Prospectus | ||
WisdomTree Currency
Strategy, Fixed Income and Alternative ETFs | ||
THE U.S. SECURITIES AND
EXCHANGE COMMISSION (“SEC”) AND THE COMMODITY FUTURES TRADING COMMISSION HAVE NOT APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. |
|
WisdomTree Currency
Strategy, Fixed Income and Alternative ETFs*
WisdomTree Currency
Strategy ETFs Bloomberg U.S. Dollar
Bullish Fund (
Chinese Yuan Strategy Fund
(
Emerging Currency Strategy
Fund (
WisdomTree Fixed Income
ETFs Emerging Markets Corporate
Bond Fund (
Emerging Markets Local
Debt Fund (
Floating Rate Treasury
Fund (
Interest Rate Hedged High
Yield Bond Fund (
Interest Rate Hedged U.S.
Aggregate Bond Fund (
Mortgage Plus Bond Fund
(
Yield Enhanced U.S.
Aggregate Bond Fund (
Yield Enhanced U.S.
Short-Term Aggregate Bond Fund (
WisdomTree Alternative
ETFs CBOE S&P 500 PutWrite
Strategy Fund (
Enhanced Commodity
Strategy Fund (
Managed Futures Strategy
Fund (
Alternative Income Fund
(
* Principal U.S. Listing
Exchange: NYSE Arca, Inc. (except AGZD, HYZD and EMCB are listed on NASDAQ
and SHAG and HYIN are listed on Cboe BZX Exchange, Inc.)
|
Table of
Contents |
WisdomTree Currency
Strategy ETFs |
|
|
98 | |
Fund
Summaries |
|
|
116 | |
2 |
|
117 | ||
8 |
|
118 | ||
14 |
|
118 | ||
WisdomTree Fixed Income
ETFs |
|
|
119 | |
Fund
Summaries |
|
|
120 | |
20 |
|
124 | ||
27 |
|
124 | ||
33 |
|
124 | ||
38 |
|
124 | ||
45 |
|
124 | ||
52 |
|
125 | ||
WisdomTree
Yield Enhanced U.S. Aggregate Bond Fund |
59 |
|
125 | |
WisdomTree
Yield Enhanced U.S. Short-Term Aggregate Bond Fund |
65 |
|
125 | |
WisdomTree Alternative
ETFs |
|
|
126 | |
Fund
Summaries |
|
|
126 | |
71 |
|
128 | ||
76 |
|
128 | ||
81 |
|
128 | ||
88 |
|
128 | ||
94 |
|
130 | ||
94 |
|
131 | ||
94 |
|
131 | ||
95 |
|
131 | ||
98 |
|
133 |
|
Shareholder Fees
|
|
Annual Fund Operating
Expenses |
|
Management
Fees |
|
Distribution
and/or Service (12b-1) Fees |
|
Other
Expenses |
|
Total Annual Fund
Operating Expenses |
|
1
Year |
3
Years |
5
Years |
10
Years | |
$
|
$
|
$
|
$
|
2 Prospectus
|
■ |
Currency Exchange Rate
Risk. |
■ |
Investment
Risk. |
■ |
Market
Risk. |
■ |
Shares of the Fund May
Trade at Prices Other Than NAV. |
WisdomTree
Trust
Prospectus
3 |
■ |
Active Management Risk.
|
■ |
Capital Controls and
Sanctions Risk. |
■ |
Cash Redemption
Risk. |
■ |
Counterparty and Issuer
Credit Risk. |
■ |
Cybersecurity Risk.
i.e., |
■ |
Derivatives
Risk. |
■ |
Forward Currency Contracts
Risk. |
■ |
Emerging Markets
Risk. |
4 Prospectus
|
■ |
Foreign Securities
Risk |
■ |
Geographic Investment
Risk. |
■ |
Geopolitical
Risk. |
■ |
Interest Rate
Risk. |
■ |
Issuer-Specific
Risk. |
■ |
Non-Diversification
Risk. |
■ |
Portfolio Turnover
Risk. |
■ |
Repurchase Agreement Risk.
|
■ |
Sovereign Debt
Risk. |
WisdomTree
Trust
Prospectus
5 |
Return |
Quarter/Year | |
|
|
|
|
( |
|
WisdomTree Bloomberg U.S.
