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WisdomTree Trust

Annual Report

June 30, 2023

 

International Equity ETFs:

WisdomTree Dynamic Currency Hedged International Equity Fund (DDWM)

WisdomTree Dynamic Currency Hedged International SmallCap Equity Fund (DDLS)

WisdomTree Emerging Markets ESG Fund (RESE)

WisdomTree Emerging Markets ex-China Fund (XC)

WisdomTree International ESG Fund (RESD)

Fixed Income ETFs:

WisdomTree U.S. Corporate Bond Fund (WFIG)

WisdomTree U.S. High Yield Corporate Bond Fund (WFHY)

WisdomTree U.S. Short-Term Corporate Bond Fund (SFIG)

Efficient Core ETFs:

WisdomTree Emerging Markets Efficient Core Fund (NTSE)

WisdomTree International Efficient Core Fund (NTSI)

WisdomTree U.S. Efficient Core Fund (NTSX)

Megatrends ETFs:

WisdomTree Artificial Intelligence and Innovation Fund (WTAI)

WisdomTree Battery Value Chain and Innovation Fund (WBAT)

WisdomTree BioRevolution Fund (WDNA)

WisdomTree Cloud Computing Fund (WCLD)

WisdomTree Cybersecurity Fund (WCBR)

 


Table of Contents

 

Market Environment Overview (unaudited)

       1  

Information about Performance and Shareholder Expense Examples (unaudited)

       5  

Management’s Discussion of Funds’ Performance (unaudited)

       6  

Description of Terms and Indexes (unaudited)

       22  
Schedules of Investments     

WisdomTree Dynamic Currency Hedged International Equity Fund

       27  

WisdomTree Dynamic Currency Hedged International SmallCap Equity Fund

       41  

WisdomTree Emerging Markets ESG Fund

       54  

WisdomTree Emerging Markets ex-China Fund

       58  

WisdomTree International ESG Fund

       68  

WisdomTree U.S. Corporate Bond Fund

       72  

WisdomTree U.S. High Yield Corporate Bond Fund

       80  

WisdomTree U.S. Short-Term Corporate Bond Fund

       88  

WisdomTree Emerging Markets Efficient Core Fund

       95  

WisdomTree International Efficient Core Fund

       101  

WisdomTree U.S. Efficient Core Fund

       107  

WisdomTree Artificial Intelligence and Innovation Fund

       114  

WisdomTree Battery Value Chain and Innovation Fund

       117  

WisdomTree BioRevolution Fund

       121  

WisdomTree Cloud Computing Fund

       123  

WisdomTree Cybersecurity Fund

       125  

Statements of Assets and Liabilities

       126  

Statements of Operations

       130  

Statements of Changes in Net Assets

       134  

Financial Highlights

       140  

Notes to Financial Statements

       148  

Report of Independent Registered Public Accounting Firm

       166  

Liquidity Risk Management Program (unaudited)

       168  

Trustees and Officers Information (unaudited)

       169  

Supplemental Information (unaudited)

       171  

General Information (unaudited)

       173  

“WisdomTree” is a registered mark of WisdomTree, Inc. (formerly, WisdomTree Investments, Inc.) and is licensed for use by the WisdomTree Trust.


Market Environment Overview

(unaudited)

 

U.S. Markets

U.S. equity markets, as measured by the S&P 500 Index (“S&P 500”), returned 19.59% in U.S. dollar (“USD”) terms for the 12-month fiscal period ending June 30, 2023 (the “period”).

After bottoming out in September 2022, U.S. equities climbed higher for the remainder of the period as investors anticipated the end of the Federal Reserve’s (“Fed’s”) rate hike campaign. Record inflation rates began to decelerate, which stoked optimism in equity markets that the Fed’s monetary tightening efforts were working and would soon no longer be needed. Meanwhile, labor markets remained resilient, discouraging pessimists who proposed that a recession was imminent based on the cumulative rate tightening efforts from the Fed. A “soft landing” scenario, where interest rates could rise to combat inflation and then eventually fall back to stable levels without triggering a recession or severely disrupting labor markets, became an increasingly likely possibility.

Inflation grew 6% year-over-year at the end of 2022 and decelerated from its June 2022 peak of 9.1% for the remainder of the period. Meanwhile, the U-3 Unemployment Rate seldom budged from the 3.4-3.7% range, similar to pre-pandemic levels and the lowest since the early 1970s.

With each monthly release of inflation and nonfarm payrolls data, markets parsed the reports for their impact on the future direction of monetary policy, growing increasingly confident that the end of interest rate hikes were in sight by 2023. Despite the optimism, the Fed raised rates a cumulative 350 basis points during the period to combat rising inflation. The Federal Funds Rate began the period at 1.75% and concluded it at 5.25%, which included a sequence of three consecutive hikes of 75 basis points during the summer and fall months of 2022.

Despite these headwinds, equities remained resilient for most of the period and rallied from their lows to finish the period in bull market territory.

Equities were in negative territory during the first quarter of the period as markets tried to discern the future path of monetary policy from the most recent economic data. Stubbornly high inflation persisted despite the Fed’s rate hike efforts. Year-over-year inflation fell from its 9.1% peak in June of 2022, but remained over 8% during the summer months, which disappointed markets after they realized that more interest rate hikes were necessary. During these three months, the Fed raised rates 1.50% further and finished at 3.25% with the expectation of additional future increases. During this period, the S&P 500 lost 4.88% while the Russell 2000 Index (“Russell 2000”) lost 2.19%. After two quarters of declines, real Gross Domestic Product (“GDP”) grew 3.2% quarter-over-quarter.

The September-December quarter of the period offered a modest respite from the volatility that characterized the first half of 2022. Although year-over-year inflation remained high by historical standards, the U.S. began to observe disinflationary pressures, with the headline readings falling from 7.7% to 6.5% by quarter-end. This injected optimism into the markets, which started to have confidence that the Fed’s aggressive policy tightening campaign was working, and an end could be expected. More importantly, markets were encouraged that the Fed might be able to direct a “soft landing” economic scenario, where rate hikes might successfully reduce inflation without engendering a severe recession. The S&P 500 returned a positive 7.56% during the quarter, while the Russell 2000 broke higher by 6.23%. The Fed raised rates another 1.25% during the quarter, concluding 2022 at 4.5% on the Federal Funds Rate. Real GDP grew by 2.6% quarter-over-quarter.

Investors entered 2023 with the same optimism that concluded 2022. They believed that the end of rate hikes and high inflation was imminent, and that a “soft landing” was likely. Disinflationary pressures remained in headline inflation numbers throughout the quarter. The Fed slowed the pace of its rate hike campaign, opting for two consecutive 25 basis point moves to bring the Federal Funds Rate to 5%. The quarter was not without volatility from an unanticipated risk factor, however: the unanticipated threat of a

 

WisdomTree Trust      1  


Market Environment Overview

(unaudited) (continued)

 

 

banking crisis triggered by the failure of Silicon Valley Bank, Signature Bank, and others on extremely shaky footing due to depositor runs and mismanaged interest rate risks in their asset portfolios. Optimism plummeted for much of March, with markets giving up the gains they had earned to that point, as fears of contagion and recession from the banking system triggered flashbacks to the Global Financial Crisis of 2007-2009. The Fed acted decisively once again, creating lending facilities to shore up weaker, vulnerable banks, while other institutions helped facilitate the sale of failing banks, which eased investor anxieties and established confidence that contagion would be avoided. Markets finished the quarter much better, with the S&P 500 and Russell 2000 growing 7.50% and 2.74%, respectively. Real GDP remained steady and grew by 2.0%.

The final quarter of the period began slow for equities but finished much stronger. Markets moved slightly higher without many catalysts in April and May, but June offered more excitement. May’s inflation release showed continued deceleration with the year-over-year rate falling 0.9% from April to May, which was essentially matched again in June with a 1.0% deceleration. In just over one full quarter, year-over-year inflation readings were cut in half, falling from 6.0% to 3.0%, much closer to the Fed’s preferred, long-term 2.0% target. Markets were convinced that the end of the rate hike campaign was imminent, and several Fed policymakers expressed that upcoming rate decisions would be “data-dependent”. This insinuated that they no longer had preconceived intentions to continue raising rates, preferring to let the cumulative impact of rate hikes over the past year work its way throughout the economy. They implied that a “pause” before eventually pivoting to rate cuts, when necessary, would be the likely policy path in the interim. Nonetheless, this stoked enthusiasm and risk-on appetite in the equity markets. The S&P 500 and Russell 2000 climbed higher by 8.74% and 5.21%, respectively. Labor markets never soured either, vindicating the “soft landing” supporters, as the unemployment rate finished the period at 3.6%. GDP data is not yet available as of this writing.

Developed International Markets

Developed international equity markets, as measured by the MSCI EAFE Index, returned 18.77% in USD terms during the 12-month fiscal period ending June 30, 2023 (the “period”).

Currency performance was mixed during the period, though most of the G10 basket of currencies weakened versus the USD. The Norwegian krone (-8.29%), Japanese yen (-5.95%), and Swedish krona (-5.31%) were the worst performing currencies, while the Swiss franc (6.64%), British pound (4.31%) and euro (4.05%) were among the few that strengthened versus the USD. The pound and euro benefited from improving interest rate differentials between the U.K. and European markets, which continued to raise rates to combat inflation while the U.S. appeared to be ending its rate hike cycle. The krone struggled as a “petrocurrency”, which is one that is linked to global oil prices, since oil benchmarks and broader commodity prices declined during the period and remained in a narrow trading range for most of the year-to-date 2023 period. The yen, meanwhile, exhibits idiosyncratic weakness, as the Bank of Japan continues to suppress interest rates to stimulate economic growth. As a result, the yen has weakened due to widening interest rate differentials with the rest of the developed world.

Developed international equity markets embarked on a protracted battle against record inflation for most of 2022 after record monetary and fiscal stimulus to support the post-pandemic economic recovery. Risk-off sentiment from the U.S. Federal Reserve’s campaign to combat inflation migrated to developed markets, and the MSCI EAFE plummeted by 9.36% in USD terms during the first quarter of the period. The European Central Bank (“ECB”) began raising its benchmark refinancing rate from -0.5% to positive 0.75%, but investors quickly surmised that more would be needed to combat inflation climbing into double digit range. For context, the ECB held rates below 0% in an effort to stimulate economic growth since about 2014 and has held year-over-year inflation under 2% since roughly 2013, so these developments marked a significant paradigm shift. As the largest component of the developed market universe, Eurozone GDP grew 0.4% during the quarter.

 

2   WisdomTree Trust


Market Environment Overview

(unaudited) (continued)

 

After two straight quarters of deep declines, the final quarter of 2022 provided some optimism. Europe began to see disinflationary pressures materialize as inflation rolled off its 10.6% high in October. With signs of the ECB’s rate hike effort working so far, this provided a welcome respite to developed market investors, and the MSCI EAFE Index returned 17.34% in USD terms. Eurozone GDP growth was flat during the quarter, slightly declining by 0.1%. Continuing its fight against inflation, the ECB hiked another 1.25% to bring its refinancing rate up to 2.0% by the end of 2022.

Optimism from the end of 2022 continued into the first quarter of 2023. Disinflation continued in Europe, falling from 9.2% down to 6.9% through March, as the ECB slowed the pace of its rate hike campaign. During the quarter, it raised rates only 1% between two 50 basis point hikes to conclude the period at 3.0%. Rates have not been this high since late 2008 amid a policy rate easing campaign during the Global Financial Crisis. Markets began to believe the end of the fight against inflation was in sight, and the MSCI EAFE Index returned 8.47% in USD terms. The quarter finished on a resounding note, despite fears of a banking crisis originating in the U.S. spreading overseas. Credit Suisse faced major solvency issues, but a crisis was averted after regulators helped facilitate a sale to UBS to stabilize the banking system, which appeased markets and contributed to the strong finish for the quarter. Despite the banking scare, eurozone GDP was mostly flat, though it slightly fell 0.1% quarter-over-quarter.

The final quarter of the period, March to June 2023, saw the MSCI EAFE Index return 2.95% in USD terms. The ECB continued its rate hike campaign amid its battle with high inflation, bringing its refinancing rate up to 4.0%. Despite a slight pickup from 6.9% to 7.0% in April compared to the month prior, year-over-year inflation continued to fall through the end of the quarter, registering at 6.1% in May and 5.5% in June. Markets have been intently watching the ECB for any signals about the future path of monetary policy, though markets are expecting a 25-basis point increase in July to 3.75%. Beyond that, expectations are that the ECB will follow the lead of the U.S. Federal Reserve, which indicated it will be more “data-dependent” for future policy rate decisions. Markets are becoming optimistic that rate hikes are nearing their conclusion, as a result.

Global Markets/Emerging Markets

Global equity markets, as measured by the MSCI All Country World Index (ACWI), returned 16.53% in USD terms for the 12-month fiscal period ending June 30, 2023 (the “period”). Emerging markets (“EM”) (measured by the MSCI Emerging Markets Index) moved slightly higher, rising 1.75% in USD terms.

Currency performance was mixed during the period. The major emerging market currencies to strengthen versus the USD were the Mexican peso (17.48%), Brazilian real (9.85%), and Singaporean dollar (2.82%). Most others weakened versus the USD, including the Argentine peso (-51.23%), Russian ruble (-39.35%), Turkish lira (-35.81%), Chinese yuan renminbi (-7.64%), and Indian rupee (-3.74%).

Global equities generally advanced during the period, as most regions began to benefit from prevailing risk-on appetite that materialized in late 2022 and early 2023. Global central banks were forced to raise interest rates at various intervals to combat rising inflation, which eventually began to cool and encouraged investors that the end of the rising rate cycle was imminent. EM followed suit, though to varying degrees as each region encountered idiosyncratic issues that diverged their policy pathways.

Global equities fell about 7% in USD terms during the first quarter of the period, while the selloff in EM was more pronounced, falling over 11.5%. Many regions began to experience peak inflation at this point, which cemented the global monetary policy trajectory for the near future. More rate hikes would be needed to combat inflation, and central banks continued to do so. Equities remained under constant pressure as a result. As the largest component of the EM universe, China’s economy bounced back after lackluster growth in early 2022, growing by about 3.9% during the June to September quarter.

 

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Market Environment Overview

(unaudited) (concluded)

 

Markets regained their footing heading into the second quarter of the period and the final quarter of 2022, returning about 9.76% in USD terms. EM followed suit, returning 9.7% in USD terms. As disinflationary pressures became evident, investors became encouraged that the end of policy tightening was in sight, which encouraged the possibility of a soft economic landing around the world. EM specifically also got a boost from the surprise announcement in the fall that China would be suspending its COVID Zero policy, thereby formally “reopening” its economy. On these revived growth prospects, China got an overdue tailwind, which spread to EM as the heavyweight allocation within most EM indexes. Despite this, Chinese economic growth was flat to end the year.

Optimistic sentiment persisted into the first quarter of 2023. Global equities returned 7.31% and EM returned just under 4%, both in USD terms. Economic data releases seemed to confirm ongoing disinflationary pressures, which supported investors’ sentiments that the end of rate hikes was on the horizon. Notably, markets survived the specter of a banking crisis in the U.S. that, at one point, threatened the global banking system via contagion. This fear was quickly dispelled as the failing banks were isolated and equities resumed their upward trajectory that characterized much of the first quarter.

