance of the WisdomTree International Basic Materials Sector Index through June 17, 2011, and the WisdomTree Commodity Country Equity Index thereafter.
|
Management
Investment Adviser and Sub-Adviser
WisdomTree Asset Management, Inc. serves as investment
adviser to the Fund. Mellon Capital Management Corporation serves as sub-adviser to the Fund.
|
|
|
88
|
|
WisdomTree Trust
Prospectus
|
Portfolio Managers
Karen Q. Wong, CFA, a Managing Director, Equity Index Strategies, has been a portfolio manager of the Fund since February 2008.
Richard A. Brown, CFA, a Director, Equity Portfolio Management, has been a portfolio manager of the Fund since February 2008.
Thomas J. Durante, CFA, a Director, Senior Portfolio Manager, Equity, has been a portfolio manager of the Fund since February 2008.
Buying and Selling Fund Shares
The Fund is an ETF. This means that shares of the Fund are
listed on a national securities exchange, such as NYSE Arca, and trade at market prices. Most investors will buy and sell shares of the Fund through brokers. Because Fund shares trade at market prices rather than NAV, shares may trade at a price
greater than NAV (premium) or less than NAV (discount).
The Fund issues and redeems shares at NAV only in large blocks of shares
(Creation Units), which only institutions or large investors may purchase or redeem. Currently, Creation Units generally consist of 100,000 shares, though this may change from time to time. Creation Units are not expected to consist of
less than 50,000 shares. The Fund generally issues and redeems Creation Units in exchange for a portfolio of securities closely approximating the holdings of the Fund and/or a designated amount of U.S. cash.
Tax Information
The Fund intends to
make distributions that may be taxed as ordinary income or capital gains.
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
89
|
|
WisdomTree Global Natural Resources Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Global Natural Resources Index.
Fees and Expenses of the Fund
The following table describes the fees and expenses you may pay if you buy and hold shares of the Fund. The fees are expressed as a percentage of the Funds average net assets.
|
|
|
|
|
Shareholder Fees
(fees paid
directly from your investment)
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
|
|
|
|
Management
Fees
|
|
|
0.58
|
%
|
Distribution
and/or Service (12b-1) Fees
|
|
|
None
|
|
Other
Expenses
|
|
|
0.00
|
%
|
Total Annual Fund Operating Expenses
|
|
|
0.58
|
%
|
Example
The following example is intended to help retail investors compare the cost of investing in the Fund with the cost of investing in other funds. It
illustrates the hypothetical expenses that such investors would incur over various periods if they were to invest $10,000 in the Fund for the time periods indicated and then redeem all of the shares at the end of those periods. This example assumes
that the Fund provides a return of 5% a year and that operating expenses remain the same. This example does not include the brokerage commission that retail investors may pay to buy and sell shares of the Fund. It also does not include the
transaction fees on purchases and redemptions of Creation Units because these fees will not be imposed on retail investors. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
|
3 Years
|
|
|
5 Years
|
|
|
10 Years
|
|
|
|
|
$59
|
|
|
|
$186
|
|
|
|
$324
|
|
|
|
$726
|
|
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 99% of the average value of its portfolio, excluding the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Funds capital shares.
Principal Investment Strategies of the Fund
The Fund employs a passive management or indexing investment approach designed to track the performance of the WisdomTree Global
Natural Resources Index. The Fund attempts to invest all, or substantially all, of its assets in the common stocks that make up the Index. The Fund generally uses a Representative Sampling strategy to achieve its investment objective, meaning it
generally will invest in a sample of the securities in the Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Index as a whole.
The WisdomTree Global Natural Resources Index is a fundamentally weighted index that is comprised of global dividend-paying companies in natural resource
industries. Constituents are selected from the WisdomTree Global Dividend Index. The 100 largest companies operating in global natural resources industries within the WisdomTree Global Dividend Index are selected for inclusion. Specific
sub-industries include: Integrated Oil & Gas, Oil & Gas Exploration and Production, Diversified Metals & Mining, Coal and Consumable Fuels, Fertilizers & Agricultural Chemicals, Iron Ore Miners, Precious
Metals & Minerals, Agricultural Products, Oil & Gas Drilling and Oil & Gas Equipment and Services. A maximum of 20 companies from each sub-industry, ranked by market capitalization as of the annual Index rebalance, are
selected for inclusion. Companies are weighted within the Index by trailing 12-month dividend yield at the time of the Index rebalance. The maximum weight of any one sector and any one country in the Index, at the time of the Indexs annual
rebalance, is capped at 25%. In response to market conditions, sector and country weights may fluctuate above 25% between annual Index rebalance dates.
|
|
|
90
|
|
WisdomTree Trust
Prospectus
|
WisdomTree Investments, Inc., as index provider, currently uses Standard & Poors Global
Industry Classification Standards (S&P GICS) to define companies in each sector. The following sectors are included in the Index: consumer staples, energy, and materials. A sector is comprised of multiple industries. For example, the
energy sector is comprised of companies in, among others, the natural gas, oil and petroleum industries.
Under normal circumstances, at least
95% of the Funds total assets (exclusive of collateral held from securities lending) will be invested in the component securities of the Index. WisdomTree Asset Management, Inc. expects that, over time, the correlation between the Funds
performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent the Funds Index concentrates
(
i.e.
, holds 25% or more of its total assets) in the securities of a particular industry or group of industries, the Fund will concentrate its investments to approximately the same extent as its Index.
Principal Risks of Investing in the Fund
You can lose money on your investment in the Fund. The Fund is subject to the risks described below. Some or all of these risks may adversely affect the
Funds net asset value per share (NAV), trading price, yield, total return and/or its ability to meet its objectives. For more information about the risks of investing in the Fund, see the section in the Funds prospectus
titled Additional Investment Objective, Strategy and Risk Information.
n
|
|
Investment Risk.
As with all investments, an investment in the Fund is subject to investment risk. Investors in the Fund could lose money,
including the possible loss of the entire principal amount of an investment, over short or long periods of time.
|
n
|
|
Market Risk.
The trading prices of equity securities, fixed income securities, currencies, commodities and other instruments fluctuate in
response to a variety of factors. The Funds NAV and market price may fluctuate significantly in response to these and other factors. As a result, an investor could lose money over short or long periods of time.
|
n
|
|
Shares of the Fund May Trade at Prices Other Than NAV.
As with all exchange-traded funds (ETFs), Fund shares may be bought and sold
in the secondary market at market prices. Although it is expected that the market price of the shares of the Fund will approximate the Funds NAV, there may be times when the market price of the shares is more than the NAV intra-day (premium)
or less than the NAV intra-day (discount). This risk is heightened in times of market volatility or periods of steep market declines.
|
n
|
|
Basic Materials Investing.
The Fund may invest in companies in the basic materials sector. This sector includes, for example, metals and mining,
chemicals and forest product companies. This sector can be significantly affected by, among other things, commodity price volatility, demand for basic materials, world economic growth, depletion of natural resources, technological progress, and
government regulations.
|
n
|
|
Capital Controls Risk.
Economic conditions, such as volatile currency exchange rates and interest rates, political events and other conditions
may, without prior warning, lead to foreign government intervention and the imposition of capital controls. Capital controls include the prohibition of, or restrictions on, the ability to transfer currency, securities or other assets.
Capital controls may impact the ability of the Fund to buy, sell or otherwise transfer securities or currency, adversely affect the trading market and price for shares of the Fund, and cause the Fund to decline in value.
|
n
|
|
Cash Redemption Risk.
The Funds investment strategy will require it to redeem shares for cash or to otherwise include cash as part of its
redemption proceeds. The Fund may be required to sell or unwind portfolio investments in order to obtain the cash needed to distribute redemption proceeds. This may cause the Fund to recognize a capital gain that it might not have recognized if it
had made a redemption in-kind. As a result, the Fund may pay out higher annual capital gain distributions than if the in-kind redemption process was used.
|
n
|
|
Currency Exchange Rate Risk.
The Fund may invest a relatively large percentage of its assets in investments denominated in non-U.S. currencies
or in securities that provide exposure to such currencies. Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of the Funds investment and the value of your Fund shares. Currency exchange
rates can be very volatile and can change quickly and unpredictably. As a result, the value of an investment in the Fund may change quickly and without warning and you may lose money.
|
n
|
|
Emerging Markets Risk.
The Fund may invest in companies organized in emerging market nations. Investments in securities and instruments traded
in developing or emerging markets, or that provide exposure to such securities or markets, can involve additional risks relating to political, economic, or regulatory conditions not associated with investments in U.S. securities and instruments or
investments in more developed international markets. Such conditions may impact the ability of the Fund to buy, sell or otherwise transfer securities, adversely affect the trading market and price for Fund shares and cause the Fund to decline in
value.
|
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
91
|
|
n
|
|
Energy Investing.
The Fund may invest in companies in the energy sector. The energy sector can be significantly affected by, among other things:
economic growth, worldwide demand, political instability in the Middle East, and volatile oil prices.
|
n
|
|
Fiscal Policy Risk.
Any repeal of or failure to extend the current U.S. federal tax treatment of qualified dividend income could make certain
dividend-paying securities less appealing to investors and could have a negative impact on the performance of the Fund.
|
n
|
|
Foreign Securities Risk.
Investments in non-U.S. securities involve certain risks that may not be present with investments in U.S. securities.
For example, investments in non-U.S. securities may be subject to risk of loss due to foreign currency fluctuations or to political or economic instability. Investments in non-U.S. securities also may be subject to withholding or other taxes and may
be subject to additional trading, settlement, custodial, and operational risks. These and other factors can make investments in the Fund more volatile and potentially less liquid than other types of investments.
|
n
|
|
Geographic Concentration Risk.
To the extent the Fund invests a significant portion of its assets in the securities of companies of a single
country or region, it is more likely to be impacted by events or conditions affecting that country or region. The Fund currently invests a significant portion of its assets in securities of companies in the United States.
|
n
|
|
Global Natural Resources Investing.
The Fund invests primarily in equity securities of companies in the natural resources sector. These risks
include, but are not limited to, commodity price volatility, world economic growth, depletion of natural resources, technological progress, and government regulations. As the demand for, or prices of, natural resources increase, the value of the
Funds equity investments generally would be expected to also increase. Conversely, declines in the demand for, or prices of, natural resources generally would be expected to contribute to declines in the value of such equity securities. Such
declines may occur quickly and without warning and may negatively impact the value of the Fund and your investment.
|
n
|
|
Large-Capitalization Investing.
The Fund may invest a relatively large percentage of its assets in the securities of large-capitalization
companies. As a result, the Funds performance may be adversely affected if securities of large-capitalization companies underperform securities of smaller-capitalization companies or the market as a whole. The securities of
large-capitalization companies may be relatively mature compared to smaller companies and therefore subject to slower growth during times of economic expansion.
|
n
|
|
Mid-Capitalization Investing.
The Fund may invest in the securities of mid-capitalization companies. As a result, the Funds performance
may be adversely affected if securities of mid-capitalization companies underperform securities of other capitalization ranges or the market as a whole. Securities of smaller companies are often more vulnerable to market volatility than securities
of larger companies.
|
n
|
|
Non-Diversification Risk.
Although the Fund intends to invest in a variety of securities and instruments, the Fund will be considered to be
non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. As a result, the Fund may be more exposed to the risks associated with and
developments affecting an individual issuer or a smaller number of issuers than a fund that invests more widely. This may increase the Funds volatility and cause the performance of a relatively smaller number of issuers to have a greater
impact on the Funds performance.
|
Fund Performance
Historical Fund performance, which varies over time, can provide an indication of the risks of investing in the Fund. The bar chart that follows shows the annual total returns of the Fund for each full
calendar year since the Fund commenced operations. The table that follows the bar chart shows the Funds average annual total returns, both before and after taxes. This table also shows how the Funds performance compares to the WisdomTree
International Energy Sector Index and that of a relevant broad-based securities index. Index returns do not reflect deductions for fees, expenses or taxes. All returns assume reinvestment of dividends and distributions. The Funds past
performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.
The Funds name and
objective changed effective June 17, 2011. Fund performance prior to June 17, 2011 reflects the investment objective and style of the Fund when it was the WisdomTree International Energy Sector Fund, and tracked the performance of the
WisdomTree International Energy Sector Index.
|
|
|
92
|
|
WisdomTree Trust
Prospectus
|
The Funds year-to-date total return as of June 29, 2012 was (4.05)%.
Best and Worst Quarter Returns (for the periods reflected in the bar chart above)
|
|
|
|
|
|
|
|
|
|
|
Return
|
|
|
Quarter/Year
|
|
Highest
Return
|
|
|
20.23
|
%
|
|
|
3Q/2010
|
|
Lowest
Return
|
|
|
(29.92
|
)%
|
|
|
3Q/2008
|
|
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Your actual after-tax returns will depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts. In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement
period.
Average Annual Total Returns for the periods ending December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree Global Natural
Resources Fund*
|
|
1 Year
|
|
|
5 Years
|
|
|
Since Inception
(10/13/2006)
|
|
Return Before
Taxes Based on NAV
|
|
|
(9.14
|
)%
|
|
|
0.46
|
%
|
|
|
2.21
|
%
|
Return After
Taxes on Distributions
|
|
|
(10.15
|
)%
|
|
|
(0.84
|
)%
|
|
|
0.93
|
%
|
Return After
Taxes on Distributions and Sale of Fund Shares
|
|
|
(5.90
|
)%
|
|
|
(0.38
|
)%
|
|
|
1.12
|
%
|
S&P
Developed ex-U.S. BMI Energy Sector/S&P Global Natural Resources Spliced Index** (Reflects no deduction for fees, expenses or taxes)
|
|
|
(10.95
|
)%
|
|
|
n/a
|
|
|
|
(2.55
|
)%
|
WisdomTree
International Energy Sector/Global Natural Resources Spliced Index*** (Reflects no deduction for fees, expenses or taxes)
|
|
|
(7.87
|
)%
|
|
|
0.76
|
%
|
|
|
2.59
|
%
|
*
|
|
The Funds objective changed effective June 17, 2011. Prior to that date, the Fund sought to track the price and yield performance, before fees and expenses, of the
WisdomTree International Energy Sector Index. After June 17, 2011, the Funds objective seeks to track the price and yield performance of the WisdomTree Global Natural Resources Index.
|
**
|
|
The inception date of the S&P Developed ex-U.S. BMI Energy Sector Index is April 1, 2008. Accordingly, Since Inception data for this index is as of
April 1, 2008 rather than the inception date of the Fund. Reflects performance of the S&P Developed ex-U.S. BMI Energy Sector Index through June 17, 2011 and the S&P Global Natural Resources Index thereafter.
|
***
|
|
Reflects performance of the WisdomTree International Energy Sector Index through June 17, 2011 and the WisdomTree Global Natural Resources Index thereafter.
|
Management
Investment Adviser and Sub-Adviser
WisdomTree Asset Management, Inc. serves as investment
adviser to the Fund. Mellon Capital Management Corporation serves as sub-adviser to the Fund.
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
93
|
|
Portfolio Managers
Karen Q. Wong, CFA, a Managing Director, Equity Index Strategies, has been a portfolio manager of the Fund since February 2008.
Richard A. Brown, CFA, a Director, Equity Portfolio Management, has been a portfolio manager of the Fund since February 2008.
Thomas J. Durante, CFA, a Director, Senior Portfolio Manager, Equity, has been a portfolio manager of the Fund since February 2008.
Buying and Selling Fund Shares
The Fund is an ETF. This means that shares of the Fund are
listed on a national securities exchange, such as NYSE Arca, and trade at market prices. Most investors will buy and sell shares of the Fund through brokers. Because Fund shares trade at market prices rather than NAV, shares may trade at a price
greater than NAV (premium) or less than NAV (discount).
The Fund issues and redeems shares at NAV only in large blocks of shares
(Creation Units), which only institutions or large investors may purchase or redeem. Currently, Creation Units generally consist of 100,000 shares, though this may change from time to time. Creation Units are not expected to consist of
less than 50,000 shares. The Fund generally issues and redeems Creation Units in exchange for a portfolio of securities closely approximating the holdings of the Fund and/or a designated amount of U.S. cash.
Tax Information
The Fund intends to
make distributions that may be taxed as ordinary income or capital gains.
|
|
|
94
|
|
WisdomTree Trust
Prospectus
|
WisdomTree Global ex-U.S. Utilities Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Global ex-U.S. Utilities Index.
Fees and Expenses of the Fund
The following table describes the fees and expenses you may pay if you buy and hold shares of the Fund. The fees are expressed as a percentage of the Funds average net assets.
|
|
|
|
|
Shareholder Fees
(fees paid
directly from your investment)
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
|
|
|
|
Management
Fees
|
|
|
0.58
|
%
|
Distribution
and/or Service (12b-1) Fees
|
|
|
None
|
|
Other
Expenses
|
|
|
0.00
|
%
|
Total Annual Fund Operating Expenses
|
|
|
0.58
|
%
|
Example
The following example is intended to help retail investors compare the cost of investing in the Fund with the cost of investing in other funds. It
illustrates the hypothetical expenses that such investors would incur over various periods if they were to invest $10,000 in the Fund for the time periods indicated and then redeem all of the shares at the end of those periods. This example assumes
that the Fund provides a return of 5% a year and that operating expenses remain the same. This example does not include the brokerage commission that retail investors may pay to buy and sell shares of the Fund. It also does not include the
transaction fees on purchases and redemptions of Creation Units because these fees will not be imposed on retail investors. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
|
3 Years
|
|
|
5 Years
|
|
|
10 Years
|
|
|
|
|
$59
|
|
|
|
$186
|
|
|
|
$324
|
|
|
|
$726
|
|
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 66% of the average value of its portfolio, excluding the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Funds capital shares.
Principal Investment Strategies of the Fund
The Fund employs a passive management or indexing investment approach designed to track the performance of the WisdomTree Global
ex-U.S. Utilities Index. The Fund attempts to invest all, or substantially all, of its assets in the common stocks that make up the Index. The Fund generally uses a Representative Sampling strategy to achieve its investment objective, meaning it
generally will invest in a sample of the securities in the Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Index as a whole.
The WisdomTree Global ex-U.S. Utilities Index is comprised of utilities companies from developed and emerging markets outside of the United States that
are classified as being part of the Global Utilities sector. Companies are selected from within the WisdomTree World ex-U.S. Index. Companies within the WisdomTree World ex-U.S. Index are ranked by market capitalization as of the annual
Index rebalance. The 100 largest Utilities are included within the WisdomTree Global ex-U.S. Utilities Index. Weighting within the Index is based on dividend yield. The maximum weight of any one country in the Index, at the time of the Indexs
annual rebalance, is capped at 25%. In response to market conditions, country weights may fluctuate above 25% between annual Index rebalance dates.
WisdomTree Investments, Inc., as index provider, currently uses Standard & Poors Global Industry Classification Standards (S&P GICS) to define companies in the utilities
sector. A sector is comprised of multiple industries. For example, the utilities sector is comprised of companies in, among others, the electric utilities, water utilities and gas utilities industries.
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
95
|
|
Under normal circumstances, at least 95% of the Funds total assets (exclusive of collateral held from
securities lending) will be invested in the component securities of the Index. WisdomTree Asset Management, Inc. expects that, over time, the correlation between the Funds performance and that of the Index, before fees and expenses, will be
95% or better.
To the extent the Funds Index concentrates (
i.e.
, holds 25% or more of its total assets) in the securities of a
particular industry or group of industries, the Fund will concentrate its investments to approximately the same extent as its Index.
Principal Risks of Investing in the Fund
You can lose money on your investment in the Fund. The Fund is subject to the risks described below. Some or all of these risks may adversely affect the
Funds net asset value per share (NAV), trading price, yield, total return and/or its ability to meet its objectives. For more information about the risks of investing in the Fund, see the section in the Funds prospectus
titled Additional Investment Objective, Strategy and Risk Information.
n
|
|
Investment Risk.
As with all investments, an investment in the Fund is subject to investment risk. Investors in the Fund could lose money,
including the possible loss of the entire principal amount of an investment, over short or long periods of time.
|
n
|
|
Market Risk.
The trading prices of equity securities, fixed income securities, currencies, commodities and other instruments fluctuate in
response to a variety of factors. The Funds NAV and market price may fluctuate significantly in response to these and other factors. As a result, an investor could lose money over short or long periods of time.
|
n
|
|
Shares of the Fund May Trade at Prices Other Than NAV.
As with all exchange-traded funds (ETFs), Fund shares may be bought and sold
in the secondary market at market prices. Although it is expected that the market price of the shares of the Fund will approximate the Funds NAV, there may be times when the market price of the shares is more than the NAV intra-day (premium)
or less than the NAV intra-day (discount). This risk is heightened in times of market volatility or periods of steep market declines.
|
n
|
|
Capital Controls Risk.
Economic conditions, such as volatile currency exchange rates and interest rates, political events and other conditions
may, without prior warning, lead to foreign government intervention and the imposition of capital controls. Capital controls include the prohibition of, or restrictions on, the ability to transfer currency, securities or other assets.
Capital controls may impact the ability of the Fund to buy, sell or otherwise transfer securities or currency, adversely affect the trading market and price for shares of the Fund, and cause the Fund to decline in value.
|
n
|
|
Cash Redemption Risk.
The Funds investment strategy will require it to redeem shares for cash or to otherwise include cash as part of its
redemption proceeds. The Fund may be required to sell or unwind portfolio investments in order to obtain the cash needed to distribute redemption proceeds. This may cause the Fund to recognize a capital gain that it might not have recognized if it
had made a redemption in-kind. As a result, the Fund may pay out higher annual capital gain distributions than if the in-kind redemption process was used.
|
n
|
|
Currency Exchange Rate Risk.