Dollar Bullish Fund |
1
Year |
5
Years |
Since
Inception |
Return
Before Taxes Based on NAV |
( |
( |
|
Return
After Taxes on Distributions |
( |
( |
|
Return
After Taxes on Distributions and Sale of Fund Shares |
( |
( |
|
Bloomberg
Dollar Total Return Index (Reflects no deduction for fees, expenses or taxes) |
( |
( |
|
Bloomberg
Dollar Spot Index (Reflects no deduction for fees, expenses or taxes) |
( |
( |
|
6 Prospectus
|
WisdomTree
Trust
Prospectus
7 |
Shareholder Fees
|
|
Annual Fund Operating
Expenses |
|
Management
Fees |
|
Distribution
and/or Service (12b-1) Fees |
|
Other
Expenses |
|
Total Annual Fund
Operating Expenses |
|
1
Year |
3
Years |
5
Years |
10
Years | |
$
|
$
|
$
|
$
|
8 Prospectus
|
■ |
Currency Exchange Rate
Risk. |
■ |
Geographic Concentration
in China. closely tied to social, political, and
economic conditions within China and to be more volatile than the
performance of more geographically diversified funds. Although the Chinese
economy has grown rapidly during recent years and the Chinese government
has implemented significant economic reforms to liberalize trade policy,
promote foreign investment, and reduce government control of the economy,
there can be no guarantee that economic growth or these reforms will
continue. The Chinese economy may also experience slower growth if global
or domestic demand for Chinese goods decreases significantly and/or key
trading partners apply trade tariffs or implement other protectionist
measures. The Chinese economy is also susceptible to rising rates of
inflation, economic recession, market inefficiency, volatility, and
pricing anomalies that may be connected to governmental influence, a lack
of publicly-available information and/or political and social instability.
The government of China maintains strict currency controls in order to
achieve economic, trade and political objectives and regularly intervenes
in the currency market. The Chinese government also plays a major role in
the country’s economic policies regarding foreign investments. Foreign
investors are subject to the risk of loss from expropriation or
nationalization of their investment assets and property, governmental
restrictions on foreign investments and the repatriation of capital
invested. The Chinese securities markets are subject to more frequent
trading halts and low trading volume, resulting in substantially less
liquidity and greater price volatility. In addition, the Chinese
government may enact laws and regulations that interfere with the
operations of Chinese companies listed abroad, including U.S.-listed
Chinese companies. These and other factors could have a negative impact on
the Fund’s performance and increase the volatility of an investment in the
Fund. |
■ |
Investment
Risk. |
■ |
Market
Risk. |
■ |
Shares of the Fund May
Trade at Prices Other Than NAV. |
WisdomTree
Trust
Prospectus
9 |
premiums
and discounts greater than those of domestic ETFs. Additionally, in
stressed market conditions, the market for the Fund’s shares may become
less liquid in response to deteriorating liquidity in the markets for the
Fund’s underlying portfolio holdings. | |
■ |
Active Management Risk.
|
■ |
Capital Controls and
Sanctions Risk. |
■ |
Cash Redemption
Risk. |
■ |
Counterparty and Issuer
Credit Risk. |
■ |
Cybersecurity Risk.
i.e., |
■ |
Derivatives
Risk. |
■ |
Forward Currency Contracts
Risk. | |
■ |
Swaps Risk. payment
for a fixed interest payment. A total return swap is an agreement
between two parties in which one party agrees to
make |
10 Prospectus
|
payments
of the total return of a reference asset in
return
for payments equal to a rate of interest on another reference asset.
The risks of swaps include but are not limited to the potential to
increase or decrease the overall volatility of the Fund's investments and
its share price. |
■ |
Emerging Markets
Risk. |
■ |
Foreign Securities
Risk |
■ |
Geopolitical
Risk. |
■ |
Interest Rate
Risk. |
■ |
Issuer-Specific
Risk. |
■ |
Non-Diversification
Risk. |
■ |
Offshore Investor
Risk. |
■ |
Repurchase Agreement Risk.
|
■ |
Sovereign Debt
Risk. |
WisdomTree
Trust
Prospectus
11 |
or
unwilling to make interest payments and/or repay the principal owed. In
such instance, the Fund may have limited recourse against the issuing
government or agency. In the past, governments of emerging market
countries have refused to honor their payment obligations on issued
bonds. |
Return |
Quarter/Year | |
|
|
|
|
( |
|
WisdomTree Chinese Yuan
Strategy Fund |
1
Year |
5
Years |
10
Years |
Return
Before Taxes Based on NAV |
|
|
|
Return
After Taxes on Distributions |
|
|
|
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
|
JP
Morgan Emerging Local Markets Index Plus (ELMI+) China (Reflects no
deduction for fees, expenses or taxes) |
|
|
|
12 Prospectus
|
WisdomTree
Trust
Prospectus
13 |
Shareholder Fees
|
|
Annual Fund Operating
Expenses |
|
Management
Fees |
|
Distribution
and/or Service (12b-1) Fees |
|
Other
Expenses |
|
Total Annual Fund
Operating Expenses |
|
1
Year |
3
Years |
5
Years |
10
Years | |
$
|
$
|
$
|
$
|
14 Prospectus
|
■ |
Currency Exchange Rate
Risk. |
■ |
Emerging Markets
Risk. |
■ |
Investment
Risk. |
■ |
Market
Risk. |
WisdomTree
Trust
Prospectus
15 |
rates
decline, some economies, including those of countries with limited access
to COVID-19 vaccines, have struggled to control the spread of the virus
and re-open their economies. As a result, it remains unclear how COVID-19
will impact global markets in the future. | |
■ |
Shares of the Fund May
Trade at Prices Other Than NAV. |
■ |
Active Management Risk.
