U.S. Equity
ETFs
PROSPECTUS
July 30, 2012
as last revised March 25,
2013
WisdomTree Trust
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WisdomTree U.S. Equity ETFs*
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Dividends
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Total Dividend Fund (DTD)
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Equity Income Fund (DHS)
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Dividend ex-Financials Fund (DTN)
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LargeCap Dividend Fund (DLN)
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MidCap Dividend Fund (DON)
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SmallCap Dividend Fund (DES)
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Earnings
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Total Earnings Fund (EXT)
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Earnings 500 Fund (EPS)
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MidCap Earnings Fund (EZM)
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SmallCap Earnings Fund (EES)
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LargeCap Value Fund (EZY)
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* Principal U.S. Listing Exchange: NYSE Arca, Inc.
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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 Total Dividend Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree 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 Fund’s 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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0.28
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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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0.28
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%*
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*
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Acquired Fund Fees and Expenses (AFFE) related to business development companies were 0.04% 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 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:
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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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$29
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$90
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$157
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$356
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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 Fund’s performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 15% 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 Fund’s 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
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 Dividend Index is a fundamentally-weighted index that defines the dividend-paying portion of the U.S. stock market. The Index is comprised of U.S. companies listed on the NYSE, AMEX or
NASDAQ Global Market that pay regular cash dividends and that meet other liquidity and capitalization requirements established by WisdomTree Investments, Inc. These requirements include the following: (i) companies must pay regular cash
dividends on shares of common stock in the 12 months preceding the annual Index rebalance; (ii) companies need to have a market capitalization of at least $100 million as of the Index rebalance; and (iii) companies need to have
exhibited an average daily dollar volume of at least $100,000 for three months preceding the Index rebalance. The Index is dividend weighted annually to reflect the proportionate share of the aggregate cash dividends each component company is
projected to pay in the coming year, based on the most recently declared dividend per share. The maximum weight of any one sector in the Index, at the time of the Index’s annual rebalance, is capped at 25%. In response to market
conditions, sector 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 & Poor’s Global
Industry Classification Standards (“S&P GICS”) to define companies within a 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 Fund’s 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 Fund’s performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent that the WisdomTree Dividend 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 Fund’s 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 Fund’s 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 Fund’s 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 Fund’s 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 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.
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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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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 Fund’s 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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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 Fund’s 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
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WisdomTree Trust
Prospectus
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3
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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 Fund’s volatility and cause the performance of a relatively smaller number of issuers to have a greater impact on the Fund’s 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 Fund’s average annual total returns, both before and after taxes. This table also shows how the Fund’s performance compares to the WisdomTree
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 Fund’s past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in the future.
The Fund’s year-to-date total return as of June 29, 2012 was 8.32%.
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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17.30
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%
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3Q/2009
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Lowest
Return
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(21.87
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)%
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4Q/2008
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After-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown and are not relevant if you hold your 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 Total Dividend
Fund
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1 Year
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5 Years
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Since Inception
(06/16/2006)
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Return Before
Taxes Based on NAV
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8.55
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%
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(0.11
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)%
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2.56
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%
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Return After
Taxes on Distributions
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7.45
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%
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(1.19
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)%
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1.50
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%
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Return After
Taxes on Distributions and Sale of Fund Shares
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5.53
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%
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(0.75
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)%
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1.54
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%
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Russell 3000
®
Index (reflects no deduction for fees, expenses, or taxes)
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1.03
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%
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(0.01
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)%
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2.41
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%
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WisdomTree
Dividend Index (reflects no deduction for fees, expenses, or taxes)
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9.00
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%
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0.46
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%
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3.05
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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.
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4
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WisdomTree Trust
Prospectus
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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 Equity Income Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree 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 Fund’s 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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0.38
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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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0.38
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%*
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*
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Acquired Fund Fees and Expenses (AFFE) related to business development companies were 0.08% 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 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:
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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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$39
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$122
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$213
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$480
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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 Fund’s performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 22% 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 Fund’s 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 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 Equity Income Index is a fundamentally weighted index that is comprised of companies with high dividend yields selected from the WisdomTree Dividend Index. At the annual Index rebalance,
companies within the WisdomTree Dividend 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. The Index is dividend weighted annually to reflect the proportionate share of the aggregate cash dividends each component company is projected to pay in the coming year, based on the most recently
declared dividend per share. The maximum weight of any one sector in the Index, at the time of the Index’s annual rebalance, is capped at 25%. In response to market conditions, sector 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 & Poor’s Global
Industry Classification Standards (“S&P GICS”) to define companies within a 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 Fund’s 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 Fund’s performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent that the WisdomTree Equity Income 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 Fund’s net asset value per share (“NAV”), trading price, yield, total return and/or ability to meet its objectives. For information about the risks of investing in the Fund, see the section in
the Fund’s Prospectus, titled “Additional Investment Objective, Strategy and Risk Information.”
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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 Fund’s 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 Fund’s 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 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.
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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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n
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Health Care Investing.
The Fund may invest in companies in the health care sector. This sector can be significantly affected by, among other
things, lapsing patent protection, technological developments that make drugs obsolete, government regulation, price controls, and approvals for drugs.
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n
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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 Fund’s 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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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 Fund’s 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
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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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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
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WisdomTree Trust
Prospectus
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7
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|
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 Fund’s volatility and cause the performance of a relatively smaller number of issuers to have a greater impact on the Fund’s 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 Fund’s average annual total returns, both before and after taxes. This table also shows how the Fund’s performance compares to the WisdomTree 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 Fund’s past performance (before and after taxes) is not necessarily an indication of how
the Fund will perform in the future.
The Fund’s year-to-date total return as of June 29, 2012 was 9.20%.
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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|
22.68
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%
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|
3Q/2009
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|
Lowest
Return
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|
(25.85
|
)%
|
|
|
4Q/2008
|
|
After-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown and are not relevant if you hold your 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 Equity Income
Fund
|
|
1 Year
|
|
|
5 Years
|
|
|
Since Inception
(6/16/2006)
|
|
|
Return Before
Taxes Based on NAV
|
|
|
13.96
|
%
|
|
|
(1.77
|
)%
|
|
|
1.22
|
%
|
|
Return After
Taxes on Distributions
|
|
|
12.58
|
%
|
|
|
(3.19
|
)%
|
|
|
(0.18
|
)%
|
|
Return After
Taxes on Distributions and Sale of Fund Shares
|
|
|
9.01
|
%
|
|
|
(2.35
|
)%
|
|
|
0.19
|
%
|
|
Russell 1000
®
Value Index (reflects no deduction for fees, expenses, or taxes)
|
|
|
0.39
|
%
|
|
|
(2.64
|
)%
|
|
|
0.47
|
%
|
|
WisdomTree
Equity Income Index (reflects no deduction for fees, expenses, or taxes)
|
|
|
14.43
|
%
|
|
|
(1.45
|
)%
|
|
|
1.52
|
%
|
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.
|
|
|
|
|
8
|
|
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
|
|
|
9
|
|
WisdomTree Dividend ex-Financials Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree 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 Fund’s 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
|
|
|
0.38
|
%
|
|
Distribution
and/or Service (12b-1) Fees
|
|
|
None
|
|
|
Other
Expenses
|
|
|
0.00
|
%
|
|
Total Annual Fund Operating Expenses
|
|
|
0.38
|
%
|
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
|
|
|
|
|
|
$39
|
|
|
|
$122
|
|
|
|
$213
|
|
|
|
$480
|
|
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 Fund’s performance. During the most recent fiscal year,
the Fund’s portfolio turnover rate was 38% 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 Fund’s 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
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 Index is comprised of the 10 highest dividend-yielding companies in each sector, selected from the three hundred largest companies by market value in
the WisdomTree Dividend Index (other than companies in the financial sector). Eligibility requirements include: (i) payment of regular cash dividends on shares of common stock in the 12 months preceding the annual Index rebalance;
(ii) market capitalization of at least $100 million as of the Index rebalance; and (iii) average daily dollar volume of at least $100,000 for three months preceding the Index rebalance. The Dividend ex-Financials Index is the only one of
the U.S. Dividend Indexes that is not weighted by the dollar value of cash dividends to be paid. A component company’s weight in the Dividend ex-Financials Index is determined by dividing its indicated annual dividend yield by the sum of all
the indicated annual dividend yields for all the component companies in the Index. The maximum weight of any one sector in the Index, at the time of the Index’s 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 & Poor’s Global Industry Classification Standards (“S&P GICS”) to define companies within a sector. The following sectors are included in the Index: consumer discretionary,
|
|
|
|
|
10
|
|
WisdomTree Trust
Prospectus
|
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 Fund’s 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 Fund’s
performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent that the Fund’s underlying 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
Fund’s 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 Fund’s 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 Fund’s 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 Fund’s 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
|
|
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
|
|
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 Fund’s 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 Fund’s 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 Fund’s 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 Fund’s volatility and cause the performance of a relatively smaller number of issuers to have a greater
impact on the Fund’s performance.
|
|
|
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
11
|
|
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 Fund’s average annual total returns, both before and after taxes. This table also shows how the Fund’s performance compares to the WisdomTree
Dividend Top 100/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
Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.
The
Fund’s 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 Dividend Top 100 Fund, and tracked the performance of
the WisdomTree Dividend Top 100 Index.
The Fund’s year-to-date total return as of June 29, 2012 was 5.60%.