During the final quarter of the period, global equities returned 6.18% in USD terms while EM grew by 0.9%. Most major economies remained resilient despite the cumulative effect of monetary tightening, which encouraged the idea of a soft landing around the world. Inflation continued to decelerate toward stable, tolerable levels over the long-term and investors remained optimistic. EM, however, continued to struggle as economic growth in China continues to sputter. Export data has been discouraging and several other barometers have missed expectations. That continued to weigh on prospects for the broader region as a whole as markets await steady improvement.

Fixed Income

U.S. fixed income performance was volatile amid a transforming economic landscape and changes in investor risk sentiment. The Bloomberg U.S. Aggregate Bond Index, a gauge of the broad U.S. fixed income market, fell about 1% during the period, with the deepest declines observed during the first four months of the period. U.S. Treasury yields, a barometer for domestic interest rates due to its relationship with the Fed funds rate at the short end of the yield curve and future economic growth prospects at the long end, rose while the slope and shape changed throughout the period. Yields on shorter-dated tenors began the period near 1-3%, commensurate with prevailing Fed’s monetary policy activity, but finished the period well above 5% as Treasury investors kept pace with policy activity. Longer-dated yields rose as well, though the 10-year Treasury yield (the market’s preferred indication of overall U.S. Treasury yields) varied during the period as the market digested the possibility that the Fed would have to raise rates high enough to tip the U.S. economy into recession just to combat historic inflation. The 10-year yield began the period at 2.98%, rose as high 4.24%, and then fell to 3.98% to conclude the period. Overall, the long-dated end of the curve rose by much less than front-end, which inverted the yield curve and sparked fears of recession due to curve inversion historically being a leading recessionary indicator.

Despite this, bullish sentiment in riskier fixed income sectors prevailed and fixed income markets climbed off their lows during the period from late-2022 through the end of June 2023. High yield corporate bonds, proxied by the Bloomberg U.S. Corporate High Yield Index, gained about 9% over the entire 12-month period, as many investors believed the Fed would achieve a soft landing without economic ramifications that would disproportionately harm riskier corporate borrowers. Investment grade credit was also successful, though to a lesser extent, as the Bloomberg U.S. Corporate Index returned 1.55%. Corporate and high yield spreads remained relatively rangebound near their longer-term lows, as investors remained confident that corporate balance sheets would remain resilient and a large default wave would be avoided.

 

4   WisdomTree Trust


Information about Performance and Shareholder Expense Examples (unaudited)

Performance

The performance tables on the following pages are provided for comparative purposes and represent the period noted. Each Fund’s per share net asset value (“NAV”) is the value of one share of the Fund and is calculated by dividing the value of total assets less total liabilities by the number of shares outstanding. The NAV return is based on the NAV of the Fund and the market price return is based on the market price per share of the Fund. The price used to calculate market price returns is the midpoint of the bid and ask price for Fund shares as of the close of trading on the exchange where Fund shares are listed. NAV and market price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and market price, respectively. As with other exchange traded funds (“ETFs”), NAV returns and market price returns may differ because of factors such as the supply and demand for Fund shares and investors’ assessments of the underlying value of a Fund’s portfolio securities.

Fund shares are bought and sold at market price (not NAV) and are not individually redeemed from a Fund. Fund NAV returns are calculated using a Fund’s daily 4:00 p.m. eastern time NAV. Market price returns reflect the midpoint of the bid and ask price as of the close of trading on the exchange where Fund shares are listed. Market price returns do not represent the returns you would receive if you traded shares at other times. The returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. Total returns for a period of less than one year are cumulative.

Performance is historical and does not guarantee future results. Current performance may be lower or higher than quoted. Investment returns and the principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. For the most recent month-end performance information visit www.wisdomtree.com/investments.

An index is a statistical measure of a specified financial market or sector. An index does not actually hold a portfolio of securities, incur expenses or pay any transaction costs. Therefore, index returns do not reflect deductions for fees or expenses and an index is not available for direct investment. In comparison, the Funds’ performance is negatively impacted by these deductions. Fund returns do not reflect brokerage commissions or taxes on transactions in Fund shares or taxes that a shareholder would pay on Fund distributions. Past performance is no guarantee of future results.

Shareholder Expense Examples

Each Fund’s performance table is accompanied by a shareholder expense example. As a shareholder of a WisdomTree Fund, you incur two types of cost: (1) transaction costs, including brokerage commissions on purchases and sales of your Fund shares and (2) ongoing costs, including management fees and other Fund expenses. The examples are intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.

The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2023 to June 30, 2023. Except where noted, expenses are calculated using each Fund’s annualized expense ratio (after the effect of contractual or voluntary fee waivers, if any), multiplied by the average account value for the period, multiplied by 181/365 (to reflect the one-half year period). The annualized expense ratio does not include acquired fund fees and expenses (“AFFEs”), which are fees and expenses incurred indirectly by a Fund through its investments in certain underlying investment companies.

Actual expenses

The first line in the shareholder expense example table shown on the following pages provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line for your Fund under the heading entitled “Expenses Paid During the Period” to estimate the expenses you paid on your account during the period.

Hypothetical example for comparison purposes

The second line in the shareholder expense example table shown on the following pages provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of Fund shares. Therefore, the second line in the table is useful in comparing ongoing Fund costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

WisdomTree Trust      5  


Management’s Discussion of Funds’ Performance

as of June 30, 2023 (unaudited)

WisdomTree Dynamic Currency Hedged International Equity Fund (DDWM)

 

Sector Breakdown

 

Sector   % of Net Assets  

Financials

    21.6%  

Industrials

    13.2%  

Consumer Discretionary

    10.7%  

Materials

    10.7%  

Consumer Staples

    8.8%  

Health Care

    8.4%  

Communication Services

    6.6%  

Energy

    6.4%  

Utilities

    5.2%  

Real Estate

    4.2%  

Information Technology

    3.6%  

Other Assets less Liabilities‡

    0.6%  

Total

    100.0%  

 

The Fund’s sector breakdown is expressed as a percentage of net assets and may change over time. In addition, a sector may be comprised of several industries. It does not include derivatives (if any).

 

Other assets less liabilities may include investment of cash collateral for securities on loan and/or receivables/payables on derivatives (if any).

Top Ten Holdings*

 

Description   % of Net Assets  

BHP Group Ltd.

    3.6%  

Novartis AG, Registered Shares

    1.9%  

Nestle SA, Registered Shares

    1.6%  

Shell PLC

    1.6%  

LVMH Moet Hennessy Louis Vuitton SE

    1.6%  

HSBC Holdings PLC

    1.6%  

TotalEnergies SE

    1.4%  

Roche Holding AG

    1.2%  

Rio Tinto PLC

    1.1%  

Toyota Motor Corp.

    1.0%  
*

The ten largest holdings are subject to change, and there are no guarantees the Fund will remain invested in any particular company. Excludes derivatives and investment of cash collateral for securities on loan (if any).

The WisdomTree Dynamic Currency Hedged International Equity Fund (the “Fund”) seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Dynamic Currency Hedged International Equity Index (the “Index”). In seeking to track the Index, the Fund invests in dividend-paying companies in the industrialized world outside the U.S. and Canada while at the same time dynamically hedging exposure to fluctuations of the value of the applicable foreign currencies relative to the U.S. dollar (“USD”). The Fund generally uses a representative sampling strategy to achieve its investment objective, meaning it generally will invest in a sample of securities in the Index.

The Fund returned 17.18% at net asset value (“NAV”) for the fiscal year ended June 30, 2023 (for more complete performance information please see the table below). The Fund benefited from positions in Health Care, entirely due to positive allocation effects, and Consumer Staples, due to an almost even split of positive allocation and stock selection. Industrials and Information Technology were the two greatest detractors due to a mix of both poor allocation and stock selection effects in each. From a country perspective, only Switzerland had a notable positive impact, which was due to positive stock selection. The Netherlands and France detracted from performance due to poor stock selection. Currency performance was mixed during the period. The Fund was almost entirely hedged against the Swiss franc, which strengthened against the USD and therefore negatively impacted returns. The opposite occurred with the Norwegian krone, which was almost entirely hedged but weakened by over 8% versus the USD and was therefore additive to returns. The Fund was roughly half-hedged against movements in the euro (“EUR”), British pound (“GBP”), and Japanese yen (“JPY”), where the former two strengthened versus the USD and the latter weakened. Performance effects due to these currencies would have been stronger if the Fund had been completely unhedged against the EUR and GBP and completely hedged against the JPY.

Shareholder Expense Example (for the six-month period ended June 30, 2023)

 

         
      Beginning
Account Value
     Ending
Account Value
     Annualized
Expense Ratio
    Expenses Paid
During the
Period
 

Actual

   $ 1,000.00      $ 1,097.50        0.40   $ 2.08  

Hypothetical (5% return before expenses)

   $ 1,000.00      $ 1,022.81        0.40   $ 2.01  

Performance

 

   
        Average Annual Total Return  
        1 Year      3 Year      5 Year      Since Inception1  

Fund NAV Returns

       17.18      11.92      5.55      7.60

Fund Market Price Returns

       16.60      11.96      5.62      7.64

WisdomTree Dynamic Currency Hedged International Equity Index

       17.44      12.12      5.79      7.79

MSCI EAFE Local Currency Index

       17.50      11.73      6.42      7.61

MSCI EAFE Index

       18.77      8.93      4.39      6.57

MSCI EAFE Value Index

       17.40      11.34      2.93      5.48
1 

Total returns are calculated based on the commencement of Fund trading on the Cboe BZX Exchange, Inc. on January 7, 2016.

 

 

LOGO

Performance is historical and does not guarantee future results. The returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares.

 

6   WisdomTree Trust


Management’s Discussion of Funds’ Performance

as of June 30, 2023 (unaudited)

WisdomTree Dynamic Currency Hedged International SmallCap Equity Fund (DDLS)

 

Sector Breakdown

 

Sector   % of Net Assets  

Industrials

    24.3%  

Financials

    13.7%  

Consumer Discretionary

    13.6%  

Materials

    12.6%  

Real Estate

    10.8%  

Information Technology

    7.6%  

Consumer Staples

    5.3%  

Health Care

    3.9%  

Communication Services

    3.6%  

Utilities

    2.0%  

Energy

    1.8%  

Other Assets less Liabilities‡

    0.8%  

Total

    100.0%  

 

The Fund’s sector breakdown is expressed as a percentage of net assets and may change over time. In addition, a sector may be comprised of several industries. It does not include derivatives (if any).

 

Other assets less liabilities may include investment of cash collateral for securities on loan and/or receivables/payables on derivatives (if any).

Top Ten Holdings*

 

Description   % of Net Assets  

SSAB AB, Class A

    0.8%  

D/S Norden A/S

    0.7%  

Sims Ltd.

    0.6%  

Azimut Holding SpA

    0.6%  

Coface SA

    0.6%  

Sydbank A/S

    0.6%  

Charter Hall Long Wale REIT

    0.6%  

Deterra Royalties Ltd.

    0.5%  

Keppel DC REIT

    0.5%  

VGP NV

    0.5%  
*

The ten largest holdings are subject to change, and there are no guarantees the Fund will remain invested in any particular company. Excludes derivatives and investment of cash collateral for securities on loan (if any).

The WisdomTree Dynamic Currency Hedged International SmallCap Equity Fund (the “Fund”) seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Dynamic Currency Hedged International SmallCap Equity Index (the “Index”). In seeking to track the Index, the Fund invests in the small-capitalization segment of dividend-paying companies in the industrialized world outside the U.S. and Canada while at the same time dynamically hedging exposure to fluctuations of the value of the applicable foreign currencies relative to the U.S. dollar (“USD”). The Fund generally uses a representative sampling strategy to achieve its investment objective, meaning it generally will invest in a sample of securities in the Index.

The Fund returned 10.27% at net asset value (“NAV”) for the fiscal year ended June 30, 2023 (for more complete performance information please see the table below). The Fund benefited from positions in Real Estate and Health Care due to a mixture of allocation and stock selection effects within each, though neither made an outsized impact. Poor stock selection across Information Technology, Financials and Utilities detracted from performance, although most impacts were modest. Strong stock selection in Japan and Finland were additive, while poor stock selection in the Netherlands and Israel detracted. Currency performance was mixed during the period. The Fund was almost entirely hedged against the Swiss franc, which strengthened against the USD and therefore negatively impacted returns. The opposite occurred with the Norwegian krone, which was almost entirely hedged but weakened by over 8% versus the USD and was therefore additive to returns. The Fund was roughly half-hedged against movements in the euro (“EUR”), British pound (“GBP”), and Japanese yen (“JPY”), where the former two strengthened versus the USD and the latter weakened. Performance effects due to these currencies would have been stronger if the Fund had been completely unhedged against the EUR and GBP and completely hedged against the JPY.

Shareholder Expense Example (for the six-month period ended June 30, 2023)

 

         
      Beginning
Account Value
     Ending
Account Value
     Annualized
Expense Ratio
    Expenses Paid
During the
Period
 

Actual

   $ 1,000.00      $ 1,067.20        0.48   $ 2.46  

Hypothetical (5% return before expenses)

   $ 1,000.00      $ 1,022.41        0.48   $ 2.41  

Performance

 

   
        Average Annual Total Return  
        1 Year      3 Year      5 Year      Since Inception1  

Fund NAV Returns

       10.27      10.64      3.55      6.97

Fund Market Price Returns

       9.79      10.95      3.60      7.14

WisdomTree Dynamic Currency Hedged International SmallCap Equity Index

       10.53      11.03      3.88      7.36

MSCI EAFE Small Cap Local Currency Index

       11.13      9.25      3.76      6.92

MSCI EAFE Small Cap Index

       10.18      5.70      1.31      5.59

MSCI EAFE Small Cap Value Index

       10.87      8.68      1.24      5.38
1 

Total returns are calculated based on the commencement of Fund trading on the Cboe BZX Exchange, Inc. on January 7, 2016.

 

 

LOGO

Performance is historical and does not guarantee future results. The returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares.

 

WisdomTree Trust      7  


Management’s Discussion of Funds’ Performance

as of June 30, 2023 (unaudited)

WisdomTree Emerging Markets ESG Fund (RESE)

 

Sector Breakdown

 

Sector   % of Net Assets  

Information Technology

    24.7%  

Financials

    19.0%  

Consumer Discretionary

    15.2%  

Consumer Staples

    9.5%  

Materials

    8.4%  

Communication Services

    7.5%  

Industrials

    6.4%  

Health Care

    4.6%  

Real Estate

    2.2%  

Utilities

    2.1%  

Other Assets less Liabilities‡

    0.4%  

Total

    100.0%  

 

The Fund’s sector breakdown is expressed as a percentage of net assets and may change over time. In addition, a sector may be comprised of several industries. It does not include derivatives (if any).

 

Other assets less liabilities may include investment of cash collateral for securities on loan and/or receivables/payables on derivatives (if any).

Top Ten Holdings*

 

Description   % of Net Assets  

Taiwan Semiconductor Manufacturing Co. Ltd.

    6.9%  

Samsung Electronics Co. Ltd.

    4.1%  

Alibaba Group Holding Ltd.

    2.6%  

Infosys Ltd.

    1.0%  

ICICI Bank Ltd.

    1.0%  

Ping An Insurance Group Co. of China Ltd., Class H

    1.0%  

NetEase, Inc.

    0.9%  

Bank Central Asia Tbk PT

    0.8%  

Telefonica Brasil SA

    0.8%  

Grupo Bimbo SAB de CV, Series A

    0.7%  
*

The ten largest holdings are subject to change, and there are no guarantees the Fund will remain invested in any particular company. Excludes derivatives and investment of cash collateral for securities on loan (if any).