|
■ |
Capital Controls and
Sanctions Risk. |
■ |
Cash Redemption
Risk. |
■ |
Counterparty and Issuer
Credit Risk. |
■ |
Cybersecurity Risk.
i.e., |
■ |
Derivatives
Risk. |
■ |
Forward Currency Contracts
Risk. |
16 Prospectus
|
end
of the agreement and trade over-the-counter. Risks related to forward
currency contracts include, but are not limited to: (1) the success of the
adviser’s and sub-adviser’s ability to predict movements in the prices of
individual currencies, fluctuations in markets and movements in interest
rates; (2) an imperfect or no correlation between the changes in market
value of the currencies and the prices of such contracts; and (3) the risk
that the counterparty will default on its obligations. | ||
■ |
Swaps Risk. |
■ |
Foreign Securities
Risk |
■ |
Geographic Investment
Risk. |
■ |
Geopolitical
Risk. |
■ |
Interest Rate
Risk. |
■ |
Issuer-Specific
Risk. |
■ |
Non-Diversification
Risk. |
■ |
Repurchase Agreement Risk.
|
■ |
Sovereign Debt
Risk. |
WisdomTree
Trust
Prospectus
17 |
Return |
Quarter/Year | |
|
|
|
|
( |
|
WisdomTree Emerging
Currency Strategy Fund |
1
Year |
5
Years |
10
Years |
Return
Before Taxes Based on NAV |
|
|
( |
Return
After Taxes on Distributions |
( |
|
( |
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
( |
JP
Morgan Emerging Local Markets Index Plus (ELMI+) (Reflects no deduction
for fees, expenses or taxes) |
|
|
|
18 Prospectus
|
WisdomTree
Trust
Prospectus
19 |
Shareholder Fees
|
|
Annual Fund Operating
Expenses |
|
Management
Fees |
|
Distribution
and/or Service (12b-1) Fees |
|
Other
Expenses |
|
Total Annual Fund
Operating Expenses |
|
1
Year |
3
Years |
5
Years |
10
Years | |
$
|
$
|
$
|
$
|
20 Prospectus
|
■ |
Emerging Markets
Risk. |
■ |
Interest Rate
Risk. |
WisdomTree
Trust
Prospectus
21 |
■ |
Investment
Risk. |
■ |
Market
Risk. |
■ |
Shares of the Fund May
Trade at Prices Other Than NAV. |
■ |
Active Management Risk.
|
■ |
Capital Controls and
Sanctions Risk. |
■ |
Cash Redemption
Risk. |
■ |
Counterparty and Issuer
Credit Risk. |
■ |
Currency Exchange Rate
Risk. |
22 Prospectus
|
■ |
Cybersecurity Risk.
i.e., |
■ |
Derivatives
Risk. |
■ |
Forward Currency Contracts
Risk. | |
■ |
Swaps Risk. |
■ |
Energy Sector
Risk. |
■ |
Financials Sector
Risk. |
■ |
Foreign Securities
Risk |
■ |
Geographic Investment
Risk. |
■ |
Geopolitical
Risk. |
WisdomTree
Trust
Prospectus
23 |
public
health issues and/or systemic market dislocations (including due to events
outside of such countries or regions) that have led, and in the future may
lead, to increased short-term market volatility and may have adverse
long-term effects on the U.S. and world economies and markets generally,
each of which may negatively impact the Fund’s investments. | |
■ |
High Yield Securities
Risk. |
■ |
Industrials Sector
Risk. |
■ |
Issuer-Specific
Risk. |
■ |
Non-Diversification
Risk. |
■ |
Portfolio Turnover
Risk. |
■ |
Repurchase Agreement Risk.