The Fund may invest a relatively large percentage of its assets in investments denominated in non-U.S. currencies
or in securities that provide exposure to such currencies. Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of the Funds investment and the value of your Fund shares. Currency exchange
rates can be very volatile and can change quickly and unpredictably. As a result, the value of an investment in the Fund may change quickly and without warning and you may lose money.
|
n
|
|
Emerging Markets Risk.
The Fund may invest in companies organized in emerging market nations. Investments in securities and instruments traded
in developing or emerging markets, or that provide exposure to such securities or markets, can involve additional risks relating to political, economic, or regulatory conditions not associated with investments in U.S. securities and instruments or
investments in more developed international markets. Such conditions may impact the ability of the Fund to buy, sell or otherwise transfer securities, adversely affect the trading market and price for Fund shares and cause the Fund to decline in
value.
|
n
|
|
Fiscal Policy Risk.
Any repeal of or failure to extend the current U.S. federal tax treatment of qualified dividend income could make certain
dividend-paying securities less appealing to investors and could have a negative impact on the performance of the Fund.
|
n
|
|
Foreign Securities Risk.
Investments in non-U.S. securities involve certain risks that may not be present with investments in U.S. securities.
For example, investments in non-U.S. securities may be subject to risk of loss due to foreign currency fluctuations or to political or economic instability. Investments in non-U.S. securities also may be subject to withholding or other taxes and may
be subject to additional trading, settlement, custodial, and operational risks. These and other factors can make investments in the Fund more volatile and potentially less liquid than other types of investments.
|
n
|
|
Geographic Concentration Risk.
To the extent the Fund invests a significant portion of its assets in the securities of companies of a single
country or region, it is more likely to be impacted by events or conditions affecting that country or region.
|
|
|
|
96
|
|
WisdomTree Trust
Prospectus
|
n
|
|
Large-Capitalization Investing.
The Fund may invest in the securities of large-capitalization companies. As a result, the Funds
performance may be adversely affected if securities of large-capitalization companies underperform securities of smaller-capitalization companies or the market as a whole. The securities of large-capitalization companies may be relatively mature
compared to smaller companies and therefore subject to slower growth during times of economic expansion.
|
n
|
|
Mid-Capitalization Investing.
The Fund may invest in the securities of mid-capitalization companies. As a result, the Funds performance
may be adversely affected if securities of mid-capitalization companies underperform securities of other capitalization ranges or the market as a whole. Securities of smaller companies are often more vulnerable to market volatility than securities
of larger companies.
|
n
|
|
Non-Diversification Risk.
Although the Fund intends to invest in a variety of securities and instruments, the Fund will be considered to be
non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. As a result, the Fund may be more exposed to the risks associated with and
developments affecting an individual issuer or a smaller number of issuers than a fund that invests more widely. This may increase the Funds volatility and cause the performance of a relatively smaller number of issuers to have a greater
impact on the Funds performance.
|
n
|
|
Small-Capitalization Investing.
The Fund may invest in the securities of small-capitalization companies. As a result, the Fund may be more
volatile than funds that invest in larger, more established companies. The securities of small-capitalization companies generally trade in lower volumes and are subject to greater and more unpredictable price changes than larger capitalization
stocks or the stock market as a whole. Small-capitalization companies may be particularly sensitive to changes in interest rates, government regulation, borrowing costs and earnings.
|
n
|
|
Utilities Investing.
The Fund invests primarily in the utilities sector of the market and, as such, is particularly sensitive to risks to the
utilities sector. These risks include, but are not limited to, changing commodity prices, government regulation stipulating rates charged by utilities, interest rate sensitivity, and the cost of providing the specific utility service.
|
Fund Performance
Historical Fund performance, which varies over time, can provide an indication of the risks of investing in the Fund. The bar chart that follows shows the annual total returns of the Fund for each full
calendar year since the Fund commenced operations. The table that follows the bar chart shows the Funds average annual total returns, both before and after taxes. This table also shows how the Funds performance compares to the WisdomTree
International Utilities Sector Index and that of a relevant broad-based securities index. Index returns do not reflect deductions for fees, expenses or taxes. All returns assume reinvestment of dividends and distributions. The Funds past
performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.
The Funds name and
objective changed effective June 17, 2011. Fund performance prior to June 17, 2011 reflects the investment objective and style of the Fund when it was the WisdomTree International Utilities Sector Fund, and tracked the performance of the
WisdomTree International Utilities Sector Index.
The Funds year-to-date total return as of June 29, 2012 was 0.48%.
Best and Worst Quarter Returns (for the periods reflected in the bar chart above)
|
|
|
|
|
|
|
|
|
|
|
Return
|
|
|
Quarter/Year
|
|
Highest
Return
|
|
|
15.23
|
%
|
|
|
2Q/2009
|
|
Lowest
Return
|
|
|
(21.69
|
)%
|
|
|
1Q/2009
|
|
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
97
|
|
After-tax returns are calculated using the historical highest individual federal marginal income tax rates
and do not reflect the impact of state and local taxes. Your actual after-tax returns will depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through
tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the
measurement period.
Average Annual Total Returns for the periods ending December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree Global ex-U.S.
Utilities Fund*
|
|
1 Year
|
|
|
5 Years
|
|
|
Since Inception
(10/13/2006)
|
|
Return Before
Taxes Based on NAV
|
|
|
(8.01
|
)%
|
|
|
(5.05
|
)%
|
|
|
(2.43
|
)%
|
Return After
Taxes on Distributions
|
|
|
(9.29
|
)%
|
|
|
(6.40
|
)%
|
|
|
(3.77
|
)%
|
Return After
Taxes on Distributions and Sale of Fund Shares
|
|
|
(5.15
|
)%
|
|
|
(4.93
|
)%
|
|
|
(2.76
|
)%
|
S&P
Developed ex-U.S. BMI Utilities Sector Index** (Reflects no deduction for fees, expenses or taxes)
|
|
|
(16.55
|
)%
|
|
|
n/a
|
|
|
|
(2.95
|
)%
|
WisdomTree
International Utilities Sector/Global ex-U.S. Utilities Spliced Index*** (Reflects no deduction for fees, expenses or taxes)
|
|
|
(8.29
|
)%
|
|
|
(4.98
|
)%
|
|
|
(2.26
|
)%
|
*
|
|
The Funds objective changed effective June 17, 2011. Prior to that date, the Fund sought to track the price and yield performance, before fees and expenses, of the
WisdomTree International Utilities Sector Index. After June 17, 2011, the Funds objective seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Global ex-U.S. Utilities Index.
|
**
|
|
The inception date of the S&P Developed ex-U.S. BMI Sector Index is April 1, 2008. Accordingly, Since Inception data for this index is as of April 1,
2008 rather than the inception date of the Fund.
|
***
|
|
Reflects performance of the WisdomTree International Utilities Sector Index through June 17, 2011 and the WisdomTree Global ex-U.S. Utilities Index thereafter.
|
Management
Investment Adviser and Sub-Adviser
WisdomTree Asset Management, Inc. serves as investment
adviser to the Fund. Mellon Capital Management Corporation serves as sub-adviser to the Fund.
Portfolio Managers
Karen Q. Wong, CFA, a Managing Director, Equity Index Strategies, has been a portfolio manager of the Fund since February 2008.
Richard A. Brown, CFA, a Director, Equity Portfolio Management, has been a portfolio manager of the Fund since February 2008.
Thomas J. Durante, CFA, a Director, Senior Portfolio Manager, Equity, has been a portfolio manager of the Fund since February 2008.
Buying and Selling Fund Shares
The Fund
is an ETF. This means that shares of the Fund are listed on a national securities exchange, such as NYSE Arca, and trade at market prices. Most investors will buy and sell shares of the Fund through brokers. Because Fund shares trade at market
prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount).
The Fund issues and redeems shares
at NAV only in large blocks of shares (Creation Units), which only institutions or large investors may purchase or redeem. Currently, Creation Units generally consist of 100,000 shares, though this may change from time to time. Creation
Units are not expected to consist of less than 50,000 shares. The Fund generally issues and redeems Creation Units in exchange for a portfolio of securities closely approximating the holdings of the Fund and/or a designated amount of U.S. cash.
Tax Information
The Fund
intends to make distributions that may be taxed as ordinary income or capital gains.
|
|
|
98
|
|
WisdomTree Trust
Prospectus
|
WisdomTree Global ex-U.S. Real Estate Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Global ex-U.S. Real Estate Index.
Fees and Expenses of the Fund
The following table describes the fees and expenses you may pay if you buy and hold shares of the Fund. The fees are expressed as a percentage of the Funds average net assets.
|
|
|
|
|
Shareholder Fees
(fees paid
directly from your investment)
|
|
|
None
|
|
Annual Fund
Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
|
|
|
|
|
Management
Fees
|
|
|
0.58
|
%
|
Distribution
and/or Service (12b-1) Fees
|
|
|
None
|
|
Other
Expenses
|
|
|
0.00
|
%
|
Total Annual Fund Operating Expenses
|
|
|
0.58
|
%
|
Example
The following example is intended to help retail investors compare the cost of investing in the Fund with the cost of investing in other funds. It
illustrates the hypothetical expenses that such investors would incur over various periods if they were to invest $10,000 in the Fund for the time periods indicated and then redeem all of the shares at the end of those periods. This example assumes
that the Fund provides a return of 5% a year and that operating expenses remain the same. This example does not include the brokerage commission that retail investors will pay to buy and sell shares of the Fund. It also does not include the
transaction fees on purchases and redemptions of Creation Units because these fees will not be imposed on retail investors. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Year
|
|
|
3 Years
|
|
|
5 Years
|
|
|
10 Years
|
|
|
|
|
$59
|
|
|
|
$186
|
|
|
|
$324
|
|
|
|
$726
|
|
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs
and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal year, the
Funds portfolio turnover rate was 43% of the average value of its portfolio, excluding the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of the Funds capital shares.
Principal Investment Strategies of the Fund
The Fund employs a passive management or indexing investment approach designed to track the performance of the WisdomTree Global
ex-U.S. Real Estate Index. The Fund attempts to invest all, or substantially all, of its assets in the common stocks that make up the Index. The Fund generally uses a Representative Sampling strategy to achieve its investment objective, meaning it
generally will invest in a sample of the securities in the Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Index as a whole.
The WisdomTree Global ex-U.S. Real Estate Index is comprised of companies from developed and emerging markets outside of the United States that are
classified as being part of the Global Real Estate sector. Companies are selected from the WisdomTree World ex-U.S. Index. Requirements for eligibility within the WisdomTree World ex-U.S. Index include: (i) incorporation within
Europe, Japan, Australia, New Zealand, Hong Kong, Singapore or Canada; (ii) payment of at least $5 million in cash dividends paid on common shares in the annual cycle prior to the annual Index rebalance; (iii) market capitalization of
at least $100 million as of the Index rebalance; (iv) average daily dollar volume of at least $100,000 for three months preceding the Index rebalance; and (v) trading of at least 250,000 shares for each of the six months preceding the
Index rebalance.
Constituents will be among the following types of companies: real estate operating companies, real estate developing
companies, or diversified REITs. The WisdomTree Global ex-U.S. Real Estate Index also includes companies that may be classified as Passive Foreign Investment Companies. Market capitalization must be greater than $1 billion and weighting is
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
99
|
|
based on regular cash dividends paid. The maximum weight of any one country in the Index, at the time of the Indexs annual rebalance, is capped at 25%. In response to market conditions,
country weights may fluctuate above 25% between annual Index rebalance dates.
WisdomTree Investments, Inc., as index provider, currently uses
Standard & Poors Global Industry Classification Standards (S&P GICS) to define real estate companies. Real estate companies are comprised of companies in, among others, the diversified real estate activities, real
estate development, real estate operating companies, retail REITs, diversified REITs, office REITs, and industrial REITs.
Under normal
circumstances, at least 95% of the Funds total assets (exclusive of collateral held from securities lending) will be invested in the component securities of the Index. WisdomTree Asset Management, Inc. expects that, over time, the correlation
between the Funds performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent the Funds
Index concentrates (
i.e.
, holds 25% or more of its total assets) in the securities of a particular industry or group of industries, the Fund will concentrate its investments to approximately the same extent as its Index.
Principal Risks of Investing in the Fund
You can lose money on your investment in the Fund. The Fund is subject to the risks described below. Some or all of these risks may adversely affect the
Funds net asset value per share (NAV), trading price, yield, total return and/or its ability to meet its objectives. For more information about the risks of investing in the Fund, see the section in the Funds prospectus
titled Additional Investment Objective, Strategy and Risk Information.
n
|
|
Investment Risk.
As with all investments, an investment in the Fund is subject to investment risk. Investors in the Fund could lose money,
including the possible loss of the entire principal amount of an investment, over short or long periods of time.
|
n
|
|
Market Risk.
The trading prices of equity securities, fixed income securities, currencies, commodities and other instruments fluctuate in
response to a variety of factors. The Funds NAV and market price may fluctuate significantly in response to these and other factors. As a result, an investor could lose money over short or long periods of time.
|
n
|
|
Shares of the Fund May Trade at Prices Other Than NAV.
As with all exchange-traded funds (ETFs), Fund shares may be bought and sold
in the secondary market at market prices. Although it is expected that the market price of the shares of the Fund will approximate the Funds NAV, there may be times when the market price of the shares is more than the NAV intra-day (premium)
or less than the NAV intra-day (discount). This risk is heightened in times of market volatility or periods of steep market declines.
|
n
|
|
Cash Redemption Risk.
The Funds investment strategy will require it to redeem shares for cash or to otherwise include cash as part of its
redemption proceeds. The Fund may be required to sell or unwind portfolio investments in order to obtain the cash needed to distribute redemption proceeds. This may cause the Fund to recognize a capital gain that it might not have recognized if it
had made a redemption in-kind. As a result, the Fund may pay out higher annual capital gain distributions than if the in-kind redemption process was used.
|
n
|
|
Currency Exchange Rate Risk.
The Fund may invest a relatively large percentage of its assets in investments denominated in non-U.S. currencies
or in securities that provide exposure to such currencies. Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of the Funds investment and the value of your Fund shares. Currency exchange
rates can be very volatile and can change quickly and unpredictably. As a result, the value of an investment in the Fund may change quickly and without warning and you may lose money.
|
n
|
|
Financial Sector Risk.
The Fund may invest a relatively large percentage of its assets in the financial sector, and therefore the performance of
the Fund could be negatively impacted by events affecting this sector. This sector can be significantly affected by changes in interest rates, government regulation, the rate of defaults on corporate, consumer and government debt, the availability
and cost of capital, and fallout from the housing and sub-prime mortgage crisis.
|
n
|
|
Fiscal Policy Risk.
Any repeal of or failure to extend the current U.S. federal tax treatment of qualified dividend income could make certain
dividend-paying securities less appealing to investors and could have a negative impact on the performance of the Fund.
|
n
|
|
Foreign Securities Risk.
Investments in non-U.S. securities involve certain risks that may not be present with investments in U.S. securities.
For example, investments in non-U.S. securities may be subject to risk of loss due to foreign currency fluctuations or to political or economic instability. Investments in non-U.S. securities also may be subject to withholding or other taxes and may
be subject to additional trading, settlement, custodial, and operational risks. These and other factors can make investments in the Fund more volatile and potentially less liquid than other types of investments.
|
|
|
|
100
|
|
WisdomTree Trust
Prospectus
|
n
|
|
Geographic Concentration Risk.
To the extent the Fund invests a significant portion of its assets in the securities of companies of a single
country or region, it is more likely to be impacted by events or conditions affecting that country or region. The Fund currently invests a significant portion of its assets in companies organized in Hong Kong and Australia.
|
n
|
|
Large-Capitalization Investing.
The Fund may invest a relatively large percentage of its assets in the securities of large-capitalization
companies. As a result, the Funds performance may be adversely affected if securities of large-capitalization companies underperform securities of smaller-capitalization companies or the market as a whole. The securities of
large-capitalization companies may be relatively mature compared to smaller companies and therefore subject to slower growth during times of economic expansion.
|
n
|
|
Mid-Capitalization Investing.
The Fund may invest a relatively large percentage of its assets in the securities of mid-capitalization companies.
As a result, the Funds performance may be adversely affected if securities of mid-capitalization companies underperform securities of other capitalization ranges or the market as a whole. Securities of smaller companies are often more
vulnerable to market volatility than securities of larger companies.
|
n
|
|
Non-Diversification Risk.
Although the Fund intends to invest in a variety of securities and instruments, the Fund will be considered to be
non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. As a result, the Fund may be more exposed to the risks associated with and
developments affecting an individual issuer or a smaller number of issuers than a fund that invests more widely. This may increase the Funds volatility and cause the performance of a relatively smaller number of issuers to have a greater
impact on the Funds performance.
|
n
|
|
Real Estate Investing.
The Fund invests primarily in the real estate sector, including investments in real estate investment trusts
(REITs). REITs are securities that invest substantially all of their assets in real estate, trade like stocks and may qualify for special tax considerations. Investments in REITs subject the Fund to risks associated with the direct
ownership of real estate. Market conditions or events affecting the overall market for real estate and REITs, such as declining property values or rising interest rates, could have a negative impact on the Funds performance.
|
n
|
|
Small-Capitalization Investing.
The Fund may invest a relatively large percentage of its assets in the securities of small-capitalization
companies. As a result, the Fund may be more volatile than funds that invest in larger, more established companies. The securities of small-capitalization companies generally trade in lower volumes and are subject to greater and more unpredictable
price changes than larger capitalization stocks or the stock market as a whole. Small-capitalization companies may be particularly sensitive to changes in interest rates, government regulation, borrowing costs and earnings.
|
Fund Performance
Historical Fund performance, which varies over time, can provide an indication of the risks of investing in the Fund. The bar chart that follows shows the annual total returns of the Fund for each full
calendar year since the Fund commenced operations. The table that follows the bar chart shows the Funds average annual total returns, both before and after taxes. This table also shows how the Funds performance compares to the WisdomTree
International Real Estate Index and that of a relevant broad-based securities index. Index returns do not reflect deductions for fees, expenses or taxes. All returns assume reinvestment of dividends and distributions. The Funds past
performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.
The Funds name and
objective changed effective June 17, 2011. Fund performance prior to June 17, 2011 reflects the investment objective and style of the Fund when it was the WisdomTree International Real Estate Fund, and tracked the performance of the
WisdomTree International Real Estate Index.
The Funds year-to-date total return as of June 29, 2012 was 14.53%.
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
101
|
|
Best and Worst Quarter Returns (for the periods reflected in the bar chart above)
|
|
|
|
|
|
|
|
|
|
|
Return
|
|
|
Quarter/Year
|
|
Highest
Return
|
|
|
36.89
|
%
|
|
|
2Q/2009
|
|
Lowest
Return
|
|
|
(27.99
|
)%
|
|
|
4Q/2008
|
|
This table compares the Funds Shares average annual total returns to those of the Dow Jones Wilshire ex-U.S.
Real Estate Securities Index and the WisdomTree Global ex-U.S. Real Estate Index.
After-tax returns are calculated using the historical
highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Your actual after-tax returns will depend on your tax situation and may differ from those shown. After-tax returns shown are not relevant to
investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. In some cases the return after taxes may exceed the return before taxes due to an assumed tax benefit from any losses on
a sale of Fund shares at the end of the measurement period.
Average Annual Total Returns for the periods ending December 31, 2011
|
|
|
|
|
|
|
|
|
WisdomTree Global ex-U.S. Real
Estate Fund*
|
|
1 Year
|
|
|
Since Inception
(6/5/2007)
|
|
Return Before
Taxes Based on NAV
|
|
|
(13.60
|
)%
|
|
|
(9.82
|
)%
|
Return After
Taxes on Distributions
|
|
|
(15.22
|
)%
|
|
|
(12.01
|
)%
|
Return After
Taxes on Distributions and Sale of Fund Shares
|
|
|
(8.71
|
)%
|
|
|
(9.20
|
)%
|
Dow Jones
Global ex-U.S. Select Real Estate Securities Index (Reflects no deduction for fees, expenses or taxes)
|
|
|
(14.09
|
)%
|
|
|
(10.82
|
)%
|
WisdomTree
International Real Estate/Global ex-U.S. Real Estate Spliced Index** (Reflects no deduction for fees, expenses or taxes)
|
|
|
(13.29
|
)%
|
|
|
(9.64
|
)%
|
*
|
|
The Funds objective changed effective June 17, 2011. Prior to that date, the Fund sought to track the price and yield performance, before fees and expenses, of the
WisdomTree International Real Estate Index. After June 17, 2011, the Funds objective seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Global ex-U.S. Real Estate Index.
|
**
|
|
Reflects performance of the WisdomTree International Real Estate Index through June 17, 2011 and the WisdomTree Global ex-U.S. Real Estate Index thereafter.
|
Management
Investment Adviser and Sub-Adviser
WisdomTree Asset Management, Inc. serves as investment
adviser to the Fund. Mellon Capital Management Corporation serves as sub-adviser to the Fund.
Portfolio Managers
Karen Q. Wong, CFA, a Managing Director, Equity Index Strategies, has been a portfolio manager of the Fund since February 2008.
Richard A. Brown, CFA, a Director, Equity Portfolio Management, has been a portfolio manager of the Fund since February 2008.
Thomas J. Durante, CFA, a Director, Senior Portfolio Manager, Equity, has been a portfolio manager of the Fund since February 2008.
Buying and Selling Fund Shares
The Fund
is an ETF. This means that shares of the Fund are listed on a national securities exchange, such as NYSE Arca, and trade at market prices. Most investors will buy and sell shares of the Fund through brokers. Because Fund shares trade at market
prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount).