Best and Worst Quarter Returns (for the periods reflected in the bar chart above)
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
|
|
|
Quarter/Year
|
|
|
Highest
Return
|
|
|
24.77
|
%
|
|
|
2Q/2009
|
|
|
Lowest
Return
|
|
|
(24.23
|
)%
|
|
|
4Q/2008
|
|
After-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown and are not relevant if you hold your 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 Dividend ex-Financials
Fund
*
|
|
1 Year
|
|
|
5 Years
|
|
|
Since Inception
(6/16/2006)
|
|
|
Return Before
Taxes Based on NAV
|
|
|
11.93
|
%
|
|
|
1.68
|
%
|
|
|
4.42
|
%
|
|
Return After
Taxes on Distributions
|
|
|
10.65
|
%
|
|
|
0.31
|
%
|
|
|
3.09
|
%
|
|
Return After
Taxes on Distributions and Sale of Fund Shares
|
|
|
7.70
|
%
|
|
|
0.57
|
%
|
|
|
2.96
|
%
|
|
Dow Jones U.S.
Select Dividend Index
SM
(reflects no deduction for fees, expenses, or
taxes)
|
|
|
12.42
|
%
|
|
|
(0.66
|
)%
|
|
|
1.97
|
%
|
|
WisdomTree
Dividend Top 100/Dividend ex-Financials Spliced Index** (reflects no deduction for fees, expenses, or taxes)
|
|
|
12.40
|
%
|
|
|
2.23
|
%
|
|
|
4.83
|
%
|
|
*
|
|
The Fund’s 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
Dividend Top 100 Index. After May 7, 2009, the Fund’s objective seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Dividend ex-Financials Index.
|
|
**
|
|
Reflects performance of the WisdomTree Dividend Top 100 Index through May 7, 2009 and the WisdomTree 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.
|
|
|
|
|
12
|
|
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
|
|
|
13
|
|
WisdomTree LargeCap Dividend Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree 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 Fund’s 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
|
|
|
0.28
|
%
|
|
Distribution
and/or Service (12b-1) Fees
|
|
|
None
|
|
|
Other
Expenses
|
|
|
0.00
|
%
|
|
Total Annual Fund Operating Expenses
|
|
|
0.28
|
%
|
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
|
|
|
|
|
|
$29
|
|
|
|
$90
|
|
|
|
$157
|
|
|
|
$356
|
|
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 Fund’s performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 14% 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 Fund’s 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
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 LargeCap Dividend Index is a fundamentally weighted index that is comprised of the large-capitalization segment of the U.S. dividend-paying
market. The Index is comprised of the 300 largest companies ranked by market capitalization from the WisdomTree Dividend Index. Eligibility requirements include: (i) payment of regular cash dividends on shares of common stock in the 12 months
preceding the annual Index rebalance; (ii) market capitalization of at least $100 million as of the Index rebalance; and (iii) average daily dollar volume of at least $100,000 for three months preceding the Index rebalance. The Index
is dividend weighted annually to reflect the proportionate share of the aggregate cash dividends each component company is projected to pay in the coming year, based on the most recently declared dividend per share. The maximum weight of any one
sector in the Index, at the time of the Index’s 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 & Poor’s Global Industry Classification Standards (“S&P
GICS”) to define companies within a sector. The following sectors are included in the Index: consumer discretionary, consumer staples, energy, financials, health care, industrials, information technology, materials, telecommunication services,
|
|
|
|
|
14
|
|
WisdomTree Trust
Prospectus
|
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 Fund’s 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 Fund’s performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent that the Fund’s underlying 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 Fund’s 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 Fund’s 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 Fund’s 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 Fund’s 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 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
|
|
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
|
|
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 Fund’s 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 invests primarily in the securities of large-capitalization companies. As a result, the Fund’s
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 Fund’s volatility and cause the performance of a relatively smaller number of issuers to have a greater
impact on the Fund’s 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 Fund’s average annual total returns, both before and after taxes.
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WisdomTree Trust
Prospectus
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15
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This table also shows how the Fund’s performance compares to the WisdomTree 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 Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.
The Fund’s year-to-date total return as of June 29, 2012 was 8.59%.
Best and Worst Quarter Returns (for the periods reflected in the bar chart above)
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|
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Return
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|
Quarter/Year
|
|
|
Highest
Return
|
|
|
15.79
|
%
|
|
|
2Q/2009
|
|
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Lowest
Return
|
|
|
(21.37
|
)%
|
|
|
4Q/2008
|
|
After-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown and are not relevant if you hold your 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 LargeCap Dividend
Fund
|
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1 Year
|
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|
5 Years
|
|
|
Since Inception
(6/16/2006)
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Return Before
Taxes Based on NAV
|
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|
9.47
|
%
|
|
|
(0.38
|
)%
|
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|
2.37
|
%
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|
Return After
Taxes on Distributions
|
|
|
8.38
|
%
|
|
|
(1.40
|
)%
|
|
|
1.37
|
%
|
|
Return After
Taxes on Distributions and Sale of Fund Shares
|
|
|
6.12
|
%
|
|
|
(0.94
|
)%
|
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|
1.42
|
%
|
|
S&P 500
®
Index (reflects no deduction for fees, expenses, or taxes)
|
|
|
2.11
|
%
|
|
|
(0.25
|
)%
|
|
|
2.24
|
%
|
|
WisdomTree
LargeCap Dividend Index (reflects no deduction for fees, expenses, or taxes)
|
|
|
9.75
|
%
|
|
|
0.08
|
%
|
|
|
2.76
|
%
|
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.
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16
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WisdomTree Trust
Prospectus
|
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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17
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WisdomTree MidCap Dividend Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree 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 Fund’s average net assets.
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|
|
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|
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
|
|
|
0.38
|
%
|
|
Distribution
and/or Service (12b-1) Fees
|
|
|
None
|
|
|
Other
Expenses
|
|
|
0.00
|
%
|
|
Total Annual Fund Operating Expenses
|
|
|
0.38
|
%*
|
|
*
|
Acquired Fund Fees and Expenses (AFFE) related to business development companies were 0.16% 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.
|
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:
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|
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|
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|
1 Year
|
|
|
3 Years
|
|
|
5 Years
|
|
|
10 Years
|
|
|
|
|
|
$39
|
|
|
|
$122
|
|
|
|
$213
|
|
|
|
$480
|
|
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 Fund’s performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 29% 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 Fund’s 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 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 MidCap Dividend Index is a fundamentally weighted index that is comprised of the mid-capitalization segment of the U.S. dividend-paying market. Eligibility requirements include:
(i) payment of regular cash dividends on shares of common stock in the 12 months preceding the annual Index rebalance; (ii) market capitalization of at least $100 million as of the Index rebalance; and (iii) average daily dollar
volume of at least $100,000 for three months preceding the Index rebalance. The Index is comprised of the companies that compose the top 75% of the market capitalization of the WisdomTree Dividend Index after the 300 largest companies have been
removed. The Index is dividend weighted annually to reflect the proportionate share of the aggregate cash dividends each component company is projected to pay in the coming year, based on the most recently declared dividend per share. The maximum
weight of any one sector in the Index, at the time of the Index’s annual rebalance, is capped at 25%. In response to market conditions, sector weights may fluctuate above 25% between annual Index rebalance dates.
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18
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WisdomTree Trust
Prospectus
|
WisdomTree Investments, Inc., as index provider, currently uses Standard & Poor’s Global
Industry Classification Standards (“S&P GICS”) to define companies within a 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 Fund’s 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 Fund’s performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent that the Fund’s underlying 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 Fund’s 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 Fund’s 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 Fund’s 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 Fund’s 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
|
|
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
|
|
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 Fund’s performance may be adversely affected by a general decline in the market segments relating to its Index.
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|
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 the securities of mid-capitalization companies. As a result, the Fund’s
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 Fund’s volatility and cause the performance of a relatively smaller number of issuers to have a greater
impact on the Fund’s performance.
|
|
n
|
|
Real Estate Investing.
The Fund may invest 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
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|
WisdomTree Trust
Prospectus
|
|
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19
|
|
|
|
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 Fund’s performance.
|
|
n
|
|
Utilities Investing.
The Fund may invest in companies in the utilities sector of the market and, as such, is 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 Fund’s average annual total returns, both before and after taxes. This table also shows how the Fund’s performance compares to the WisdomTree
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 Fund’s past performance (before
and after taxes) is not necessarily an indication of how the Fund will perform in the future.
The Fund’s year-to-date total return as of June 29, 2012 was 6.75%.
Best and Worst Quarter Returns (for the periods reflected in the bar chart above)
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
|
|
|
Quarter/Year
|
|
|
Highest
Return
|
|
|
27.96
|
%
|
|
|
3Q/2009
|
|
|
Lowest
Return
|
|
|
(24.64
|
)%
|
|
|
4Q/2008
|
|
After-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown and are not relevant if you hold your 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 MidCap Dividend
Fund
|
|
1 Year
|
|
|
5 Years
|
|
|
Since Inception
(6/16/2006)
|
|
|
Return Before
Taxes Based on NAV
|
|
|
5.11
|
%
|
|
|
1.46
|
%
|
|
|
3.85
|
%
|
|
Return After
Taxes on Distributions
|
|
|
4.20
|
%
|
|
|
0.32
|
%
|
|
|
2.71
|
%
|
|
Return After
Taxes on Distributions and Sale of Fund Shares
|
|
|
3.30
|
%
|
|
|
0.53
|
%
|
|
|
2.59
|
%
|
|
S&P MidCap
400
®
Index (reflects no deduction for fees, expenses, or taxes)
|
|
|
(1.73
|
)%
|
|
|
3.32
|
%
|
|
|
4.67
|
%
|
|
WisdomTree
MidCap Dividend Index (reflects no deduction for fees, expenses, or taxes)
|
|
|
5.41
|
%
|
|
|
1.30
|
%
|
|
|
3.69
|
%
|
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.
|
|
|
|
|
20
|
|
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
|
|
|
21
|
|
WisdomTree SmallCap Dividend Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree 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 Fund’s 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
|
|
|
0.38
|
%
|
|
Distribution
and/or Service (12b-1) Fees
|
|
|
None
|
|
|
Other
Expenses
|
|
|
0.00
|
%
|
|
Total Annual Fund Operating Expenses
|
|
|
0.38
|
%*
|
|
*
|
Acquired Fund Fees and Expenses (AFFE) related to business development companies were 0.61% 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.
