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 Quality Dividend Growth Fund (DGRE)
(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 Quality Dividend Growth Fund (DGRE)
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Objective | The WisdomTree Emerging Markets Quality Dividend Growth Fund (the Fund) seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Emerging Markets Quality Dividend Growth Index (the Index).
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The WisdomTree Emerging Markets Quality Dividend 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 emerging market dividend-paying common stocks with growth characteristics. To be eligible for inclusion in the Index, a company must meet the following criteria: (i) payment of at least $5 million in cash dividends on common shares in the annual cycle prior to the annual Index screening date; (ii) incorporation within one of 17 emerging market nations (Brazil, Chile, China, Czech Republic, Hungary, India, Indonesia, Korea, Malaysia, Mexico, the Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey); and (iii) an earnings yield greater than the dividend yield. In addition, a company must meet certain market capitalization and trading criteria. From this starting universe, the Index is comprised of the top 300 companies with the best combined rank of certain growth and quality factors: specifically, long-term earnings growth expectations, return on equity, and return on assets. |
The Fund will be actively managed using a model-based approach.
The Fund will seek to achieve its investment objective by investing primarily in emerging market dividend-paying common stocks with growth characteristics. WisdomTree, using a disciplined model-based process focused on a long-term approach to investing, seeks to identify dividend-paying companies with strong corporate profitability and sustainable growth characteristics. WisdomTree believes screening equity securities by measures of corporate profitability, dividend sustainability, and long-term growth potential can improve the returns to traditional investment strategies focused on emerging market securities, while also continuing to provide a source for potential income. 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.
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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-004-0818