The Fund issues and redeems shares
at NAV only in large blocks of shares (Creation Units), which only institutions or large investors may purchase or redeem. Currently, Creation Units generally consist of 100,000 shares, though this may change from time to time. Creation
Units are not expected to consist of less than 50,000 shares. The Fund generally issues and redeems Creation Units in exchange for a portfolio of securities closely approximating the holdings of the Fund and/or a designated amount of U.S. cash.
Tax Information
The Fund
intends to make distributions that may be taxed as ordinary income or capital gains.
|
|
|
102
|
|
WisdomTree Trust
Prospectus
|
Additional Information About the Funds
More Information About Benchmarks
Following is a description of each broad-based securities market index included in the table showing average annual total returns in the Summary section for each Fund, except the China Dividend
ex-Financials Fund, which does not have performance information for a full calendar year.
n
|
|
The MSCI EAFE Index is a market cap-weighted index composed of companies representative of the developed market structure of developed countries in
Europe, Australasia and Japan.
|
n
|
|
The MSCI EAFE Value Index is comprised of value stocks in the MSCI EAFE Index.
|
n
|
|
The MSCI EAFE Local Currency Index is a free float-adjusted market capitalization weighted index that is designed to measure developed market equity
performance, excluding the US and Canada. The index is calculated using the same methodology as its corresponding MSCI EAFE Index in U.S. dollars, with the key difference being the currency in which the securities are quoted. The price used for each
security in the local currency index is the local price, on the primary exchange on which a security is traded, with no conversion into U.S. dollars.
|
n
|
|
The MSCI EAFE Mid Cap Index is a free float-adjusted market capitalization index that is designed to measure the performance of mid-capitalization
equities in the developed markets excluding the US & Canada.
|
n
|
|
The MSCI EAFE Small Cap Index is comprised of small cap stocks in the MSCI EAFE Index.
|
n
|
|
The MSCI Europe Small Cap Index is comprised of small cap stocks in the MSCI Europe Index.
|
n
|
|
The MSCI Europe Value Index is comprised of value stocks in the MSCI Europe Index.
|
n
|
|
The MSCI AC World Index is comprised of the world stock market indexes covered by MSCI.
|
n
|
|
The MSCI AC World ex USA Growth Index is comprised of growth stocks in the developed and emerging markets covered by MSCI excluding the U.S.
|
n
|
|
The MSCI Japan Index is a subset of the MSCI EAFE Index and is comprised of the Japanese equity market.
|
n
|
|
The MSCI Japan Local Currency Index is a free float-adjusted market capitalization index that is designed to measure developed market equity
performance in Japan and uses the same methodology as its corresponding MSCI Japan Index. The price used for each security in the local currency index is the local price, on the primary exchange on which a security is traded, with no conversion into
U.S. dollars.
|
n
|
|
The MSCI Japan Small Cap Index is comprised of small cap stocks in the MSCI Japan Index.
|
n
|
|
The MSCI Japan Value Index is comprised of Value stocks in the MSCI Japan Index.
|
n
|
|
The MSCI AC Asia Pacific ex-Japan Index is comprised of large- and mid-capitalization segments of emerging market and developed market countries in the
Asia Pacific region, excluding Japan.
|
n
|
|
The MSCI Pacific ex-Japan Index is a subset of the MSCI EAFE Index and is comprised of stocks in Australia, Hong Kong, Singapore, and New Zealand.
|
n
|
|
The MSCI Pacific ex-Japan Value Index is comprised of Value stocks in the MSCI Pacific ex-Japan Index.
|
n
|
|
The MSCI Australia Index is comprised of large- and mid-capitalization segments of the Australia market.
|
n
|
|
The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure emerging markets equity
performance.
|
n
|
|
The MSCI Emerging Markets SmallCap Index is a free float-adjusted market capitalization index that is designed to measure the performance of small
capitalization equities in the emerging markets.
|
n
|
|
The MSCI Arabian Markets ex-Saudi Arabia Index is a free float-adjusted market capitalization index that is designed to measure the performance of
stocks in the Gulf Cooperation Council (GCC) countries and the neighboring region.
|
n
|
|
The MSCI India Index is a market cap-weighted index that is designed to measure the performance of the Indian equity market.
|
n
|
|
S&P Developed ex-U.S. BMI Materials Sector Index represents the non-U.S. materials sub-industry of developed countries included in the BMI Global
Index.
|
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
103
|
|
n
|
|
S&P Developed ex-U.S. BMI Energy Sector Index represents the non-U.S. energy sub-industry of developed countries included in the BMI Global Index.
|
n
|
|
S&P Developed ex-U.S. BMI Utilities Sector Index represents the non-U.S. utilities sub-industry of developed countries included in the BMI Global
Index.
|
n
|
|
The S&P Global Natural Resources Index is comprised of the largest publicly traded companies in natural resources and commodities businesses that
meet specific investability requirements.
|
n
|
|
Dow Jones Global ex-U.S. Select Real Estate Securities Index
SM
is designed to provide measures of real estate securities that serve as proxies for direct real estate investing in
the international markets and is weighted by float-adjusted market capitalization.
|
Additional
Investment Objective, Strategy and Risk Information
Investment Objective.
Each Fund seeks to track the price and yield performance,
before fees and expenses, of a particular index (Index) developed by WisdomTree Investments, Inc. Each Index consists of securities in the market suggested by its name that meet specific criteria developed by WisdomTree Investments, Inc.
Since each Funds investment objective has been adopted as a non-fundamental investment policy, each Funds investment objective may be changed without a vote of shareholders upon 60 days written notice to shareholders.
Principal Investment Strategies.
All
Funds.
Each Fund will normally invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in the types of securities suggested by its name. Under normal circumstances, at least 95% of each Funds total
assets (exclusive of collateral held from securities lending) will be invested in the component securities of its underlying Index. Each Fund generally may invest up to 5% of its total assets in securities not included in its Index, but which the
Fund believes will help it track its Index. For example, a Fund may invest in securities that are not components of its Index in order to reflect various corporate actions and other changes to its Index (such as reconstitutions, additions and
deletions). Funds designated as International generally invest in developed markets outside the United States. Funds designated as Global generally invest in developed and emerging markets throughout the world, including the
United States and other regions. WisdomTree Asset Management, Inc. expects that, over time, the correlation between each Funds performance and that of its Index, before fees and expenses, will be 95% or better.
All Funds (except Europe Hedged Equity Fund and Japan Hedged Equity Fund).
Under normal circumstances, as long as a Fund invests at least 95% of
its total assets in the securities of its Index, it also may invest its other assets in cash and cash equivalents, as well as in shares of other investment companies, futures contracts, options on futures contracts, options, and swaps.
Europe Hedged Equity Fund and Japan Hedged Equity Fund.
Each Fund employs strategies to hedge against fluctuations in the relative
value of non-U.S. currencies included in its underlying Index against the U.S. dollar. Each Fund also may invest its assets in cash and cash equivalents, as well as in shares of other investment companies, forward contracts, futures contracts,
options on futures contracts, options, and swaps.
Global Equity Income Fund.
The Funds Index contains business development
companies, which for certain regulatory purposes are treated as investment companies. As a result, the internal fees of business development companies are required to be disclosed in the Funds fee table, even though they are not an operating
expense of the Fund and are not reflected in the Funds financial statements. As of March 22, 2013, the Fund, in seeking to replicate the performance of its Index, screens out and does not hold shares of business development companies.
Consequently, the Funds fee table reflects current fees and expenses, which do not include the internal fees of business development companies.
Indices.
Each Index is fundamentally weighted and differs from most traditional indexes in that the proportion, or weighting, of the securities in each Index is based on a
measure of fundamental value, such as dividends or earnings. Most traditional indexes and index funds weight their securities by looking simply at the market capitalization of such securities.
Each Dividend Index is weighted based on either the annual cash dividends paid by companies in the Index or the dividend yield of companies in the Index. This means that securities of
companies that pay higher amounts of cash dividends or have higher dividend yields generally will be more heavily weighted in each Index and Fund. Only regular dividends (
i.e.
, established or quarterly dividends as opposed to non-recurring or
special dividends) are included in the determination of cash dividends or dividend yield.
The India Earnings Index weights companies based on
earning in their fiscal year prior to the annual Index measurement date adjusted for a factor that takes into account shares available to foreign investors. Earnings for this Index are determined using a companys reported net
income.
The Europe Hedged Equity Index is designed to provide exposure to equity securities in Europe, while at the same time hedging exposure
to fluctuations between the value of the U.S. dollar and the euro. The Japan Hedged Equity Index is designed to provide exposure to Japanese equity markets while at the same time hedging exposure to fluctuations of the
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Japanese yen relative to the U.S. dollar. For U.S. investors, international equity investments include two components of return. The first is the return attributable to stock prices in the
non-U.S. market or markets in which an investment is made. The second is the return attributable to the value of non-U.S. currencies in these markets relative to the U.S. dollar. The Europe Hedged Equity Index and the Japan Hedged Equity Index seek
to track the performance of equity securities in these developed markets that is attributable solely to stock prices.
Additional Risk
Information About the Funds.
This section provides additional information regarding the principal risks described under Principal Risks of Investing in the Fund in the Fund Summaries. Risk information may not be applicable to each
Fund. Please consult the Fund Summaries sections to determine which risks are applicable to a particular Fund. Each of the factors below could have a negative impact on Fund performance and trading prices.
Capital Controls Risk
Economic
conditions, such as volatile currency exchange rates and interest rates, political events and other conditions, may, without prior warning, lead to government intervention and the imposition of capital controls. Capital controls include
the prohibition of, or restrictions on, the ability to transfer currency, securities or other assets. Levies may be placed on profits repatriated by foreign entities (such as the Funds). Capital controls may impact the ability of a Fund to buy, sell
or otherwise transfer securities or currency, may adversely affect the trading market and price for shares of a Fund, and may cause a Fund to decline in value.
Cash Redemption Risk
When a Funds investment strategy requires it to redeem shares
for cash or to otherwise include cash as part of its redemption proceeds, it may be required to sell or unwind portfolio investments in order to obtain the cash needed to distribute redemption proceeds. This may cause the Fund to recognize a capital
gain that it might not have recognized if it had made a redemption in-kind (
i.e.
, distribute securities as payment of redemption proceeds). As a result, the Fund may pay out higher annual capital gain distributions than if the in-kind
redemption process was used.
Currency Exchange Rate Risk
Changes in currency exchange rates and the relative value of non-U.S. currencies will affect the value of a Funds investments and the value of your Fund shares. Because each Funds NAV is
determined on the basis of U.S. dollars, the U.S. dollar value of your investment in a Fund may go down if the value of the local currency of the non-U.S. markets in which the Fund invests depreciates against the U.S. dollar. This is true even if
the local currency value of securities in the Funds holdings goes up. Conversely, the dollar value of your investment in the Fund may go up if the value of the local currency appreciates against the U.S. dollar.
The value of the U.S. dollar measured against other currencies is influenced by a variety of factors. These factors include: national debt levels and
trade deficits, changes in balances of payments and trade, domestic and foreign interest and inflation rates, global or regional political, economic or financial events, monetary policies of governments, actual or potential government intervention,
and global energy prices. Political instability, the possibility of government intervention and restrictive or opaque business and investment policies may also reduce the value of a countrys currency. Government monetary policies and the
buying or selling of currency by a countrys government may also influence exchange rates. Currency exchange rates can be very volatile and can change quickly and unpredictably. As a result, the value of an investment in a Fund may change
quickly and without warning, and you may lose money.
Europe Hedged Equity Fund and Japan Hedged Equity Fund Only:
Each of the Funds
employs various strategies to minimize the impact of changes in the value of the euro and the Japanese yen, respectively, against the U.S. dollar. However, these strategies may not be successful. In addition, a Fund may not be fully hedged at all
times in order to minimize transaction costs or for other reasons.
Derivatives Investment Risk
Derivatives are financial instruments that derive their performance from an underlying reference asset, such as a commodity, index, interest rate or
currency exchange rate. Derivatives include forward currency contracts, futures contracts, currency swaps, interest rate swaps, total return swaps and credit linked notes. A forward currency contract is an agreement to buy or sell a specific
currency at a future date at a price set at the time of the contract. A non-deliverable forward currency contract is a contract where there is no physical settlement of two currencies at maturity. Rather, based on the movement of the currencies, a
net cash settlement will be made by one party to the other. A futures contract may generally be described as an agreement for the future sale by one party and the purchase by another of a specified security or instrument at a specified price and
time. A currency futures contract is a contract to exchange one currency for another at a specified date in the future at an agreed upon exchange rate. A currency swap is an agreement between two parties to exchange one currency for another at a
future rate. An interest rate swap typically involves the exchange of a floating interest rate payment for a fixed interest payment. A total return swap is an agreement between two parties in which one party agrees to make payments of the total
return of a reference asset in return for payments equal to a rate of interest on another reference asset. A credit linked
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note is a type of structured note whose value is linked to an underlying reference asset or entity. Credit linked notes typically provide periodic payments of interest as well as payment of
principal upon maturity. Derivatives are subject to a number of risks described elsewhere in this Prospectus, such as market risk and issuer-specific risk. They also involve the risk that changes in the value of the derivative may not correlate
perfectly with the underlying asset, rate or index, or that the counterparty to a derivative contract might default on its obligations. Derivatives can be volatile and may be less liquid than other securities. As a result, the value of an investment
in a Fund may change quickly and without warning, and you may lose money.
Fiscal Policy Risk
Any repeal of or failure to extend the current federal tax treatment of qualified dividend income could make dividend-paying securities less appealing to
investors and could have a negative impact on the performance of a Fund.
Foreign Securities Risk
Investments in non-U.S. securities involve certain risks that may not be present with investments in U.S. securities. For example, investments in non-U.S.
securities may be subject to risk of loss due to foreign currency fluctuations or to political or economic instability. There may be less information publicly available about a non-U.S. issuer than a U.S. issuer. Non-U.S. issuers may be subject to
different accounting, auditing, financial reporting and investor protection standards than U.S. issuers. Investments in non-U.S. securities may be subject to withholding or other taxes and may be subject to additional trading, settlement, custodial,
and operational risks. With respect to certain countries, there is the possibility of government intervention and expropriation or nationalization of assets. Because legal systems differ, there is also the possibility that it will be difficult to
obtain or enforce legal judgments in certain countries. Since foreign exchanges may be open on days when a Fund does not price its shares, the value of the securities in a Funds portfolio may change on days when shareholders will not be able
to purchase or sell a Funds shares. Conversely, Fund shares may trade on days when foreign exchanges are close. Each of these factors can make investments in a Fund more volatile and potentially less liquid than other types of investments.
Geographic Investment Risk
To the extent that a Funds Index invests a significant portion of its assets in the securities of companies of a single country or region, it is
more likely to be impacted by events or conditions affecting that country or region. For example, political and economic conditions and changes in regulatory, tax, or economic policy in a country could significantly affect the market in that country
and in surrounding or related countries and have a negative impact on the Funds performance. Currency developments or restrictions, political and social instability, and changing economic conditions have resulted in significant market
volatility.
Commodity Country Risk
As the demand for, or price of, such commodities increases, money tends to flow into the country. This generally lifts the countrys economic prospects and supports the value of such equity
securities. Conversely, declines in the demand for, or price of, such commodities historically have contributed to declines in the economies of such countries and the value of such securities. Such declines may occur quickly and without warning and
may negatively impact the value of a Fund and your investment.
Emerging Markets Risk
Investments in securities and instruments traded in developing or emerging markets, or that provide exposure to such securities or
markets, can involve additional risks relating to political, economic, or regulatory conditions not associated with investments in U.S. securities and instruments or investments in more developed international markets. For example, developing and
emerging markets may be subject to (i) greater market volatility, (ii) lower trading volume and liquidity, (iii) greater social, political and economic uncertainty, (iv) governmental controls on foreign investments and
limitations on repatriation of invested capital, (v) lower disclosure, corporate governance, auditing and financial reporting standards, (vi) fewer protections of property rights, (vii) restrictions on the transfer of securities or
currency or payment of dividends and (viii) settlement and trading practices that differ from U.S. markets. Each of these factors may impact the ability of a Fund that invests in emerging market securities to buy, sell or otherwise transfer
securities, adversely affect the trading market and price for Fund shares and cause a Fund to decline in value.
Investments
in Asia and the Pacific Region
While certain economies in this region are exemplars of growth and development, others have
been and continue to be subject, to some extent, to over-extension of credit, currency devaluations and restrictions, high unemployment, high inflation, decreased exports, and economic recessions. Each of these factors may impact the ability of a
Fund to buy, sell or otherwise transfer securities, adversely affect the trading market and price for Fund shares and cause Fund shares to decline in value.
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Investments in Australia
The economy of Australia is heavily dependent on the economies of Asian countries and the demand for natural resources and agricultural
products. Conditions that weaken demand for such products worldwide could have a negative impact on the Australian economy as a whole.
Investments in China
The government of China maintains strict currency
controls in order to achieve economic, trade and political objectives and regularly intervenes in the currency market. The Chinese government places strict regulation on the yuan and Hong Kong dollar and manages the yuan and Hong Kong dollar so that
they have historically traded in a tight range relative to the U.S. dollar. The Chinese government has been under pressure to manage the currency in a less restrictive fashion so that it is less correlated to the U.S. dollar. It is expected that
such action would increase the value of the yuan and the Hong Kong dollar relative to the U.S. dollar. Of course, there can be no guarantee that this will occur, or that the yuan or the Hong Kong dollar will move in relation to the U.S. dollar as
expected. The Chinese government also plays a major role in the countrys economic policies regarding foreign investments. Foreign investors are subject to the risk of loss from expropriation or nationalization of their investment assets and
property, governmental restrictions on foreign investments and the repatriation of capital invested. In addition, the rapid growth rate of the Chinese economy over the past several years may not continue, and the trend toward economic liberalization
and disparities in wealth may result in social disorder, including violence and labor unrest. Adding to this risk, Chinas authoritarian government has used force in the past to suppress civil dissent, and Chinas foreign and domestic
policies remain in conflict with those of Hong Kong as well as nationalist and religious groups in Xinjiang and Tibet. These and other factors could have a negative impact on the Chinese economy as a whole.
Investments in Europe
Most developed countries in Western Europe are members of the European Union (EU), and many are also members of the European Monetary Union (EMU), which requires compliance with restrictions on inflation
rates, deficits, and debt levels. Unemployment in certain European nations is historically high and several countries face significant debt problems. These conditions can significantly affect every country in Europe. The euro is the official
currency of the European Union (EU). Funds that invest in Europe may have significant exposure to the euro and events affecting the euro. Recent market events affecting several of the EU member countries have adversely affected the sovereign debt
issued by those countries, and ultimately may lead to a decline in the value of the euro. A significant decline in the value of the euro may produce unpredictable effects on trade and commerce generally and could lead to increased volatility in
financial markets worldwide.
Investments in Hong Kong
Investing in companies organized or traded in Hong Kong involves special considerations not typically associated with investing in
countries with more democratic governments or more established economies or securities markets. China is Hong Kongs largest trading partner, both in terms of exports and imports. Any changes in the Chinese economy, trade regulations or
currency exchange rates may have an adverse impact on Hong Kongs economy. Other risks associated with investing in Hong Kong may include, but are not limited to: (i) the risk of nationalization or expropriation of assets or confiscatory
taxation; (ii) greater social, economic and political uncertainty (including the risk of war); (iii) dependency on exports and the corresponding importance of international trade; (iv) increasing competition from Asias other
low-cost emerging economies; (v) currency exchange rate fluctuations and the lack of available currency hedging instruments; (vi) higher rates of inflation; (vii) controls on foreign investment and limitations on repatriation of
invested capital and on the Funds ability to exchange local currencies for U.S. dollars; (viii) greater governmental involvement in and control over the economy and other political risks. Additionally, any fluctuation or shortage in the
commodity markets could have a negative impact on the Hong Kong economy, which has few natural resources.
Investments in
India
Political and economic conditions and changes in regulatory, tax, or economic policy in India could significantly
affect the market in India and in surrounding or related countries and could have a negative impact on Funds that invest in India. The Indian economy may differ favorably or unfavorably from the U.S. economy in such respects as the rate of growth of
gross domestic product, the rate of inflation, capital reinvestment, resource self-sufficiency and balance of payments position. The Indian government has exercised and continues to exercise significant influence over many aspects of the economy,
and the number of public sector enterprises in India is substantial. Accordingly, Indian government actions in the future could have a significant effect on the Indian economy.
Despite recent downturns, the Indian economy has experienced generally sustained growth during the last several years. There are no guarantees this will continue. While the Indian government has
implemented economic structural reforms with the objective of liberalizing Indias exchange and trade policies, reducing the fiscal deficit,
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controlling inflation, promoting a sound monetary policy, reforming the financial sector, and placing greater reliance on market mechanisms to direct economic activity, there can be no assurance
that these policies will continue or that the economic recovery will be sustained. Religious and border disputes persist in India. In addition, India has experienced civil unrest and hostilities with neighboring countries such as Pakistan. The
Indian government has confronted separatist movements in several Indian states. Investment and repatriation restrictions and tax laws in India may impact the ability of a Fund to track its index.
Investments in Japan
Economic growth in Japan is heavily dependent on international trade, government support, and consistent government policy. Slowdowns in the economies of key trading partners such as the United States,
China and countries in Southeast Asia could have a negative impact on the Japanese economy as a whole.