|
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
|
|
|
|
|
|
$39
|
|
|
|
$122
|
|
|
|
$213
|
|
|
|
$480
|
|
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 Fund’s performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 31% 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 Fund’s 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
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 SmallCap Dividend Index is a fundamentally weighted index measuring the performance of the small-capitalization segment of the U.S.
dividend-paying market. Eligibility requirements include: (i) payment of regular cash dividends on shares of common stock in the 12 months preceding the annual Index rebalance; (ii) market capitalization of at least $100 million as of the
Index rebalance; and (iii) average daily dollar volume of at least $100,000 for three months preceding the Index rebalance. The Index is comprised of the companies that compose the bottom 25% of the market capitalization of the WisdomTree
Dividend Index after the 300 largest companies have been removed. The Index is dividend weighted annually to reflect the proportionate share of the aggregate cash dividends each component company is projected to pay in the coming year, based on the
most recently declared dividend per share. The maximum weight of any one sector in the Index, at the time of the Index’s annual rebalance, is capped at 25%. In response to market conditions, sector weights may fluctuate above 25% between
annual Index rebalance dates.
|
|
|
|
|
22
|
|
WisdomTree Trust
Prospectus
|
WisdomTree Investments, Inc., as index provider, currently uses Standard & Poor’s Global
Industry Classification Standards (“S&P GICS”) to define companies within a 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 Fund’s 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 Fund’s performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent that the Fund’s underlying 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 Fund’s 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 Fund’s 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 Fund’s 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 Fund’s 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
|
|
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
|
|
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 Fund’s 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-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 Fund’s volatility and cause the performance of a relatively smaller number of issuers to have a greater
impact on the Fund’s performance.
|
|
n
|
|
Real Estate Investing.
The Fund may invest 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 Fund’s 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
|
|
|
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
23
|
|
|
|
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 Fund’s
average annual total returns, both before and after taxes. This table also shows how the Fund’s performance compares to the WisdomTree 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 Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.
The Fund’s year-to-date total return as of June 29, 2012 was 9.76%.
Best and Worst Quarter Returns (for the periods reflected in the bar chart above)
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
|
|
|
Quarter/Year
|
|
|
Highest
Return
|
|
|
26.68
|
%
|
|
|
2Q/2009
|
|
|
Lowest
Return
|
|
|
(27.04
|
)%
|
|
|
1Q/2009
|
|
After-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown and are not relevant if you hold your 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 SmallCap Dividend
Fund
|
|
1 Year
|
|
|
5 Years
|
|
|
Since Inception
(6/16/2006)
|
|
|
Return Before
Taxes Based on NAV
|
|
|
(1.79
|
)%
|
|
|
(0.94
|
)%
|
|
|
1.91
|
%
|
|
Return After
Taxes on Distributions
|
|
|
(2.95
|
)%
|
|
|
(2.32
|
)%
|
|
|
0.51
|
%
|
|
Return After
Taxes on Distributions and Sale of Fund Shares
|
|
|
(1.18
|
)%
|
|
|
(1.63
|
)%
|
|
|
0.78
|
%
|
|
Russell 2000
®
Index (reflects no deduction for fees, expenses, or taxes)
|
|
|
(4.18
|
)%
|
|
|
0.15
|
%
|
|
|
2.60
|
%
|
|
WisdomTree
SmallCap Dividend Index (reflects no deduction for fees, expenses, or taxes)
|
|
|
(1.64
|
)%
|
|
|
(0.89
|
)%
|
|
|
1.97
|
%
|
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.
|
|
|
|
|
24
|
|
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
|
|
|
25
|
|
WisdomTree Total Earnings Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree 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 Fund’s 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
|
|
|
0.28
|
%
|
|
Distribution
and/or Service (12b-1) Fees
|
|
|
None
|
|
|
Other
Expenses
|
|
|
0.00
|
%
|
|
Total Annual Fund Operating Expenses
|
|
|
0.28
|
%*
|
|
*
|
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.
|
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
|
|
|
|
|
|
$29
|
|
|
|
$90
|
|
|
|
$157
|
|
|
|
$356
|
|
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 Fund’s performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 12% 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 Fund’s 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
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 Earnings Index is a fundamentally weighted index that is comprised of earnings-generating companies within the broad U.S. Stock Market. Companies in the Index are incorporated and listed in
the U.S. and have generated positive cumulative earnings over their most recent four fiscal quarters prior to the annual Index rebalance. Eligibility requirements include: (i) market capitalization of at least $100 million as of the Index
rebalance; (ii) average daily dollar volume of at least $200,000 for each of the six months preceding the Index rebalance; and (iii) a price to earnings ratio of at least 2 as of the Index rebalance. The Index is earnings-weighted annually
to reflect the proportionate share of the aggregate earnings each component company has generated. Companies with greater earnings generally have larger weights in the Index. WisdomTree Investments, Inc. uses “Core Earnings”, computed by
Standard & Poor’s, as the weighting metric. Core Earnings is a standardized calculation of earnings developed by Standard & Poor’s designed to include expenses, incomes and
|
|
|
|
|
26
|
|
WisdomTree Trust
Prospectus
|
activities that reflect the actual profitability of an enterprise’s ongoing operations. The maximum weight of any one sector in the Index, at the time of the Index’s 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 & Poor’s Global Industry Classification Standards (“S&P
GICS”) to define companies within a 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 Fund’s 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 Fund’s performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent that the Fund’s underlying 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
Fund’s 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 Fund’s 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 Fund’s 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 Fund’s 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
|
|
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
|
|
Information Technology Investing.
The Fund may invest in companies in the information technology sector. This sector can be significantly
affected by, among other things, the supply and demand for specific products and services, the pace of technological development 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 Fund’s 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 may invest in the securities of mid-capitalization companies. As a result, the Fund’s 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.
|
|
|
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
27
|
|
|
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 Fund’s 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 Fund’s volatility and cause the performance of a relatively smaller number of issuers to have a greater
impact on the Fund’s 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 Fund’s average annual total returns, both before and after taxes. This table also shows how the Fund’s performance compares to the WisdomTree
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 Fund’s past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in the future.
The Fund’s year-to-date total return as of June 29, 2012 was 8.24%.
Best and Worst Quarter Returns (for the periods reflected in the bar chart above)
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
|
|
|
Quarter/Year
|
|
|
Highest
Return
|
|
|
17.64
|
%
|
|
|
2Q/2009
|
|
|
Lowest
Return
|
|
|
(22.26
|
)%
|
|
|
4Q/2008
|
|
After-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown and are not relevant if you hold your 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 Total Earnings
Fund
|
|
1 Year
|
|
|
Since Inception
(2/23/2007)
|
|
|
Return Before
Taxes Based on NAV
|
|
|
3.13
|
%
|
|
|
(0.14
|
)%
|
|
Return After
Taxes on Distributions
|
|
|
2.36
|
%
|
|
|
(0.84
|
)%
|
|
Return After
Taxes on Distributions and Sale of Fund Shares
|
|
|
2.02
|
%
|
|
|
(0.54
|
)%
|
|
Russell 3000
®
Index (reflects no deduction for fees, expenses, or taxes)
|
|
|
1.03
|
%
|
|
|
(0.71
|
)%
|
|
WisdomTree
Earnings Index (reflects no deduction for fees, expenses, or taxes)
|
|
|
3.32
|
%
|
|
|
0.04
|
%
|
|
|
|
|
|
28
|
|
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
|
|
|
29
|
|
WisdomTree Earnings 500 Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Earnings 500 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 Fund’s 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
|
|
|
0.28
|
%
|
|
Distribution
and/or Service (12b-1) Fees
|
|
|
None
|
|
|
Other
Expenses
|
|
|
0.00
|
%
|
|
Total Annual Fund Operating Expenses
|
|
|
0.28
|
%
|
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
|
|
|
|
|
|
$29
|
|
|
|
$90
|
|
|
|
$157
|
|
|
|
$356
|
|
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 Fund’s performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 16% 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 Fund’s 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
Earnings 500 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 Earnings 500 Index is a fundamentally weighted index that is comprised of earnings-generating companies within the large-capitalization
segment of the U.S. Stock Market. Companies in the Index are incorporated and listed in the U.S. and have generated positive cumulative earnings over their most recent four fiscal quarters prior to the annual Index rebalance. Eligibility
requirements include: (i) market capitalization of at least $100 million as of the Index rebalance; (ii) average daily dollar volume of at least $200,000 for each of the six months preceding the Index rebalance; and (iii) a price to
earnings ratio of at least 2 as of the Index rebalance. The Index is comprised of the 500 largest companies ranked by market capitalization in the WisdomTree Earnings Index. The Index is earnings-weighted annually to reflect the proportionate share
of the aggregate earnings each component company has generated. Companies with greater earnings generally have larger weights in the Index. WisdomTree Investments, Inc. uses “Core Earnings”, computed by Standard & Poor’s, as
the weighting metric. Core Earnings is a standardized calculation of earnings developed by Standard & Poor’s designed to include expenses, incomes and activities that reflect the actual profitability of an enterprise’s
ongoing operations. The maximum weight of any one sector in the Index, at the time of the Index’s annual rebalance, is capped at 25%. In response to market conditions, sector weights may fluctuate above 25% between annual Index rebalance
dates.
|
|
|
|
|
30
|
|
WisdomTree Trust
Prospectus
|
WisdomTree Investments, Inc., as index provider, currently uses Standard & Poor’s Global
Industry Classification Standards (“S&P GICS”) to define companies within a 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 Fund’s 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 Fund’s performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent that the Fund’s underlying 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 Fund’s 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 Fund’s 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 Fund’s 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 Fund’s 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
|
|
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
|
|
Information Technology Investing.