The WisdomTree Emerging Markets ESG Fund (the “Fund”) is actively managed using a model-based approach seeking capital appreciation. The Fund seeks to achieve its investment objective by investing primarily in equity securities of issuers in emerging markets that exhibit certain characteristics believed to be indicative of positive future returns as well as incorporating favorable environmental, social, and governance (“ESG”) characteristics.

The Fund returned 3.82% at net asset value (“NAV”) for the fiscal year ended June 30, 2023 (for more complete performance information please see the table below). The Fund benefited from positions in Financials and Information Technology, two sectors that score highly on ESG metrics, due to strong stock selection. Poor allocation effects led to Consumer Discretionary being a performance detractor, while poor stock selection effects led to Communication Services negatively weighing on performance as well. Excluding Energy, as part of the ESG methodology, was also detrimental during the period, as Energy was a strong performer within broad emerging markets. Taiwan and Mexico were the strongest contributors at the country level, due to a mix of allocation and stock selection effects in each. Poor stock selection in China led to it being the largest detractor.

Shareholder Expense Example (for the six-month period ended June 30, 2023)

 

         
      Beginning
Account Value
     Ending
Account Value
     Annualized
Expense Ratio
    Expenses Paid
During the
Period
 

Actual

   $ 1,000.00      $ 1,051.90        0.32   $ 1.63  

Hypothetical (5% return before expenses)

   $ 1,000.00      $ 1,023.21        0.32   $ 1.61  

Performance

 

   
        Average Annual Total Return  
        1 Year      3 Year      5 Year      Since Inception1  

Fund NAV Returns2

       3.82      3.39      1.32      5.11

Fund Market Price Returns2

       2.79      3.53      1.25      5.12

MSCI Emerging Markets Extended ESG Focus Index3

       0.74      1.99      1.24      N/A  

MSCI Emerging Markets Index

       1.75      2.32      0.93      5.36
1 

Total returns are calculated based on the commencement of Fund trading on the Cboe BZX Exchange, Inc. on April 7, 2016.

2 

The Fund’s objectives and strategies changed effective March 16, 2020. Prior to March 16, 2020, Fund performance reflects the investment objective of the Fund when it was the WisdomTree Emerging Markets Dividend Fund (DVEM) and tracked the performance, before fees and expenses, of the WisdomTree Emerging Markets Dividend Index.

3 

The MSCI Emerging Markets Extended ESG Focus Index began on March 27, 2018 and the line graph for the Index begins at the same value as the Fund on that date.

 

 

LOGO

Performance is historical and does not guarantee future results. The returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares.

 

8   WisdomTree Trust


Management’s Discussion of Funds’ Performance

as of June 30, 2023 (unaudited)

WisdomTree Emerging Markets ex-China Fund (XC)

 

Sector Breakdown

 

Sector   % of Net Assets  

Information Technology

    30.6%  

Financials

    18.3%  

Consumer Discretionary

    9.9%  

Materials

    9.4%  

Consumer Staples

    9.2%  

Industrials

    6.7%  

Communication Services

    4.8%  

Energy

    4.3%  

Health Care

    4.2%  

Real Estate

    1.3%  

Utilities

    1.0%  

Other Assets less Liabilities‡

    0.3%  

Total

    100.0%  

 

The Fund’s sector breakdown is expressed as a percentage of net assets and may change over time. In addition, a sector may be comprised of several industries. It does not include derivatives (if any).

 

Other assets less liabilities may include investment of cash collateral for securities on loan and/or receivables/payables on derivatives (if any).

Top Ten Holdings*

 

Description   % of Net Assets  

Taiwan Semiconductor Manufacturing Co. Ltd.

    10.0%  

Samsung Electronics Co. Ltd.

    6.6%  

Reliance Industries Ltd.

    3.2%  

Infosys Ltd.

    1.8%  

ICICI Bank Ltd.

    1.8%  

Bank Central Asia Tbk PT

    1.4%  

Al Rajhi Bank

    1.3%  

Hon Hai Precision Industry Co. Ltd.

    1.2%  

Naspers Ltd., Class N

    1.1%  

SK Hynix, Inc.

    1.0%  
*

The ten largest holdings are subject to change, and there are no guarantees the Fund will remain invested in any particular company. Excludes derivatives and investment of cash collateral for securities on loan (if any).

The WisdomTree Emerging Markets ex-China Fund (the “Fund”) seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Emerging Markets ex-China Index (the “Index”). In seeking to track the Index, the Fund primarily invests in common stocks issued by companies in emerging markets, excluding companies incorporated or domiciled (i.e., maintain their principal place of business) in China and excluding common stocks of “state-owned enterprises”, which is defined as companies with over 20% government ownership. The Fund generally uses a representative sampling strategy to achieve its investment objective, meaning it generally will invest in a sample of securities of the Index.

The Fund returned 11.59% at net asset value (“NAV”) between inception in September 2022 through the period ended June 30, 2023 (for more complete performance information please see the table below). The Fund benefited from positions in the Information Technology sector due to a combination of allocation and stock selection effects. Industrials and Materials were also additive due to positive stock selection. Energy, Utilities and Financials were detractors due to poor stock selection in these sectors. A lack of exposure to Chinese equities was additive during the period as China underperformed broader emerging markets stocks, resulting in a positive allocation effect for the Fund. Taiwan and South Korea were strong performers within emerging markets, and overweights to each region also resulted in strong allocation effects. An overweight to India during a period where it lagged broader emerging markets resulted in a negative allocation effect, exacerbated by poor stock selection as well. The Fund also avoids state-owned enterprises (“SOEs”) in its methodology, which resulted in a positive allocation effect during the period since SOEs lagged non-SOEs.

Shareholder Expense Example (for the six-month period ended June 30, 2023)

 

         
      Beginning
Account Value
     Ending
Account Value
     Annualized
Expense Ratio
    Expenses Paid
During the
Period
 

Actual

   $ 1,000.00      $ 1,113.20        0.32   $ 1.68  

Hypothetical (5% return before expenses)

   $ 1,000.00      $ 1,023.21        0.32   $ 1.61  

Performance

 

   
        Cumulative Total Return  
        Since Inception1  

Fund NAV Returns

       11.59

Fund Market Price Returns

       12.28

WisdomTree Emerging Markets ex-China Index

       12.27

MSCI Emerging Markets ex-China Index

       11.33
1 

Total returns are calculated based on the commencement of Fund trading on the NYSE Arca, Inc. on September 22, 2022.

 

 

LOGO

Performance is historical and does not guarantee future results. The returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares.

 

WisdomTree Trust      9  


Management’s Discussion of Funds’ Performance

as of June 30, 2023 (unaudited)

WisdomTree International ESG Fund (RESD)

 

Sector Breakdown

 

Sector   % of Net Assets  

Financials

    20.9%  

Health Care

    14.3%  

Industrials

    14.2%  

Consumer Staples

    11.8%  

Consumer Discretionary

    11.8%  

Information Technology

    8.5%  

Materials

    5.9%  

Communication Services

    5.9%  

Utilities

    5.0%  

Real Estate

    1.1%  

Other Assets less Liabilities‡

    0.6%  

Total

    100.0%  

 

The Fund’s sector breakdown is expressed as a percentage of net assets and may change over time. In addition, a sector may be comprised of several industries. It does not include derivatives (if any).

 

Other assets less liabilities may include investment of cash collateral for securities on loan and/or receivables/payables on derivatives (if any).

Top Ten Holdings*

 

Description   % of Net Assets  

Nestle SA, Registered Shares

    2.8%  

Novo Nordisk A/S, Class B

    2.8%  

Novartis AG, Registered Shares

    1.8%  

SAP SE

    1.6%  

AstraZeneca PLC

    1.5%  

Roche Holding AG

    1.5%  

HSBC Holdings PLC

    1.5%  

Unilever PLC

    1.3%  

Iberdrola SA

    1.1%  

Sanofi

    1.1%  
*

The ten largest holdings are subject to change, and there are no guarantees the Fund will remain invested in any particular company. Excludes derivatives and investment of cash collateral for securities on loan (if any).

The WisdomTree International ESG Fund (the “Fund”) is actively managed using a model-based approach seeking capital appreciation. The Fund seeks to achieve its investment objective by investing primarily in equity securities of issuers in developed markets excluding the U.S. and Canada that exhibit certain characteristics believed to be indicative of positive future returns as well as incorporating favorable environmental, social, and governance (“ESG”) characteristics.

The Fund returned 15.77% at net asset value (“NAV”) for the fiscal year ended June 30, 2023 (for more complete performance information please see the table below). The Fund benefited from positions in Real Estate and Consumer Staples due to allocation effects in the former and stock selection effects in the latter. Excluding Energy, as part of the ESG methodology, led to a positive allocation effect since Energy lagged broader developed markets during the period. Industrials and Information Technology were detrimental for performance due to poor stock selection in each. Positive stock selection in the United Kingdom and strong allocation effects in Hong Kong resulted in positive contributions. Poor stock selection in Japan and France negatively impacted performance more than any other country allocation.

Shareholder Expense Example (for the six-month period ended June 30, 2023)

 

         
      Beginning
Account Value
     Ending
Account Value
     Annualized
Expense Ratio
    Expenses Paid
During the
Period
 

Actual

   $ 1,000.00      $ 1,123.20        0.30   $ 1.58  

Hypothetical (5% return before expenses)

   $ 1,000.00      $ 1,023.31        0.30   $ 1.51  

Performance

 

   
        Average Annual Total Return  
        1 Year      3 Year      5 Year      Since Inception1  

Fund NAV Returns2

       15.77      7.47      5.95      8.45

Fund Market Price Returns2

       16.28      7.67      6.06      8.55

MSCI EAFE Extended ESG Focus Index3

       18.94      9.09      4.81      N/A  

MSCI EAFE Index

       18.77      8.93      4.39      6.70
1 

Total returns are calculated based on the commencement of Fund trading on the Cboe BZX Exchange, Inc. on November 3, 2016.

 

2 

The Fund’s objective and strategy changed effective March 16, 2020. Prior to March 16, 2020, Fund performance reflects the investment objective of the Fund when it was the WisdomTree Dynamic Currency Hedged International Quality Dividend Growth Fund (DHDG) and tracked the performance, before fees and expenses, of the WisdomTree Dynamic Currency Hedged International Quality Dividend Growth Index.

3 

The MSCI EAFE Extended ESG Focus Index began on March 27, 2018 and the line graph for the Index begins at the same value as the Fund on that date.

 

 

LOGO

Performance is historical and does not guarantee future results. The returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares.

 

10   WisdomTree Trust


Management’s Discussion of Funds’ Performance

as of June 30, 2023 (unaudited)

WisdomTree U.S. Corporate Bond Fund (WFIG)

 

Sector Breakdown

 

Sector   % of Net Assets  

Financials

    33.0%  

Health Care

    13.0%  

Information Technology

    10.9%  

Utilities

    7.4%  

Communication Services

    6.2%  

Industrials

    6.0%  

Consumer Staples

    5.7%  

Consumer Discretionary

    5.2%  

Energy

    5.2%  

Materials

    4.1%  

Real Estate

    1.6%  

U.S. Government Obligations

    0.6%  

Other Assets less Liabilities‡

    1.1%  

Total

    100.0%  

 

The Fund’s sector breakdown is expressed as a percentage of net assets and may change over time. In addition, a sector may be comprised of several industries. It does not include derivatives (if any).

 

Other assets less liabilities may include investment of cash collateral for securities on loan and/or receivables/payables on derivatives (if any).

Top Ten Holdings*

 

Description   % of Net Assets  

International Business Machines Corp.,
3.50%, 5/15/29

    1.8%  

Marriott International, Inc.,
5.75%, 5/1/25, Series EE

    1.7%  

Morgan Stanley,
3.95%, 4/23/27

    1.7%  

Bank of America Corp.,
3.19%, 7/23/30

    1.6%  

Steel Dynamics, Inc.,
5.00%, 12/15/26

    1.5%  

HCA, Inc.,
4.13%, 6/15/29

    1.5%  

JPMorgan Chase & Co.,
4.08%, 4/26/26

    1.5%  

Broadridge Financial Solutions, Inc.,
3.40%, 6/27/26

    1.5%  

UnitedHealth Group, Inc.,
3.38%, 4/15/27

    1.5%  

Omnicom Group, Inc.,
4.20%, 6/1/30

    1.4%  
*

The ten largest holdings are subject to change, and there are no guarantees the Fund will remain invested in any particular company. Excludes derivatives and investment of cash collateral for securities on loan (if any).

The WisdomTree U.S. Corporate Bond Fund (the “Fund”) seeks to track the price and yield performance, before fees and expenses, of the WisdomTree U.S. Corporate Bond Index (the “Index”). In seeking to track the Index, the Fund primarily invests in issuers in the U.S. investment grade corporate bond market that are deemed to exhibit favorable fundamentals and opportunities for income. The Fund generally uses a representative sampling strategy to achieve its investment objective, meaning it generally will invest in a sample of securities in the Index.

The Fund returned 1.69% at net asset value (“NAV”) for the fiscal year ended June 30, 2023 (for more complete performance information please see the table below). During the period, the Fund did benefit slightly from a full allocation into corporate bonds when compared to a broad aggregate U.S. bond universe that includes other asset classes like U.S. Treasury bonds, agency debt, and securitized debt. Corporate bonds slightly outperformed the broad U.S. aggregate bond market. The Fund concentrates nearly 100% of its weight in debt issued by public corporations and these securities benefit in performance when credit spreads (the difference in yield between U.S. Treasury bonds and another debt security with the same maturity but of lesser quality) tighten. Investment grade corporate bond credit spreads tightened in aggregate by 20% over the period (1.64% credit spread at the beginning of the period versus 1.30% credit spread at the end of the period). Asset classes that are typically described as “risk-on”, like corporate debt, generate negative performance during the first half of the period as the global markets continued to grapple with persistent inflation, global supply chain concerns, global pressures on energy, and lockdowns in China because of the impacts of the COVID-19 pandemic. During the 2023 year-to-date period, there has been a reversal in the markets and many risk-on asset classes have rallied. The Fund’s largest sector weights were in more cyclical sectors like Financials and Utilities, which have generally performed better during the inflation driven markets in the first half of the period vs. the growth-oriented sectors like Information Technology and Consumer Services during the second half of the period. Another significant detractor to the Fund’s performance was the intermediate levels of duration risk in the Fund and the resulting impact on performance during a period that saw significant aggregate rate increases. The negative impact caused by the rising interest rate environment was partially offset by the elevated coupons seen throughout bonds presently. The Fund’s approach of screening out potential at-risk issuers to maintain quality in the portfolio helped alleviate some performance volatility and downgrade risk.

Shareholder Expense Example (for the six-month period ended June 30, 2023)

 

         
      Beginning
Account Value
     Ending
Account Value
     Annualized
Expense Ratio
    Expenses Paid
During the
Period
 

Actual

   $ 1,000.00      $ 1,033.10        0.18   $ 0.91  

Hypothetical (5% return before expenses)

   $ 1,000.00      $ 1,023.90        0.18   $ 0.90  

Performance

 

   
        Average Annual Total Return  
        1 Year      3 Year      5 Year      Since Inception1  

Fund NAV Returns

       1.69      -3.82      1.48      1.35

Fund Market Price Returns

       1.91      -3.86      1.68      1.36

WisdomTree U.S. Corporate Bond Index

       2.00      -3.50      1.67      1.67

ICE BofA Merrill Lynch U.S. Corporate Index

       1.41      -3.25      1.82      1.84
1 

Total returns are calculated based on the commencement of Fund trading on the Cboe BZX Exchange, Inc. on April 27, 2016.