Investments in the
Middle East
Certain Middle Eastern markets are only in the earliest stages of development and may be considered
frontier markets. Financial markets in the Middle East generally are less liquid and more volatile than other markets, including markets in developing and emerging economies. There is a high concentration of market capitalization and
trading volume in a small number of issuers representing a limited number of industries. Securities may have limited marketability and be subject to erratic price movements. Certain economies in the Middle East depend to a significant degree upon
exports of primary commodities such as oil. A sustained decrease in commodity prices could have a significant negative impact on all aspects of the economy in the region. Middle Eastern governments have exercised and continue to exercise substantial
influence over many aspects of the private sector. In certain cases, the government owns or controls many companies, including the largest in the country. Accordingly, governmental actions in the future could have a significant effect on economic
conditions in Middle Eastern countries.
Investments in Taiwan
The economy of Taiwan is heavily dependent on exports. Currency fluctuations, increasing competition from Asias other emerging
economies, and conditions that weaken demand for Taiwans export products worldwide could have a negative impact on the Taiwanese economy as a whole. Concerns over Taiwans history of political contention and its current relationship with
China may also have a significant impact on the economy of Taiwan.
Investments in the United Kingdom
The United Kingdom has one of the largest economies in Europe and trades heavily with other European countries. The economy of the United
Kingdom may be impacted by changes to the economic health of other European countries.
Investment Risk
As with all investments, an investment in a Fund is subject to investment risk. Investors in a Fund could lose money, including the possible loss of the
entire principal amount of an investment, over short or long periods of time. An investment in a Fund is not a bank deposit and it is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
Investment Style Risk
Each Fund invests
in the securities included in, or representative of, its Index regardless of their investment merit. The Funds do not attempt to outperform their Indexes or take defensive positions in declining markets. As a result, each Funds performance may
be adversely affected by a general decline in the market segments relating to its Index. The returns from the types of securities in which a Fund invests may underperform returns from the various general securities markets or different asset
classes. This may cause a Fund to underperform other investment vehicles that invest in different asset classes. Different types of securities (for example, large-, mid- and small-capitalization stocks) tend to go through cycles of doing better
or worse than the general securities markets. In the past, these periods have lasted for as long as several years.
Issuer-Specific Risk
Changes in the
financial condition of an issuer or counterparty, changes in specific economic or political conditions that affect a particular type of security or issuer, and changes in general economic or political conditions can affect a securitys or
instruments value. The value of securities of smaller, less well-known issuers can be more volatile than that of larger issuers. Issuer-specific events can have a negative impact on the value of a Fund.
Market Risk
The trading prices of
equity securities, fixed income securities, currencies, commodities, and other instruments fluctuate in response to a variety of factors. These factors include events impacting the entire market or specific market segments, such as political, market
and economic developments, as well as events that impact specific issuers. A Funds NAV and market price,
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like security and commodity prices generally, may fluctuate significantly in response to these and other factors. As a result, an investor could lose money over short or long periods of time.
Market Capitalization Risk
Small-Capitalization Investing
The securities of small-capitalization
companies may be more vulnerable to adverse issuer, market, political, or economic developments than securities of larger-capitalization companies. The securities of small-capitalization companies generally trade in lower volumes and are subject to
greater and more unpredictable price changes than larger capitalization stocks or the stock market as a whole. Some small-capitalization companies have limited product lines, markets, and financial and managerial resources and tend to concentrate on
fewer geographical markets relative to larger capitalization companies. There is typically less publicly available information concerning smaller-capitalization companies than for larger, more established companies. Small-capitalization companies
also may be particularly sensitive to changes in interest rates, government regulation, borrowing costs and earnings.
Mid-Capitalization Investing
The securities of mid-capitalization companies may be more vulnerable to adverse issuer, market, political, or economic developments than securities of large-capitalization companies. The securities of
mid-capitalization companies generally trade in lower volumes and are subject to greater and more unpredictable price changes than large capitalization stocks or the stock market as a whole. Some mid-capitalization companies have limited product
lines, markets, financial resources, and management personnel and tend to concentrate on fewer geographical markets relative to large-capitalization companies.
Large-Capitalization Investing
The securities of large-capitalization
companies may be relatively mature compared to smaller companies and therefore subject to slower growth during times of economic expansion. Large-capitalization companies may also be unable to respond quickly to new competitive challenges, such as
changes in technology and consumer tastes.
Non-Correlation Risk
As with all index funds, the performance of a Fund and its Index may vary somewhat for a variety of reasons. For example, each Fund incurs operating expenses and portfolio transaction costs not incurred
by its Index. In addition, a Fund may not be fully invested in the securities of its Index at all times or may hold securities not included in its Index. A Fund may be subject to foreign ownership limitations and, as a result, may not be able to
invest in certain securities to the same extent as its underlying Index. The use of sampling techniques may affect a Funds ability to achieve close correlation with its Index. A Fund using a Representative Sampling strategy generally can be
expected to have a greater non-correlation risk.
Non-Diversification Risk
Although each Fund intends to invest in a variety of securities and instruments, each Fund will be considered to be non-diversified. This means that each Fund may invest more of its assets in the
securities of a single issuer or a smaller number of issuers than if it was a diversified fund. As a result, each Fund may be more exposed to the risks associated with and developments affecting an individual issuer or a smaller number of issuers
than a fund that invests more widely. This may increase a Funds volatility and cause the performance of a relatively smaller number of issuers to have a greater impact on a Funds performance.
Sector Risk
Basic
Materials Investing
The basic materials sector includes, for example, metals and mining, chemicals and forest product
companies. This sector can be significantly affected by, among other things, swift fluctuations in supply and demand for basic materials, commodity price volatility, world economic growth, depletion of natural resources and energy conservation,
technological progress, and government regulations, including international political and economic developments, the environmental impact of energy and basic materials operations and tax and other governmental regulatory policies. As the demand for,
or prices of, basic materials increase, the value of a Funds investments generally would be expected to also increase. Conversely, declines in the demand for, or prices of, basic materials generally would be expected to contribute to declines
in the value of such securities. Such declines may occur quickly and without warning and may negatively impact the value of a Fund and your investment.
Consumer Discretionary Investing
The consumer discretionary sector
consists of, for example, automobile, retail and media companies. The consumer discretionary sector may be affected by changes in domestic and international economies, exchange and interest rates, worldwide demand, competition, consumers
disposable income levels, propensity to spend and consumer preferences, social trends and marketing campaigns. Companies in the consumer discretionary sector have historically been characterized as relatively cyclical and therefore more volatile in
times of change.
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Consumer Staples Investing
The consumer staples sector consists of, for example, companies whose primary lines of business are food, beverage and other household
items. This sector can be affected by, among other things, changes in price and availability of underlying commodities, rising energy prices and global economic conditions. Unlike the consumer discretionary sector, companies in the consumer staples
sector have historically been characterized as non-cyclical in nature and therefore less volatile in times of change.
Energy Investing
The energy sector can be significantly affected by, among other things: worldwide economic growth, worldwide demand, political instability in the Middle East, and volatile oil prices. As the demand for,
or prices of, energy increase, the value of a Funds investments generally would be expected to also increase. Conversely, declines in the demand for, or prices of, energy generally would be expected to contribute to declines in the value of
such securities. Such declines may occur quickly and without warning and may negatively impact the value of a Fund and your investment.
Financial Sector Risk
The financial sector can be significantly affected
by changes in interest rates, government regulation, the rate of defaults on corporate, consumer and government debt, the availability and cost of capital, and fallout from the housing and sub-prime mortgage crisis. These factors and events have
had, and may continue to have, a significant negative impact on the valuations and stock prices of companies in this sector and have increased the volatility of investments in this sector.
Industrial Investing
The industrial sector can be significantly affected by, among other things, worldwide economic growth, supply and demand for specific products and services, rapid technological developments, international
political and economic developments, environmental issues, and tax and governmental regulatory policies. As the demand for, or prices of, industrials increase, the value of a Funds investments generally would be expected to also increase.
Conversely, declines in the demand for, or prices of, industrials generally would be expected to contribute to declines in the value of such securities. Such declines may occur quickly and without warning and may negatively impact the value of a
Fund and your investment.
Natural Resources Investing
The natural resources sector can be significantly affected by risks including, but not limited to, commodity price volatility, worldwide
economic growth, depletion of natural resources, energy conservation, technological progress, international political and economic developments, environmental issues, and tax and other governmental regulatory policies. As the demand for, or prices
of, natural resources increase, the value of a Funds investments generally would be expected to also increase. Conversely, declines in the demand for, or prices of, natural resources generally would be expected to contribute to declines in the
value of such securities. Such declines may occur quickly and without warning and may negatively impact the value of a Fund and your investment.
Real Estate Investing
REITs are securities that invest substantially all
of their assets in real estate, trade like stocks and may qualify for special tax considerations. Investments in REITs subject a Fund to risks associated with the direct ownership of real estate. Market conditions or events affecting the overall
market for real estate and REITs, such as declining property values or rising interest rates, could have a negative impact on the real estate market and the value of REITs in general. As the demand for, or prices of, real estate increase, the value
of a Funds investments generally would be expected to also increase. Conversely, declines in the demand for, or prices of, real estate generally would be expected to contribute to declines in the value of the real estate market and REITs. Such
declines may occur quickly and without warning and may negatively impact the value of a Fund and your investment.
Telecommunications Investing
The telecommunications industry is characterized by increasing competition and regulation by various regulatory authorities. Challenges facing companies in the telecommunications sector include distressed
cash flows due to the need to commit substantial capital to meet increasing competition, particularly in formulating new products and services using new technology, technological innovations that make existing products and services obsolete, and
satisfying consumer demand.
Utilities Investing
The utilities sector is subject to a number of risks, including decreases in the demand for utility company products and services,
increased competition resulting from deregulation, and rising energy costs. The utilities sector also is typically sensitive to changes in interest rates. Any of these events could cause the utilities sector to underperform other sectors
or the market as a whole and, thus, adversely affect a Funds investment performance.
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Shares of the Funds May Trade at Prices Other Than NAV
As with all ETFs, Fund shares may be bought and sold in the secondary market at market prices. Although it is expected that the market price of the shares
of a Fund will approximate the Funds NAV, there may be times when the market price and the NAV vary significantly. Thus, you may pay more (or less) than NAV intra-day when you buy shares of a Fund in the secondary market, and you may receive
more (or less) than NAV when you sell those shares in the secondary market.
Portfolio Holdings Information
Information about each Funds daily portfolio holdings is available at www.wisdomtree.com. In addition, each Fund discloses its
complete portfolio holdings as of the end of its fiscal year (March 31) and its second fiscal quarter (September 30) in its reports to shareholders. Each Fund files its complete portfolio holdings as of the end of its first and third fiscal quarters
(June 30 and December 31, respectively) with the SEC on Form N-Q no later than 60 days after the relevant fiscal period. You can find the SEC filings on the SECs website, www.sec.gov. A summarized description of each Funds
policies and procedures with respect to the disclosure of each Funds portfolio holdings is available in the Trusts Statement of Additional Information (SAI).
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Management
Investment Adviser
As investment adviser, WisdomTree Asset
Management, Inc. (WisdomTree Asset Management or the Adviser) has overall responsibility for the general management and administration of the Trust and each of the Funds. The Adviser is a registered investment adviser with
offices located at 380 Madison Avenue, 21st Floor, New York, NY 10017, and is a leader in ETF management. WisdomTree Investments, Inc.* (WisdomTree Investments) is the parent company of the Adviser. The Adviser provides an investment
program for each Fund. The Adviser also arranges for sub-advisory, transfer agency, custody, fund administration, securities lending, and all other non-distribution related services necessary for the Funds to operate.
For the fiscal year ended March 31, 2012, the Funds, other than the China Dividend ex-Financials Fund, paid advisory fees to the Adviser, as a
percentage of average daily net assets, in the amounts listed below. With respect to the China Dividend ex-Financials Fund, the Adviser expects to receive fees from the Fund, as a percentage of average daily net assets, in the amount listed below.
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Name of Fund
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Management Fee
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DEFA Fund
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0.48
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%
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DEFA Equity Income Fund
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0.58
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%
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Europe Hedged Equity Fund
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0.48
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%
1
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International Dividend ex-Financials Fund
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0.58
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%
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International LargeCap Dividend Fund
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0.48
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%
|
International MidCap Dividend Fund
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0.58
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%
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International SmallCap Dividend Fund
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0.58
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%
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Europe SmallCap Dividend Fund
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0.58
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%
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Global Equity Income Fund
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0.58
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%
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Japan Hedged Equity Fund
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0.48
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%
|
Japan SmallCap Dividend Fund
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|
|
0.58
|
%
|
Global ex-U.S. Growth Fund
|
|
|
0.58
|
%
|
Asia Pacific ex-Japan Fund
|
|
|
0.48
|
%
|
Australia Dividend Fund
|
|
|
0.58
|
%
|
China Dividend ex-Financials Fund
|
|
|
0.63
|
%
|
Emerging Markets Equity Income Fund
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|
|
0.63
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%
|
Emerging Markets SmallCap Dividend Fund
|
|
|
0.63
|
%
|
Middle East Dividend Fund
|
|
|
0.68
|
%
1
|
India Earnings Fund
|
|
|
0.68
|
%
1
|
Commodity Country Equity Fund
|
|
|
0.58
|
%
|
Global Natural Resources Fund
|
|
|
0.58
|
%
|
Global ex-U.S. Utilities Fund
|
|
|
0.58
|
%
|
Global ex-U.S. Real Estate Fund
|
|
|
0.58
|
%
|
1
|
On June 29, 2012, shareholders of the Europe Hedged Equity Fund (formerly, International Hedged Equity Fund) and Middle East Dividend Fund approved new
advisory fees of 0.58% and 0.88%, respectively. On August 8, 2012, shareholders of the India Earnings Fund approved a new advisory fee of 0.83%. Like the other WisdomTree Funds, under the new fee arrangement, the Adviser is responsible for
paying all Fund expenses except for certain enumerated expenses, such as distribution fees and extraordinary expenses. Prior to the respective shareholder approval date, the advisory fee was 0.48% for the Europe Hedged Equity Fund and 0.68% for the
Middle East Dividend Fund and the India Earnings Fund, but the advisory fee did not cover other Fund expenses, and total operating expenses were capped at 0.58%, 0.88% and 0.88%, respectively.
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Under the Investment Advisory Agreement for each Fund, WisdomTree Asset Management has agreed to pay all expenses of each Fund, except for: (i) brokerage
expenses and other expenses (such as stamp taxes) connected with the execution of portfolio transactions or in connection with creation and redemption transactions; (ii) legal fees or expenses in connection with any arbitration, litigation or
pending or threatened arbitration or litigation, including any settlements in connection therewith; (iii) compensation and expenses of each Independent Trustee; (iv) compensation and expenses of counsel to the Independent Trustees; (v) compensation
and expenses of the Trusts Chief Compliance Officer (CCO); (vi) extraordinary expenses; (vii) distribution fees and expenses paid by the Trust under any distribution plan adopted pursuant to Rule 12b-1 under the Investment
Company Act of 1940 (the 1940 Act); and (viii) the advisory fee payable to WisdomTree Asset Management.
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112
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Pursuant to a separate contractual arrangement, WisdomTree Asset Management arranges for the provision of CCO services with respect to each Fund, and is liable and responsible for, and
administers, payments to the CCO, the Independent Trustees and counsel to the Independent Trustees. WisdomTree Asset Management receives a fee of up to 0.0044% of each Funds average daily net assets for providing such services and paying such
expenses. WisdomTree Asset Management provides CCO services to the Trust.
The basis for the Board of Trustees approval of the Investment
Advisory Agreements is available in the Trusts Annual Report to Shareholders dated March 31, 2012, which covers the period from April 1, 2011 to March 31, 2012. The basis for the Board of Trustees approval of the
Investment Advisory Agreement, with respect to the China Dividend ex-Financials Fund, will be available in the Trusts Semi-Annual Report to Shareholders for the period ended September 30, 2012.
Sub-Advisers
Mellon Capital Management Corporation (Mellon Capital) is responsible for the day-to-day management of each Fund, except the China Dividend
ex-Financials Fund. Mellon Capital, a registered investment adviser, is a leading innovator in the investment industry and manages global quantitative-based investment strategies for institutional and private investors. Its principal office is
located at 50 Fremont Street, San Francisco, CA 94105. As of June 29, 2012, Mellon Capital had assets under management totaling approximately $240 billion. Mellon Capital is a wholly-owned indirect subsidiary of The Bank of New York Mellon
Corporation, a publicly traded financial holding company. Mellon Capital chooses the portfolio investments of each Fund, except the China Dividend ex-Financials Fund, and places orders to buy and sell the portfolio investments. WisdomTree Asset
Management pays Mellon Capital for providing sub-advisory services to each of the Funds, except China Dividend ex-Financials Fund.
Old Mutual Global Index Trackers (Proprietary) Limited (the Old Mutual) is responsible for the day-to-day management of the China Dividend ex-Financials Fund. Old Mutual, a member of the Old
Mutual Group, is an emerging market based registered investment adviser that manages passive global strategies for clients in the United States, Europe and Africa. Its principal office is located at 3
rd
Floor, Umnotho Building, Mutual Square, 93 Grayston Drive, Sandton,
Johannesburg, South Africa 2196. As of July 31, 2012, Old Mutual had assets under management totaling approximately $5.9 billion. Old Mutual chooses the China Dividend ex-Financials Funds portfolio investments and places orders to buy and
sell the portfolio investments.
The basis for the Board of Trustees approval of the Investment Sub-Advisory Agreements between the
Adviser and Mellon Capital is available in the Trusts Annual Report to Shareholders dated March 31, 2012. The basis for the Board of Trustees approval of the Investment Sub-Advisory Agreement between the Adviser and Old Mutual, with
respect to the China Dividend ex-Financials Fund, will be available in the Trusts Semi-Annual Report to Shareholders for the period ended September 30, 2012.
WisdomTree Asset Management, as the investment adviser for the Funds, may hire one or more sub-advisers to oversee the day-to-day activities of the Funds. The sub-advisers are subject to oversight by
WisdomTree Asset Management. WisdomTree Asset Management and the Trust have obtained an exemptive order from the SEC that permits WisdomTree Asset Management, with the approval of the Independent Trustees of the Trust, to retain unaffiliated
investment sub-advisers for each of the Funds without submitting the sub-advisory agreement to a vote of the Funds shareholders. The Trust will notify shareholders in the event of any change in the identity of such sub-adviser or sub-advisers.
WisdomTree Asset Management has ultimate responsibility for the investment performance of the Funds due to its responsibility to oversee each sub-adviser and recommend their hiring, termination and replacement. WisdomTree Asset Management is not
required to disclose fees paid to any sub-adviser retained pursuant to the order.
Portfolio Managers
Each Fund, except for the China Dividend ex-Financials Fund, is managed by Mellon Capitals Equity Index Strategies Portfolio
management team. The individual members of the team responsible for the day-to-day management of these Funds portfolios are described below.
Ms. Karen Q. Wong, CFA, a Managing Director, Equity Index Strategies, has been with Mellon Capital since June 2000. Ms. Wong heads a team of portfolio managers covering domestic and
international passive equity funds. She is also responsible for the refinement and implementation of the equity portfolio management process. She graduated with a B.A. from San Francisco State University, and obtained an M.B.A. from San Francisco
State University.
*
|
WisdomTree is a registered mark of WisdomTree Investments and has been licensed for use by the Trust. WisdomTree Investments has patent applications pending on the
methodology and operation of its Indexes and the Funds.
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WisdomTree Trust
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113
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Mr. Richard A. Brown, CFA, a Director, Equity Portfolio Management, has been with
Mellon Capital since August 1995. Mr. Brown heads a team of portfolio managers covering domestic and international passive equity funds. He is also responsible for the refinement and implementation of the equity portfolio management process.
Mr. Brown obtained an M.B.A. from California State University at Hayward.
Mr. Thomas J. Durante, CFA, a
Director, Senior Portfolio Manager, Equity, has been with Mellon Capital since January 2000. Mr. Durante heads a team of portfolio managers covering domestic and international indexed portfolios. He is also responsible for the refinement and
implementation of the equity portfolio management process. Mr. Durante graduated with a B.A. from Fairfield University.
Old Mutual
utilizes a team of investment professionals acting together to manage the assets of the China Dividend ex-Financials Fund. The team meets regularly to review portfolio holdings and to discuss purchase and sale activity. The team adjusts holdings in
the China Dividend ex-Financials Funds portfolio as it deems appropriate in the pursuit of the China Dividend ex-Financials Funds investment objective. The individual members of the team who are primarily responsible for the day-to-day
management of the China Dividend ex-Financials Funds portfolio are listed below.
Mr. Kingsley Williams is a Deputy
Chief Investment Officer and is responsible for the investment oversight of Old Mutual. Mr. Williams has been with Old Mutual for four years. He received his M.B.A. from Wits Business School, Johannesburg and has 12 years of investment
experience.
Mr. Anver Dollie is a Deputy Chief Investment Officer and is responsible for portfolio implementation and
operations of Old Mutual. Mr. Dollie has been with Old Mutual for seven years. He has 15 years of investment experience.
Ms. Nonhlanhla Dube is a portfolio manager for Old Mutual. Ms. Dube has been with Old Mutual for six years. She received her
undergraduate degree from the University of Johannesburg. Ms. Dube has six years of investment experience.
The Trusts SAI provides
additional information about the portfolio managers compensation, other accounts managed by the portfolio managers, and the portfolio managers ownership of shares in the Funds for which they are portfolio managers.
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114
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Additional Information on Buying and Selling Shares
Most investors will buy and sell shares of the Funds through brokers. Shares of the Funds trade on the Listing Exchange and elsewhere during the trading
day and can be bought and sold throughout the trading day like other shares of publicly traded securities. When buying or selling shares through a broker most investors will incur customary brokerage commissions and charges. Shares of the Funds
trade under the trading symbols listed on the cover of this Prospectus.