The Fund may invest in companies in the information technology sector. This sector can be significantly
affected by, among other things, the supply and demand for specific products and services, the pace of technological development 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 Fund’s 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 Fund’s 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
|
|
|
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
31
|
|
|
|
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 Fund’s volatility and cause the performance of a relatively smaller number of issuers to have a greater impact on the Fund’s 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 Fund’s average annual total returns, both before and after taxes. This table also shows how the Fund’s performance compares to the WisdomTree
Earnings 500 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 Fund’s past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in the future.
The Fund’s year-to-date total return as of June 29, 2012 was 8.67%.
Best and Worst Quarter Returns (for the periods reflected in the bar chart above)
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
|
|
|
Quarter/Year
|
|
|
Highest
Return
|
|
|
15.96
|
%
|
|
|
2Q/2009
|
|
|
Lowest
Return
|
|
|
(21.78
|
)%
|
|
|
4Q/2008
|
|
After-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown and are not relevant if you hold your 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 Earnings 500
Fund
|
|
1 Year
|
|
|
Since Inception
(2/23/2007)
|
|
|
Return Before
Taxes Based on NAV
|
|
|
3.45
|
%
|
|
|
(0.60
|
)%
|
|
Return After
Taxes on Distributions
|
|
|
2.73
|
%
|
|
|
(1.29
|
)%
|
|
Return After
Taxes on Distributions and Sale of Fund Shares
|
|
|
2.23
|
%
|
|
|
(0.92
|
)%
|
|
S&P 500
®
Index (reflects no deduction for fees, expenses, or taxes)
|
|
|
2.11
|
%
|
|
|
(0.79
|
)%
|
|
WisdomTree
Earnings 500 Index (reflects no deduction for fees, expenses, or taxes)
|
|
|
3.65
|
%
|
|
|
(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.
|
|
|
|
|
32
|
|
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
|
|
|
33
|
|
WisdomTree MidCap Earnings Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree MidCap 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 Fund’s 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
|
|
|
0.38
|
%
|
|
Distribution
and/or Service (12b-1) Fees
|
|
|
None
|
|
|
Other
Expenses
|
|
|
0.00
|
%
|
|
Total Annual Fund Operating Expenses
|
|
|
0.38
|
%*
|
|
*
|
Acquired Fund Fees and Expenses (AFFE) related to business development companies were 0.07% 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.
|
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
|
|
|
|
|
|
$39
|
|
|
|
$122
|
|
|
|
$213
|
|
|
|
$480
|
|
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 Fund’s performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 38% 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 Fund’s 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 MidCap
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 MidCap Earnings Index is a fundamentally weighted index that is comprised of earnings-generating companies within the mid-capitalization segment of the U.S. Stock Market. The Index is
comprised of the companies in the top 75% of the market capitalization of the WisdomTree Earnings Index after the 500 largest companies have been removed. Companies in the Index are incorporated and listed in the U.S. and have generated positive
cumulative earnings over their most recent four fiscal quarters prior to the annual Index rebalance. Eligibility requirements also include: (i) market capitalization of at least $100 million as of the Index rebalance; (ii) average daily
dollar volume of at least $200,000 for each of the six months preceding the Index rebalance; and (iii) a price to earnings ratio of at least 2 as of the Index rebalance. The Index is earnings-weighted annually to reflect the proportionate share
of the aggregate earnings each component company
|
|
|
|
|
34
|
|
WisdomTree Trust
Prospectus
|
has generated. Companies with greater earnings generally have larger weights in the Index. WisdomTree Investments, Inc. uses “Core Earnings”, computed by Standard &
Poor’s, as the weighting metric. Core Earnings is a standardized calculation of earnings developed by Standard & Poor’s designed to include expenses, incomes and activities that reflect the actual profitability of an
enterprise’s ongoing operations. The maximum weight of any one sector in the Index, at the time of the Index’s 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 & Poor’s Global Industry
Classification Standards (“S&P GICS”) to define companies within a 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 Fund’s 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 Fund’s performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent that the Fund’s underlying 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 Fund’s 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 Fund’s 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 Fund’s 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 Fund’s 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, media and retail 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
|
|
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
|
|
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
|
|
Information Technology Investing.
The Fund may invest in companies in the information technology sector. This sector can be significantly
affected by, among other things, the supply and demand for specific products and services, the pace of technological development and government regulation.
|
|
|
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
35
|
|
|
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 defen sive positions in declining markets. As a result, the Fund’s 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 the securities of mid-capitalization companies. As a result, the Fund’s
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 Fund’s volatility and cause the performance of a relatively smaller number of issuers to have a greater
impact on the Fund’s 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 Fund’s average annual total returns, both before and after taxes. This table also shows how the Fund’s performance compares to the WisdomTree MidCap 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 Fund’s past performance (before and after taxes) is not necessarily an indication of how
the Fund will perform in the future.
The Fund’s year-to-date total return as of June 29, 2012 was 4.76%.
Best and Worst Quarter Returns (for the periods reflected in the bar chart above)
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
|
|
|
Quarter/Year
|
|
|
Highest
Return
|
|
|
26.92
|
%
|
|
|
2Q/2009
|
|
|
Lowest
Return
|
|
|
(24.54
|
)%
|
|
|
4Q/2008
|
|
After-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown and are not relevant if you hold your 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.
|
|
|
|
|
36
|
|
WisdomTree Trust
Prospectus
|
Average Annual Total Returns for the periods ending December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
WisdomTree MidCap Earnings
Fund
|
|
1 Year
|
|
|
Since Inception
(2/23/2007)
|
|
|
Return Before
Taxes Based on NAV
|
|
|
1.39
|
%
|
|
|
2.91
|
%
|
|
Return After
Taxes on Distributions
|
|
|
1.03
|
%
|
|
|
2.43
|
%
|
|
Return After
Taxes on Distributions and Sale of Fund Shares
|
|
|
0.90
|
%
|
|
|
2.18
|
%
|
|
S&P MidCap
400
®
Index (reflects no deduction for fees, expenses, or taxes)
|
|
|
(1.73
|
)%
|
|
|
1.78
|
%
|
|
WisdomTree
MidCap Earnings Index (reflects no deduction for fees, expenses, or taxes)
|
|
|
1.69
|
%
|
|
|
3.09
|
%
|
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
|
|
|
37
|
|
WisdomTree SmallCap Earnings Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree SmallCap 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 Fund’s 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
|
|
|
0.38
|
%
|
|
Distribution
and/or Service (12b-1) Fees
|
|
|
None
|
|
|
Other
Expenses
|
|
|
0.00
|
%
|
|
Total Annual Fund Operating Expenses
|
|
|
0.38
|
%*
|
|
*
|
Acquired Fund Fees and Expenses (AFFE) related to business development companies were 0.16% 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.
|
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
|
|
|
|
|
|
$39
|
|
|
|
$122
|
|
|
|
$213
|
|
|
|
$480
|
|
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 Fund’s performance. During the most recent fiscal year, the
Fund’s 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 Fund’s 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
SmallCap 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 SmallCap Earnings Index is a fundamentally weighted index that is comprised of earnings-generating companies within the
small-capitalization segment of the U.S. Stock Market. The Index is comprised of the companies in the bottom 25% of the market capitalization of the WisdomTree Earnings Index after the 500 largest companies have been removed. Companies must be
incorporated and listed in the U.S. and have generated positive cumulative earnings over their most recent four fiscal quarters prior to the annual Index rebalance. Eligibility requirements also include: (i) market capitalization of at least
$100 million as of the Index rebalance; (ii) average daily dollar volume of at least $200,000 for each of the six months preceding the Index rebalance; and (iii) a price to earnings ratio of at least 2 as of the Index rebalance. The Index
is earnings-weighted annually to reflect the proportionate share of the aggregate earnings each component company
|
|
|
|
|
38
|
|
WisdomTree Trust
Prospectus
|
has generated. Companies with greater earnings generally have larger weights in the Index. WisdomTree Investments, Inc. uses “Core Earnings”, computed by Standard &
Poor’s, as the weighting metric. Core Earnings is a standardized calculation of earnings developed by Standard & Poor’s designed to include expenses, incomes and activities that reflect the actual profitability of an
enterprise’s ongoing operations. The maximum weight of any one sector in the Index, at the time of the Index’s 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 & Poor’s Global Industry
Classification Standards (“S&P GICS”) to define companies within a 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 Fund’s 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 Fund’s performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent that the Fund’s underlying 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 Fund’s 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 Fund’s 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 Fund’s 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 Fund’s 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, media and retail 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
|
|
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
|
|
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
|
|
Information Technology Investing.
The Fund may invest in companies in the information technology sector. This sector can be significantly
affected by, among other things, the supply and demand for specific products and services, the pace of technological development 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 Fund’s performance may be adversely affected by a general decline in the market segments relating to its Index.
|
|
|
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
39
|
|
|
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-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 Fund’s volatility and cause the performance of a relatively smaller number of issuers to have a greater
impact on the Fund’s 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 Fund’s average annual total returns, both before and after taxes. This table also shows how the Fund’s performance compares to the WisdomTree SmallCap 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 Fund’s past performance (before and after taxes) is not necessarily an indication of how
the Fund will perform in the future.
The Fund’s year-to-date total return as of June 29, 2012 was 7.77%.