 

LOGO

Performance is historical and does not guarantee future results. The returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares.

 

WisdomTree Trust      11  


Management’s Discussion of Funds’ Performance

as of June 30, 2023 (unaudited)

WisdomTree U.S. High Yield Corporate Bond Fund (WFHY)

 

Sector Breakdown

 

Sector   % of Net Assets  

Consumer Discretionary

    15.6%  

Energy

    13.7%  

Communication Services

    11.9%  

Financials

    10.7%  

Health Care

    9.7%  

Industrials

    9.4%  

Information Technology

    7.5%  

Consumer Staples

    6.1%  

Real Estate

    5.7%  

Materials

    3.9%  

Utilities

    3.0%  

Other Assets less Liabilities‡

    2.8%  

Total

    100.0%  

 

The Fund’s sector breakdown is expressed as a percentage of net assets and may change over time. In addition, a sector may be comprised of several industries. It does not include derivatives (if any).

 

Other assets less liabilities may include investment of cash collateral for securities on loan and/or receivables/payables on derivatives (if any).

Top Ten Holdings*

 

Description   % of Net Assets  

NGL Energy Operating LLC / NGL Energy Finance Corp.,
7.50%, 2/1/26

    0.8%  

Nationstar Mortgage Holdings, Inc.,
6.00%, 1/15/27

    0.7%  

CHS / Community Health Systems, Inc.,
4.75%, 2/15/31

    0.7%  

Level 3 Financing, Inc.,
10.50%, 5/15/30

    0.7%  

Genesis Energy LP / Genesis Energy Finance Corp.,
7.75%, 2/1/28

    0.7%  

DISH DBS Corp.,
7.75%, 7/1/26

    0.7%  

Post Holdings, Inc.,
4.50%, 9/15/31

    0.6%  

Transocean, Inc.,
11.50%, 1/30/27

    0.6%  

Centene Corp.,
3.00%, 10/15/30

    0.6%  

Ford Motor Co.,
4.75%, 1/15/43

    0.6%  
*

The ten largest holdings are subject to change, and there are no guarantees the Fund will remain invested in any particular company. Excludes derivatives and investment of cash collateral for securities on loan (if any).

The WisdomTree U.S. High Yield Corporate Bond Fund (the “Fund”) seeks to track the price and yield performance, before fees and expenses, of the WisdomTree U.S. High Yield Corporate Bond Index (the “Index”). In seeking to track the Index, the Fund primarily invests in issuers in the U.S. non-investment grade corporate bond (“junk bond” or “high yield”) market that are deemed to exhibit favorable fundamentals and opportunities for income. The Fund generally uses a representative sampling strategy to achieve its investment objective, meaning it generally will invest in a sample of securities in the Index.

The Fund returned 6.42% at net asset value (“NAV”) for the fiscal year ended June 30, 2023 (for more complete performance information please see the table below). During the period, the Fund benefitted from a full allocation into high yield (“HY”) corporate bonds when compared to a broad aggregate U.S. bond universe that includes other asset classes like U.S. Treasury bonds, agency debt, and securitized debt. In addition, HY corporate bonds outperformed investment grade corporate bonds during the period. The Fund concentrates nearly 100% of its weight in debt issued by HY public corporations and these securities benefit in performance when credit spreads (the difference in yield between U.S. Treasury bonds and another debt security with the same maturity but of lesser quality) tighten. HY corporate bond credit spreads tightened consistently by 31% over the period (5.87% HY credit spread at the beginning of the period versus 4.05% HY credit spread at the end of the period). Asset classes that are typically described as “risk-on”, like HY corporate debt, have continued to rally from elevated coupons throughout the fiscal period and a strong 2023 year-to-date market rebound. One of the Fund’s larger sector weights in Energy served as a first half of the period tailwind but a second half of the period headwind as Energy and Commodities sectors broadly have stabilized and have seen prices come down off of their former highs with easing inflation. The Fund’s relative underweight to duration when compared to the broader fixed income market served as a benefit in a higher interest rate environment over the entire period. The Fund’s approach of screening out potential at-risk issuers helped alleviate some performance volatility and default risk. However, the Fund was underweighting the lowest quality HY bonds, mainly bonds rated CCC and below, which had better performance when compared to higher quality HY securities during this risk-on rally.

Shareholder Expense Example (for the six-month period ended June 30, 2023)

 

         
      Beginning
Account Value
     Ending
Account Value
     Annualized
Expense Ratio
    Expenses Paid
During the
Period
 

Actual

   $ 1,000.00      $ 1,034.60        0.38   $ 1.92  

Hypothetical (5% return before expenses)

   $ 1,000.00      $ 1,022.91        0.38   $ 1.91  

Performance

 

   
        Average Annual Total Return  
        1 Year      3 Year      5 Year      Since Inception1  

Fund NAV Returns

       6.42      1.71      2.71      3.68

Fund Market Price Returns

       6.38      1.68      3.07      3.73

WisdomTree U.S. High Yield Corporate Bond Index

       7.39      2.41      2.98      4.34

ICE BofA Merrill Lynch U.S. High Yield Index

       8.87      3.21      3.19      4.62
1 

Total returns are calculated based on the commencement of Fund trading on the Cboe BZX Exchange, Inc. on April 27, 2016.

 

 

LOGO

Performance is historical and does not guarantee future results. The returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares.

 

12   WisdomTree Trust


Management’s Discussion of Funds’ Performance

as of June 30, 2023 (unaudited)

WisdomTree U.S. Short-Term Corporate Bond Fund (SFIG)

 

Sector Breakdown

 

Sector   % of Net Assets  

Financials

    40.1%  

Information Technology

    11.9%  

Health Care

    9.7%  

Consumer Staples

    6.9%  

Consumer Discretionary

    6.2%  

Industrials

    5.9%  

Utilities

    5.4%  

Energy

    5.3%  

Communication Services

    3.7%  

Materials

    1.9%  

Real Estate

    1.7%  

Investment Company

    0.3%  

Other Assets less Liabilities‡

    1.0%  

Total

    100.0%  

 

The Fund’s sector breakdown is expressed as a percentage of net assets and may change over time. In addition, a sector may be comprised of several industries. It does not include derivatives (if any).

 

Other assets less liabilities may include investment of cash collateral for securities on loan and/or receivables/payables on derivatives (if any).

Top Ten Holdings*

 

Description   % of Net Assets  

Goldman Sachs Group, Inc.,
5.95%, 1/15/27

    1.2%  

Oracle Corp.,
1.65%, 3/25/26

    1.0%  

JPMorgan Chase & Co.,
4.25%, 10/1/27

    1.0%  

Citigroup, Inc.,
4.45%, 9/29/27

    1.0%  

Wells Fargo & Co.,
4.30%, 7/22/27

    1.0%  

Dell International LLC / EMC Corp.,
6.02%, 6/15/26

    0.9%  

JPMorgan Chase & Co.,
3.22%, 3/1/25

    0.9%  

JPMorgan Chase & Co.,
2.08%, 4/22/26

    0.8%  

Morgan Stanley,
2.19%, 4/28/26

    0.8%  

VMware, Inc.,
1.40%, 8/15/26

    0.8%  
*

The ten largest holdings are subject to change, and there are no guarantees the Fund will remain invested in any particular company. Excludes derivatives and investment of cash collateral for securities on loan (if any).

The WisdomTree U.S. Short-Term Corporate Bond Fund (the “Fund”) seeks to track the price and yield performance, before fees and expenses, of the WisdomTree U.S. Short-Term Corporate Bond Index (the “Index”). In seeking to track the Index, the Fund primarily invests in issuers in the short-term U.S. investment grade corporate bond market that are deemed to exhibit favorable fundamentals and opportunities for income. The Fund generally uses a representative sampling strategy to achieve its investment objective, meaning it generally will invest in a sample of securities in the Index.

The Fund returned 1.59% at net asset value (“NAV”) for the fiscal year ended June 30, 2023 (for more complete performance information please see the table below). During the period, the Fund did benefit slightly from a full allocation into corporate bonds when compared to a broad aggregate U.S. bond universe that includes other asset classes like U.S. Treasury bonds, agency debt, and securitized debt. Corporate bonds slightly outperformed the broad U.S. aggregate bond market. The Fund concentrates nearly 100% of its weight in debt issued by public corporations and these securities benefit in performance when credit spreads (the difference in yield between U.S. Treasury bonds and another debt security with the same maturity but of lesser quality) tighten. Investment grade corporate bond credit spreads tightened in aggregate by 20% over the period (1.64% credit spread at the beginning of the period versus 1.30% credit spread at the end of the period). Asset classes that are typically described as “risk-on”, like corporate debt, generate negative performance during the first half of the period as the global markets continued to grapple with rampant inflation, global supply chain concerns, global pressures on energy, and lockdowns in China because of the impacts of the COVID-19 pandemic. During the 2023 year-to-date period, there has been a reversal in the markets and many risk-on asset classes have rallied. The Fund’s largest sector weights were in more cyclical sectors like Financials and Utilities, which have generally performed better during these inflation driven markets in the first half of the period vs. the growth-oriented sectors like Information Technology and Consumer Services during the second half of the period. The Fund’s approach of screening out potential at-risk issuers helped alleviate some performance volatility and downgrade risk. Given that the Fund is targeting shorter term maturities, performance was marginally better when compared to longer-term bonds, but this was partially offset by lower coupons.

Shareholder Expense Example (for the six-month period ended June 30, 2023)

 

         
      Beginning
Account Value
     Ending
Account Value
     Annualized
Expense Ratio
    Expenses Paid
During the
Period
 

Actual

   $ 1,000.00      $ 1,017.60        0.18   $ 0.90  

Hypothetical (5% return before expenses)

   $ 1,000.00      $ 1,023.90        0.18   $ 0.90  

Performance

 

   
        Average Annual Total Return  
        1 Year      3 Year      5 Year      Since Inception1  

Fund NAV Returns

       1.59      -1.07      1.35      1.20

Fund Market Price Returns

       1.70      -1.14      1.49      1.17

WisdomTree U.S. Short-Term Corporate Bond Index

       2.01      -0.71      1.72      1.60

ICE BofA Merrill Lynch 1-5 Year U.S. Corporate Index

       1.70      -0.85      1.85      1.69
1 

Total returns are calculated based on the commencement of Fund trading on the Cboe BZX Exchange, Inc. on April 27, 2016.

 

 

LOGO

Performance is historical and does not guarantee future results. The returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares.

 

WisdomTree Trust      13  


Management’s Discussion of Funds’ Performance

as of June 30, 2023 (unaudited)

WisdomTree Emerging Markets Efficient Core Fund (NTSE)

 

Sector Breakdown

 

Sector   % of Net Assets  

Information Technology

    22.1%  

Financials

    19.4%  

Consumer Discretionary

    13.2%  

Communication Services

    9.4%  

Materials

    7.4%  

Consumer Staples

    6.0%  

Energy

    4.6%  

Industrials

    3.3%  

Health Care

    2.9%  

Utilities

    1.8%  

Real Estate

    1.1%  

Other Assets less Liabilities‡

    8.8%  

Total

    100.0%  

 

The Fund’s sector breakdown is expressed as a percentage of net assets and may change over time. In addition, a sector may be comprised of several industries. It does not include derivatives (if any).

 

Other assets less liabilities may include investment of cash collateral for securities on loan and/or receivables/payables on derivatives (if any).

Top Ten Holdings*

 

Description   % of Net Assets  

Taiwan Semiconductor Manufacturing Co. Ltd.

    7.6%  

Samsung Electronics Co. Ltd.

    5.3%  

Tencent Holdings Ltd.

    4.3%  

Alibaba Group Holding Ltd.

    2.8%  

Naspers Ltd., Class N

    1.6%  

Reliance Industries Ltd.

    1.6%  

Meituan, Class B

    1.2%  

China Construction Bank Corp., Class H

    1.2%  

Petroleo Brasileiro SA

    1.1%  

Housing Development Finance Corp. Ltd.

    1.1%  
*

The ten largest holdings are subject to change, and there are no guarantees the Fund will remain invested in any particular company. Excludes derivatives and investment of cash collateral for securities on loan (if any).

The WisdomTree Emerging Markets Efficient Core Fund (the “Fund”) is actively managed using a model-based approach seeking total return. The Fund seeks to achieve its investment objective by primarily investing in emerging markets equity securities and U.S. Treasury futures contracts. Under normal circumstances, the Fund will invest approximately 90% of its net assets in emerging market equity securities and the notional exposure to the U.S. Treasury futures contracts’ positions will represent approximately 60% of the Fund’s net assets.

The Fund returned -0.41% at net asset value (“NAV”) for the fiscal year ended June 30, 2023 (for more complete performance information please see the table below). The Fund’s positions in equities generated modest returns whereas the fixed income exposure detracted from performance. While markets were volatile to start the period, emerging market equity performance bottomed in October 2022. From then, Information Technology and Financial stocks were strong performers whereas Consumer Discretionary and Communication Services were the primary detractors. This resulted in modestly positive returns for the period. The Fund utilized derivatives contracts to obtain broad-based fixed income exposure, through use of U.S. Treasury futures contracts, which had negative performance during the period as U.S. interest rates increased. The enhanced exposure compared to traditional 60% equity and 40% bond portfolios magnified the Fund’s returns and resulted in the slightly better performance for the Fund.

Shareholder Expense Example (for the six-month period ended June 30, 2023)

 

         
      Beginning
Account Value
     Ending
Account Value
     Annualized
Expense Ratio
    Expenses Paid
During the
Period
 

Actual

   $ 1,000.00      $ 1,053.90        0.32   $ 1.63  

Hypothetical (5% return before expenses)

   $ 1,000.00      $ 1,023.21        0.32   $ 1.61  

Performance

 

   
        Average Annual Total Return  
        1 Year      Since Inception1  

Fund NAV Returns

       -0.41      -13.33

Fund Market Price Returns

       0.68      -12.93

MSCI Emerging Markets Index

       -1.12      -12.97
1 

Total returns are calculated based on the commencement of Fund trading on the NYSE Arca, Inc. on May 20, 2021.

 

 

LOGO

Performance is historical and does not guarantee future results. The returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares.

 

14   WisdomTree Trust


Management’s Discussion of Funds’ Performance

as of June 30, 2023 (unaudited)

WisdomTree International Efficient Core Fund (NTSI)

 

Sector Breakdown

 

Sector   % of Net Assets  

Financials

    16.4%  

Industrials

    14.3%  

Health Care

    12.5%  

Consumer Discretionary

    12.0%  

Consumer Staples

    9.7%  

Information Technology

    7.7%  

Materials

    6.6%  

Energy

    4.1%  

Communication Services

    3.7%  

Utilities

    2.7%  

Real Estate

    1.3%  

Other Assets less Liabilities‡

    9.0%  

Total

    100.0%  

 

The Fund’s sector breakdown is expressed as a percentage of net assets and may change over time. In addition, a sector may be comprised of several industries. It does not include derivatives (if any).

 

Other assets less liabilities may include investment of cash collateral for securities on loan and/or receivables/payables on derivatives (if any).

Top Ten Holdings*

 

Description   % of Net Assets  

Nestle SA, Registered Shares

    2.2%  

ASML Holding NV

    2.1%  

LVMH Moet Hennessy Louis Vuitton SE

    1.7%  

Novo Nordisk A/S, Class B

    1.7%  

Shell PLC

    1.5%  

Novartis AG, Registered Shares

    1.4%  

Roche Holding AG

    1.4%  

Toyota Motor Corp.