Share Trading Prices
Transactions in Fund shares will be priced at NAV only if you purchase or redeem shares directly from a Fund in Creation Units. As with other types of
securities, the trading prices of shares in the secondary market can be affected by market forces such as supply and demand, economic conditions and other factors. The price you pay or receive when you buy or sell your shares in the secondary market
may be more or less than the NAV of such shares.
The approximate value of shares of each Fund is disseminated every fifteen seconds throughout
the trading day by the Listing Exchange or by other information providers. This approximate value should not be viewed as a real-time update of the NAV because the approximate value may not be calculated in the same manner as the NAV,
which is computed once per day. The approximate value generally is determined by using current market quotations, price quotations obtained from broker-dealers that may trade in the portfolio securities and instruments held by the Funds and/or
amortized cost for securities with remaining maturities of 60 days or less. The Funds are not involved in, or responsible for, the calculation or dissemination of the approximate value and make no warranty as to its accuracy.
Determination of Net Asset Value
The NAV of each Funds shares is calculated each day the national securities exchanges are open for trading as of the close of regular trading on the New York Stock Exchange, generally 4:00 p.m. New
York time (the NAV Calculation Time). NAV is calculated by dividing a Funds net assets by the number of Fund shares outstanding.
In calculating its NAV, the Fund generally values its assets on the basis of market quotations, last sale prices, or estimates of value furnished by a pricing service or brokers who make markets in such
instruments. Debt obligations with maturities of 60 days or less are valued at amortized cost.
Fair value pricing is used by the Fund when
reliable market valuations are not readily available or are not deemed to reflect current market values. Securities that may be valued using fair value pricing may include, but are not limited to, securities for which there are no
current market quotations or whose issuer is in default or bankruptcy, securities subject to corporate actions (such as mergers or reorganizations), securities subject to non-U.S. investment limits or currency controls, and securities affected by
significant events. An example of a significant event is an event occurring after the close of the market in which a security trades but before the Funds next NAV Calculation Time that may materially affect the value of the
Funds investment (e.g., government action, natural disaster, or significant market fluctuation). When fair-value pricing is employed, the prices of securities used by the Fund to calculate its NAV may differ from quoted or published prices for
the same securities.
Dividends and Distributions
The Funds intend to pay out dividends on a quarterly basis. Nonetheless, a Fund may not make a dividend payment every quarter. Each Fund intends to distribute its net realized capital gains, if any,
annually. The Funds may occasionally be required to make supplemental distributions at some other time during the year. Distributions in cash may be reinvested automatically in additional whole shares only if the broker through whom you purchased
shares makes such option available. Your broker is responsible for distributing the income and capital gain distributions to you.
Book Entry
Shares of the Funds are held in book-entry form, which means that no stock certificates are issued. The Depository Trust
Company (DTC) or its nominee is the record owner of all outstanding shares of each Fund.
Investors owning shares of the Funds are
beneficial owners as shown on the records of DTC or its participants. DTC serves as the securities depository for all shares of the Funds. Participants include DTC, securities brokers and dealers, banks, trust companies, clearing corporations, and
other institutions that directly or indirectly maintain a custodial relationship with DTC. As a beneficial owner of shares, you are not entitled to receive physical delivery of stock certificates or to have shares registered in your name, and you
are not considered a registered owner of shares. Therefore, to exercise any right as an owner of shares, you must rely upon the procedures of DTC and its participants. These procedures are the same as those that apply to any securities that you hold
in book-entry or street name form. Your broker will provide you with account statements, confirmations of your purchases and sales, and tax information.
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WisdomTree Trust
Prospectus
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115
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Delivery of Shareholder Documents Householding
Householding is an option available to certain investors of the Funds. Householding is a method of delivery, based on the preference of the individual
investor, in which a single copy of certain shareholder documents can be delivered to investors who share the same address, even if their accounts are registered under different names. Householding for the Funds is available through certain
broker-dealers. If you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, please contact your broker-dealer. If you are currently enrolled in householding and wish to change your
householding status, please contact your broker-dealer.
Frequent Purchases and Redemptions of Fund Shares
The Funds have adopted policies and procedures with respect to frequent purchases and redemptions of Creation Units of Fund shares. Since
the Funds are ETFs, only a few institutional investors (known as Authorized Participants) are authorized to purchase and redeem shares directly with the Funds. Because purchase and redemption transactions with Authorized Participants are
an essential part of the ETF process and help keep ETF trading prices in line with NAV, each Fund accommodates frequent purchases and redemptions by Authorized Participants. Frequent purchases and redemptions for cash may increase index tracking
error and portfolio transaction costs and may lead to realization of capital gains. Frequent in-kind creations and redemptions do not give rise to these concerns. Each Fund reserves the right to reject any purchase order at any time. Each Fund
reserves the right to impose restrictions on disruptive, excessive, or short-term trading.
Investments by
Registered Investment Companies
Section 12(d)(1) of the 1940 Act restricts investments by registered investment companies in the
securities of other investment companies, including shares of each Fund. Registered investment companies are permitted to invest in the Funds beyond the limits set forth in section 12(d)(1) subject to certain terms and conditions set forth in an SEC
exemptive order issued to the WisdomTree Trust, including that such investment companies enter into an agreement with the Funds.
Additional Tax Information
The following discussion is a summary of some important U.S. federal income tax considerations generally
applicable to investments in the Funds. Your investment in a Fund may have other tax implications. Please consult your tax advisor about the tax consequences of an investment in Fund shares, including the possible application of foreign, state, and
local tax laws.
Each Fund intends to qualify each year for treatment as a regulated investment company. If it meets certain minimum
distribution requirements, a regulated investment company is not subject to tax at the fund level on income and gains from investments that are timely distributed to shareholders. However, a Funds failure to qualify as a regulated investment
company or to meet minimum distribution requirements would result (if certain relief provisions were not available) in fund-level taxation and consequently a reduction in income available for distribution to shareholders.
Unless your investment in shares is made through a tax-exempt entity or tax-deferred retirement account, such as an individual retirement account, you
need to be aware of the possible tax consequences when:
|
n
|
|
A Fund makes distributions,
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|
n
|
|
You purchase or redeem Creation Units (for institutional investors only).
|
Taxes on Distributions
For federal income tax purposes,
distributions of investment income are generally taxable as ordinary income. Taxes on distributions of capital gains (if any) are determined by how long a Fund owned the investments that generated them, rather than how long you have owned your Fund
shares. Sales of assets held by a Fund for more than one year generally result in long-term capital gains and losses, and sales of assets held by a Fund for one year or less generally result in short-term capital gains and losses. Distributions of a
Funds net capital gain (the excess of net long-term capital gains over net short-term capital losses) that are properly reported by the Fund as capital gain dividends (Capital Gain Dividends) will be taxable as long-term capital
gains. Long-term capital gain rates have been temporarily reduced in general, to 15%, with a 0% rate applying to taxpayers in the 10% and 15% rate brackets for taxable years beginning before January 1, 2013. Distributions of
short-term capital gain will be taxable as ordinary income. For taxable years beginning before January 1, 2013, distributions of investment income reported by a Fund as derived from qualified dividend income are taxed to individuals
at rates applicable to long-term capital gain, provided holding period and other requirements are met at both the shareholder and the Fund level.
Dividends and distributions from a Fund will generally be taken into account in determining a shareholders net investment income for purposes of the Medicare contribution tax applicable
to certain individuals, estates and trusts for taxable years beginning after December 31, 2012.
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116
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In general, your distributions are subject to federal income tax for the year in which they are paid.
Certain distributions paid in January, however, may be treated as paid on December 31 of the prior year. Distributions are generally taxable even if they are paid from income or gains earned by a Fund before your investment (and thus were
included in the price you paid for your shares).
Dividends, interest and gains received by a Fund with respect to foreign securities may be
subject to withholding and other taxes imposed by foreign countries, which may reduce amounts available for distribution to you and returns to you from a Fund. Tax conventions between certain countries and the United States may, in some cases,
reduce or eliminate such taxes. Because more than 50% of the total assets of each of the Funds consist of foreign stocks or securities, the Funds intend to pass through to you certain foreign income taxes (including withholding taxes)
paid by those Funds. This means that you will be considered to have received as an additional dividend your share of such foreign taxes, but you may be entitled to either a corresponding tax deduction or a credit in calculating your federal income
tax.
If you are neither a resident nor a citizen of the United States or if you are a foreign entity, dividends (other than Capital Gain
Dividends) paid to you by the Funds will generally be subject to a 30% U.S. withholding tax, unless a lower treaty rate applies.
The Funds (or
financial intermediaries, such as brokers, through which a shareholder owns Fund shares) generally are required to withhold and remit to the U.S. Treasury a percentage of the taxable distributions and sale or redemption proceeds paid to any
shareholder who fails to properly furnish a correct taxpayer identification number, who has under-reported dividend or interest income, or who fails to certify that he, she or it is not subject to such withholding.
Taxes on Sales of Fund Shares
Any capital gain or loss realized upon a sale of Fund shares is generally treated as a long-term gain or loss if the shares have been held for more than one year. Any capital gain or loss realized upon a
sale of Fund shares held for one year or less is generally treated as a short-term gain or loss, except that any capital loss on a sale of shares held for six months or less is treated as a long-term capital loss to the extent that Capital Gain
Dividends were paid with respect to such shares. The ability to deduct capital losses may be limited.
Taxes on
Creation and Redemption of Creation Units
An Authorized Participant who exchanges securities for Creation Units generally will recognize a
gain or a loss equal to the difference between (i) the sum of the market value of the Creation Units at the time of the exchange and any cash received by the Authorized Participant in the exchange and (ii) the sum of the exchangers
aggregate basis in the securities surrendered and any cash paid for the Creation Units. A person who redeems Creation Units will generally recognize a gain or loss equal to the difference between the exchangers basis in the Creation Units and
the sum of the aggregate market value of the securities and the amount of cash received for such Creation Units. The Internal Revenue Service, however, may assert that a loss realized upon an exchange of securities for Creation Units cannot be
deducted currently under the rules governing wash sales, or on the basis that there has been no significant change in economic position. Persons exchanging securities for Creation Units should consult a tax advisor with respect to
whether wash sale rules apply and when a loss might be deductible.
Any capital gain or loss realized upon a redemption (or creation) of
Creation Units is generally treated as long-term capital gain or loss if the Fund shares (or securities surrendered) have been held for more than one year, and as short-term capital gain or loss if the shares (or securities surrendered) have been
held for one year or less.
If you purchase or redeem Creation Units, you will be sent a confirmation statement showing how many shares you
purchased or sold and at what price. Persons purchasing or redeeming Creation Units should consult their own tax advisors with respect to the tax treatment of any creation or redemption transaction.
Taxes on the WisdomTree India Earnings Fund
The WisdomTree India Earnings Fund (the Fund) invests in the WisdomTree India Investment Portfolio, Inc. (the Portfolio), a wholly-owned subsidiary organized in the Republic of
Mauritius, which invests in Indian securities. The Portfolio is also advised by WisdomTree Asset Management and sub-advised by Mellon Capital. Taxation of the income earned by the Portfolio shall be as per the provisions of the tax treaty
(Treaty) between India and Mauritius, in conjunction with the Indian Income Tax Act, 1961. The Supreme Court of India upheld the validity of this tax treaty in response to a lower court challenge contesting the Treatys
applicability to entities such as the Fund. No assurance can be given that the terms of the Treaty will not be subject to re-negotiation in the future or subject to a different interpretation. Any change in the provision of this Treaty or in its
applicability to the Fund could result in the imposition of withholding and other taxes on the Fund by tax authorities in India. This would reduce the return to the Fund on its investments and the return received by Fund shareholders. On
March 16, 2012, the Indian Finance Minister proposed certain anti-avoidance rules by introducing a new Chapter X-A to the Indian Income Tax Act, 1961 which would include certain General Anti- Avoidance Rules (GAAR).
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As currently proposed, GAAR will apply to cases of impermissible avoidance arrangements where the main purpose, or one of the main purposes, of entering into such an arrangement
is purely to obtain a tax benefit and where such arrangement satisfies one of a list of described abusive transactions. If an impermissible avoidance arrangement is found, then the arrangement may be disregarded,
recharacterized or ignored for India tax purposes. It is currently unclear whether the proposed GAAR rules will be enacted, and if so, whether such rules will have an adverse effect on the Funds ability to benefit from the provisions of
the Treaty and whether such adverse effect will be prospective or retroactive in its application. As a result, no assurances can be given that the terms of the Treaty will not be subject to re-negotiation in the future or subject to an adverse
interpretation under the proposed GAAR. Any change in the provision of this Treaty or in its applicability to the Fund could result in the imposition of withholding and other taxes on the Fund by tax authorities in India. This would reduce the
return to the Fund on its investments and the return received by Fund shareholders.
Another proposal may have the effect of taxing the
transfer of an asset, such as a share or interest in an offshore company or entity, if such share or interest derives, directly or indirectly, its value substantially from the assets located in India.
Thus, the proposed changes could apply Indian income tax to transactions by the Fund in shares of the Portfolio or in the Funds shares. Presently,
it is unclear whether they will be enacted as proposed or if enacted, how extensively they will be applied by Indian tax authorities.
Distribution
ALPS Distributors, Inc. (the Distributor) serves as the distributor of Creation Units for each Fund on an
agency basis. The Distributor does not maintain a secondary market in shares of the Funds. The Distributors principal address is 1290 Broadway, Suite 1100, Denver, Colorado 80203.
The Distributor has no role in determining the policies of any Fund or the securities that are purchased or sold by any Fund.
Premium/Discount Information
Information regarding how often
shares of each Fund traded on the Exchange at a price above (
i.e.
, at a premium) or below (
i.e.
, at a discount) the NAV of the Fund during the past calendar year can be found at www.wisdomtree.com.
Additional Notices
Shares of the Trust are not sponsored, endorsed, or promoted by the Listing Exchange. The Listing Exchange makes no representation or warranty, express or implied, to the owners of the shares of any Fund
or any member of the public regarding the ability of a Fund to track the total return performance of any Index or the ability of any Index identified herein to track stock market performance. The Listing Exchange is not responsible for, nor has it
participated in, the determination of the compilation or the calculation of any Index, nor in the determination of the timing of, prices of, or quantities of the shares of any Fund to be issued, nor in the determination or calculation of the
equation by which the shares are redeemable. The Listing Exchange has no obligation or liability to owners of the shares of any Fund in connection with the administration, marketing, or trading of the shares of the Fund.
The Listing Exchange does not guarantee the accuracy and/or the completeness of any Index or any data included therein. The Listing Exchange makes no
warranty, express or implied, as to results to be obtained by the WisdomTree Trust on behalf of its Funds, owners of the shares, or any other person or entity from the use of the subject Indexes or any data included therein. The Listing Exchange
makes no express or implied warranties, and hereby expressly disclaims all warranties of merchantability or fitness for a particular purpose with respect to any Index or any data included therein. Without limiting any of the foregoing, in no event
shall the Listing Exchange have any liability for any lost profits or indirect, punitive, special, or consequential damages even if notified of the possibility thereof.
WisdomTree Investments, WisdomTree Asset Management and the Funds make no representation or warranty, express or implied, to the owners of shares of the Funds or any member of the public regarding the
advisability of investing in securities generally or in the Funds particularly or the ability of the Indexes to track general stock market performance. WisdomTree Investments is the licensor of certain trademarks, service marks and trade names of
the Funds. WisdomTree Investments has no obligation to take the needs of the Funds or the owners of shares of the Funds into consideration in determining, composing, or calculating the Indexes. WisdomTree Investments is not responsible for and has
not participated in the determination of the timing of, prices of, or quantities of shares of the Funds to be issued or in the determination or calculation of the equation by which the shares of the Funds are redeemable. The Funds, WisdomTree
Investments and WisdomTree Asset Management do not guarantee the accuracy, completeness, or performance of any Index or the data included therein and shall have no liability in connection with any Index or Index calculation. WisdomTree Investments
has contracted with Standard & Poors (S&P) to maintain and calculate certain Indexes used by the Funds. S&P shall have no liability for any errors or omissions in calculating any Index.
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Financial Highlights
The financial highlights table is intended to help you understand each Funds (except the China Dividend ex-Financials Fund) financial performance
since inception. The total return in the table represents the rate that an investor would have earned (or lost) on an investment in the respective Fund (assuming reinvestment of all dividends and distributions). This information has been derived
from the financial statements audited by Ernst & Young LLP, an independent registered public accounting firm, whose report, along with the Funds financial statements, are included in the Funds Annual Report, which is available
upon request.
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119
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Financial Highlights
WisdomTree International Equity ETFs
March 31, 2012
Selected data for a share of beneficial interest outstanding throughout the period is presented below:
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WisdomTree DEFA Fund
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For the
Year Ended
March 31, 2012
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For the
Year Ended
March 31, 2011
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For the
Year Ended
March 31, 2010
|
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For the
Year Ended
March 31, 2009
|
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|
For the
Year Ended
March 31, 2008
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Net asset value, beginning of year
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|
$
|
49.51
|
|
|
$
|
46.13
|
|
|
$
|
32.00
|
|
|
$
|
63.02
|
|
|
$
|
64.15
|
|
Investment operations:
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Net investment
income
1
|
|
|
1.90
|
|
|
|
1.58
|
|
|
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2.00
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1.89
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1.70
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Net realized and unrealized gain (loss)
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(4.99
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)
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3.39
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14.24
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(31.04
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)
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(1.92
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)
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Total from investment operations
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(3.09
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)
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4.97
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|
16.24
|
|
|
|
(29.15
|
)
|
|
|
(0.22
|
)
|
Dividends and distributions to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(1.89
|
)
|
|
|
(1.59
|
)
|
|
|
(2.11
|
)
|
|
|
(1.87
|
)
|
|
|
(0.91
|
)
|
Capital gains
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.00
|
)
2
|
Total dividends and distributions to shareholders
|
|
|
(1.89
|
)
|
|
|
(1.59
|
)
|
|
|
(2.11
|
)
|
|
|
(1.87
|
)
|
|
|
(0.91
|
)
|
Net asset value, end of year
|
|
$
|
44.53
|
|
|
$
|
49.51
|
|
|
$
|
46.13
|
|
|
$
|
32.00
|
|
|
$
|
63.02
|
|
|
|
|
|
|
|
TOTAL RETURN
3
|
|
|
(6.18
|
)%
|
|
|
11.33
|
%
|
|
|
51.43
|
%
|
|
|
(46.61
|
)%
|
|
|
(0.44
|
)%
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000s omitted)
|
|
$
|
385,202
|
|
|
$
|
457,997
|
|
|
$
|
435,906
|
|
|
$
|
302,385
|
|
|
$
|
425,386
|
|
Ratio to average net assets
4
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements/waivers
|
|
|
0.48
|
%
|
|
|
0.48
|
%
|
|
|
0.19
|
%*
|
|
|
0.48
|
%
|
|
|
0.48
|
%
|
Expenses, prior to expense reimbursements/waivers
|
|
|
0.48
|
%
|
|
|
0.48
|
%
|
|
|
0.48
|
%
|
|
|
0.48
|
%
|
|
|
0.48
|
%
|
Net investment income
|
|
|
4.22
|
%
|
|
|
3.50
|
%
|
|
|
4.63
|
%
|
|
|
4.01
|
%
|
|
|
2.54
|
%
|
Portfolio turnover rate
5
|
|
|
27
|
%
|
|
|
30
|
%
|
|
|
97
|
%
|
|
|
30
|
%
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree DEFA Equity Income Fund
|
|
For the
Year Ended
March 31, 2012
|
|
|
For the
Year Ended
March 31, 2011
|
|
|
For the
Year Ended
March 31, 2010
|
|
|
For the
Year Ended
March 31, 2009
|
|
|
For the
Year Ended
March 31, 2008
|
|
Net asset value, beginning of year
|
|
$
|
43.82
|
|
|
$
|
41.85
|
|
|
$
|
28.43
|
|
|
$
|
60.10
|
|
|
$
|
63.62
|
|
Investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income
1
|
|
|
1.90
|
|
|
|
1.75
|
|
|
|
1.56
|
|
|
|
2.45
|
|
|
|
2.20
|
|
Net realized and unrealized gain (loss)
|
|
|
(5.17
|
)
|
|
|
2.01
|
|
|
|
13.44
|
|
|
|
(31.09
|
)
|
|
|
(3.78
|
)
|
Total from investment operations
|
|
|
(3.27
|
)
|
|
|
3.76
|
|
|
|
15.00
|
|
|
|
(28.64
|
)
|
|
|
(1.58
|
)
|
Dividends to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(1.91
|
)
|
|
|
(1.79
|
)
|
|
|
(1.58
|
)
|
|
|
(3.03
|
)
|
|
|
(1.94
|
)
|
Net asset value, end of year
|
|
$
|
38.64
|
|
|
$
|
43.82
|
|
|
$
|
41.85
|
|
|
$
|
28.43
|
|
|
$
|
60.10
|
|
|
|
|
|
|
|
TOTAL RETURN
3
|
|
|
(7.45
|
)%
|
|
|
9.74
|
%
|
|
|
53.57
|
%
|
|
|
(48.27
|
)%
|
|
|
(2.72
|
)%
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000s omitted)
|
|
$
|
175,809
|
|
|
$
|
131,454
|
|
|
$
|
142,297
|
|
|
$
|
88,123
|
|
|
$
|
240,408
|
|
Ratio to average net assets
4
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements/waivers
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
Expenses, prior to expense reimbursements/waivers
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
Net investment income
|
|
|
4.84
|
%
|
|
|
4.39
|
%
|
|
|
3.91
|
%
|
|
|
5.27
|
%
|
|
|
3.32
|
%
|
Portfolio turnover rate
5
|
|
|
32
|
%
|
|
|
34
|
%
|
|
|
36
|
%
|
|
|
40
|
%
|
|
|
16
|
%
|
*
|
Reflects the Funds advisory fees, after waiver, and the fees and expenses of the underlying funds that were paid indirectly by the Fund during the period when the Fund
operated as a fund of funds.