Best and Worst Quarter Returns (for the periods reflected in the bar chart above)
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
|
|
|
Quarter/Year
|
|
|
Highest
Return
|
|
|
37.38
|
%
|
|
|
2Q/2009
|
|
|
Lowest
Return
|
|
|
(24.70
|
)%
|
|
|
4Q/2008
|
|
After-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown and are not relevant if you hold your 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 SmallCap Earnings
Fund
|
|
1 Year
|
|
|
Since Inception
(2/23/2007)
|
|
|
Return Before
Taxes Based on NAV
|
|
|
(1.84
|
)%
|
|
|
1.24
|
%
|
|
Return After
Taxes on Distributions
|
|
|
(2.28
|
)%
|
|
|
0.82
|
%
|
|
Return After
Taxes on Distributions and Sale of Fund Shares
|
|
|
(1.20
|
)%
|
|
|
0.80
|
%
|
|
Russell 2000
®
Index (reflects no deduction for fees, expenses, or taxes)
|
|
|
(4.18
|
)%
|
|
|
(0.86
|
)%
|
|
WisdomTree
SmallCap Earnings Index (reflects no deduction for fees, expenses, or taxes)
|
|
|
(1.60
|
)%
|
|
|
1.27
|
%
|
|
|
|
|
|
40
|
|
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
|
|
|
41
|
|
WisdomTree LargeCap Value Fund
Investment Objective
The Fund seeks to track the price and yield performance, before fees and expenses, of the WisdomTree LargeCap Value 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 Fund’s 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
|
|
|
0.38
|
%
|
|
Distribution
and/or Service (12b-1) Fees
|
|
|
None
|
|
|
Other
Expenses
|
|
|
0.00
|
%
|
|
Total Annual Fund Operating Expenses
|
|
|
0.38
|
%
|
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
|
|
|
|
|
|
$39
|
|
|
|
$122
|
|
|
|
$213
|
|
|
|
$480
|
|
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 Fund’s performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 62% 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 Fund’s 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
LargeCap Value 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 LargeCap Value Index is a fundamentally weighted index that is comprised of large-cap value companies. The Index consists of U.S. companies
that have positive cumulative earnings over the past four fiscal quarters. Eligibility requirements also include: (i) market capitalization of at least $100 million as of the annual Index rebalance; (ii) average daily dollar volume of at
least $200,000 for each of the six months preceding the Index rebalance; and (iii) a price to earnings ratio of at least 2 as of the Index rebalance. Additionally, companies must have positive earnings per share, positive book value per share,
and positive sales per share statistics as of the Index rebalance. WisdomTree Investments, Inc. creates a “value” score for each company based on the company’s price to earnings ratio, price to sales ratio, and price to book value and
1-year change in stock price. The top 30% of companies with the highest value scores within the 1,000 largest companies by market capitalization are included in the Index. Companies are weighted in the Index annually based on earnings. For these
purposes, “earnings” are determined using a company’s reported net income, excluding special items, applicable to common shareholders. The maximum weight of any one sector in the Index, at the time of the Index’s annual
rebalance, is capped at 25%. In response to market conditions, sector weights may fluctuate above 25% between annual Index rebalance dates.
|
|
|
|
|
42
|
|
WisdomTree Trust
Prospectus
|
WisdomTree Investments, Inc., as index provider, currently uses Standard & Poor’s Global
Industry Classification Standards (“S&P GICS”) to define companies within a 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 Fund’s 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 Fund’s performance and that of the Index, before fees and expenses, will be 95% or better.
To the extent that the Fund’s underlying 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 Fund’s 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 Fund’s 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 Fund’s 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 Fund’s 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
|
|
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, international political instability, 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
|
|
Information Technology Investing.
The Fund may invest in companies in the information technology sector. This sector can be significantly
affected by, among other things, the supply and demand for specific products and services, the pace of technological development 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 Fund’s 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 invests primarily in the securities of large-capitalization companies. As a result, the Fund’s
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
|
|
|
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
43
|
|
|
|
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 Fund’s volatility and cause the performance of a relatively smaller number of issuers to have a greater impact on the Fund’s 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 Fund’s average annual total returns, both before and after taxes. This table also shows how the Fund’s performance compares to the WisdomTree
Low P/E/LargeCap Value 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 Fund’s past
performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.
The Fund’s name and
investment 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 Low P/E Fund, and tracked the performance of the WisdomTree
Low P/E Index.
The Fund’s year-to-date total return as of June 29, 2012 was 7.47%.
Best and Worst Quarter Returns (for the periods reflected in the bar chart above)
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
|
|
|
Quarter/Year
|
|
|
Highest
Return
|
|
|
22.39
|
%
|
|
|
2Q/2009
|
|
|
Lowest
Return
|
|
|
(25.20
|
)%
|
|
|
4Q/2008
|
|
After-tax returns are calculated using the highest historical individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown and are not relevant if you hold your 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 LargeCap Value Fund
*
|
|
1 Year
|
|
|
Since Inception
(2/23/2007)
|
|
|
Return Before
Taxes Based on NAV
|
|
|
4.92
|
%
|
|
|
(2.15
|
)%
|
|
Return After
Taxes on Distributions
|
|
|
4.34
|
%
|
|
|
(2.81
|
)%
|
|
Return After
Taxes on Distributions and Sale of Fund Shares
|
|
|
3.18
|
%
|
|
|
(2.21
|
)%
|
|
Russell 1000
®
Value Index (reflects no deduction for fees, expenses, or taxes)
|
|
|
0.39
|
%
|
|
|
(3.22
|
)%
|
|
WisdomTree Low
P/E/LargeCap Value Spliced Index** (reflects no deduction for fees, expenses, or taxes)
|
|
|
5.35
|
%
|
|
|
(1.80
|
)%
|
|
*
|
|
The Fund’s 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 Low P/E Index. After June 19, 2009, the Fund’s objective seeks to track the price and yield performance, before fees and expenses, of the WisdomTree LargeCap Value Index.
|
|
**
|
|
Reflects performance of the WisdomTree Low P/E Index through June 19, 2009 and the WisdomTree LargeCap Value Index thereafter.
|
|
|
|
|
|
44
|
|
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
|
|
|
45
|
|
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.
|
|
n
|
|
The Russell
3000
®
Index is comprised of the 3,000 largest U.S. companies based on total market capitalization.
|
|
|
n
|
|
The Russell
1000
®
Value Index is a measure of the large-cap value segment of the U.S. equity universe selecting from the
Russell 1000
®
Index.
|
|
|
n
|
|
The Dow Jones U.S. Select Dividend Index
SM
is comprised of 100 U.S. dividend-paying companies.
|
|
|
n
|
|
The S&P
500
®
Index is a capitalization-weighted index of 500 stocks designed to represent the performance of the leading
industries in the U.S. economy.
|
|
|
n
|
|
The S&P MidCap
400
®
Index is a capitalization-weighted index that is comprised of the mid-cap range of the U.S. stock market.
|
|
|
n
|
|
The Russell
2000
®
Index is comprised of the smallest 2,000 securities in the Russell 3000 Index.
|
Additional Investment Objective, Strategy and Risk Information
Investment Objective.
Each Fund seeks investment returns that closely correspond to 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 Fund’s
investment objective has been adopted as a non-fundamental investment policy, each Fund’s investment objective may be changed without a vote of shareholders upon 60 days’ written notice to shareholders.
Principal Investment Strategies.
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 Fund’s 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). 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. WisdomTree Asset Management, Inc. expects that,
over time, the correlation between the Fund’s performance and that of the Index, before fees and expenses, will be 95% or better. Several of the WisdomTree Indexes contain 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 Fund’s fee table, even though they are not an operating expense of the Fund and are not reflected in the
Fund’s financial statements. As of March 22, 2013, each Fund, in seeking to replicate the performance of its respective Index, screens out and does not hold shares of business development companies. Consequently, the fee table of each Fund that
had previously held business development companies 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 amount of cash dividends that companies in the Index pay or the dividend yield of the 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.
Each “Earnings Index” weights securities
based on either the amount of earnings of the companies in the Index or the earnings yields of such companies. This means that securities of companies that have higher earnings or earnings yields generally will be more heavily weighted in each
Earnings Index and Fund. To determine a company’s earnings, each Earnings Index, except as noted, currently uses the concept of “Core Earnings.” Core Earnings is a standardized calculation of earnings developed by Standard &
Poor’s that is designed to include expenses, incomes and activities that reflect the actual profitability of a company’s ongoing operations. The LargeCap Value Index is considered to be an “Earnings Index.” For this Index and its
respective Fund, “earnings” is defined as a company’s reported net income, excluding special items, applicable to common shareholders.
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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 each Fund’s Summary 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.
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 a Fund.
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 Fund’s 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 security’s or instrument’s 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 currencies, fixed income securities 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 Fund’s NAV and market price, 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 medium 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.
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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. The use of sampling techniques may affect a Fund’s 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, a 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 Fund’s
volatility and cause the performance of a relatively smaller number of issuers to have a greater impact on a Fund’s performance.
Sector Risks
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.
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 Fund’s 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.
Health Care
Investing
The health care sector can be significantly affected by, among other things, lapsing patent protection,
technological developments that make drugs obsolete, government regulation, price controls, and approvals for drugs.
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 Fund’s 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.
Information Technology Investing
This sector can be significantly affected by, among other things, the supply and demand for specific products and services, the pace of
technological development and government regulation. Challenges facing companies in the
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information technology 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.
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 Fund’s 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 Fund’s investment performance.
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 Fund’s 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 Fund’s 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 SEC’s website, www.sec.gov. A summarized description of each Fund’s policies and procedures with respect to the disclosure of each Fund’s
portfolio holdings is available in the Trust’s SAI.
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Management
Investment Adviser
As investment adviser, WisdomTree Asset
Management, Inc. (“WisdomTree Asset Management”) has overall responsibility for the general management and administration of WisdomTree Trust (the “Trust”) and each of its separate investment portfolios called “Funds.”
WisdomTree Asset Management 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 WisdomTree Asset Management. WisdomTree Asset Management provides an investment program for each Fund. WisdomTree Asset Management also arranges for sub-advisory, transfer agency, custody, fund administration, and all other
non-distribution related services necessary for the Funds to operate.