    1.3%  

AstraZeneca PLC

    1.2%  

HSBC Holdings PLC

    1.0%  
*

The ten largest holdings are subject to change, and there are no guarantees the Fund will remain invested in any particular company. Excludes derivatives and investment of cash collateral for securities on loan (if any).

The WisdomTree International Efficient Core Fund (the “Fund”) is actively managed using a model-based approach seeking total return. The Fund seeks to achieve its investment objective by primarily investing in international equity securities and U.S. Treasury futures contracts. Under normal circumstances, the Fund will invest approximately 90% of its net assets in international equity securities and the notional exposure to the U.S. Treasury futures contracts’ positions will represent approximately 60% of the Fund’s net assets.

The Fund returned 13.35% at net asset value (“NAV”) for the fiscal year ended June 30, 2023 (for more complete performance information please see the table below). The Fund’s positions in equities generated strong returns whereas the fixed income exposure detracted from performance. While markets were volatile to start the period, international equity performance bottomed in October 2022. From then, Information Technology and Consumer Discretionary stocks were strong performers leading the market higher. The Fund utilized derivatives contracts to obtain broad-based fixed income exposure, through use of U.S. Treasury futures contracts, which had negative performance during the period as U.S. interest rates increased. The enhanced exposure provided by the investment in U.S. Treasury futures contracts compared to traditional 60% equity and 40% bond portfolios magnified the Fund’s returns and resulted in the slightly better performance for the Fund as compared to traditional 60% equity/40% bond portfolios.

Shareholder Expense Example (for the six-month period ended June 30, 2023)

 

         
      Beginning
Account Value
     Ending
Account Value
     Annualized
Expense Ratio
    Expenses Paid
During the
Period
 

Actual

   $ 1,000.00      $ 1,104.00        0.26   $ 1.36  

Hypothetical (5% return before expenses)

   $ 1,000.00      $ 1,023.51        0.26   $ 1.30  

Performance

 

   
        Average Annual Total Return  
        1 Year      Since Inception1  

Fund NAV Returns

       13.35      -4.10

Fund Market Price Returns

       13.94      -3.82

MSCI EAFE Index

       18.77      -0.65
1 

Total returns are calculated based on the commencement of Fund trading on the NYSE Arca, Inc. on May 20, 2021.

 

 

LOGO

Performance is historical and does not guarantee future results. The returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares.

 

WisdomTree Trust      15  


Management’s Discussion of Funds’ Performance

as of June 30, 2023 (unaudited)

WisdomTree U.S. Efficient Core Fund (NTSX)

 

Sector Breakdown

 

Sector   % of Net Assets  

Information Technology

    26.2%  

Health Care

    12.0%  

Financials

    11.6%  

Consumer Discretionary

    9.9%  

Industrials

    7.8%  

Communication Services

    7.8%  

Consumer Staples

    6.0%  

Energy

    3.6%  

Utilities

    2.2%  

Materials

    2.1%  

Real Estate

    2.1%  

Other Assets less Liabilities‡

    8.7%  

Total

    100.0%  

 

The Fund’s sector breakdown is expressed as a percentage of net assets and may change over time. In addition, a sector may be comprised of several industries. It does not include derivatives (if any).

 

Other assets less liabilities may include investment of cash collateral for securities on loan and/or receivables/payables on derivatives (if any).

Top Ten Holdings*

 

Description   % of Net Assets  

Apple, Inc.

    7.1%  

Microsoft Corp.

    6.2%  

Amazon.com, Inc.

    3.0%  

NVIDIA Corp.

    2.5%  

Tesla, Inc.

    1.8%  

Alphabet, Inc., Class A

    1.8%  

Alphabet, Inc., Class C

    1.5%  

Meta Platforms, Inc., Class A

    1.5%  

UnitedHealth Group, Inc.

    1.1%  

JPMorgan Chase & Co.

    1.1%  
*

The ten largest holdings are subject to change, and there are no guarantees the Fund will remain invested in any particular company. Excludes derivatives and investment of cash collateral for securities on loan (if any).

The WisdomTree U.S. Efficient Core Fund (the “Fund”) is actively managed using a model-based approach seeking total return. The Fund seeks to achieve its investment objective by investing in large-capitalization U.S. equity securities and U.S. Treasury futures contracts. Under normal circumstances, the Fund will invest approximately 90% of its net assets in U.S. equity securities and the notional exposure to the U.S. Treasury futures contracts’ positions will represent approximately 60% of the Fund’s net assets.

The Fund returned 12.68% at net asset value (“NAV”) for the fiscal year ended June 30, 2023 (for more complete performance information please see the table below). The Fund’s positions in equities generated strong returns whereas the fixed income exposure detracted from performance. While markets were volatile to start the period, U.S. equity performance bottomed in October 2022. From then, Information Technology and Consumer Discretionary stocks were strong performers leading the market higher. The Fund utilized derivatives contracts to obtain broad-based fixed income exposure, through use of U.S. Treasury futures contracts, which had negative performance during the period as U.S. interest rates increased. The enhanced exposure provided by the investment in U.S. Treasury futures contracts compared to traditional 60% equity and 40% bond portfolios magnified the Fund’s returns and resulted in the slightly better performance for the Fund as compared to traditional 60% equity/40% bond portfolios.

Shareholder Expense Example (for the six-month period ended June 30, 2023)

 

         
      Beginning
Account Value
     Ending
Account Value
     Annualized
Expense Ratio
    Expenses Paid
During the
Period
 

Actual

   $ 1,000.00      $ 1,149.50        0.20   $ 1.07  

Hypothetical (5% return before expenses)

   $ 1,000.00      $ 1,023.80        0.20   $ 1.00  

Performance

 

   
        Average Annual Total Return  
        1 Year      3 Year      Since Inception1  

Fund NAV Returns

       12.68      7.85      9.63

Fund Market Price Returns

       12.98      7.80      9.62

60% S&P 500® Index / 40% Bloomberg U.S. Aggregate Index Composite

       11.06      7.10      7.84

S&P 500® Index

       19.59      14.60      11.61
1 

Total returns are calculated based on the commencement of Fund trading on the NYSE Arca, Inc. on August 2, 2018.

 

 

LOGO

Performance is historical and does not guarantee future results. The returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares.

 

16   WisdomTree Trust


Management’s Discussion of Funds’ Performance

as of June 30, 2023 (unaudited)

WisdomTree Artificial Intelligence and Innovation Fund (WTAI)

 

Sector Breakdown

 

Sector   % of Net Assets  

Information Technology

    79.9%  

Consumer Discretionary

    6.5%  

Communication Services

    4.9%  

Industrials

    4.6%  

Health Care

    3.5%  

Financials

    0.5%  

Other Assets less Liabilities‡

    0.1%  

Total

    100.0%  

 

The Fund’s sector breakdown is expressed as a percentage of net assets and may change over time. In addition, a sector may be comprised of several industries. It does not include derivatives (if any).

 

Other assets less liabilities may include investment of cash collateral for securities on loan and/or receivables/payables on derivatives (if any).

Top Ten Holdings*

 

Description   % of Net Assets  

NVIDIA Corp.

    2.5%  

Alchip Technologies Ltd.

    2.2%  

Meta Platforms, Inc., Class A

    2.1%  

Taiwan Semiconductor Manufacturing Co. Ltd., ADR

    2.1%  

STMicroelectronics NV

    2.0%  

Advanced Micro Devices, Inc.

    2.0%  

Synopsys, Inc.

    2.0%  

Lattice Semiconductor Corp.

    2.0%  

IonQ, Inc.

    2.0%  

Cerence, Inc.

    2.0%  
*

The ten largest holdings are subject to change, and there are no guarantees the Fund will remain invested in any particular company. Excludes derivatives and investment of cash collateral for securities on loan (if any).

The WisdomTree Artificial Intelligence and Innovation Fund (the “Fund”) seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Artificial Intelligence & Innovation Index (the “Index”). In seeking to track the Index, the Fund primarily invests in equity securities of exchange-listed companies globally, including developed countries and emerging markets throughout the world, which are primarily involved in the investment theme of “Artificial Intelligence and Innovation”. Artificial intelligence (“AI”) refers to the application of computer systems or robotics to perform tasks that typically require human intelligence, discernment and adaption, such as decision-making, reasoning, learning from past experiences, visual perception, and speech recognition. Innovation refers to those companies that introduce a new, creative, or different (i.e., “innovative”) technology enabled product or service in seeking to potentially change an industry landscape, as well as companies that service those innovative technologies. 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 resemble the risk, return and other characteristics of the Index as a whole.

The Fund returned 26.74% at net asset value (“NAV”) for the fiscal year ended June 30, 2023 (for more complete performance information please see the table below). As a fund focused on artificial intelligence, the Fund has a significant allocation to the Information Technology sector, which benefited returns. More specifically, with over 70% of the Fund’s assets allocated to Software and Semiconductors, the Fund experienced outperformance as these industries rallied after the release of ChatGPT in late November of 2022, as well as after Nvidia earnings were announced in early 2023, where they forecasted significant datacenter revenue growth due to increased demand related to AI applications. Additionally, the Fund had significant weight in companies with positive earnings while maintaining strong growth characteristics which also benefited performance. Most detractors over the period were idiosyncratic, due to pessimistic news around companies operating within drug development or data processing and annotation.

Shareholder Expense Example (for the six-month period ended June 30, 2023)

 

         
      Beginning
Account Value
     Ending
Account Value
     Annualized
Expense Ratio
    Expenses Paid
During the
Period
 

Actual

   $ 1,000.00      $ 1,347.00        0.45   $ 2.62  

Hypothetical (5% return before expenses)

   $ 1,000.00      $ 1,022.56        0.45   $ 2.26  

Performance

 

   
        Average Annual Total Return  
        1 Year      Since Inception1  

Fund NAV Returns

       26.74      -16.44

Fund Market Price Returns

       26.58      -16.33

WisdomTree Artificial Intelligence & Innovation Index

       27.14      -16.20

S&P 500® Information Technology Index

       40.26      1.96
1 

Total returns are calculated based on the commencement of Fund trading on the Cboe BZX Exchange, Inc. on December 9, 2021.

 

 

LOGO

Performance is historical and does not guarantee future results. The returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares.

 

WisdomTree Trust      17  


Management’s Discussion of Funds’ Performance

as of June 30, 2023 (unaudited)

WisdomTree Battery Value Chain and Innovation Fund (WBAT)

 

Sector Breakdown

 

Sector   % of Net Assets  

Industrials

    52.4%  

Materials

    29.6%  

Information Technology

    8.6%  

Consumer Discretionary

    5.5%  

Utilities

    3.2%  

Energy

    0.5%  

Other Assets less Liabilities‡

    0.2%  

Total

    100.0%  

 

The Fund’s sector breakdown is expressed as a percentage of net assets and may change over time. In addition, a sector may be comprised of several industries. It does not include derivatives (if any).

 

Other assets less liabilities may include investment of cash collateral for securities on loan and/or receivables/payables on derivatives (if any).

Top Ten Holdings*

 

Description   % of Net Assets  

Joby Aviation, Inc.

    5.0%  

Blink Charging Co.

    3.0%  

E.ON SE

    3.0%  

Bloom Energy Corp., Class A

    2.8%  

Wartsila Oyj Abp

    2.4%  

Ballard Power Systems, Inc.

    2.2%  

Doosan Fuel Cell Co. Ltd.

    2.2%  

FuelCell Energy, Inc.

    2.1%  

GEM Co. Ltd., Class A

    2.1%  

Mitsubishi Heavy Industries Ltd.

    2.0%  
*

The ten largest holdings are subject to change, and there are no guarantees the Fund will remain invested in any particular company. Excludes derivatives and investment of cash collateral for securities on loan (if any).

The WisdomTree Battery Value Chain and Innovation Fund (the “Fund”) seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Battery Value Chain and Innovation Index (the “Index”). In seeking to track the Index, the Fund invests in companies primarily involved in battery and energy storage solutions that meet the index eligibility requirements. 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 resemble the risk, return and other characteristics of the Index as a whole.

The Fund returned 0.58% at net asset value (“NAV”) for the fiscal year ended June 30, 2023 (for more complete performance information please see the table below). As a fund heavily focused on the battery value chain, the Fund had significant allocations to the Industrials and Materials sectors, which lagged in performance versus the broader market due to allocation and selection effects. Alternatively, position selection within the Consumer Discretionary and the Information Technology sectors benefited the Fund’s performance, although these sectors had significantly less weight allocated as compared to the Industrials and Materials sectors. As a megatrend fund, there is significant weight allocated to companies with high growth rates, as well as those that have yet to report positive earnings. The fastest growth companies in the Fund detracted from performance, while those with steadier growth positively contributed. Likewise negative earners detracted from performance while those with positive earnings benefited the Fund. In terms of battery specific categories, the emerging technology category most benefited performance while raw materials and enabler firms detracted from performance.

Shareholder Expense Example (for the six-month period ended June 30, 2023)

 

         
      Beginning
Account Value
     Ending
Account Value
     Annualized
Expense Ratio
    Expenses Paid
During the
Period
 

Actual

   $ 1,000.00      $ 1,083.50        0.45   $ 2.32  

Hypothetical (5% return before expenses)

   $ 1,000.00      $ 1,022.56        0.45   $ 2.26  

Performance

 

   
        Average Annual Total Return  
        1 Year      Since Inception1  

Fund NAV Returns

       0.58      -10.22

Fund Market Price Returns

       -0.12      -10.21

WisdomTree Battery Value Chain and Innovation Index

       0.95      -9.80

MSCI ACWI Materials Index

       12.07      -5.81
1 

Total returns are calculated based on the commencement of Fund trading on the Cboe BZX Exchange, Inc. on February 17, 2022.

 

 

LOGO

Performance is historical and does not guarantee future results. The returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares.

 

18   WisdomTree Trust


Management’s Discussion of Funds’ Performance

as of June 30, 2023 (unaudited)

WisdomTree BioRevolution Fund (WDNA)

 

Sector Breakdown

 

Sector   % of Net Assets  

Health Care

    79.5

Materials

    12.4

Consumer Staples

    4.4

Energy

    3.5

Other Assets less Liabilities‡

    0.2

Total

    100.0

 

The Fund’s sector breakdown is expressed as a percentage of net assets and may change over time. In addition, a sector may be comprised of several industries. It does not include derivatives (if any).

 

Other assets less liabilities may include investment of cash collateral for securities on loan and/or receivables/payables on derivatives (if any).

Top Ten Holdings*

 

Description   % of Net Assets  

Geron Corp.

    1.8%  

Twist Bioscience Corp.

    1.6%  

Ginkgo Bioworks Holdings, Inc.

    1.5%  

Exact Sciences Corp.

    1.5%  

Blueprint Medicines Corp.

    1.5%  

Agios Pharmaceuticals, Inc.

    1.4%  

Vericel Corp.

    1.4%  

Eli Lilly & Co.

    1.4%  

Iovance Biotherapeutics, Inc.

    1.4%  

Verve Therapeutics, Inc.

    1.3%  
*

The ten largest holdings are subject to change, and there are no guarantees the Fund will remain invested in any particular company. Excludes derivatives and investment of cash collateral for securities on loan (if any).

The WisdomTree BioRevolution Fund (the “Fund”) seeks to track the price and yield performance, before fees and expenses, of the WisdomTree BioRevolution Index (the “Index”). In seeking to track the Index, the Fund primarily invests in equity securities of exchange-listed companies globally that will be significantly transformed by advancements in genetics and biotechnology. 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 resemble the risk, return and other characteristics of the Index as a whole.