|
1
|
Based on average shares outstanding.
|
2
|
Amount is less than $0.005.
|
3
|
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and
distributions at net asset value during the period and redemption on the last day of the period. Total return calculated for a period of less than one year is not annualized. The total return would have been lower if certain expenses had not been
reimbursed/waived by the investment adviser.
|
4
|
The ratios to average net assets do not include net investment income (loss) or expenses of the affiliated funds in which the Fund invests.
|
5
|
Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of
the Funds capital shares.
|
|
|
|
120
|
|
WisdomTree Trust
Prospectus
|
Financial Highlights
WisdomTree International Equity ETFs
March 31, 2012
Selected data for a share of beneficial interest outstanding throughout the period is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wisdom Tree Europe Hedged Equity Fund
(formerly, WisdomTree International
Hedged Equity Fund)
|
|
|
|
|
|
|
|
For the
Year Ended
March 31, 2012
|
|
|
For the
Year Ended
March 31, 2011
|
|
|
For the Period
December 31, 2009*
through
March
31, 2010
|
|
Net asset value, beginning of period
|
|
|
|
|
|
|
|
|
|
$
|
47.61
|
|
|
$
|
47.72
|
|
|
$
|
46.92
|
|
Investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income
1
|
|
|
|
|
|
|
|
|
|
|
1.73
|
|
|
|
1.43
|
|
|
|
0.29
|
|
Net realized and unrealized gain (loss)
|
|
|
|
|
|
|
|
|
|
|
(3.84
|
)
|
|
|
(0.02
|
)
|
|
|
0.64
|
|
Total from investment operations
|
|
|
|
|
|
|
|
|
|
|
(2.11
|
)
|
|
|
1.41
|
|
|
|
0.93
|
|
Dividends and distributions to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
|
|
|
|
|
|
|
|
(1.57
|
)
|
|
|
(1.52
|
)
|
|
|
(0.13
|
)
|
Capital gains
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.00
|
2
|
Total dividends and distributions to shareholders
|
|
|
|
|
|
|
|
|
|
|
(1.57
|
)
|
|
|
(1.52
|
)
|
|
|
(0.13
|
)
|
Net asset value, end of period
|
|
|
|
|
|
|
|
|
|
$
|
43.93
|
|
|
$
|
47.61
|
|
|
$
|
47.72
|
|
|
|
|
|
|
|
TOTAL RETURN
3
|
|
|
|
|
|
|
|
|
|
|
(4.41
|
)%
|
|
|
3.27
|
%
|
|
|
1.98
|
%
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (000s omitted)
|
|
|
|
|
|
|
|
|
|
$
|
21,963
|
|
|
$
|
21,425
|
|
|
$
|
9,545
|
|
Ratios to average net assets
5
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements/waivers
|
|
|
|
|
|
|
|
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.47
|
%**
4
|
Expenses, prior to expense reimbursements/waivers
|
|
|
|
|
|
|
|
|
|
|
1.25
|
%
|
|
|
1.65
|
%
|
|
|
0.58
|
%
4
|
Net investment income
|
|
|
|
|
|
|
|
|
|
|
3.99
|
%
|
|
|
3.11
|
%
|
|
|
2.53
|
%
4
|
Portfolio turnover rate
6
|
|
|
|
|
|
|
|
|
|
|
42
|
%
|
|
|
38
|
%
|
|
|
79
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree International Dividend
ex-Financials Fund
|
|
For the
Year Ended
March 31, 2012
|
|
|
For the
Year Ended
March 31, 2011
|
|
|
For the
Year Ended
March 31, 2010
7
|
|
|
For the
Year Ended
March 31, 2009
|
|
|
For the
Year Ended
March 31, 2008
|
|
Net asset value, beginning of year
|
|
$
|
46.85
|
|
|
$
|
42.69
|
|
|
$
|
28.46
|
|
|
$
|
64.01
|
|
|
$
|
66.37
|
|
Investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income
1
|
|
|
1.74
|
|
|
|
1.83
|
|
|
|
1.50
|
|
|
|
2.93
|
|
|
|
2.29
|
|
Net realized and unrealized gain (loss)
|
|
|
(5.11
|
)
|
|
|
4.21
|
|
|
|
14.24
|
|
|
|
(34.43
|
)
|
|
|
(2.86
|
)
|
Total from investment operations
|
|
|
(3.37
|
)
|
|
|
6.04
|
|
|
|
15.74
|
|
|
|
(31.50
|
)
|
|
|
(0.57
|
)
|
Dividends to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(1.84
|
)
|
|
|
(1.88
|
)
|
|
|
(1.51
|
)
|
|
|
(4.05
|
)
|
|
|
(1.79
|
)
|
Net asset value, end of year
|
|
$
|
41.64
|
|
|
$
|
46.85
|
|
|
$
|
42.69
|
|
|
$
|
28.46
|
|
|
$
|
64.01
|
|
|
|
|
|
|
|
TOTAL RETURN
3
|
|
|
(7.24
|
)%
|
|
|
14.93
|
%
|
|
|
56.27
|
%
|
|
|
(49.95
|
)%
|
|
|
1.05
|
%
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000s omitted)
|
|
$
|
355,992
|
|
|
$
|
149,929
|
|
|
$
|
164,338
|
|
|
$
|
105,305
|
|
|
$
|
390,485
|
|
Ratios to average net assets
5
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements/waivers
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
Expenses, prior to expense reimbursements/waivers
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
Net investment income
|
|
|
4.20
|
%
|
|
|
4.30
|
%
|
|
|
3.81
|
%
|
|
|
5.90
|
%
|
|
|
3.28
|
%
|
Portfolio turnover rate
6
|
|
|
28
|
%
|
|
|
52
|
%
|
|
|
69
|
%
|
|
|
55
|
%
|
|
|
24
|
%
|
*
|
Commencement of investment operations.
|
**
|
Reflects the Funds advisory fees, after waiver, and the fees and expenses of the underlying funds that were paid indirectly by the Fund during the period when the Fund
operated as a fund of funds.
|
1
|
Based on average shares outstanding.
|
2
|
Amount represents less than $0.005.
|
3
|
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and
distributions at net asset value during the period and redemption on the last day of the period. Total return calculated for a period of less than one year is not annualized. The total return would have been lower if certain expenses had not been
reimbursed/waived by the investment adviser.
|
5
|
The ratios to average net assets do not include net investment income (loss) or expenses of the affiliated funds in which the Fund invests.
|
6
|
Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of
the Funds capital shares.
|
7
|
This information reflects the investment objective and strategy of the WisdomTree International Dividend Top 100 Fund through May 8, 2009 and the investment
objective and strategy of the WisdomTree International Dividend ex-Financials Fund thereafter.
|
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
121
|
|
Financial Highlights
WisdomTree International Equity ETFs
March 31, 2012
Selected data for a share of beneficial interest outstanding throughout the period is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree International LargeCap
Dividend Fund
|
|
For the
Year Ended
March 31, 2012
|
|
|
For the
Year Ended
March 31, 2011
|
|
|
For the
Year Ended
March 31, 2010
|
|
|
For the
Year Ended
March 31, 2009
|
|
|
For the
Year Ended
March 31, 2008
|
|
Net asset value, beginning of year
|
|
$
|
47.68
|
|
|
$
|
45.34
|
|
|
$
|
31.57
|
|
|
$
|
61.86
|
|
|
$
|
62.55
|
|
Investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income
1
|
|
|
1.86
|
|
|
|
1.56
|
|
|
|
1.50
|
|
|
|
2.11
|
|
|
|
1.80
|
|
Net realized and unrealized gain (loss)
|
|
|
(4.75
|
)
|
|
|
2.37
|
|
|
|
13.91
|
|
|
|
(29.98
|
)
|
|
|
(1.11
|
)
|
Total from investment operations
|
|
|
(2.89
|
)
|
|
|
3.93
|
|
|
|
15.41
|
|
|
|
(27.87
|
)
|
|
|
0.69
|
|
Dividends to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(1.90
|
)
|
|
|
(1.59
|
)
|
|
|
(1.64
|
)
|
|
|
(2.42
|
)
|
|
|
(1.38
|
)
|
Net asset value, end of year
|
|
$
|
42.89
|
|
|
$
|
47.68
|
|
|
$
|
45.34
|
|
|
$
|
31.57
|
|
|
$
|
61.86
|
|
|
|
|
|
|
|
TOTAL RETURN
2
|
|
|
(6.02
|
)%
|
|
|
9.21
|
%
|
|
|
49.56
|
%
|
|
|
(45.57
|
)%
|
|
|
0.93
|
%
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000s omitted)
|
|
$
|
167,253
|
|
|
$
|
164,489
|
|
|
$
|
149,624
|
|
|
$
|
78,928
|
|
|
$
|
154,658
|
|
Ratio to average net assets
3
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements/waivers
|
|
|
0.48
|
%
|
|
|
0.48
|
%
|
|
|
0.48
|
%
|
|
|
0.48
|
%
|
|
|
0.48
|
%
|
Expenses, prior to expense reimbursements/waivers
|
|
|
0.48
|
%
|
|
|
0.48
|
%
|
|
|
0.48
|
%
|
|
|
0.48
|
%
|
|
|
0.48
|
%
|
Net investment income
|
|
|
4.34
|
%
|
|
|
3.56
|
%
|
|
|
3.54
|
%
|
|
|
4.38
|
%
|
|
|
2.69
|
%
|
Portfolio turnover rate
4
|
|
|
23
|
%
|
|
|
22
|
%
|
|
|
26
|
%
|
|
|
30
|
%
|
|
|
15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree International MidCap
Dividend Fund
|
|
For the
Year Ended
March 31, 2012
|
|
|
For the
Year Ended
March 31, 2011
|
|
|
For the
Year Ended
March 31, 2010
|
|
|
For the
Year Ended
March 31, 2009
|
|
|
For the
Year Ended
March 31, 2008
|
|
Net asset value, beginning of year
|
|
$
|
53.80
|
|
|
$
|
48.69
|
|
|
$
|
31.55
|
|
|
$
|
62.60
|
|
|
$
|
67.56
|
|
Investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income
1
|
|
|
1.79
|
|
|
|
1.53
|
|
|
|
1.26
|
|
|
|
1.82
|
|
|
|
1.92
|
|
Net realized and unrealized gain (loss)
|
|
|
(5.69
|
)
|
|
|
5.19
|
|
|
|
17.27
|
|
|
|
(30.64
|
)
|
|
|
(4.95
|
)
|
Total from investment operations
|
|
|
(3.90
|
)
|
|
|
6.72
|
|
|
|
18.53
|
|
|
|
(28.82
|
)
|
|
|
(3.03
|
)
|
Dividends and distributions to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(1.80
|
)
|
|
|
(1.61
|
)
|
|
|
(1.39
|
)
|
|
|
(2.23
|
)
|
|
|
(1.81
|
)
|
Capital gains
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.12
|
)
|
Total dividends and distributions to shareholders
|
|
|
(1.80
|
)
|
|
|
(1.61
|
)
|
|
|
(1.39
|
)
|
|
|
(2.23
|
)
|
|
|
(1.93
|
)
|
Net asset value, end of year
|
|
$
|
48.10
|
|
|
$
|
53.80
|
|
|
$
|
48.69
|
|
|
$
|
31.55
|
|
|
$
|
62.60
|
|
|
|
|
|
|
|
TOTAL RETURN
2
|
|
|
(7.21
|
)%
|
|
|
14.38
|
%
|
|
|
59.59
|
%
|
|
|
(46.43
|
)%
|
|
|
(4.61
|
)%
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000s omitted)
|
|
$
|
105,823
|
|
|
$
|
156,006
|
|
|
$
|
146,069
|
|
|
$
|
88,334
|
|
|
$
|
219,104
|
|
Ratios to average net assets
3
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements/waivers
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
Expenses, prior to expense reimbursements/waivers
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
Net investment income
|
|
|
3.69
|
%
|
|
|
3.14
|
%
|
|
|
2.88
|
%
|
|
|
3.80
|
%
|
|
|
2.76
|
%
|
Portfolio turnover rate
4
|
|
|
47
|
%
|
|
|
40
|
%
|
|
|
49
|
%
|
|
|
32
|
%
|
|
|
18
|
%
|
1
|
Based on average shares outstanding.
|
2
|
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and
distributions at net asset value during the period and redemption on the last day of the period. Total return calculated for a period of less than one year is not annualized. The total return would have been lower if certain expenses had not been
reimbursed/waived by the investment adviser.
|
3
|
The ratios to average net assets do not include net investment income (loss) or expenses of the affiliated funds in which the Fund invests.
|
4
|
Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of
the Funds capital shares.
|
|
|
|
122
|
|
WisdomTree Trust
Prospectus
|
Financial Highlights
WisdomTree International Equity ETFs
March 31, 2012
Selected data for a share of beneficial interest outstanding throughout the period is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree International SmallCap
Dividend Fund
|
|
For the
Year Ended
March 31, 2012
|
|
|
For the
Year Ended
March 31, 2011
|
|
|
For the
Year Ended
March 31, 2010
|
|
|
For the
Year Ended
March 31, 2009
|
|
|
For the
Year Ended
March 31, 2008
|
|
Net asset value, beginning of year
|
|
$
|
53.15
|
|
|
$
|
46.98
|
|
|
$
|
29.08
|
|
|
$
|
61.11
|
|
|
$
|
67.80
|
|
Investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income
1
|
|
|
1.77
|
|
|
|
1.43
|
|
|
|
1.20
|
|
|
|
1.91
|
|
|
|
1.86
|
|
Net realized and unrealized gain (loss)
|
|
|
(3.66
|
)
|
|
|
6.14
|
|
|
|
17.91
|
|
|
|
(31.83
|
)
|
|
|
(7.08
|
)
|
Total from investment operations
|
|
|
(1.89
|
)
|
|
|
7.57
|
|
|
|
19.11
|
|
|
|
(29.92
|
)
|
|
|
(5.22
|
)
|
Dividends and distributions to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(1.93
|
)
|
|
|
(1.40
|
)
|
|
|
(1.21
|
)
|
|
|
(2.11
|
)
|
|
|
(1.41
|
)
|
Capital gains
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.06
|
)
|
Total dividends and distributions to shareholders
|
|
|
(1.93
|
)
|
|
|
(1.40
|
)
|
|
|
(1.21
|
)
|
|
|
(2.11
|
)
|
|
|
(1.47
|
)
|
Net asset value, end of year
|
|
$
|
49.33
|
|
|
$
|
53.15
|
|
|
$
|
46.98
|
|
|
$
|
29.08
|
|
|
$
|
61.11
|
|
|
|
|
|
|
|
TOTAL RETURN
2
|
|
|
(3.41
|
)%
|
|
|
16.64
|
%
|
|
|
66.50
|
%
|
|
|
(49.23
|
)%
|
|
|
(7.79
|
)%
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000s omitted)
|
|
$
|
424,264
|
|
|
$
|
475,703
|
|
|
$
|
429,870
|
|
|
$
|
244,307
|
|
|
$
|
482,761
|
|
Ratios to average net assets
3
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements/waivers
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
Expenses, prior of expense reimbursements/waivers
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
Net investment income
|
|
|
3.65
|
%
|
|
|
2.99
|
%
|
|
|
2.87
|
%
|
|
|
4.31
|
%
|
|
|
2.71
|
%
|
Portfolio turnover rate
4
|
|
|
52
|
%
|
|
|
55
|
%
|
|
|
63
|
%
|
|
|
43
|
%
|
|
|
17
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree Europe SmallCap
Dividend Fund
|
|
For the
Year Ended
March 31, 2012
|
|
|
For the
Year Ended
March 31, 2011
|
|
|
For the
Year Ended
March 31, 2010
|
|
|
For the
Year Ended
March 31, 2009
|
|
|
For the
Year Ended
March 31, 2008
|
|
Net asset value, beginning of year
|
|
$
|
44.44
|
|
|
$
|
37.62
|
|
|
$
|
22.44
|
|
|
$
|
58.47
|
|
|
$
|
70.15
|
|
Investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income
1
|
|
|
1.44
|
|
|
|
1.09
|
|
|
|
0.99
|
|
|
|
2.50
|
|
|
|
2.32
|
|
Net realized and unrealized gain (loss)
|
|
|
(5.74
|
)
|
|
|
6.85
|
|
|
|
15.37
|
|
|
|
(35.53
|
)
|
|
|
(9.78
|
)
|
Total from investment operations
|
|
|
(4.30
|
)
|
|
|
7.94
|
|
|
|
16.36
|
|
|
|
(33.03
|
)
|
|
|
(7.46
|
)
|
Dividends to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(1.92
|
)
|
|
|
(1.12
|
)
|
|
|
(1.18
|
)
|
|
|
(3.00
|
)
|
|
|
(4.22
|
)
|
Net asset value, end of year
|
|
$
|
38.22
|
|
|
$
|
44.44
|
|
|
$
|
37.62
|
|
|
$
|
22.44
|
|
|
$
|
58.47
|
|
|
|
|
|
|
|
TOTAL RETURN
2
|
|
|
(9.80
|
)%
|
|
|
21.86
|
%
|
|
|
74.18
|
%
|
|
|
(56.75
|
)%
|
|
|
(10.72
|
)%
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000s omitted)
|
|
$
|
28,668
|
|
|
$
|
28,889
|
|
|
$
|
30,095
|
|
|
$
|
13,467
|
|
|
$
|
46,778
|
|
Ratio to average net assets
3
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements/waivers
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
Expenses, prior to expense reimbursements/waivers
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
Net investment income
|
|
|
3.79
|
%
|
|
|
2.81
|
%
|
|
|
2.92
|
%
|
|
|
6.03
|
%
|
|
|
3.33
|
%
|
Portfolio turnover rate
4
|
|
|
58
|
%
|
|
|
60
|
%
|
|
|
55
|
%
|
|
|
63
|
%
|
|
|
22
|
%
|
1
|
Based on average shares outstanding.
|
2
|
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and
distributions at net asset value during the period and redemption on the last day of the period. Total return calculated for a period of less than one year is not annualized. The total return would have been lower if certain expenses had not been
reimbursed/waived by the investment adviser.
|
3
|
The ratios to average net assets do not include net investment income (loss) or expenses of the affiliated funds in which the Fund invests.
|
4
|
Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of
the Funds capital shares.
|
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
123
|
|
Financial Highlights
WisdomTree International Equity ETFs
March 31, 2012
Selected data for a share of beneficial interest outstanding throughout the period is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree Global Equity Income Fund
|
|
For the
Year Ended
March 31, 2012
|
|
|
For the
Year Ended
March 31, 2011
|
|
|
For the
Year Ended
March 31, 2010
1
|
|
|
For the
Year Ended
March 31, 2009
|
|
|
For the
Year Ended
March 31, 2008
|
|
Net asset value, beginning of year
|
|
$
|
44.66
|
|
|
$
|
40.99
|
|
|
$
|
26.84
|
|
|
$
|
58.90
|
|
|
$
|
63.15
|
|
Investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income
2
|
|
|
1.86
|
|
|
|
1.52
|
|
|
|
2.07
|
|
|
|
2.32
|
|
|
|
2.16
|
|
Net realized and unrealized gain (loss)
|
|
|
(3.14
|
)
|
|
|
3.63
|
|
|
|
14.28
|
|
|
|
(31.66
|
)
|
|
|
(4.38
|
)
|
Total from investment operations
|
|
|
(1.28
|
)
|
|
|
5.15
|
|
|
|
16.35
|
|
|
|
(29.34
|
)
|
|
|
(2.22
|
)
|
Dividends and distributions to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(1.88
|
)
|
|
|
(1.48
|
)
|
|
|
(2.20
|
)
|
|
|
(2.72
|
)
|
|
|
(2.03
|
)
|
Capital gains
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.00
|
)
3
|
Total dividends and distributions to shareholders
|
|
|
(1.88
|
)
|
|
|
(1.48
|
)
|
|
|
(2.20
|
)
|
|
|
(2.72
|
)
|
|
|
(2.03
|
)
|
Net asset value, end of year
|
|
$
|
41.50
|
|
|
$
|
44.66
|
|
|
$
|
40.99
|
|
|
$
|
26.84
|
|
|
$
|
58.90
|
|
|
|
|
|
|
|
TOTAL RETURN
4
|
|
|
(2.70
|
)%
|
|
|
13.12
|
%
|
|
|
62.13
|
%
|
|
|
(50.56
|
)%
|
|
|
(3.76
|
)%
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000s omitted)
|
|
$
|
91,304
|
|
|
$
|
78,147
|
|
|
$
|
43,042
|
|
|
$
|
18,787
|
|
|
$
|
47,122
|
|
Ratio to average net assets
5
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements/waivers
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.26
|
%*
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
Expenses, prior to expense reimbursements/waivers
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
Net investment income
|
|
|
4.53
|
%
|
|
|
3.74
|
%
|
|
|
5.49
|
%
|
|
|
5.16
|
%
|
|
|
3.32
|
%
|
Portfolio turnover rate
6
|
|
|
25
|
%
|
|
|
35
|
%
|
|
|
94
|
%
|
|
|
47
|
%
|
|
|
21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree Japan Hedged Equity Fund
|
|
For the
Year Ended
March 31, 2012
|
|
|
For the
Year Ended
March 31, 2011
|
|
|
For the
Year Ended
March 31, 2010
|
|
|
For the
Year Ended
March 31, 2009
|
|
|
For the
Year Ended
March 31, 2008
|
|
Net asset value, beginning of year
|
|
$
|
36.94
|
|
|
$
|
42.12
|
|
|
$
|
32.02
|
|
|
$
|
48.34
|
|
|
$
|
57.00
|
|
Investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income
2
|
|
|
0.81
|
|
|
|
1.79
|
|
|
|
0.73
|
|
|
|
0.57
|
|
|
|
0.64
|
|
Net realized and unrealized gain (loss)
|
|
|
(0.34
|
)
|
|
|
(6.52
|
)
|
|
|
9.89
|
|
|
|
(16.09
|
)
|
|
|
(8.82
|
)
|
Total from investment operations
|
|
|
0.47
|
|
|
|
(4.73
|
)
|
|
|
10.62
|
|
|
|
(15.52
|
)
|
|
|
(8.18
|
)
|
Dividends to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(0.75
|
)
|
|
|
(0.45
|
)
|
|
|
(0.52
|
)
|
|
|
(0.80
|
)
|
|
|
(0.48
|
)
|
Net asset value, end of year
|
|
$
|
36.66
|
|
|
$
|
36.94
|
|
|
$
|
42.12
|
|
|
$
|
32.02
|
|
|
$
|
48.34
|
|
|
|
|
|
|
|
TOTAL RETURN
4
|
|
|
1.46
|
%
|
|
|
(11.25
|
)%
|
|
|
33.33
|
%
|
|
|
(32.36
|
)%
|
|
|
(14.39
|
)%
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000s omitted)
|
|
$
|
606,707
|
|
|
$
|
494,981
|
|
|
$
|
54,751
|
|
|
$
|
19,212
|
|
|
$
|
29,004
|
|
Ratio to average net assets
5
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements/waivers
|
|
|
0.48
|
%
|
|
|
0.48
|
%
|
|
|
0.48
|
%
|
|
|
0.48
|
%
|
|
|
0.48
|
%
|
Expenses, prior to expense reimbursements/waivers
|
|
|
0.48
|
%
|
|
|
0.48
|
%
|
|
|
0.48
|
%
|
|
|
0.48
|
%
|
|
|
0.48
|
%
|
Net investment income
|
|
|
2.41
|
%
|
|
|
5.40
|
%
|
|
|
1.72
|
%
|
|
|
1.38
|
%
|
|
|
1.17
|
%
|
Portfolio turnover rate
6
|
|
|
41
|
%
|
|
|
28
|
%
|
|
|
13
|
%
|
|
|
11
|
%
|
|
|
1
|
%
|
*
|
Reflects the Funds advisory fees, after waiver, and the fees and expenses of the underlying funds that were paid indirectly by the Fund during the period when the Fund
operated as a fund of funds.