For the fiscal year ended March 31, 2012, the Funds paid advisory
fees to the Adviser, as a percentage of net assets, in the following amounts:
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Name of Fund
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Management Fee
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Total Dividend Fund
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0.28
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%
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Equity Income Fund
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0.38
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%
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Dividend ex-Financials Fund
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0.38
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%
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LargeCap Dividend Fund
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0.28
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%
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MidCap Dividend Fund
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0.38
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%
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SmallCap Dividend Fund
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0.38
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%
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Total Earnings Fund
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0.28
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%
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Earnings 500 Fund
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0.28
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%
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MidCap Earnings Fund
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0.38
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%
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SmallCap Earnings Fund
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0.38
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%
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LargeCap Value Fund
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0.38
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%
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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 Trust’s 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. 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
Fund’s 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 Trust’s Annual Report to Shareholders for the period ended March 31, 2012.
Sub-Adviser
As sub-adviser, Mellon Capital Management Corporation (“Mellon Capital”) is responsible for the day-to-day management of the Funds. 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 each
Fund’s portfolio investments and places orders to buy and sell the investments. WisdomTree Asset Management pays Mellon Capital for providing sub-advisory services to the Funds as follows:
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3 basis points (0.03%) of the first $2 billion in combined daily net assets of all U.S. Equity ETFs;
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2 basis points (0.02%) of the next $3 billion in combined daily net assets of all U.S. Equity ETFs; and
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1.5 basis points (0.015%) of the combined daily net assets of all U.S. Equity ETFs in excess of $5 billion.
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*
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“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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The basis for the Board of Trustees’ approval of the investment Sub-Advisory Agreement is available in
the Trust’s Annual Report to Shareholders for the period ended March 31, 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 Fund’s 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 is managed by Mellon Capital’s Equity Index Strategies Portfolio management team. The individual members of the team responsible for the day-to-day management of the Funds’ portfolios
are listed 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.
Mr. Richard A. Brown, CFA, is 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.
The Trust’s Statement of Additional Information (“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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Additional Information on Buying and Selling Fund 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 and in each Fund’s Summary section.
Share Trading Prices
Transactions in Fund shares will be priced at NAV only if you purchase 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 15 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 Fund’s
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 per share is
calculated by dividing a Fund’s 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 Fund’s next NAV calculation time that may materially affect the value of the Fund’s 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 Total Dividend Fund, Equity
Income Fund, Dividend ex-Financials Fund, LargeCap Dividend Fund, MidCap Dividend Fund and SmallCap Dividend Fund intend to pay out dividends on a monthly basis. The remaining Funds intend to pay out dividends on a quarterly basis. Nonetheless, a
Fund may not make a dividend payment every month or quarter, as applicable. Each Fund intends to distribute its net realized capital gains, if any, to investors 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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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.
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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 Fund’s 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:
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A Fund makes distributions,
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You purchase or redeem Creation Units (for institutional investors only).
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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
Fund’s 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 shareholder’s “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.
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).
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 component
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WisdomTree Trust
Prospectus
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received by the Authorized Participant in the exchange and (ii) the sum of the exchanger’s aggregate basis in the securities surrendered and any cash component paid. A person who redeems
Creation Units will generally recognize a gain or loss equal to the difference between the exchanger’s 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 the 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.
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 Distributor’s 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 Listing 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 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 & Poor’s (“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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55
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Financial Highlights
The financial highlights table is intended to help you understand the Funds’ 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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Financial Highlights
WisdomTree U.S. Equity ETFs
March 31, 2012
Selected data for a share of beneficial interest outstanding throughout the period is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree Total 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
|
|
$
|
48.84
|
|
|
$
|
42.89
|
|
|
$
|
29.26
|
|
|
$
|
51.81
|
|
|
$
|
57.87
|
|
|
Investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
1
|
|
|
1.47
|
|
|
|
1.37
|
|
|
|
1.14
|
|
|
|
1.54
|
|
|
|
1.68
|
|
|
Net realized and unrealized gain (loss)
|
|
|
4.15
|
|
|
|
5.92
|
|
|
|
13.61
|
|
|
|
(22.56
|
)
|
|
|
(6.04
|
)
|
|
Total from investment operations
|
|
|
5.62
|
|
|
|
7.29
|
|
|
|
14.75
|
|
|
|
(21.02
|
)
|
|
|
(4.36
|
)
|
|
Dividends and distributions to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(1.42
|
)
|
|
|
(1.34
|
)
|
|
|
(1.12
|
)
|
|
|
(1.53
|
)
|
|
|
(1.68
|
)
|
|
Capital gains
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.02
|
)
|
|
Total dividends and distributions to shareholders
|
|
|
(1.42
|
)
|
|
|
(1.34
|
)
|
|
|
(1.12
|
)
|
|
|
(1.53
|
)
|
|
|
(1.70
|
)
|
|
Net asset value, end of year
|
|
$
|
53.04
|
|
|
$
|
48.84
|
|
|
$
|
42.89
|
|
|
$
|
29.26
|
|
|
$
|
51.81
|
|
|
|
|
|
|
|
|
|
TOTAL
RETURN
2
|
|
|
11.81
|
%
|
|
|
17.37
|
%
|
|
|
50.83
|
%
|
|
|
(41.29
|
)%
|
|
|
(7.77
|
)%
|
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000’s omitted)
|
|
$
|
243,985
|
|
|
$
|
170,948
|
|
|
$
|
132,971
|
|
|
$
|
84,844
|
|
|
$
|
88,071
|
|
|
Ratios to average net assets
3
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements/waivers
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
Expenses, prior to expense reimbursements/waivers
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
Net investment income
|
|
|
3.03
|
%
|
|
|
3.10
|
%
|
|
|
3.01
|
%
|
|
|
3.91
|
%
|
|
|
2.89
|
%
|
|
Portfolio turnover
rate
4
|
|
|
15
|
%
|
|
|
6
|
%
|
|
|
16
|
%
|
|
|
23
|
%
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree 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
|
|
$
|
40.52
|
|
|
$
|
35.12
|
|
|
$
|
22.98
|
|
|
$
|
47.81
|
|
|
$
|
57.99
|
|
|
Investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
1
|
|
|
1.66
|
|
|
|
1.61
|
|
|
|
1.17
|
|
|
|
1.95
|
|
|
|
2.22
|
|
|
Net realized and unrealized gain (loss)
|
|
|
4.15
|
|
|
|
5.33
|
|
|
|
12.16
|
|
|
|
(24.80
|
)
|
|
|
(10.19
|
)
|
|
Total from investment operations
|
|
|
5.81
|
|
|
|
6.94
|
|
|
|
13.33
|
|
|
|
(22.85
|
)
|
|
|
(7.97
|
)
|
|
Dividends to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(1.52
|
)
|
|
|
(1.54
|
)
|
|
|
(1.19
|
)
|
|
|
(1.98
|
)
|
|
|
(2.21
|
)
|
|
Net asset value, end of year
|
|
$
|
44.81
|
|
|
$
|
40.52
|
|
|
$
|
35.12
|
|
|
$
|
22.98
|
|
|
$
|
47.81
|
|
|
|
|
|
|
|
|
|
TOTAL
RETURN
2
|
|
|
14.66
|
%
|
|
|
20.24
|
%
|
|
|
58.47
|
%
|
|
|
(49.06
|
)%
|
|
|
(14.18
|
)%
|
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000’s omitted)
|
|
$
|
427,918
|
|
|
$
|
178,273
|
|
|
$
|
122,907
|
|
|
$
|
101,091
|
|
|
$
|
138,659
|
|
|
Ratios to average net assets
3
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements/waivers
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
Expenses, prior to expense reimbursements/waivers
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
Net investment income
|
|
|
3.99
|
%
|
|
|
4.25
|
%
|
|
|
3.72
|
%
|
|
|
5.59
|
%
|
|
|
3.88
|
%
|
|
Portfolio turnover
rate
4
|
|
|
22
|
%
|
|
|
8
|
%
|
|
|
25
|
%
|
|
|
45
|
%
|
|
|
19
|
%
|
|
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 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 Fund’s capital shares.