The Fund returned 0.61% at net asset value (“NAV”) for the fiscal year ended June 30, 2023 (for more complete performance information please see the table below). With over 90% of the fund allocated to the Healthcare and Materials sectors, the Fund underperformed the broader market as these sectors failed to participate in the early 2023 rally in Information Technology, Consumer Discretionary and the Communications sectors that drove up broad market performance. Furthermore, allocations to small cap companies also detracted from returns, as well as those firms with slower earnings growth. Those with faster growth tended to benefit fund performance.

Shareholder Expense Example (for the six-month period ended June 30, 2023)

 

         
      Beginning
Account Value
     Ending
Account Value
     Annualized
Expense Ratio
    Expenses Paid
During the
Period
 

Actual

   $ 1,000.00      $ 1,000.60        0.45   $ 2.23  

Hypothetical (5% return before expenses)

   $ 1,000.00      $ 1,022.56        0.45   $ 2.26  

Performance

 

   
        Average Annual Total Return  
        1 Year      Since Inception1  

Fund NAV Returns

       0.61      -15.87

Fund Market Price Returns

       0.72      -15.84

WisdomTree BioRevolution Index

       0.75      -15.61

S&P Biotechnology Select Industry Index

       12.13      -18.43

S&P 500® Health Care Index

       3.63      4.59
1 

Total returns are calculated based on the commencement of Fund trading on the Cboe BZX Exchange, Inc. on June 3, 2021.

 

 

LOGO

Performance is historical and does not guarantee future results. The returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares.

 

WisdomTree Trust      19  


Management’s Discussion of Funds’ Performance

as of June 30, 2023 (unaudited)

WisdomTree Cloud Computing Fund (WCLD)

 

Sector Breakdown

 

Sector   % of Net Assets  

Information Technology

    86.8%  

Financials

    5.5%  

Health Care

    2.7%  

Communication Services

    2.8%  

Industrials

    1.5%  

Consumer Discretionary

    0.6%  

Other Assets less Liabilities‡

    0.1%  

Total

    100.0%  

 

The Fund’s sector breakdown is expressed as a percentage of net assets and may change over time. In addition, a sector may be comprised of several industries. It does not include derivatives (if any).

 

Other assets less liabilities may include investment of cash collateral for securities on loan and/or receivables/payables on derivatives (if any).

Top Ten Holdings*

 

Description   % of Net Assets  

MongoDB, Inc.

    2.7%  

Yext, Inc.

    2.2%  

C3.ai, Inc., Class A

    2.1%  

Shopify, Inc., Class A

    2.0%  

Asana, Inc., Class A

    2.0%  

Braze, Inc., Class A

    2.0%  

Confluent, Inc., Class A

    1.9%  

Adobe, Inc.

    1.9%  

Squarespace, Inc., Class A

    1.9%  

HubSpot, Inc.

    1.8%  
*

The ten largest holdings are subject to change, and there are no guarantees the Fund will remain invested in any particular company. Excludes derivatives and investment of cash collateral for securities on loan (if any).

The WisdomTree Cloud Computing Fund (the “Fund”) seeks to track the price and yield performance, before fees and expenses, of the Bessemer Venture Partners (“BVP”) Nasdaq Emerging Cloud Index (the “Index”). In seeking to track the Index, the Fund invests in emerging public companies primarily involved in providing cloud computing software and services to their customers, which derive the majority of their revenues from business-oriented software products, as determined by BVP. The Fund generally uses a representative sampling strategy to achieve its investment objective, meaning it generally will invest in a sample of securities in the Index.

The Fund returned 13.20% at net asset value (“NAV”) for the fiscal year ended June 30, 2023 (for more complete performance information please see the table below). The Fund is nearly fully allocated to the Information Technology sector, and more specifically, with 70% allocated to the Software industry, which benefited fund performance. With reduced exposure to mega-cap tech firms, particularly those that rallied to start the year 2023, the Fund’s overall positive performance was negatively impacted by these selection and allocation effects. Like other megatrends strategies, the Fund tends to overweight companies with strong growth characteristics, which benefited the Fund’s performance over the period. As these strong growth companies also tend to garner higher valuation multiples, the Fund also had more weight allocated to more expensive firms from a price to sales ratio perspective, which benefited returns. Firms with the lowest multiples underperformed significantly compared to their more expensive counterparts. Both positive and negative earners within the fund benefited overall returns.

Shareholder Expense Example (for the six-month period ended June 30, 2023)

 

         
      Beginning
Account Value
     Ending
Account Value
     Annualized
Expense Ratio
    Expenses Paid
During the
Period
 

Actual

   $ 1,000.00      $ 1,266.70        0.45   $ 2.53  

Hypothetical (5% return before expenses)

   $ 1,000.00      $ 1,022.56        0.45   $ 2.26  

Performance

 

   
        Average Annual Total Return  
        1 Year      3 Year      Since Inception1  

Fund NAV Returns

       13.20      -6.61      6.37

Fund Market Price Returns

       13.40      -6.61      6.37

BVP Nasdaq Emerging Cloud Index

       13.57      -6.27      6.77

S&P 500® Information Technology Index

       40.26      19.96      23.68

S&P 500® Growth Index

       18.25      11.80      13.33
1 

Total returns are calculated based on the commencement of Fund trading on the NASDAQ on September 6, 2019.

 

 

LOGO

Performance is historical and does not guarantee future results. The returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares.

 

20   WisdomTree Trust


Management’s Discussion of Funds’ Performance

as of June 30, 2023 (unaudited)

WisdomTree Cybersecurity Fund (WCBR)

 

Country Breakdown

 

Country   % of Net Assets  

United States

    89.4%  

Japan

    3.7%  

United Kingdom

    3.2%  

South Korea

    2.5%  

Israel

    0.6%  

Canada

    0.5%  

Other Assets less Liabilities‡

    0.1%  

Total

    100.0%  

 

The Fund’s country breakdown may change over time. It does not include derivatives (if any).

 

Other assets less liabilities may include investment of cash collateral for securities on loan and/or receivables/payables on derivatives (if any).

Top Ten Holdings*

 

Description   % of Net Assets  

Datadog, Inc., Class A

    6.7%  

Palo Alto Networks, Inc.

    6.1%  

Fortinet, Inc.

    5.7%  

Cloudflare, Inc., Class A

    5.5%  

Crowdstrike Holdings, Inc., Class A

    5.5%  

Elastic NV

    5.4%  

SentinelOne, Inc., Class A

    4.8%  

Rapid7, Inc.

    4.8%  

Zscaler, Inc.

    4.6%  

ForgeRock, Inc., Class A

    4.6%  
*

The ten largest holdings are subject to change, and there are no guarantees the Fund will remain invested in any particular company. Excludes derivatives and investment of cash collateral for securities on loan (if any).

The WisdomTree Cybersecurity Fund (the “Fund”) seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Team8 Cybersecurity Index (the “Index”). In seeking to track the Index, the Fund invests in equity securities of exchange-listed companies globally, which are primarily involved in cybersecurity and security-oriented technology that generate a meaningful part of their revenue from security protocols that prevent intrusion and attacks to systems, networks, applications, computers, and mobile devices and are experiencing revenue growth.

The Fund returned 8.68% at net asset value (“NAV”) for the fiscal year ended June 30, 2023 (for more complete performance information please see the table below). As a fund focused on cyber security software, the Fund is fully allocated to the Information Technology sector, which benefited returns. More specifically, with 80% allocated to Software, this benefited fund performance, but selection within the group failed to capture mega-cap technology firms that rallied the most to start the year of 2023, causing the Fund to underperform broader technology exposures that cover technology beyond cybersecurity. The Fund is heavily allocated to the highest two growth quintiles, which benefited fund performance. Generally, firms with strong growth characteristics within the Fund outperformed those with weaker characteristics. More specifically, the fastest growing and narrowly focused firms across pinpointed cybersecurity applications had the greatest positive impact. Some of the key detractors for the period were newer firms that had more recently undergone an initial public offering, as well as more expensive firms in terms of valuation, with higher price to sales ratios.

Shareholder Expense Example (for the six-month period ended June 30, 2023)

 

         
      Beginning
Account Value
     Ending
Account Value
     Annualized
Expense Ratio
    Expenses Paid
During the
Period
 

Actual

   $ 1,000.00      $ 1,269.70        0.45   $ 2.53  

Hypothetical (5% return before expenses)

   $ 1,000.00      $ 1,022.56        0.45   $ 2.26  

Performance

 

   
        Average Annual Total Return  
        1 Year      Since Inception1  

Fund NAV Returns

       8.68      -8.60

Fund Market Price Returns

       9.02      -8.53

WisdomTree Team8 Cybersecurity Index

       8.49      -8.43

S&P 500® Information Technology Index

       40.26      13.71

S&P 500® Growth Index

       18.25      4.80
1 

Total returns are calculated based on the commencement of Fund trading on the NASDAQ on January 28, 2021.

 

 

LOGO

Performance is historical and does not guarantee future results. The returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares.

 

WisdomTree Trust      21  


Description of Terms and Indexes (unaudited)

 

 

Below are descriptions of certain terms and of each Index referenced in this report:

The 60% S&P 500® Index/40% Bloomberg U.S. Aggregate Index Composite represents a 60% weight to the S&P 500® Index and a 40% weight to the Bloomberg U.S. Aggregate Index. The Bloomberg U.S. Aggregate Index measures the performance of the U.S. investment-grade bond market.

Allocation Effect measures an investment manager’s ability to effectively allocate a portfolio’s assets to various segments. A segment refers to assets or securities that are grouped within a certain classification such as sectors, industries, or countries. The allocation effect determines whether the overweighting or underweighting of segments relative to a benchmark contributes positively or negatively to the overall portfolio return. Positive allocation occurs when the portfolio is overweighted in a segment that outperforms the benchmark and underweighted in a segment that underperforms the benchmark. Negative allocation occurs when the portfolio is overweighted in a segment that underperforms the benchmark and underweighted in a segment that outperforms the benchmark.

The BVP Nasdaq Emerging Cloud Index is an equally weighted index that is designed to track the performance of emerging public companies primarily involved in providing cloud software and services to their customers.

Cloud computing is a term used to describe the delivery, through the Internet, of computing services, which can include servers, storage, databases, networking, software, analytics, and intelligence.

Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of a country’s economic health.

Growth is generally characterized by higher price levels relative to fundamentals, such as dividends or earnings. Price levels are higher because investors are willing to pay more due to their expectations of future improvements in these fundamentals.

The ICE BofA Merrill Lynch U.S. Corporate Index tracks the performance of U.S. dollar denominated investment grade corporate debt publicly issued in the U.S.

The ICE BofA Merrill Lynch U.S. High Yield Index tracks the performance of U.S. dollar denominated high yield corporate debt securities issued in the U.S.

The ICE BofA Merrill Lynch 1-5 Year U.S. Corporate Index is a subset of the ICE BofA Merrill Lynch U.S. Corporate Index including all securities with a remaining term to final maturity less than 5 years.

The MSCI ACWI Materials Index is a modified market capitalization weighted index that measures the performance of securities classified in the Materials GICS sector.

The MSCI EAFE Extended ESG Focus Index is designed to maximize exposure to positive environmental, social and governance (ESG) factors while exhibiting risk and return characteristics similar to those of the MSCI EAFE Index, its parent index.

The MSCI EAFE Index is a market cap-weighted index composed of companies representative of the developed market structure of developed countries in Europe, Australasia and Japan.

The MSCI EAFE Local Currency Index is a free float-adjusted market capitalization weighted index that is designed to measure developed market equity performance, excluding the U.S. and Canada, in local currency.

The MSCI EAFE Small Cap Index is a free float-adjusted market capitalization equity index that is designed to measure the performance of small-cap stocks within the developed equity market, excluding the U.S. and Canada.

The MSCI EAFE Small Cap Local Currency Index is a free float-adjusted market capitalization equity index that is designed to measure the performance of small-cap stocks within the developed equity market, excluding the U.S. and Canada, in local currency.

 

22   WisdomTree Trust


Description of Terms and Indexes (unaudited) (continued)

 

The MSCI EAFE Small Cap Value Index captures small cap securities exhibiting overall value style characteristics across Developed Markets countries, excluding the U.S. and Canada.

The MSCI EAFE Value Index is a free float-adjusted market capitalization index that is designed to measure the performance of “value” stocks within the developed equity market, excluding the U.S. and Canada.

The MSCI Emerging Markets ex-China Index captures large and mid cap representation across 23 of the 24 Emerging Markets countries excluding China.

The MSCI Emerging Markets Extended ESG Focus Index is designed to maximize exposure to positive environmental, social and governance (ESG) factors while exhibiting risk and return characteristics similar to those of the MSCI Emerging Markets Index, its parent index.

The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure emerging markets equity performance.

Quality is generally characterized by higher efficiency and profitability. Typical measures include earnings, return-on-equity, return on assets, operating profitability as well as others. This term is also related to the quality factor, which associates these stock characteristics with excess returns vs. the market over time.

Quintiles refers to separating a universe of companies into five groups of equal size on the basis of dividend yield, price-to-earnings, or return-on-equity, as applicable.

Risk-on and Risk-off refers to investors’ appetites for risk which rise and fall over time. During periods when risk is perceived as low, the risk-on risk-off theory states that investors tend to engage in higher-risk investments (i.e., “Risk-on”). When risk is perceived to be high, investors have the tendency to gravitate toward lower-risk investments (i.e., “Risk-off”).

The S&P 500® Growth Index measures the performance of the large-capitalization growth sector of the U.S. equity market.

The S&P 500® Health Care Index is a capitalization weighted index that measures the performance of the members of the GICS Healthcare sector within the S&P 500 Index.

The S&P 500® Index is a capitalization-weighted index of 500 stocks selected by the Standard & Poor’s Index Committee designed to represent the performance of the leading industries in the United States economy.

The S&P 500® Information Technology Index comprises companies included in the S&P 500® that are classified as members of the GICS® information technology sector.

The S&P Biotechnology Select Industry Index is designed to measure the performance of stocks from the S&P Total Market index that are classified in the GICS biotechnology sub-industry.

Selection Effect measures an investment manager’s ability to select securities within a given segment relative to a benchmark. The over or underperformance of the portfolio is weighted by the benchmark weight, therefore, selection is not affected by the investment manager’s allocation to the segment. The weight of the segment in the portfolio determines the size of the effect — the larger the segment, the larger the effect is, positive or negative. A positive selection effect occurs when the portfolio return is greater than the benchmark return. Thus, the investment manager made good decisions in selecting securities that, as a whole, outperformed similar securities in the benchmark. A negative selection effect occurs when the portfolio return is less than the benchmark return. Thus, the investment manager made poor decisions in selecting securities that, as a whole, underperformed similar securities in the benchmark.

Volatility is a statistical measure of the dispersion of returns for a given security or market index around a particular average level. If the price stays relatively stable, the security has low volatility. A highly volatile security hits new highs and lows quickly, moves erratically, and has rapid increases and dramatic falls.

 

WisdomTree Trust      23  


Description of Terms and Indexes (unaudited) (continued)

 

 

The WisdomTree Artificial Intelligence & Innovation Index is designed to measure the performance of companies primarily involved in artificial intelligence and innovation.

The WisdomTree Battery Value Chain and Innovation Index is designed to track the performance of companies primarily involved in battery and energy storage solutions that meet Index eligibility requirements. Battery and energy storage solutions can be defined as technology that captures electric energy in chemical form.