|
1
|
This information reflects the investment objective and strategy of the WisdomTree Europe Equity Income Fund through June 19, 2009 and the investment
objective and strategy of the WisdomTree Global Equity Income Fund thereafter.
|
2
|
Based on average shares outstanding.
|
3
|
Amount is less than $0.005.
|
4
|
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and
distributions at net asset value during the period and redemption on the last day of the period. Total return calculated for a period of less than one year is not annualized. The total return would have been lower if certain expenses had not been
reimbursed/waived by the investment adviser.
|
5
|
The ratios to average net assets do not include net investment income (loss) or expenses of the affiliated funds in which the Fund invests.
|
6
|
Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of
the Funds capital shares.
|
|
|
|
124
|
|
WisdomTree Trust
Prospectus
|
Financial Highlights
WisdomTree International Equity ETFs
March 31, 2012
Selected data for a share of beneficial interest outstanding throughout the period is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree Japan SmallCap
Dividend Fund
|
|
For the
Year Ended
March 31, 2012
|
|
|
For the
Year Ended
March 31, 2011
|
|
|
For the
Year Ended
March 31, 2010
|
|
|
For the
Year Ended
March 31, 2009
|
|
|
For the
Year Ended
March 31, 2008
|
|
Net asset value, beginning of year
|
|
$
|
43.25
|
|
|
$
|
41.54
|
|
|
$
|
31.47
|
|
|
$
|
44.29
|
|
|
$
|
52.33
|
|
Investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income
1
|
|
|
0.68
|
|
|
|
0.99
|
|
|
|
0.79
|
|
|
|
0.64
|
|
|
|
0.69
|
|
Net realized and unrealized gain (loss)
|
|
|
2.42
|
|
|
|
1.47
|
|
|
|
9.96
|
|
|
|
(12.97
|
)
|
|
|
(8.12
|
)
|
Total from investment operations
|
|
|
3.10
|
|
|
|
2.46
|
|
|
|
10.75
|
|
|
|
(12.33
|
)
|
|
|
(7.43
|
)
|
Dividends to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(0.90
|
)
|
|
|
(0.75
|
)
|
|
|
(0.68
|
)
|
|
|
(0.49
|
)
|
|
|
(0.61
|
)
|
Net asset value, end of year
|
|
$
|
45.45
|
|
|
$
|
43.25
|
|
|
$
|
41.54
|
|
|
$
|
31.47
|
|
|
$
|
44.29
|
|
|
|
|
|
|
|
TOTAL RETURN
2
|
|
|
7.36
|
%
|
|
|
6.02
|
%
|
|
|
34.37
|
%
|
|
|
(27.98
|
)%
|
|
|
(14.23
|
)%
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000s omitted)
|
|
$
|
193,172
|
|
|
$
|
235,685
|
|
|
$
|
157,850
|
|
|
$
|
66,078
|
|
|
$
|
75,300
|
|
Ratio to average net assets
3
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements/waivers
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
Expenses, prior to expense reimbursements/waivers
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
Net investment income
|
|
|
1.58
|
%
|
|
|
2.51
|
%
|
|
|
2.09
|
%
|
|
|
1.68
|
%
|
|
|
1.44
|
%
|
Portfolio turnover rate
4
|
|
|
36
|
%
|
|
|
39
|
%
|
|
|
45
|
%
|
|
|
16
|
%
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree Global ex-U.S. Growth
Fund
|
|
For the
Year Ended
March 31, 2012
|
|
|
For the
Year Ended
March 31, 2011
|
|
|
For the
Year Ended
March 31, 2010
5
|
|
|
For the
Year Ended
March 31, 2009
|
|
|
For the
Year Ended
March 31, 2008
|
|
Net asset value, beginning of year
|
|
$
|
54.94
|
|
|
$
|
49.61
|
|
|
$
|
35.41
|
|
|
$
|
49.59
|
|
|
$
|
59.42
|
|
Investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income
1
|
|
|
1.39
|
|
|
|
1.41
|
|
|
|
1.11
|
|
|
|
0.75
|
|
|
|
0.65
|
|
Net realized and unrealized gain (loss)
|
|
|
(4.32
|
)
|
|
|
5.22
|
|
|
|
14.94
|
|
|
|
(13.89
|
)
|
|
|
(9.50
|
)
|
Total from investment operations
|
|
|
(2.93
|
)
|
|
|
6.63
|
|
|
|
16.05
|
|
|
|
(13.14
|
)
|
|
|
(8.85
|
)
|
Dividends to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(1.31
|
)
|
|
|
(1.30
|
)
|
|
|
(1.85
|
)
|
|
|
(1.04
|
)
|
|
|
(0.98
|
)
|
Net asset value, end of year
|
|
$
|
50.70
|
|
|
$
|
54.94
|
|
|
$
|
49.61
|
|
|
$
|
35.41
|
|
|
$
|
49.59
|
|
|
|
|
|
|
|
TOTAL RETURN
2
|
|
|
(5.20
|
)%
|
|
|
13.67
|
%
|
|
|
46.04
|
%
|
|
|
(26.84
|
)%
|
|
|
(14.96
|
)%
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000s omitted)
|
|
$
|
55,774
|
|
|
$
|
49,446
|
|
|
$
|
24,805
|
|
|
$
|
21,245
|
|
|
$
|
29,754
|
|
Ratio to average net assets
3
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements/waivers
|
|
|
0.58
|
%
6
|
|
|
0.57
|
%
6
|
|
|
0.58
|
%
6
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
Expenses, prior to expense reimbursements/waivers
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
Net investment income
|
|
|
2.73
|
%
|
|
|
2.80
|
%
|
|
|
2.54
|
%
|
|
|
1.70
|
%
|
|
|
1.18
|
%
|
Portfolio turnover rate
4
|
|
|
28
|
%
|
|
|
68
|
%
|
|
|
121
|
%
|
|
|
47
|
%
|
|
|
1
|
%
|
1
|
Based on average shares outstanding.
|
2
|
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and
distributions at net asset value during the period and redemption on the last day of the period. Total return calculated for a period of less than one year is not annualized. The total return would have been lower if certain expenses had not been
reimbursed/waived by the investment adviser.
|
3
|
The ratios to average net assets do not include net investment income (loss) or expenses of the affiliated funds in which the Fund invests.
|
4
|
Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of
the Funds capital shares.
|
5
|
This information reflects the investment objective and strategy of the WisdomTree World ex-U.S. Growth Fund through June 19, 2011 and the investment
objective and strategy of the WisdomTree Global ex-U.S. Growth Fund thereafter.
|
6
|
Reflects the Funds advisory fees, after waiver, and the fees and expenses of the WisdomTree India Earnings Fund that were paid indirectly by the Fund. The
Fund invests a portion of its assets in the WisdomTree India Earnings Fund in order to achieve exposure to securities in India.
|
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
125
|
|
Financial Highlights
WisdomTree International Equity ETFs
March 31, 2012
Selected data for a share of beneficial interest outstanding throughout the period is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree Asia-Pacific ex-Japan Fund
|
|
For the
Year Ended
March 31, 2012
5
|
|
|
For the
Year Ended
March 31, 2011
|
|
|
For the
Year Ended
March 31, 2010
|
|
|
For the
Year Ended
March 31, 2009
|
|
|
For the
Year Ended
March 31, 2008
|
|
Net asset value, beginning of year
|
|
$
|
67.99
|
|
|
$
|
61.40
|
|
|
$
|
37.09
|
|
|
$
|
73.00
|
|
|
$
|
67.57
|
|
Investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income
1
|
|
|
2.14
|
|
|
|
2.51
|
|
|
|
1.79
|
|
|
|
2.86
|
|
|
|
2.69
|
|
Net realized and unrealized gain (loss)
|
|
|
(3.85
|
)
|
|
|
6.59
|
|
|
|
24.23
|
|
|
|
(34.08
|
)
|
|
|
4.61
|
|
Total from investment operations
|
|
|
(1.71
|
)
|
|
|
9.10
|
|
|
|
26.02
|
|
|
|
(31.22
|
)
|
|
|
7.30
|
|
Dividends to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(2.23
|
)
|
|
|
(2.51
|
)
|
|
|
(1.71
|
)
|
|
|
(4.69
|
)
|
|
|
(1.87
|
)
|
Net asset value, end of year
|
|
$
|
64.05
|
|
|
$
|
67.99
|
|
|
$
|
61.40
|
|
|
$
|
37.09
|
|
|
$
|
73.00
|
|
|
|
|
|
|
|
TOTAL RETURN
2
|
|
|
(2.22
|
)%
|
|
|
15.33
|
%
|
|
|
70.97
|
%
|
|
|
(42.77
|
)%
|
|
|
(10.58
|
)%
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000s omitted)
|
|
$
|
89,672
|
|
|
$
|
88,388
|
|
|
$
|
89,033
|
|
|
$
|
37,086
|
|
|
$
|
146,008
|
|
Ratio to average net assets
3
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements/waivers
|
|
|
0.48
|
%
|
|
|
0.48
|
%
|
|
|
0.48
|
%
|
|
|
0.48
|
%
|
|
|
0.48
|
%
|
Expenses, prior to expense reimbursements/waivers
|
|
|
0.48
|
%
|
|
|
0.48
|
%
|
|
|
0.48
|
%
|
|
|
0.48
|
%
|
|
|
0.48
|
%
|
Net investment income
|
|
|
3.42
|
%
|
|
|
4.05
|
%
|
|
|
3.11
|
%
|
|
|
4.76
|
%
|
|
|
3.42
|
%
|
Portfolio turnover rate
4
|
|
|
60
|
%
|
|
|
27
|
%
|
|
|
18
|
%
|
|
|
31
|
%
|
|
|
12
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree Australia Dividend Fund
|
|
For the
Year Ended
March 31, 2012
6
|
|
|
For the
Year Ended
March 31, 2011
|
|
|
For the
Year Ended
March 31, 2010
|
|
|
For the
Year Ended
March 31, 2009
|
|
|
For the
Year Ended
March 31, 2008
|
|
Net asset value, beginning of year
|
|
$
|
61.64
|
|
|
$
|
57.24
|
|
|
$
|
30.80
|
|
|
$
|
63.30
|
|
|
$
|
67.08
|
|
Investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income
1
|
|
|
2.87
|
|
|
|
2.99
|
|
|
|
2.23
|
|
|
|
3.00
|
|
|
|
3.24
|
|
Net realized and unrealized gain (loss)
|
|
|
(5.48
|
)
|
|
|
4.62
|
|
|
|
26.27
|
|
|
|
(31.22
|
)
|
|
|
(3.40
|
)
|
Total from investment operations
|
|
|
(2.61
|
)
|
|
|
7.61
|
|
|
|
28.50
|
|
|
|
(28.22
|
)
|
|
|
(0.16
|
)
|
Dividends and distributions to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(3.16
|
)
|
|
|
(3.21
|
)
|
|
|
(2.06
|
)
|
|
|
(4.28
|
)
|
|
|
(3.48
|
)
|
Capitals gains
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.14
|
)
|
Total dividends and distributions to shareholders
|
|
|
(3.16
|
)
|
|
|
(3.21
|
)
|
|
|
(2.06
|
)
|
|
|
(4.28
|
)
|
|
|
(3.62
|
)
|
Net asset value, end of year
|
|
$
|
55.87
|
|
|
$
|
61.64
|
|
|
$
|
57.24
|
|
|
$
|
30.80
|
|
|
$
|
63.30
|
|
|
|
|
|
|
|
TOTAL RETURN
2
|
|
|
(3.86
|
)%
|
|
|
14.03
|
%
|
|
|
93.79
|
%
|
|
|
(44.42
|
)%
|
|
|
(0.69
|
)%
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000s omitted)
|
|
$
|
61,456
|
|
|
$
|
80,137
|
|
|
$
|
117,339
|
|
|
$
|
21,559
|
|
|
$
|
56,966
|
|
Ratio to average net assets
3
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements/waivers
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
Expenses, prior to expense reimbursements/waivers
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
Net investment income
|
|
|
5.18
|
%
|
|
|
5.42
|
%
|
|
|
4.25
|
%
|
|
|
6.25
|
%
|
|
|
4.42
|
%
|
Portfolio turnover rate
4
|
|
|
68
|
%
|
|
|
46
|
%
|
|
|
25
|
%
|
|
|
55
|
%
|
|
|
16
|
%
|
1
|
Based on average shares outstanding.
|
2
|
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and
distributions at net asset value during the period and redemption on the last day of the period. Total return calculated for a period of less than one year is not annualized. The total return would have been lower if certain expenses had not been
reimbursed/waived by the investment adviser.
|
3
|
The ratios to average net assets do not include net investment income (loss) or expenses of the affiliated funds in which the Fund invests.
|
4
|
Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of
the Funds capital shares.
|
5
|
This information reflects the investment objective and strategy of the WisdomTree Pacific ex-Japan Total Dividend Fund through June 19, 2011 and the
investment objective and strategy of the WisdomTree Asia Pacific ex-Japan Fund thereafter.
|
6
|
This information reflects the investment objective and strategy of the WisdomTree Pacific ex-Japan Equity Income Fund through June 19, 2011 and the
investment objective and strategy of the WisdomTree Australia Dividend Fund thereafter.
|
|
|
|
126
|
|
WisdomTree Trust
Prospectus
|
Financial Highlights
WisdomTree International Equity ETFs
March 31, 2012
Selected data for a share of beneficial interest outstanding throughout the period is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree Emerging Markets
Equity Income Fund
|
|
For the
Year Ended
March 31, 2012
|
|
|
For the
Year Ended
March 31, 2011
|
|
|
For the
Year Ended
March 31, 2010
|
|
|
For the
Year Ended
March 31, 2009
|
|
|
For the Period
July 13, 2007*
through
March 31,
2008
|
|
Net asset value, beginning of period
|
|
$
|
60.51
|
|
|
$
|
52.02
|
|
|
$
|
31.11
|
|
|
$
|
51.82
|
|
|
$
|
50.68
|
|
Investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income
1
|
|
|
2.25
|
|
|
|
1.89
|
|
|
|
1.48
|
|
|
|
2.01
|
|
|
|
1.12
|
|
Net realized and unrealized gain (loss)
|
|
|
(3.11
|
)
|
|
|
8.55
|
|
|
|
21.00
|
|
|
|
(20.76
|
)
|
|
|
0.51
|
|
Total from investment operations
|
|
|
(0.86
|
)
|
|
|
10.44
|
|
|
|
22.48
|
|
|
|
(18.75
|
)
|
|
|
1.63
|
|
Dividends to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(2.31
|
)
|
|
|
(1.95
|
)
|
|
|
(1.57
|
)
|
|
|
(1.96
|
)
|
|
|
(0.49
|
)
|
Net asset value, end of period
|
|
$
|
57.34
|
|
|
$
|
60.51
|
|
|
$
|
52.02
|
|
|
$
|
31.11
|
|
|
$
|
51.82
|
|
|
|
|
|
|
|
TOTAL RETURN
2
|
|
|
(1.03
|
)%
|
|
|
20.75
|
%
|
|
|
73.33
|
%
|
|
|
(36.21
|
)%
|
|
|
3.23
|
%
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (000s omitted)
|
|
$
|
3,640,891
|
|
|
$
|
1,325,257
|
|
|
$
|
540,990
|
|
|
$
|
177,355
|
|
|
$
|
165,813
|
|
Ratios to average net assets
3
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements/waivers
|
|
|
0.63
|
%
|
|
|
0.63
|
%
|
|
|
0.63
|
%
|
|
|
0.63
|
%
|
|
|
0.63
|
%
5
|
Expenses, prior of expense reimbursements/waivers
|
|
|
0.63
|
%
|
|
|
0.63
|
%
|
|
|
0.63
|
%
|
|
|
0.63
|
%
|
|
|
0.63
|
%
5
|
Net investment income
|
|
|
4.12
|
%
|
|
|
3.47
|
%
|
|
|
3.26
|
%
|
|
|
4.96
|
%
|
|
|
3.18
|
%
5
|
Portfolio turnover rate
4
|
|
|
37
|
%
|
|
|
33
|
%
|
|
|
44
|
%
|
|
|
67
|
%
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree Emerging Markets
SmallCap Dividend Fund
|
|
For the
Year Ended
March 31, 2012
|
|
|
For the
Year Ended
March 31, 2011
|
|
|
For the
Year Ended
March 31, 2010
|
|
|
For the
Year Ended
March 31, 2009
|
|
|
For the Period
October 30, 2007*
through
March
31, 2008
|
|
Net asset value, beginning of period
|
|
$
|
53.30
|
|
|
$
|
44.51
|
|
|
$
|
24.62
|
|
|
$
|
43.95
|
|
|
$
|
51.50
|
|
Investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income
1
|
|
|
1.47
|
|
|
|
1.32
|
|
|
|
1.02
|
|
|
|
1.56
|
|
|
|
0.37
|
|
Net realized and unrealized gain (loss)
|
|
|
(5.31
|
)
|
|
|
8.86
|
|
|
|
20.00
|
|
|
|
(19.57
|
)
|
|
|
(7.87
|
)
|
Total from investment operations
|
|
|
(3.84
|
)
|
|
|
10.18
|
|
|
|
21.02
|
|
|
|
(18.01
|
)
|
|
|
(7.50
|
)
|
Dividends to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(1.66
|
)
|
|
|
(1.39
|
)
|
|
|
(1.13
|
)
|
|
|
(1.32
|
)
|
|
|
(0.05
|
)
|
Net asset value, end of period
|
|
$
|
47.80
|
|
|
$
|
53.30
|
|
|
$
|
44.51
|
|
|
$
|
24.62
|
|
|
$
|
43.95
|
|
|
|
|
|
|
|
TOTAL RETURN
2
|
|
|
(6.88
|
)%
|
|
|
23.38
|
%
|
|
|
86.26
|
%
|
|
|
(40.81
|
)%
|
|
|
(14.57
|
)%
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (000s omitted)
|
|
$
|
1,022,868
|
|
|
$
|
927,463
|
|
|
$
|
342,754
|
|
|
$
|
51,706
|
|
|
$
|
52,742
|
|
Ratios to average net assets
3
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements/waivers
|
|
|
0.63
|
%
6
|
|
|
0.63
|
%
6
|
|
|
0.63
|
%
6
|
|
|
0.63
|
%
|
|
|
0.63
|
%
5
|
Expenses, prior to expense reimbursements/waivers
|
|
|
0.63
|
%
|
|
|
0.63
|
%
|
|
|
0.63
|
%
|
|
|
0.63
|
%
|
|
|
0.63
|
%
5
|
Net investment income
|
|
|
3.13
|
%
|
|
|
2.68
|
%
|
|
|
2.59
|
%
|
|
|
4.98
|
%
|
|
|
1.99
|
%
5
|
Portfolio turnover rate
4
|
|
|
53
|
%
|
|
|
35
|
%
|
|
|
38
|
%
|
|
|
64
|
%
|
|
|
6
|
%
|
*
|
Commencement of investment operations.