|
|
|
|
|
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WisdomTree Trust
Prospectus
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|
|
57
|
|
Financial Highlights
WisdomTree U.S. Equity ETFs
March 31, 2012
Selected data for a share of beneficial interest outstanding throughout the period is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree 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
|
|
|
For the
Year Ended
March 31, 2009
|
|
|
For the
Year Ended
March 31, 2008
|
|
|
Net asset value, beginning of year
|
|
$
|
50.13
|
|
|
$
|
42.76
|
|
|
$
|
26.74
|
|
|
$
|
51.14
|
|
|
$
|
59.69
|
|
|
Investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
1
|
|
|
2.06
|
|
|
|
1.81
|
|
|
|
1.60
|
|
|
|
1.81
|
|
|
|
2.10
|
|
|
Net realized and unrealized gain (loss)
|
|
|
4.31
|
|
|
|
7.25
|
|
|
|
16.01
|
|
|
|
(24.34
|
)
|
|
|
(8.56
|
)
|
|
Total from investment operations
|
|
|
6.37
|
|
|
|
9.06
|
|
|
|
17.61
|
|
|
|
(22.53
|
)
|
|
|
(6.46
|
)
|
|
Dividends to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(1.69
|
)
|
|
|
(1.69
|
)
|
|
|
(1.59
|
)
|
|
|
(1.87
|
)
|
|
|
(2.09
|
)
|
|
Net asset value, end of year
|
|
$
|
54.81
|
|
|
$
|
50.13
|
|
|
$
|
42.76
|
|
|
$
|
26.74
|
|
|
$
|
51.14
|
|
|
|
|
|
|
|
|
|
TOTAL
RETURN
2
|
|
|
12.99
|
%
|
|
|
21.68
|
%
|
|
|
66.66
|
%
|
|
|
(45.10
|
)%
|
|
|
(11.15
|
)%
|
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000’s omitted)
|
|
$
|
1,268,812
|
|
|
$
|
343,382
|
|
|
$
|
190,277
|
|
|
$
|
104,277
|
|
|
$
|
166,205
|
|
|
Ratios to average net assets
3
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements/waivers
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
Expenses, prior to expense reimbursements/waivers
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
Net investment income
|
|
|
4.05
|
%
|
|
|
3.99
|
%
|
|
|
4.32
|
%
|
|
|
4.57
|
%
|
|
|
3.57
|
%
|
|
Portfolio turnover
rate
4
|
|
|
38
|
%
|
|
|
5
|
%
|
|
|
57
|
%
|
|
|
53
|
%
|
|
|
16
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree 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
|
|
$
|
48.31
|
|
|
$
|
42.56
|
|
|
$
|
29.86
|
|
|
$
|
52.71
|
|
|
$
|
57.97
|
|
|
Investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
1
|
|
|
1.45
|
|
|
|
1.33
|
|
|
|
1.10
|
|
|
|
1.51
|
|
|
|
1.60
|
|
|
Net realized and unrealized gain (loss)
|
|
|
4.59
|
|
|
|
5.68
|
|
|
|
12.69
|
|
|
|
(22.91
|
)
|
|
|
(5.21
|
)
|
|
Total from investment operations
|
|
|
6.04
|
|
|
|
7.01
|
|
|
|
13.79
|
|
|
|
(21.40
|
)
|
|
|
(3.61
|
)
|
|
Dividends to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(1.37
|
)
|
|
|
(1.26
|
)
|
|
|
(1.09
|
)
|
|
|
(1.45
|
)
|
|
|
(1.65
|
)
|
|
Net asset value, end of year
|
|
$
|
52.98
|
|
|
$
|
48.31
|
|
|
$
|
42.56
|
|
|
$
|
29.86
|
|
|
$
|
52.71
|
|
|
|
|
|
|
|
|
|
TOTAL
RETURN
2
|
|
|
12.82
|
%
|
|
|
16.83
|
%
|
|
|
46.53
|
%
|
|
|
(41.25
|
)%
|
|
|
(6.47
|
)%
|
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000’s omitted)
|
|
$
|
1,205,215
|
|
|
$
|
611,094
|
|
|
$
|
412,809
|
|
|
$
|
294,135
|
|
|
$
|
308,379
|
|
|
Ratios to average net assets
3
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements/waivers
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
Expenses, prior to expense reimbursements/waivers
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
Net investment income
|
|
|
3.02
|
%
|
|
|
3.04
|
%
|
|
|
2.89
|
%
|
|
|
3.78
|
%
|
|
|
2.74
|
%
|
|
Portfolio turnover
rate
4
|
|
|
14
|
%
|
|
|
5
|
%
|
|
|
17
|
%
|
|
|
25
|
%
|
|
|
8
|
%
|
|
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 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 Fund’s capital shares.
|
|
|
|
|
|
58
|
|
WisdomTree Trust
Prospectus
|
Financial Highlights
WisdomTree U.S. Equity ETFs
March 31, 2012
Selected data for a share of beneficial interest outstanding throughout the period is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree 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
|
|
$
|
54.01
|
|
|
$
|
46.08
|
|
|
$
|
26.80
|
|
|
$
|
48.00
|
|
|
$
|
58.02
|
|
|
Investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
1
|
|
|
1.47
|
|
|
|
1.53
|
|
|
|
1.29
|
|
|
|
1.63
|
|
|
|
1.88
|
|
|
Net realized and unrealized gain (loss)
|
|
|
2.17
|
|
|
|
7.79
|
|
|
|
19.22
|
|
|
|
(21.16
|
)
|
|
|
(10.12
|
)
|
|
Total from investment operations
|
|
|
3.64
|
|
|
|
9.32
|
|
|
|
20.51
|
|
|
|
(19.53
|
)
|
|
|
(8.24
|
)
|
|
Dividends to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(1.40
|
)
|
|
|
(1.39
|
)
|
|
|
(1.23
|
)
|
|
|
(1.67
|
)
|
|
|
(1.78
|
)
|
|
Net asset value, end of year
|
|
$
|
56.25
|
|
|
$
|
54.01
|
|
|
$
|
46.08
|
|
|
$
|
26.80
|
|
|
$
|
48.00
|
|
|
|
|
|
|
|
|
|
TOTAL
RETURN
2
|
|
|
6.99
|
%
|
|
|
20.60
|
%
|
|
|
77.34
|
%
|
|
|
(41.61
|
)%
|
|
|
(14.47
|
)%
|
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000’s omitted)
|
|
$
|
345,963
|
|
|
$
|
256,552
|
|
|
$
|
122,121
|
|
|
$
|
65,655
|
|
|
$
|
91,198
|
|
|
Ratios to average net assets
3
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements/waivers
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
Expenses, prior to expense reimbursements/waivers
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
Net investment income
|
|
|
2.81
|
%
|
|
|
3.16
|
%
|
|
|
3.34
|
%
|
|
|
4.31
|
%
|
|
|
3.38
|
%
|
|
Portfolio turnover
rate
4
|
|
|
29
|
%
|
|
|
10
|
%
|
|
|
11
|
%
|
|
|
43
|
%
|
|
|
30
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree 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
|
|
$
|
48.66
|
|
|
$
|
42.39
|
|
|
$
|
24.06
|
|
|
$
|
46.31
|
|
|
$
|
57.41
|
|
|
Investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
1
|
|
|
1.68
|
|
|
|
1.72
|
|
|
|
1.49
|
|
|
|
1.85
|
|
|
|
2.13
|
|
|
Net realized and unrealized gain (loss)
|
|
|
0.34
|
|
|
|
6.14
|
|
|
|
18.28
|
|
|
|
(22.26
|
)
|
|
|
(11.10
|
)
|
|
Total from investment operations
|
|
|
2.02
|
|
|
|
7.86
|
|
|
|
19.77
|
|
|
|
(20.41
|
)
|
|
|
(8.97
|
)
|
|
Dividends to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(1.65
|
)
|
|
|
(1.59
|
)
|
|
|
(1.44
|
)
|
|
|
(1.84
|
)
|
|
|
(2.13
|
)
|
|
Net asset value, end of year
|
|
$
|
49.03
|
|
|
$
|
48.66
|
|
|
$
|
42.39
|
|
|
$
|
24.06
|
|
|
$
|
46.31
|
|
|
|
|
|
|
|
|
|
TOTAL
RETURN
2
|
|
|
4.50
|
%
|
|
|
18.96
|
%
|
|
|
83.27
|
%
|
|
|
(45.27
|
)%
|
|
|
(15.93
|
)%
|
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000’s omitted)
|
|
$
|
313,791
|
|
|
$
|
248,171
|
|
|
$
|
154,724
|
|
|
$
|
73,369
|
|
|
$
|
81,040
|
|
|
Ratios to average net assets
3
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements/waivers
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
Expenses, prior to expense reimbursements/waivers
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
Net investment income
|
|
|
3.69
|
%
|
|
|
3.86
|
%
|
|
|
4.21
|
%
|
|
|
5.15
|
%
|
|
|
3.97
|
%
|
|
Portfolio turnover
rate
4
|
|
|
31
|
%
|
|
|
11
|
%
|
|
|
16
|
%
|
|
|
65
|
%
|
|
|
34
|
%
|
|
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 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 Fund’s capital shares.
|
|
|
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
59
|
|
Financial Highlights
WisdomTree U.S. Equity ETFs
March 31, 2012
Selected data for a share of beneficial interest outstanding throughout the period is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree Total
Earnings 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
|
|
$
|
47.12
|
|
|
$
|
41.56
|
|
|
$
|
27.52
|
|
|
$
|
45.32
|
|
|
$
|
48.99
|
|
|
Investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
1
|
|
|
0.88
|
|
|
|
0.77
|
|
|
|
0.70
|
|
|
|
0.87
|
|
|
|
0.85
|
|
|
Net realized and unrealized gain (loss)
|
|
|
3.58
|
|
|
|
5.55
|
|
|
|
14.03
|
|
|
|
(17.87
|
)
|
|
|
(3.56
|
)
|
|
Total from investment operations
|
|
|
4.46
|
|
|
|
6.32
|
|
|
|
14.73
|
|
|
|
(17.00
|
)
|
|
|
(2.71
|
)
|
|
Dividends to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(0.96
|
)
|
|
|
(0.76
|
)
|
|
|
(0.69
|
)
|
|
|
(0.80
|
)
|
|
|
(0.96
|
)
|
|
Net asset value, end of year
|
|
$
|
50.62
|
|
|
$
|
47.12
|
|
|
$
|
41.56
|
|
|
$
|
27.52
|
|
|
$
|
45.32
|
|
|
|
|
|
|
|
|
|
TOTAL
RETURN
2
|
|
|
9.74
|
%
|
|
|
15.44
|
%
|
|
|
53.82
|
%
|
|
|
(37.86
|
)%
|
|
|
(5.69
|
)%
|
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000’s omitted)
|
|
$
|
43,026
|
|
|
$
|
54,193
|
|
|
$
|
47,789
|
|
|
$
|
16,511
|
|
|
$
|
15,861
|
|
|
Ratios to average net assets
3
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
Expenses, prior to expense reimbursements
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
Net investment income
|
|
|
1.90
|
%
|
|
|
1.82
|
%
|
|
|
1.92
|
%
|
|
|
2.33
|
%
|
|
|
1.76
|
%
|
|
Portfolio turnover
rate
4
|
|
|
12
|
%
|
|
|
9
|
%
|
|
|
16
|
%
|
|
|
23
|
%
|
|
|
11
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree Earnings
500 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
|
|
$
|
45.59
|
|
|
$
|
40.75
|
|
|
$
|
27.77
|
|
|
$
|
45.77
|
|
|
$
|
48.85
|
|
|
Investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
1
|
|
|
0.88
|
|
|
|
0.77
|
|
|
|
0.68
|
|
|
|
0.91
|
|
|
|
0.94
|
|
|
Net realized and unrealized gain (loss)
|
|
|
3.84
|
|
|
|
4.84
|
|
|
|
12.98
|
|
|
|
(18.07
|
)
|
|
|
(3.18
|
)
|
|
Total from investment operations
|
|
|
4.72
|
|
|
|
5.61
|
|
|
|
13.66
|
|
|
|
(17.16
|
)
|
|
|
(2.24
|
)
|
|
Dividends to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(0.89
|
)
|
|
|
(0.77
|
)
|
|
|
(0.68
|
)
|
|
|
(0.84
|
)
|
|
|
(0.84
|
)
|
|
Net asset value, end of year
|
|
$
|
49.42
|
|
|
$
|
45.59
|
|
|
$
|
40.75
|
|
|
$
|
27.77
|
|
|
$
|
45.77
|
|
|
|
|
|
|
|
|
|
TOTAL
RETURN
2
|
|
|
10.60
|
%
|
|
|
13.99
|
%
|
|
|
49.49
|
%
|
|
|
(37.83
|
)%
|
|
|
(4.72
|
)%
|
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000’s omitted)
|
|
$
|
69,187
|
|
|
$
|
63,832
|
|
|
$
|
77,422
|
|
|
$
|
59,714
|
|
|
$
|
54,927
|
|
|
Ratios to average net assets
3
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
Expenses, prior to expense reimbursements
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
|
0.28
|
%
|
|
Net investment income
|
|
|
1.98
|
%
|
|
|
1.87
|
%
|
|
|
1.95
|
%
|
|
|
2.49
|
%
|
|
|
1.93
|
%
|
|
Portfolio turnover
rate
4
|
|
|
16
|
%
|
|
|
12
|
%
|
|
|
21
|
%
|
|
|
21
|
%
|
|
|
8
|
%
|
|
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 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 Fund’s capital shares.