The WisdomTree BioRevolution Index is designed to track performance of companies that will be significantly transformed by advancements in genetics and biotechnology that meet index eligibility requirements.

The WisdomTree Dynamic Currency Hedged International Equity Index is a fundamentally weighted index that measures the performance of dividend-paying companies in the industrialized world, excluding Canada and the United States. To hedge the impact of changes to the value of foreign currencies relative to the U.S. dollar, a currency hedge ratio (ranging from 0% to 100%) is applied monthly using a rules-based process that combines momentum, value, and interest rate signals.

The WisdomTree Dynamic Currency Hedged International SmallCap Equity Index is a fundamentally weighted index that measures the performance of the small-capitalization segment of the dividend-paying market in the industrialized world, excluding Canada and the United States. To hedge the impact of changes to the value of foreign currencies relative to the U.S. dollar, a currency hedge ratio (ranging from 0% to 100%) is applied monthly using a rules-based process that combines momentum, value, and interest rate signals.

The WisdomTree Emerging Markets ex-China Index measures the performance of emerging markets stocks (excluding China) that are not state owned enterprises. State owned enterprises are defined as government ownership of more than 20% of outstanding shares of companies. The index employs a modified float-adjusted market capitalization weighting process to target the weights of countries in the universe (excluding China) prior to the removal of state owned enterprises while also limiting sector deviations to 3% of the starting universe.

The WisdomTree Team8 Cybersecurity Index is designed to track the performance of companies primarily involved in providing cybersecurity-oriented products that meet index eligibility requirements.

The WisdomTree U.S. Corporate Bond Index is a rule-based alternatively weighted index designed to capture the performance of selected issuers in the U.S. investment grade corporate bond market that are deemed to have attractive fundamental and income characteristics. The Index employs a multi-step process, which screens on fundamentals to identify bonds with favorable characteristics and then tilts to those which offer attractive income characteristics. The Index is comprised of U.S. corporate bonds of public issuers domiciled in the United States. To be eligible for inclusion in the Index, debt securities must have fixed coupons with at least $350 million in par amount outstanding and a remaining maturity of at least one year. Component securities must be rated investment grade.

The WisdomTree U.S. High Yield Corporate Bond Index is a rule-based alternatively weighted index designed to capture the performance of selected issuers in the U.S. high yield corporate bond market that are deemed to have attractive fundamental and income characteristics. The Index employs a multi-step process, which screens on fundamentals to identify bonds with favorable characteristics and then tilts to those which offer attractive income characteristics. The Index is comprised of U.S. corporate bonds of public issuers domiciled in the United States. To be eligible for inclusion in the Index, debt securities must have fixed coupons with at least $500 million in par amount outstanding and a remaining maturity of at least one year. Component securities must be rated non-investment grade by at least one rating agency.

The WisdomTree U.S. Short-Term Corporate Bond Index is a rule-based alternatively weighted index designed to capture the performance of selected issuers in the U.S.

 

24   WisdomTree Trust


Description of Terms and Indexes (unaudited) (continued)

 

investment-grade corporate bond market that are deemed to have attractive fundamental and income characteristics. The Index employs a multi-step process, which screens on fundamentals to identify bonds with favorable characteristics and then tilts to those which offer attractive income characteristics. The Index is comprised of U.S. corporate bonds of public issuers domiciled in the United States. To be eligible for inclusion in the Index, debt securities must have fixed coupons with at least $350 million in par amount outstanding and a remaining maturity of at least one year but not more than five years. Component securities must be rated investment grade.

The Global Industry Classification Standard (“GICS”) was developed by and is the exclusive property and a service mark of MSCI Inc. (“MSCI”) and Standard & Poor’s (“S&P”), a division of The McGraw-Hill Companies, Inc. and is licensed for use by WisdomTree, Inc. Neither MSCI, S&P nor any other party involved in making or compiling the GICS or any GICS classifications makes any express or implied warranties or representations with respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability and fitness for a particular purpose with respect to any such standard or classification. Without limiting any of the foregoing, in no event shall MSCI, S&P, any of their affiliates or any third party involved in making or compiling the GICS or any GICS classifications have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent.

THE INFORMATION SET FORTH IN THE BVP NASDAQ EMERGING CLOUD INDEX IS NOT INTENDED TO BE, AND SHALL NOT BE REGARDED OR CONSTRUED AS, A RECOMMENDATION FOR A TRANSACTION OR INVESTMENT OR FINANCIAL, TAX, INVESTMENT OR OTHER ADVICE OF ANY KIND BY BESSEMER VENTURE PARTNERS. BESSEMER VENTURE PARTNERS DOES NOT PROVIDE INVESTMENT ADVICE TO WISDOMTREE OR THE FUND, IS NOT AN INVESTMENT ADVISER TO THE FUND AND IS NOT RESPONSIBLE FOR THE PERFORMANCE OF THE FUND. THE FUND IS NOT ISSUED, SPONSORED, ENDORSED OR PROMOTED BY BESSEMER VENTURE PARTNERS. BESSEMER VENTURE PARTNERS MAKES NO WARRANTY OR REPRESENTATION REGARDING THE QUALITY, ACCURACY OR COMPLETENESS OF THE BVP NASDAQ EMERGING CLOUD INDEX, INDEX VALUES OR ANY INDEX RELATED DATA INCLUDED HEREIN, PROVIDED HEREWITH OR DERIVED THEREFROM AND ASSUMES NO LIABILITY IN CONNECTION WITH ITS USE. BESSEMER VENTURE PARTNERS AND/OR POOLED INVESTMENT VEHICLES WHICH IT MANAGES, AND INDIVIDUALS AND ENTITIES AFFILIATED WITH SUCH VEHICLES, MAY PURCHASE, SELL OR HOLD SECURITIES OF ISSUERS THAT ARE CONSTITUENTS OF THE BVP NASDAQ EMERGING CLOUD INDEX FROM TIME TO TIME AND AT ANY TIME, INCLUDING IN ADVANCE OF OR FOLLOWING AN ISSUER BEING ADDED TO OR REMOVED FROM THE BVP NASDAQ EMERGING CLOUD INDEX.

Nasdaq® and the BVP Nasdaq Emerging Cloud Index are registered trademarks and service marks of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed for use by WisdomTree. The fund has not been passed on by the Corporations as to its legality or suitability. The fund is not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUND.

 

WisdomTree Trust      25  


Description of Terms and Indexes (unaudited) (concluded)

 

 

WisdomTree, Inc. and WisdomTree Asset Management, Inc. (together, “WisdomTree”) 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 underlying Indexes to track the performance of their underlying securities. WisdomTree is the licensor of certain trademarks, service marks and trade names of the Funds. WisdomTree 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 underlying WisdomTree Indexes of the applicable Funds. WisdomTree 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. WisdomTree and the Funds do not guarantee the accuracy, completeness, or performance of the underlying Indexes or the data included therein and shall have no liability in connection with the underlying Indexes or their calculation.

Index performance information assumes the reinvestment of dividends and excludes management fees, transaction costs and expenses. You cannot directly invest in an index.

* * * * * *

Abbreviations used in the schedules of investments and related tables included in this report are as follows:

 

CURRENCY ABBREVIATIONS:           
AUD   Australian dollar    EUR   Euro    NOK   Norwegian krone
CAD   Canadian dollar    GBP   British pound    SEK   Swedish krona
CHF   Swiss franc    HKD   Hong Kong dollar    SGD   Singapore dollar
CNH   Offshore Chinese renminbi    ILS   Israeli new shekel    TWD   New Taiwan dollar
DKK   Danish krone    JPY   Japanese yen    USD   U.S. dollar
OTHER ABBREVIATIONS:                      
ADR   American Depositary Receipt     
CVA   Certificaten Van Aandelen (Certificate of Stock)     
GDR   Global Depositary Receipt     
NVDR   Non-Voting Depositary Receipt     
RSP   Risparmio Italian Savings Shares     

 

26   WisdomTree Trust


Schedule of Investments

WisdomTree Dynamic Currency Hedged International Equity Fund (DDWM)

June 30, 2023

 

 

 

Investments    Shares      Value  
COMMON STOCKS – 99.4%

 

Australia – 12.1%

 

Abacus Property Group

     39,538      $ 70,797  

Accent Group Ltd.

     12,527        13,967  

AGL Energy Ltd.(a)

     14,567        104,819  

ALS Ltd.

     6,520        48,435  

Ampol Ltd.

     6,984        139,188  

ANZ Group Holdings Ltd.

     81,375        1,284,306  

APA Group

     29,286        188,899  

Aristocrat Leisure Ltd.

     3,955        101,778  

ASX Ltd.

     3,416        143,253  

Aurizon Holdings Ltd.

     39,616        103,372  

Australian Clinical Labs Ltd.(a)

     16,883        38,659  

Bank of Queensland Ltd.(a)

     11,917        43,550  

Bendigo & Adelaide Bank Ltd.(a)

     11,285        64,527  

BHP Group Ltd.

     287,604        8,613,048  

BlueScope Steel Ltd.

     5,779        79,052  

Brambles Ltd.

     14,537        139,439  

Brickworks Ltd.

     2,440        43,301  

BWP Trust

     19,062        46,060  

carsales.com Ltd.

     4,000        63,423  

Centuria Capital Group(a)

     71,832        78,895  

Centuria Industrial REIT(a)

     21,095        43,530  

Challenger Ltd.

     9,274        40,003  

Charter Hall Group

     7,704        54,923  

Charter Hall Long Wale REIT

     28,913        77,176  

Cochlear Ltd.

     297        45,287  

Coles Group Ltd.

     23,160        283,971  

Commonwealth Bank of Australia

     31,385        2,094,783  

Computershare Ltd.

     5,668        88,210  

Cromwell Property Group

     95,544        34,025  

CSL Ltd.

     1,943        358,752  

CSR Ltd.

     17,712        61,190  

Deterra Royalties Ltd.

     24,716        75,680  

Dexus(a)

     31,885        165,549  

Dicker Data Ltd.(a)

     3,545        19,350  

Eagers Automotive Ltd.(a)

     7,352        66,018  

Elders Ltd.(a)

     4,575        20,038  

Endeavour Group Ltd.(a)

     17,164        72,093  

First Resources Ltd.

     42,000        43,137  

Goodman Group

     10,124        135,253  

GPT Group

     32,072        88,384  

Growthpoint Properties Australia Ltd.

     22,348        41,504  

Harvey Norman Holdings Ltd.(a)

     40,636        94,132  

Helia Group Ltd.

     22,981        52,929  

HomeCo Daily Needs REIT

     56,292        44,028  

IGO Ltd.

     3,428        34,684  

Iluka Resources Ltd.

     9,351        69,154  

Incitec Pivot Ltd.

     49,858        90,935  

Inghams Group Ltd.

     17,623        30,735  

Insignia Financial Ltd.(a)

     29,146        54,711  

Insurance Australia Group Ltd.

     16,492        62,574  

IVE Group Ltd.(a)

     12,559        19,228  

JB Hi-Fi Ltd.(a)

     3,837        111,742  

Lovisa Holdings Ltd.

     2,617      33,621  

Macquarie Group Ltd.

     4,776        564,680  

McMillan Shakespeare Ltd.

     4,284        51,501  

Medibank Pvt Ltd.

     54,556        127,829  

Metcash Ltd.

     27,269        68,250  

Mineral Resources Ltd.

     935        44,457  

Mirvac Group

     60,462        90,957  

MyState Ltd.

     14,212        29,989  

National Australia Bank Ltd.

     66,730        1,171,324  

New Hope Corp. Ltd.

     30,831        99,535  

NIB Holdings Ltd.(a)

     7,231        40,672  

Nick Scali Ltd.(a)

     5,863        35,554  

Nine Entertainment Co. Holdings Ltd.(a)

     64,457        84,310  

Northern Star Resources Ltd.

     12,426        99,918  

NRW Holdings Ltd.

     19,463        32,778  

Orica Ltd.

     3,632        35,854  

Origin Energy Ltd.

     30,673        171,711  

Orora Ltd.

     21,851        47,853  

Perpetual Ltd.(a)

     2,791        48,081  

Premier Investments Ltd.

     3,931        53,014  

QBE Insurance Group Ltd.

     12,262        127,902  

Qube Holdings Ltd.

     25,402        48,190  

REA Group Ltd.(a)

     904        86,068  

Reece Ltd.(a)

     4,257        52,621  

Region RE Ltd.

     33,380        50,438  

Rio Tinto Ltd.

     14,620        1,116,140  

Rio Tinto PLC

     41,583        2,635,663  

Santos Ltd.

     37,092        185,671  

Scentre Group

     95,091        167,738  

SEEK Ltd.

     4,230        61,157  

Seven Group Holdings Ltd.

     3,145        51,604  

Sigma Healthcare Ltd.

     12,192        6,817  

Sims Ltd.

     7,508        78,714  

Sonic Healthcare Ltd.

     6,997        165,669  

South32 Ltd.

     226,009        565,665  

Steadfast Group Ltd.

     12,532        50,052  

Stockland

     88,753        238,086  

Suncorp Group Ltd.

     14,021        125,903  

Telstra Group Ltd.

     233,521        668,406  

Terracom Ltd.(a)

     23,394        6,540  

TPG Telecom Ltd.(a)

     26,537        86,025  

Transurban Group

     33,154        314,483  

Treasury Wine Estates Ltd.

     7,638        57,096  

Vicinity Ltd.

     89,151        109,488  

Viva Energy Group Ltd.(a)(b)

     52,506        105,201  

Washington H Soul Pattinson & Co. Ltd.(a)

     3,909        82,692  

Waypoint REIT Ltd.

     23,232        40,053  

Wesfarmers Ltd.

     14,828        486,999  

Westpac Banking Corp.

     56,380        800,876  

Whitehaven Coal Ltd.

     20,932        93,493  

Woodside Energy Group Ltd.

     57,264        1,312,776  

Woolworths Group Ltd.

     10,563        279,352  

Worley Ltd.

     8,152        85,682  
     

 

 

 
Total Australia

 

     29,257,624  

 

See Notes to Financial Statements.

 

WisdomTree Trust      27  


Schedule of Investments (continued)

WisdomTree Dynamic Currency Hedged International Equity Fund (DDWM)

June 30, 2023

 

 

 

Investments    Shares      Value  
Austria – 0.6%

 

Andritz AG

     1,689      $ 94,070  

BAWAG Group AG*(b)

     2,465        113,543  

Erste Group Bank AG

     8,733        305,744  

EVN AG

     2,613        57,871  

Oesterreichische Post AG

     1,697        60,542  

OMV AG

     5,472        231,873  

S IMMO AG*

     496        6,602  

Telekom Austria AG*

     13,517        99,985  

UNIQA Insurance Group AG

     8,458        67,823  

Verbund AG

     728        58,337  

Vienna Insurance Group AG Wiener Versicherung Gruppe

     2,261        59,079  

Voestalpine AG

     3,703        132,915  

Wienerberger AG

     1,944        59,470  
     

 

 

 
Total Austria

 

     1,347,854  
Belgium – 1.0%

 

Ackermans & van Haaren NV

     284        46,725  

Aedifica SA(a)

     749        47,967  

Ageas SA/NV

     6,523        264,097  

Anheuser-Busch InBev SA

     5,496        310,780  

bpost SA(a)

     8,859        38,893  

Cofinimmo SA(a)

     927        69,581  

D’ieteren Group

     301        53,167  

Elia Group SA/NV

     433        54,941  

Groupe Bruxelles Lambert NV

     1,920        151,155  

KBC Group NV

     10,086        703,365  

Melexis NV

     777        76,209  

Proximus SADP

     15,644        116,469  

Solvay SA

     1,357        151,454  

UCB SA

     1,163        103,029  

Umicore SA

     1,975        55,139  

VGP NV

     798        77,920  

Warehouses De Pauw CVA

     1,856        50,865  
     

 

 

 
Total Belgium

 

     2,371,756  
Burkina Faso – 0.0%

 

Endeavour Mining PLC

     3,805        91,187  
China – 0.4%

 

BOC Hong Kong Holdings Ltd.