|
1
|
Based on average shares outstanding.
|
2
|
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and
distributions at net asset value during the period and redemption on the last day of the period. Total return calculated for a period of less than one year is not annualized. The total return would have been lower if certain expenses had not been
reimbursed by the investment adviser.
|
3
|
The ratios to average net assets do not include net investment income (loss) or expenses of the affiliated funds in which the Fund invests.
|
4
|
Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of
the Funds capital shares.
|
6
|
Reflects the Funds advisory fees, after waiver, and the fees and expenses of the WisdomTree India Earnings Fund that were paid indirectly by the Fund. The
Fund invests a portion of its assets in the WisdomTree India Earnings Fund in order to achieve exposure to securities in India.
|
|
|
|
|
|
WisdomTree Trust
Prospectus
|
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127
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Financial Highlights
WisdomTree International Equity ETFs
March 31, 2012
Selected data for a share of beneficial interest outstanding throughout the period is presented below:
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WisdomTree Middle East Dividend
Fund
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|
For the
Year Ended
March 31, 2012
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For the
Year Ended
March 31, 2011
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|
For the
Year Ended
March 31, 2010
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For the Period
July 16, 2008*
through
March 31,
2009
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|
Net asset value, beginning of period
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|
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|
$
|
16.31
|
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|
$
|
15.64
|
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|
$
|
12.13
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|
$
|
24.59
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|
Investment operations:
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|
|
|
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|
|
|
|
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|
|
|
|
|
|
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Net investment
income
1
|
|
|
|
|
|
|
0.83
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|
|
|
0.68
|
|
|
|
0.53
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|
0.32
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|
Net realized and unrealized gain (loss)
|
|
|
|
|
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|
(0.61
|
)
|
|
|
0.49
|
|
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|
3.68
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|
(12.78
|
)
|
Total from investment operations
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|
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|
0.22
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|
1.17
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4.21
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(12.46
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)
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Dividends to shareholders:
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|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
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Net investment income
|
|
|
|
|
|
|
(0.93
|
)
|
|
|
(0.50
|
)
|
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|
(0.70
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)
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Net asset value, end of period
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$
|
15.60
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$
|
16.31
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$
|
15.64
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|
$
|
12.13
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TOTAL RETURN
2
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|
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|
1.35
|
%
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|
7.95
|
%
|
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|
35.25
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%
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(50.67
|
)%
|
RATIOS/SUPPLEMENTAL DATA:
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Net assets, end of period (000s omitted)
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$
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14,038
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|
$
|
19,571
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|
$
|
12,515
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$
|
7,279
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|
Ratios to average net assets
5
of:
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Expenses, net of expense reimbursements/waivers
|
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|
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0.88
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%
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|
0.88
|
%
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|
0.88
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%
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|
0.88
|
%
3
|
Expenses, prior to expense reimbursements/waivers
|
|
|
|
|
|
|
1.83
|
%
|
|
|
2.17
|
%
|
|
|
1.30
|
%
|
|
|
1.49
|
%
3
|
Net investment income
|
|
|
|
|
|
|
5.31
|
%
|
|
|
4.33
|
%
|
|
|
3.63
|
%
|
|
|
2.86
|
%
3
|
Portfolio turnover rate
6
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|
37
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%
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|
50
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%
|
|
|
96
|
%
|
|
|
26
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%
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WisdomTree India Earnings
Fund (consolidated)
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For the
Year Ended
March 31, 2012
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For the
Year Ended
March 31, 2011
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For the
Year Ended
March 31, 2010
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For the
Year Ended
March 31, 2009
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For the Period
February 22, 2008*
through
March 31, 2008
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Net asset value, beginning of period
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$
|
24.87
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|
$
|
23.25
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|
$
|
10.99
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|
$
|
22.57
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|
$
|
24.94
|
|
Investment operations:
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|
|
|
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|
|
|
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Net investment
income
1
|
|
|
0.19
|
|
|
|
0.09
|
|
|
|
0.04
|
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|
|
0.12
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|
(0.01
|
)
|
Net realized and unrealized gain (loss)
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|
(5.65
|
)
|
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|
1.67
|
|
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|
12.27
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|
(11.60
|
)
|
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|
(2.36
|
)
|
Total from investment operations
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|
(5.46
|
)
|
|
|
1.76
|
|
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|
12.31
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|
(11.48
|
)
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|
(2.37
|
)
|
Dividends to shareholders:
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|
|
|
|
|
|
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|
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|
|
|
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Net investment income
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|
(0.17
|
)
|
|
|
(0.14
|
)
|
|
|
(0.05
|
)
|
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|
(0.10
|
)
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Net asset value, end of period
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$
|
19.24
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|
$
|
24.87
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$
|
23.25
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|
$
|
10.99
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$
|
22.57
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TOTAL RETURN
2
|
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(21.96
|
)%
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|
7.59
|
%
|
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|
112.11
|
%
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|
(50.89
|
)%
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|
(9.50
|
)%
|
RATIOS/SUPPLEMENTAL DATA:
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Net assets, end of period (000s omitted)
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$
|
916,024
|
|
|
$
|
1,487,089
|
|
|
$
|
841,533
|
|
|
$
|
169,195
|
|
|
$
|
162,540
|
|
Ratios to average net assets
6
of:
|
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|
|
|
|
|
|
|
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|
|
|
|
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|
Expenses, net of expense reimbursements
|
|
|
0.76
|
%
4
|
|
|
0.88
|
%
|
|
|
0.88
|
%
|
|
|
0.88
|
%
|
|
|
0.88
|
%
3
|
Expenses, prior to expense reimbursements
|
|
|
0.82
|
%
|
|
|
0.88
|
%
|
|
|
0.88
|
%
|
|
|
0.92
|
%
|
|
|
2.10
|
%
3
|
Net investment income (loss)
|
|
|
0.91
|
%
|
|
|
0.36
|
%
|
|
|
0.19
|
%
|
|
|
0.77
|
%
|
|
|
(0.41
|
)%
3
|
Portfolio turnover rate
6
|
|
|
32
|
%
|
|
|
38
|
%
|
|
|
33
|
%
|
|
|
42
|
%
|
|
|
0
|
%
|
*
|
Commencement of investment operations.
|
1
|
Based on average shares outstanding.
|
2
|
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and
distributions at net asset value during the period and redemption on the last day of the period. Total return calculated for a period of less than one year is not annualized. The total return would have been lower if certain expenses had not been
reimbursed/waived by the investment adviser.
|
4
|
During the period, the Fund was reimbursed for certain expenses that occurred during the previous fiscal year.
|
5
|
The ratios to average net assets do not include net investment income (loss) or expenses of the affiliated funds in which the Fund invests.
|
6
|
Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of
the Funds capital shares.
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128
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|
WisdomTree Trust
Prospectus
|
Financial Highlights
WisdomTree International Equity ETFs
March 31, 2012
Selected data for a share of beneficial interest outstanding throughout the period is presented below:
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|
WisdomTree Commodity Country
Equity Fund
|
|
For the
Year Ended
March 31, 2012
4
|
|
|
For the
Year Ended
March 31, 2011
|
|
|
For the
Year Ended
March 31, 2010
|
|
|
For the
Year Ended
March 31, 2009
|
|
|
For the
Year Ended
March 31, 2008
|
|
Net asset value, beginning of year
|
|
$
|
33.21
|
|
|
$
|
28.90
|
|
|
$
|
16.04
|
|
|
$
|
35.96
|
|
|
$
|
32.03
|
|
Investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income
1
|
|
|
1.09
|
|
|
|
0.53
|
|
|
|
0.47
|
|
|
|
0.65
|
|
|
|
0.61
|
|
Net realized and unrealized gain (loss)
|
|
|
(1.76
|
)
|
|
|
4.33
|
|
|
|
12.80
|
|
|
|
(19.29
|
)
|
|
|
3.58
|
|
Total from investment operations
|
|
|
(0.67
|
)
|
|
|
4.86
|
|
|
|
13.27
|
|
|
|
(18.64
|
)
|
|
|
4.19
|
|
Dividends and distributions to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(1.10
|
)
|
|
|
(0.55
|
)
|
|
|
(0.41
|
)
|
|
|
(1.28
|
)
|
|
|
(0.26
|
)
|
Capital gains
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.00
|
2
|
Total dividends and distributions to shareholders
|
|
|
(1.10
|
)
|
|
|
(0.55
|
)
|
|
|
(0.41
|
)
|
|
|
(1.28
|
)
|
|
|
(0.26
|
)
|
Net asset value, end of year
|
|
$
|
31.44
|
|
|
$
|
33.21
|
|
|
$
|
28.90
|
|
|
$
|
16.04
|
|
|
$
|
35.96
|
|
|
|
|
|
|
|
TOTAL RETURN
3
|
|
|
(1.77
|
)%
|
|
|
17.31
|
%
|
|
|
83.44
|
%
|
|
|
(52.10
|
)%
|
|
|
13.09
|
%
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000s omitted)
|
|
$
|
31,439
|
|
|
$
|
43,172
|
|
|
$
|
49,137
|
|
|
$
|
22,460
|
|
|
$
|
93,507
|
|
Ratios to average net assets
5
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements/waivers
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
Expenses, prior to expense reimbursements/waivers
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
Net investment income
|
|
|
3.52
|
%
|
|
|
1.86
|
%
|
|
|
1.91
|
%
|
|
|
2.21
|
%
|
|
|
1.62
|
%
|
Portfolio turnover rate
6
|
|
|
116
|
%
|
|
|
35
|
%
|
|
|
25
|
%
|
|
|
53
|
%
|
|
|
11
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree Global Natural
Resources Fund
|
|
For the
Year Ended
March 31, 2012
7
|
|
|
For the
Year Ended
March 31, 2011
|
|
|
For the
Year Ended
March 31, 2010
|
|
|
For the
Year Ended
March 31, 2009
|
|
|
For the
Year Ended
March 31, 2008
|
|
Net asset value, beginning of year
|
|
$
|
29.86
|
|
|
$
|
24.63
|
|
|
$
|
18.61
|
|
|
$
|
31.98
|
|
|
$
|
28.55
|
|
Investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income
1
|
|
|
0.93
|
|
|
|
0.72
|
|
|
|
0.80
|
|
|
|
1.01
|
|
|
|
0.79
|
|
Net realized and unrealized gain (loss)
|
|
|
(4.74
|
)
|
|
|
5.19
|
|
|
|
6.07
|
|
|
|
(12.84
|
)
|
|
|
3.18
|
|
Total from investment operations
|
|
|
(3.81
|
)
|
|
|
5.91
|
|
|
|
6.87
|
|
|
|
(11.83
|
)
|
|
|
3.97
|
|
Dividends and distributions to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(0.89
|
)
|
|
|
(0.68
|
)
|
|
|
(0.85
|
)
|
|
|
(1.54
|
)
|
|
|
(0.53
|
)
|
Capital gains
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.01
|
)
|
Total dividends and distributions to shareholders
|
|
|
(0.89
|
)
|
|
|
(0.68
|
)
|
|
|
(0.85
|
)
|
|
|
(1.54
|
)
|
|
|
(0.54
|
)
|
Net asset value, end of year
|
|
$
|
25.16
|
|
|
$
|
29.86
|
|
|
$
|
24.63
|
|
|
$
|
18.61
|
|
|
$
|
31.98
|
|
|
|
|
|
|
|
TOTAL RETURN
3
|
|
|
(12.70
|
)%
|
|
|
24.74
|
%
|
|
|
37.29
|
%
|
|
|
(37.05
|
)%
|
|
|
13.84
|
%
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000s omitted)
|
|
$
|
31,452
|
|
|
$
|
49,273
|
|
|
$
|
45,569
|
|
|
$
|
22,332
|
|
|
$
|
57,562
|
|
Ratios to average net assets
5
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements/waivers
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
Expenses, prior to expense reimbursements/waivers
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
Net investment income
|
|
|
3.54
|
%
|
|
|
2.90
|
%
|
|
|
3.36
|
%
|
|
|
3.49
|
%
|
|
|
2.43
|
%
|
Portfolio turnover rate
6
|
|
|
99
|
%
|
|
|
32
|
%
|
|
|
16
|
%
|
|
|
38
|
%
|
|
|
13
|
%
|
1
|
Based on average shares outstanding.
|
2
|
Amount represents less than $0.005.
|
3
|
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and
distributions at net asset value during the period and redemption on the last day of the period. Total return calculated for a period of less than one year is not annualized. The total return would have been lower if certain expenses had not been
reimbursed/waived by the investment adviser.
|
4
|
This information reflects the investment objective and strategy of the WisdomTree International Basic Materials Sector Fund through June 19, 2011 and the
investment objective and strategy of the WisdomTree Commodity Country Equity Fund thereafter.
|
5
|
The ratios to average net assets do not include net investment income (loss) or expenses of the affiliated funds in which the Fund invests.
|
6
|
Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of
the Funds capital shares.
|
7
|
This information reflects the investment objective and strategy of the WisdomTree International Energy Sector Fund through June 19, 2011 and the investment
objective and strategy of the WisdomTree Global Natural Resources Fund thereafter.
|
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
129
|
|
Financial Highlights
WisdomTree International Equity ETFs
March 31, 2012
Selected data for a share of beneficial interest outstanding throughout the period is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree Global ex-U.S. Utilities Fund
|
|
For the
Year Ended
March 31, 2012
5
|
|
|
For the
Year Ended
March 31, 2011
|
|
|
For the
Year Ended
March 31, 2010
|
|
|
For the
Year Ended
March 31, 2009
|
|
|
For the
Year Ended
March 31, 2008
|
|
Net asset value, beginning of year
|
|
$
|
21.33
|
|
|
$
|
21.46
|
|
|
$
|
17.78
|
|
|
$
|
32.73
|
|
|
$
|
29.71
|
|
Investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income
1
|
|
|
0.87
|
|
|
|
0.84
|
|
|
|
0.87
|
|
|
|
1.25
|
|
|
|
0.55
|
|
Net realized and unrealized gain (loss)
|
|
|
(2.45
|
)
|
|
|
(0.06
|
)
|
|
|
3.77
|
|
|
|
(14.74
|
)
|
|
|
2.75
|
|
Total from investment operations
|
|
|
(1.58
|
)
|
|
|
0.78
|
|
|
|
4.64
|
|
|
|
(13.49
|
)
|
|
|
3.30
|
|
Dividends and distributions to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(0.85
|
)
|
|
|
(0.91
|
)
|
|
|
(0.96
|
)
|
|
|
(1.46
|
)
|
|
|
(0.28
|
)
|
Capital gains
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.00
|
)
7
|
Total dividends and distributions to shareholders
|
|
|
(0.85
|
)
|
|
|
(0.91
|
)
|
|
|
(0.96
|
)
|
|
|
(1.46
|
)
|
|
|
(0.28
|
)
|
Net asset value, end of year
|
|
$
|
18.90
|
|
|
$
|
21.33
|
|
|
$
|
21.46
|
|
|
$
|
17.78
|
|
|
$
|
32.73
|
|
|
|
|
|
|
|
TOTAL RETURN
2
|
|
|
(7.41
|
)%
|
|
|
4.27
|
%
|
|
|
26.42
|
%
|
|
|
(42.00
|
)%
|
|
|
11.05
|
%
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000s omitted)
|
|
$
|
30,241
|
|
|
$
|
37,335
|
|
|
$
|
49,348
|
|
|
$
|
28,455
|
|
|
$
|
78,561
|
|
Ratios to average net assets
3
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements/waivers
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
Expenses, prior to expense reimbursements/waivers
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
Net investment income
|
|
|
4.48
|
%
|
|
|
4.22
|
%
|
|
|
4.17
|
%
|
|
|
4.53
|
%
|
|
|
1.62
|
%
|
Portfolio turnover rate
4
|
|
|
66
|
%
|
|
|
19
|
%
|
|
|
17
|
%
|
|
|
50
|
%
|
|
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree Global ex-U.S. Real
Estate Fund
|
|
For the
Year Ended
March 31, 2012
6
|
|
|
For the
Year Ended
March 31, 2011
|
|
|
For the
Year Ended
March 31, 2010
|
|
|
For the
Year Ended
March 31, 2009
|
|
|
For the Period
June 5,
2007*
through
March 31, 2008
|
|
Net asset value, beginning of period
|
|
$
|
28.86
|
|
|
$
|
26.75
|
|
|
$
|
16.92
|
|
|
$
|
41.84
|
|
|
$
|
51.89
|
|
Investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income
1
|
|
|
1.15
|
|
|
|
0.96
|
|
|
|
0.96
|
|
|
|
1.35
|
|
|
|
1.22
|
|
Net realized and unrealized gain (loss)
|
|
|
(2.32
|
)
|
|
|
3.83
|
|
|
|
11.39
|
|
|
|
(25.46
|
)
|
|
|
(9.32
|
)
|
Total from investment operations
|
|
|
(1.17
|
)
|
|
|
4.79
|
|
|
|
12.35
|
|
|
|
(24.11
|
)
|
|
|
(8.10
|
)
|
Dividends and distributions to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(1.21
|
)
|
|
|
(2.68
|
)
|
|
|
(2.52
|
)
|
|
|
(0.81
|
)
|
|
|
(1.95
|
)
|
Return of capital
|
|
|
(0.08
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total dividends and distributions to shareholders
|
|
|
(1.29
|
)
|
|
|
(2.68
|
)
|
|
|
(2.52
|
)
|
|
|
(0.81
|
)
|
|
|
(1.95
|
)
|
Net asset value, end of period
|
|
$
|
26.40
|
|
|
$
|
28.86
|
|
|
$
|
26.75
|
|
|
$
|
16.92
|
|
|
$
|
41.84
|
|
|
|
|
|
|
|
TOTAL RETURN
2
|
|
|
(3.99
|
)%
|
|
|
18.81
|
%
|
|
|
74.20
|
%
|
|
|
(57.85
|
)%
|
|
|
(15.90
|
)%
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of period (000s omitted)
|
|
$
|
108,221
|
|
|
$
|
122,670
|
|
|
$
|
84,276
|
|
|
$
|
40,619
|
|
|
$
|
112,962
|
|
Ratios to average net assets
3
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements/waivers
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
7
|
Expenses, prior to expense reimbursements/waivers
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
|
|
|
0.58
|
%
7
|
Net investment income
|
|
|
4.36
|
%
|
|
|
3.48
|
%
|
|
|
3.76
|
%
|
|
|
4.55
|
%
|
|
|
3.17
|
%
7
|
Portfolio turnover rate
4
|
|
|
43
|
%
|
|
|
18
|
%
|
|
|
19
|
%
|
|
|
35
|
%
|
|
|
15
|
%
|
*
|
Commencement of investment operations.
|
1
|
Based on average shares outstanding.
|
2
|
Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and
distributions at net asset value during the period and redemption on the last day of the period. Total return calculated for a period of less than one year is not annualized. The total return would have been lower if certain expenses had not been
reimbursed/waived by the investment adviser.
|
3
|
The ratios to average net assets do not include net investment income (loss) or expenses of the affiliated funds in which the Fund invests.
|
4
|
Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as a result of in-kind creations or redemptions of
the Funds capital shares.
|
5
|
This information reflects the investment objective and strategy of the WisdomTree International Utilities Sector Fund through June 19, 2011 and the
investment objective and strategy of the WisdomTree Global ex-U.S. Utilities Fund thereafter.
|
6
|
This information reflects the investment objective and strategy of the WisdomTree International Real Estate Fund through June 19, 2011 and the investment
objective and strategy of the WisdomTree Global ex-U.S. Real Estate Fund thereafter.
|
|
|
|
130
|
|
WisdomTree Trust
Prospectus
|
WisdomTree Trust
380 Madison Avenue, 21st Floor
New York, NY 10017
The Trusts current SAI provides additional
detailed information about the Funds. The Trust has electronically filed the SAI with the SEC. It is incorporated by reference in this Prospectus.
Additional information about the Funds investments is available in the Funds annual and semi-annual reports to shareholders. In the annual report you
will find a discussion of the market conditions and investment strategies that significantly affected the Funds performance during the last fiscal year.
To make shareholder inquiries, for more detailed information on the Funds, or to request the SAI or annual or semi-annual shareholder reports free of charge, please:
|
|
|
|
|
|
|
Call:
|
|
1-866-909-9473
Monday through
Friday
8:00 a.m. 8:00 p.m. (Eastern time)
|
|
Write:
|
|
WisdomTree Trust
c/o ALPS Distributors,
Inc.
1290 Broadway, Suite 1100
Denver,
Colorado 80203
|
|
|
|
|
|
|
|
Visit:
|
|
www.wisdomtree.com
|
|
|
|
|
Information about the Funds (including the SAI) can be reviewed and copied at the SECs Public Reference Room in Washington,
D.C., and information on the operation of the Public Reference Room may be obtained by calling the SEC at 1-202-551-8090. Reports and other information about the Funds are available on the EDGAR Database on the SECs Internet site at
www.sec.gov, and copies of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov, or by writing the SECs Public Reference Section, Washington, D.C.
20549-1520.
No person is authorized to give any information or to make any representations about any Fund and its shares not contained in this
Prospectus and you should not rely on any other information. Read and keep this Prospectus for future reference.
©
2012 WisdomTree Trust
WisdomTree Funds are distributed by
ALPS Distributors, Inc.
1290 Broadway, Suite 1100
Denver, Colorado 80203
WisdomTree
®
is a registered mark of WisdomTree
Investments, Inc.
INVESTMENT COMPANY ACT FILE NO.
811-21864
WIS-PR-002-0313