|
|
|
|
|
|
60
|
|
WisdomTree Trust
Prospectus
|
Financial Highlights
WisdomTree U.S. Equity ETFs
March 31, 2012
Selected data for a share of beneficial interest outstanding throughout the period is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree MidCap
Earnings 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
|
|
$
|
58.75
|
|
|
$
|
47.22
|
|
|
$
|
26.19
|
|
|
$
|
42.08
|
|
|
$
|
48.77
|
|
|
Investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
1
|
|
|
0.62
|
|
|
|
0.73
|
|
|
|
0.61
|
|
|
|
0.54
|
|
|
|
0.81
|
|
|
Net realized and unrealized gain (loss)
|
|
|
2.20
|
|
|
|
11.50
|
|
|
|
20.92
|
|
|
|
(15.88
|
)
|
|
|
(6.90
|
)
|
|
Total from investment operations
|
|
|
2.82
|
|
|
|
12.23
|
|
|
|
21.53
|
|
|
|
(15.34
|
)
|
|
|
(6.09
|
)
|
|
Dividends to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(0.57
|
)
|
|
|
(0.70
|
)
|
|
|
(0.50
|
)
|
|
|
(0.55
|
)
|
|
|
(0.60
|
)
|
|
Net asset value, end of year
|
|
$
|
61.00
|
|
|
$
|
58.75
|
|
|
$
|
47.22
|
|
|
$
|
26.19
|
|
|
$
|
42.08
|
|
|
|
|
|
|
|
|
|
TOTAL
RETURN
2
|
|
|
4.92
|
%
|
|
|
26.15
|
%
|
|
|
82.49
|
%
|
|
|
(36.73
|
)%
|
|
|
(12.57
|
)%
|
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000’s omitted)
|
|
$
|
158,596
|
|
|
$
|
105,745
|
|
|
$
|
54,306
|
|
|
$
|
14,406
|
|
|
$
|
25,247
|
|
|
Ratios to average net assets
3
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
Expenses, prior to expense reimbursements
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
Net investment income
|
|
|
1.11
|
%
|
|
|
1.45
|
%
|
|
|
1.54
|
%
|
|
|
1.49
|
%
|
|
|
1.70
|
%
|
|
Portfolio turnover
rate
4
|
|
|
38
|
%
|
|
|
18
|
%
|
|
|
19
|
%
|
|
|
39
|
%
|
|
|
45
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree SmallCap
Earnings 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
|
|
$
|
54.97
|
|
|
$
|
44.33
|
|
|
$
|
23.25
|
|
|
$
|
38.96
|
|
|
$
|
48.03
|
|
|
Investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
1
|
|
|
0.74
|
|
|
|
0.65
|
|
|
|
0.37
|
|
|
|
0.47
|
|
|
|
0.58
|
|
|
Net realized and unrealized gain (loss)
|
|
|
1.59
|
|
|
|
10.60
|
|
|
|
20.96
|
|
|
|
(15.64
|
)
|
|
|
(9.17
|
)
|
|
Total from investment operations
|
|
|
2.33
|
|
|
|
11.25
|
|
|
|
21.33
|
|
|
|
(15.17
|
)
|
|
|
(8.59
|
)
|
|
Dividends to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(0.71
|
)
|
|
|
(0.61
|
)
|
|
|
(0.25
|
)
|
|
|
(0.54
|
)
|
|
|
(0.48
|
)
|
|
Net asset value, end of year
|
|
$
|
56.59
|
|
|
$
|
54.97
|
|
|
$
|
44.33
|
|
|
$
|
23.25
|
|
|
$
|
38.96
|
|
|
|
|
|
|
|
|
|
TOTAL
RETURN
2
|
|
|
4.39
|
%
|
|
|
25.57
|
%
|
|
|
91.88
|
%
|
|
|
(39.31
|
)%
|
|
|
(17.97
|
)%
|
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000’s omitted)
|
|
$
|
147,127
|
|
|
$
|
134,672
|
|
|
$
|
95,306
|
|
|
$
|
13,948
|
|
|
$
|
15,585
|
|
|
Ratios to average net assets
3
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
Expenses, prior to expense reimbursements
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
Net investment income
|
|
|
1.43
|
%
|
|
|
1.37
|
%
|
|
|
0.97
|
%
|
|
|
1.49
|
%
|
|
|
1.28
|
%
|
|
Portfolio turnover
rate
4
|
|
|
41
|
%
|
|
|
19
|
%
|
|
|
16
|
%
|
|
|
51
|
%
|
|
|
37
|
%
|
|
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 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 Fund’s capital shares.
|
|
|
|
|
|
|
|
WisdomTree Trust
Prospectus
|
|
|
61
|
|
Financial Highlights
WisdomTree U.S. Equity ETFs
March 31, 2012
Selected data for a share of beneficial interest outstanding throughout the period is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WisdomTree LargeCap
Value 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
|
|
$
|
43.02
|
|
|
$
|
37.01
|
|
|
$
|
24.24
|
|
|
$
|
43.53
|
|
|
$
|
49.06
|
|
|
Investment operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
1
|
|
|
0.75
|
|
|
|
0.49
|
|
|
|
0.65
|
|
|
|
0.86
|
|
|
|
1.03
|
|
|
Net realized and unrealized gain (loss)
|
|
|
1.26
|
|
|
|
6.04
|
|
|
|
12.75
|
|
|
|
(19.33
|
)
|
|
|
(5.49
|
)
|
|
Total from investment operations
|
|
|
2.01
|
|
|
|
6.53
|
|
|
|
13.40
|
|
|
|
(18.47
|
)
|
|
|
(4.46
|
)
|
|
Dividends to shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
(0.72
|
)
|
|
|
(0.52
|
)
|
|
|
(0.63
|
)
|
|
|
(0.82
|
)
|
|
|
(1.07
|
)
|
|
Net asset value, end of year
|
|
$
|
44.31
|
|
|
$
|
43.02
|
|
|
$
|
37.01
|
|
|
$
|
24.24
|
|
|
$
|
43.53
|
|
|
|
|
|
|
|
|
|
TOTAL
RETURN
2
|
|
|
4.83
|
%
|
|
|
17.86
|
%
|
|
|
55.57
|
%
|
|
|
(42.87
|
)%
|
|
|
(9.31
|
)%
|
|
RATIOS/SUPPLEMENTAL DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, end of year (000’s omitted)
|
|
$
|
31,015
|
|
|
$
|
25,812
|
|
|
$
|
35,164
|
|
|
$
|
20,607
|
|
|
$
|
23,940
|
|
|
Ratios to average net assets
3
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense reimbursements
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
Expenses, prior to expense reimbursements
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
|
0.38
|
%
|
|
Net investment income
|
|
|
1.84
|
%
|
|
|
1.33
|
%
|
|
|
2.01
|
%
|
|
|
2.60
|
%
|
|
|
2.10
|
%
|
|
Portfolio turnover
rate
4
|
|
|
62
|
%
|
|
|
6
|
%
|
|
|
71
|
%
|
|
|
54
|
%
|
|
|
20
|
%
|
|
*
|
Commencement of investment operations.
|
|
**
|
This information reflects the investment objective and strategy of WisdomTree Low P/E Fund through June 19, 2009 and the investment objective and strategy of the WisdomTree
LargeCap Value Fund thereafter.
|
|
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 affiliated funds in which the Fund invests.
|
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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 Fund’s capital shares.
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62
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|
WisdomTree Trust
Prospectus
|
WisdomTree Trust
380 Madison Avenue, 21st Floor
New York, NY 10017
The Trust’s 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:
|
|
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|
|
|
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|
Call:
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|
1-866-909-9473
Monday through
Friday
8:00 a.m. – 8:00 p.m. (Eastern time)
|
|
Write:
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|
WisdomTree Trust
c/o ALPS Distributors,
Inc.
1290 Broadway, Suite 1100
Denver,
Colorado 80203
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Visit:
|
|
www.wisdomtree.com
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Information about the Funds (including the SAI) can be reviewed and copied at the SEC’s 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 SEC’s 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 SEC’s Public Reference Section, Washington, D.C.
20549-0102.
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-003-0313
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