     222,500        679,998  

Prosus NV*

     2,270        166,203  

Wilmar International Ltd.

     90,300        253,549  
     

 

 

 
Total China

 

     1,099,750  
Denmark – 1.3%

 

Alm Brand A/S

     26,685        41,759  

AP Moller – Maersk A/S, Class B

     259        454,446  

Carlsberg A/S, Class B

     982        156,908  

Chr Hansen Holding A/S

     711        49,339  

Coloplast A/S, Class B

     1,494        186,770  

D/S Norden A/S

     1,779        88,730  

DSV A/S

     456        95,745  

Novo Nordisk A/S, Class B

     7,521        1,211,541  

Novozymes A/S, Class B

     1,074        50,027  

Orsted A/S(b)

     2,505        236,668  

Pandora A/S

     1,840      164,242  

Scandinavian Tobacco Group A/S, Class A(b)

     2,803        46,615  

Sydbank A/S

     2,126        98,188  

Topdanmark A/S

     2,906        142,727  

Tryg A/S

     6,781        146,701  
     

 

 

 
Total Denmark

 

     3,170,406  
Finland – 1.4%

 

Aktia Bank Oyj

     3,334        33,828  

Anora Group Oyj

     3,868        20,762  

Citycon Oyj*(a)

     6,973        44,276  

Elisa Oyj

     3,037        162,156  

Fortum Oyj

     21,583        288,805  

Huhtamaki Oyj(a)

     1,289        42,273  

Kesko Oyj, Class A

     2,646        50,288  

Kesko Oyj, Class B

     5,141        96,752  

Kojamo Oyj

     2,796        26,295  

Kone Oyj, Class B

     6,087        317,635  

Konecranes Oyj

     1,921        77,231  

Metsa Board Oyj, Class B(a)

     6,412        47,290  

Metso Oyj(a)

     9,752        117,513  

Neste Oyj

     4,157        159,914  

Nokia Oyj

     26,048        108,999  

Nordea Bank Abp

     77,288        839,332  

Orion Oyj, Class B

     1,484        61,556  

Sampo Oyj, Class A

     10,836        486,124  

Stora Enso Oyj, Class R

     7,234        83,856  

TietoEVRY Oyj

     3,237        89,278  

UPM-Kymmene Oyj

     6,287        187,048  

Valmet Oyj(a)

     3,511        97,601  
     

 

 

 
Total Finland

 

     3,438,812  
France – 11.5%

 

Air Liquide SA

     2,918        522,737  

Airbus SE

     3,561        514,226  

ALD SA(b)

     15,127        161,817  

Arkema SA

     763        71,839  

AXA SA

     65,589        1,933,845  

BioMerieux

     464        48,658  

BNP Paribas SA

     28,929        1,821,733  

Bollore SE

     17,773        110,719  

Bouygues SA

     6,592        221,222  

Bureau Veritas SA

     1,632        44,726  

Capgemini SE

     907        171,734  

Carrefour SA

     8,274        156,663  

Cie de Saint-Gobain

     6,396        388,886  

Cie Generale des Etablissements Michelin SCA

     9,107        268,861  

Coface SA

     7,730        106,430  

Danone SA

     7,888        483,130  

Dassault Aviation SA

     489        97,844  

Dassault Systemes SE

     2,121        94,007  

Edenred

     1,574        105,335  

Eiffage SA

     1,074        111,994  

Elis SA

     2,377        46,161  

Engie SA

     73,909        1,227,906  

 

See Notes to Financial Statements.

 

28   WisdomTree Trust


Schedule of Investments (continued)

WisdomTree Dynamic Currency Hedged International Equity Fund (DDWM)

June 30, 2023

 

 

 

Investments    Shares      Value  

Eramet SA

     654      $ 59,685  

EssilorLuxottica SA

     2,315        435,930  

Gaztransport Et Technigaz SA

     621        63,178  

Gecina SA

     1,201        127,819  

Getlink SE

     3,193        54,274  

Hermes International

     301        653,498  

Imerys SA

     1,230        47,907  

Ipsen SA

     324        38,954  

IPSOS

     804        44,692  

Kering SA

     1,018        561,539  

Klepierre SA

     6,888        170,737  

L’Oreal SA

     3,575        1,665,829  

La Francaise des Jeux SAEM(b)

     3,536        139,034  

Legrand SA

     1,760        174,351  

LVMH Moet Hennessy Louis Vuitton SE

     4,179        3,934,668  

Metropole Television SA

     7,026        99,497  

Nexans SA

     405        35,061  

Orange SA

     90,197        1,053,130  

Pernod Ricard SA

     2,650        585,169  

Publicis Groupe SA

     3,408        273,283  

Remy Cointreau SA

     247        39,600  

Rexel SA

     6,267        154,591  

Rothschild & Co.(a)

     2,275        115,538  

Rubis SCA

     2,776        67,356  

Sanofi

     15,596        1,670,897  

Sartorius Stedim Biotech

     151        37,676  

Schneider Electric SE

     3,820        693,742  

Societe BIC SA

     596        34,137  

Societe Generale SA

     19,207        498,725  

Sodexo SA

     821        90,333  

Sopra Steria Group SACA

     339        67,608  

SPIE SA

     2,120        68,462  

Teleperformance

     240        40,179  

Thales SA

     2,214        331,403  

TotalEnergies SE

     59,886        3,433,388  

Trigano SA

     213        30,512  

Valeo

     2,736        58,595  

Veolia Environnement SA

     9,383        296,357  

Verallia SA(b)

     1,569        58,851  

Vicat SA

     2,586        82,101  

Vinci SA

     6,431        746,386  

Vivendi SE

     16,028        146,992  

Wendel SE

     648        66,455  
     

 

 

 
Total France

 

     27,758,592  
Georgia – 0.0%

 

Bank of Georgia Group PLC

     1,724        64,110  
Germany – 7.9%

 

adidas AG

     2,029        393,541  

Allianz SE, Registered Shares

     7,338        1,706,828  

BASF SE

     20,078        974,120  

Bayer AG, Registered Shares

     12,019        664,422  

Bayerische Motoren Werke AG

     13,453        1,651,482  

Bechtle AG

     1,064        42,161  

Beiersdorf AG

     513      67,861  

Brenntag SE

     1,204        93,788  

Carl Zeiss Meditec AG, Bearer Shares

     351        37,926  

Dermapharm Holding SE

     1,331        65,781  

Deutsche Bank AG, Registered Shares

     13,788        144,681  

Deutsche Boerse AG

     1,104        203,675  

Deutsche Post AG, Registered Shares

     18,859        920,328  

Deutsche Telekom AG, Registered Shares

     79,544        1,733,568  

DWS Group GmbH & Co. KGaA(b)

     7,550        230,967  

E.ON SE

     47,701        607,848  

Evonik Industries AG

     8,685        165,155  

Fielmann AG

     1,726        91,894  

Freenet AG

     3,155        79,100  

GEA Group AG

     1,782        74,481  

Hannover Rueck SE

     1,939        411,138  

Hapag-Lloyd AG(a)(b)

     5,686        1,153,217  

Heidelberg Materials AG

     3,114        255,483  

Henkel AG & Co. KGaA

     2,417        170,083  

Hochtief AG

     1,044        90,209  

Infineon Technologies AG

     4,384        180,724  

Kloeckner & Co. SE

     5,720        55,665  

Mercedes-Benz Group AG

     28,048        2,254,330  

Merck KGaA

     445        73,577  

MTU Aero Engines AG

     255        66,046  

Muenchener Rueckversicherungs—Gesellschaft AG in Muenchen, Registered Shares

     1,728        647,771  

Puma SE

     1,265        76,072  

Rheinmetall AG

     316        86,465  

RWE AG

     4,827        209,966  

SAP SE

     7,523        1,027,098  

Siemens Healthineers AG(b)

     6,217        351,753  

Siltronic AG

     1,045        79,807  

Sixt SE

     779        93,233  

Stroeer SE & Co. KGaA*

     1,118        54,278  

Suedzucker AG

     3,788        67,487  

Symrise AG

     417        43,684  

Synlab AG

     2,961        29,236  

Talanx AG

     5,161        295,891  

Telefonica Deutschland Holding AG

     78,137        219,683  

United Internet AG, Registered Shares

     2,866        40,336  

Varta AG*(a)

     1,745        35,706  

Volkswagen AG

     4,244        707,958  

Wacker Chemie AG

     1,162        159,419  

Wacker Neuson SE

     6,160        149,196  
     

 

 

 
Total Germany

 

     19,035,118  
Hong Kong – 3.0%

 

AIA Group Ltd.

     96,400        973,029  

Bank of East Asia Ltd.

     67,349        92,989  

Champion REIT(a)

     174,000        63,058  

CLP Holdings Ltd.

     47,000        365,248  

Dah Sing Banking Group Ltd.

     82,000        61,004  

Fortune Real Estate Investment Trust

     58,000        41,743  

Hang Lung Properties Ltd.

     92,000        142,051  

Hang Seng Bank Ltd.

     22,800        324,401  

 

See Notes to Financial Statements.

 

WisdomTree Trust      29  


Schedule of Investments (continued)

WisdomTree Dynamic Currency Hedged International Equity Fund (DDWM)

June 30, 2023

 

 

 

Investments    Shares      Value  

Henderson Land Development Co. Ltd.

     133,000      $ 395,439  

Hong Kong & China Gas Co. Ltd.

     333,816        288,382  

Hong Kong Exchanges & Clearing Ltd.

     13,459        506,992  

Hutchison Port Holdings Trust

     430,500        83,086  

Hysan Development Co. Ltd.

     29,000        70,755  

Link REIT

     70,331        390,399  

MTR Corp. Ltd.

     126,643        581,776  

New World Development Co. Ltd.

     99,000        243,565  

PCCW Ltd.

     464,000        240,390  

Power Assets Holdings Ltd.

     79,500        416,440  

Singamas Container Holdings Ltd.

     120,000        9,800  

Sino Land Co. Ltd.

     223,858        275,088  

Sun Hung Kai Properties Ltd.

     77,500        976,093  

Swire Pacific Ltd., Class A

     16,500        126,436  

Swire Pacific Ltd., Class B

     57,500        72,420  

Swire Properties Ltd.

     113,200        278,211  

Techtronic Industries Co. Ltd.

     15,500        168,418  
     

 

 

 
Total Hong Kong

 

     7,187,213  
Indonesia – 0.0%

 

Nickel Industries Ltd.

     80,110        47,193  
Ireland – 0.3%

 

AIB Group PLC

     16,777        70,469  

CRH PLC

     8,611        474,427  

Glanbia PLC

     3,863        57,739  

Kerry Group PLC, Class A

     533        51,975  

Kingspan Group PLC

     839        55,745  

Smurfit Kappa Group PLC

     3,549        118,211  
     

 

 

 
Total Ireland

 

     828,566  
Israel – 0.7%

 

Alony Hetz Properties & Investments Ltd.

     6,910        53,739  

Amot Investments Ltd.

     11,519        60,312  

Ashtrom Group Ltd.

     2,561        35,348  

Azrieli Group Ltd.

     1,475        82,674  

Bank Hapoalim BM

     11,812        96,700  

Bank Leumi Le-Israel BM

     39,137        290,974  

Bezeq The Israeli Telecommunication Corp. Ltd.

     45,380        55,347  

Big Shopping Centers Ltd.*

     418        37,543  

Carasso Motors Ltd.

     6,172        27,592  

Delek Automotive Systems Ltd.

     4,330        33,091  

Delek Group Ltd.

     1        82  

FIBI Holdings Ltd.

     753        30,335  

First International Bank of Israel Ltd.

     1,425        55,373  

Gav-Yam Lands Corp. Ltd.

     9,154        64,407  

Harel Insurance Investments & Financial Services Ltd.

     5,135        39,907  

ICL Group Ltd.

     51,504        278,966  

Israel Discount Bank Ltd., Class A

     15,733        78,009  

Matrix IT Ltd.

     1,688        34,356  

Mivne Real Estate KD Ltd.

     13,859        33,690  

Mizrahi Tefahot Bank Ltd.

     4,872        161,877  

Phoenix Holdings Ltd.

     5,964        59,866  

Plus500 Ltd.

     3,036        56,546  

Strauss Group Ltd.*

     1,185        26,645  
     

 

 

 
Total Israel

 

     1,693,379  
Italy – 2.5%

 

A2A SpA(a)

     81,306      148,403  

ACEA SpA

     3,563        46,569  

Alerion Cleanpower SpA

     802        25,024  

Anima Holding SpA(b)

     14,045        52,221  

Assicurazioni Generali SpA

     32,427        658,736  

Azimut Holding SpA

     4,105        88,474  

Banca Generali SpA

     2,864        98,426  

Banca Mediolanum SpA

     20,108        181,689  

Banca Popolare di Sondrio SpA

     14,425        60,055  

Banco BPM SpA

     34,268        158,892  

Brembo SpA

     3,264        48,359  

Buzzi SpA(a)

     1,879        47,027  

Credito Emiliano SpA

     8,590        66,820  

Cromwell European Real Estate Investment Trust

     34,200        58,207  

Davide Campari-Milano NV

     4,255        58,910  

De’ Longhi SpA

     2,876        62,817  

DiaSorin SpA

     255        26,541  

Eni SpA

     86,566        1,244,955  

ERG SpA

     2,553        75,148  

Esprinet SpA

     1,780        10,797  

Ferrari NV

     637        208,143  

FinecoBank Banca Fineco SpA

     6,502        87,359  

Hera SpA

     28,087        83,410  

Infrastrutture Wireless Italiane SpA(b)

     10,837        142,824  

Italgas SpA(a)

     15,938        94,332  

Leonardo SpA

     4,556        51,669  

Mediobanca Banca di Credito Finanziario SpA

     23,870        285,422  

Moncler SpA

     1,564        108,079  

Piaggio & C. SpA

     13,159        54,555  

Poste Italiane SpA(a)(b)

     28,263        305,759  

Prysmian SpA(a)

     1,628        67,991  

Recordati Industria Chimica e Farmaceutica SpA

     2,241        106,966  

Snam SpA

     93,556        488,607  

Terna—Rete Elettrica Nazionale

     35,942        306,095  

Unieuro SpA(a)(b)

     2,363        25,522  

Unipol Gruppo SpA

     15,459        82,490  

UnipolSai Assicurazioni SpA(a)

     88,470        219,102  
     

 

 

 
Total Italy

 

     5,936,395  
Japan – 20.3%

 

ABC-Mart, Inc.

     700        37,810  

ADEKA Corp.

     8,800        166,551  

Advantest Corp.

     1,200        158,993  

Aeon Co. Ltd.

     3,500        71,242  

Aeon Mall Co. Ltd.(a)

     5,000        64,379  

AGC, Inc.(a)

     3,400        121,453  

Aica Kogyo Co. Ltd.(a)

     2,200        48,053  

Air Water, Inc.

     3,000        41,378  

Aisin Corp.

     3,700        113,328  

Ajinomoto Co., Inc.

     2,900        114,848  

Akita Bank Ltd.

     1,500        17,342