IMPORTANT NOTICE REGARDING CHANGE IN
INVESTMENT OBJECTIVE AND INVESTMENT STRATEGY
WISDOMTREE TRUST
(the Trust)
Supplement dated August 15, 2018
To the currently effective
Summary Prospectus, Statutory Prospectus (collectively the Prospectuses) and
Statement of Additional Information (SAI) for the
WisdomTree Emerging Markets Consumer Growth Fund (EMCG)
(the Fund)
At the recommendation of WisdomTree Asset Management, Inc. (WisdomTree), the Funds investment adviser, the Board of Trustees of the Trust, with respect to the Fund, has approved modifications to the Funds investment objective and strategies. These changes are scheduled to go into effect on or about October 19, 2018.
CURRENT | NEW | |||
Fund Name (Ticker) |
WisdomTree Emerging Markets Consumer Growth Fund (EMCG)
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Objective | The WisdomTree Emerging Markets Consumer Growth Fund (the Fund) seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Emerging Markets Consumer Growth Index (the Index).
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The WisdomTree Emerging Markets Consumer Growth Fund (the Fund) seeks income and capital appreciation. | ||
Investment Strategy | The Fund employs a passive management or indexing investment approach designed to track the performance of the Index.
The Index is a fundamentally weighted index that consists of consumer growth common stocks in emerging markets. The Index is comprised of the 250 companies with the best combined rank of growth, quality, and valuation factors: specifically, long-term earnings growth expectations, return on assets, return on equity and earnings yield. Of the 250 companies in the Index, approximately 150 companies are selected from the consumer staples and consumer discretionary sectors and approximately 100 companies are selected from other sectors and industries that are estimated to be the most sensitive to local emerging market consumers, such as the financial and telecommunications services sectors. Accordingly, companies from the following sectors and industries, which are deemed to be less sensitive to local emerging market consumers, are not eligible for inclusion in the Index: commercial services, energy minerals, non-energy minerals, industrial services, process industries, technology services, producer manufacturing and electronic technology. |
The Fund will be actively managed using a model-based approach.
The Fund will seek to achieve its investment objective by investing primarily in consumer growth stocks in emerging markets that provide the best combined rank of growth, quality, and valuation characteristics. WisdomTree, using a disciplined model-based process focused on a long-term approach to investing, seeks to identify consumer stocks that benefit from long-term growth in emerging market economies. WisdomTree believes screening equity securities by fundamental attributes of corporate profitability and valuation can improve long-term returns. At a minimum, the Funds portfolio will be reconstituted and rebalanced annually, although a more active approach may be taken depending on such factors as market conditions and investment opportunities, and the number of holdings in the Fund may vary. |
Principal Risks | The principal risks currently applicable to the Fund are expected to remain applicable to the Fund after the Fund implements the new objective and strategies, except as an actively managed fund, the Fund will no longer be subject to Index and Data Risk, Investment Style Risk, and Non-Correlation Risk. The Fund is expected to be subject to the following additional principal risks:
Management Risk. The Fund will be actively managed using proprietary investment strategies and processes. There can be no guarantee that these strategies and processes will be successful or that the Fund will achieve its investment objective.
Models and Data Risk. While the Fund will be actively managed, the Funds investment process is expected to be heavily dependent on quantitative models and the models may not perform as intended. Errors in data used in the models may occur from time to time and may not be identified and/or corrected, which may have an adverse impact on the Fund and its shareholders.
Portfolio Turnover Risk. The Funds investment strategy may result in a high portfolio turnover rate. Higher portfolio turnover may result in the Fund paying higher levels of transaction costs and the distribution of additional capital gains, which generate greater tax liabilities for shareholders. These factors may negatively affect the Funds performance.
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The changes described above will not affect the Funds management fee or expense ratio.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
WIS-SP-003-0818