|
■ |
Sovereign Debt
Risk. |
24 Prospectus
|
Return |
Quarter/Year | |
|
|
|
|
( |
|
WisdomTree Emerging
Markets Corporate Bond Fund |
1
Year |
5
Years |
Since
Inception |
Return
Before Taxes Based on NAV |
|
|
|
Return
After Taxes on Distributions |
|
|
|
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
|
JP
Morgan CEMBI Diversified Index (Reflects no deduction for fees, expenses
or taxes) |
|
|
|
WisdomTree
Trust
Prospectus
25 |
26 Prospectus
|
Shareholder Fees
|
|
Annual Fund Operating
Expenses |
|
Management
Fees |
|
Distribution
and/or Service (12b-1) Fees |
|
Other
Expenses |
|
Total Annual Fund
Operating Expenses |
|
1
Year |
3
Years |
5
Years |
10
Years | |
$
|
$
|
$
|
$
|
WisdomTree
Trust
Prospectus
27 |
■ |
Emerging Markets
Risk. |
28 Prospectus
|
■ |
Interest Rate
Risk. |
■ |
Investment
Risk. |
■ |
Market
Risk. |
■ |
Shares of the Fund May
Trade at Prices Other Than NAV. |
■ |
Active Management Risk.
|
■ |
Capital Controls and
Sanctions Risk. |
■ |
Cash Redemption
Risk. |
■ |
Counterparty and Issuer
Credit Risk. |
WisdomTree
Trust
Prospectus
29 |
■ |
Currency Exchange Rate
Risk. |
■ |
Cybersecurity Risk.
i.e., |
■ |
Derivatives
Risk. |
■ |
Forward Currency Contracts
Risk. | |
■ |
Swaps Risk. |
■ |
Foreign Securities
Risk |
■ |
Geographic Investment
Risk. |
■ |
Geopolitical
Risk. |
■ |
High Yield Securities
Risk. |
30 Prospectus
|
and
outlook and to real or perceived adverse economic and competitive industry
conditions. High yield securities may be regarded as predominantly
speculative with respect to the issuer’s continuing ability to meet
principal and interest payments. | |
■ |
Issuer-Specific
Risk. |
■ |
Non-Diversification
Risk. |
■ |
Repurchase Agreement Risk.
|
■ |
Sovereign Debt
Risk. |
Return |
Quarter/Year | |
|
|
|
|
( |
|
WisdomTree
Trust
Prospectus
31 |
WisdomTree Emerging
Markets Local Debt Fund |
1
Year |
5
Years |
10
Years |
Return
Before Taxes Based on NAV |
|
|
|
Return
After Taxes on Distributions |
|
|
( |
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
|
JP
Morgan GBI-EM Global Diversified Index Unhedged USD (Reflects no deduction
for fees, expenses or taxes) |
|
|
|
32 Prospectus
|
Shareholder Fees
|
|
Annual Fund Operating
Expenses |
|
Management
Fees |
|
Distribution
and/or Service (12b-1) Fees |
|
Other
Expenses |
|
Total Annual Fund
Operating Expenses |
|
1
Year |
3
Years |
5
Years |
10
Years | |
$
|
$
|
$
|
$
|
WisdomTree
Trust
Prospectus
33 |
■ |
Floating Rate Notes Risk.
|
■ |
Investment
Risk. |
■ |
Market
Risk. |
■ |
Shares of the Fund May
Trade at Prices Other Than NAV. |
■ |
Cash Redemption
Risk. |
■ |
Cybersecurity Risk.
|
34 Prospectus |
to
purchase and redeem shares directly from the Fund (
i.e., | |
■ |
Index and Data
Risk. |
■ |
Interest Rate
Risk. |
■ |
Investment Style
Risk. |
■ |
Issuer Credit
Risk. |
■ |
Issuer-Specific
Risk. |
■ |
Non-Correlation
Risk. |
■ |
Non-Diversification
Risk. |
■ |
Portfolio Turnover
Risk. |
■ |
Risk of Limited Issuance.
|
WisdomTree
Trust
Prospectus
35 |
Return |
Quarter/Year | |
|
|
|
|
( |
|
WisdomTree Floating Rate
Treasury Fund |
1
Year |
5
Years |
Since
Inception |
Return
Before Taxes Based on NAV |
|
|
|
Return
After Taxes on Distributions |
|
|
|
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
|
Bloomberg
US Treasury Floating Rate Bond Index (Reflects no deduction for fees, expenses or taxes) |
|
|
|
36 Prospectus |
WisdomTree
Trust
Prospectus
37 |
Shareholder Fees
|
|
Annual Fund Operating
Expenses |
|
Management
Fees |
|
Distribution
and/or Service (12b-1) Fees |
|
Other
Expenses |
|
Total Annual Fund
Operating Expenses |
|
1
Year |
3
Years |
5
Years |
10
Years | |
$
|
$
|
$
|
$
|
38 Prospectus |
■ |
Hedging
Risk. i.e. |
WisdomTree
Trust
Prospectus
39 |
profile
between the long and short exposures of the Index and Fund could also
evolve significantly between monthly rebalancing. This could lead to
temporary dislocations between the Fund’s intended and actual sensitivity
to interest rates, which could impact performance. There may also be
significant differences between the bond markets and U.S. Treasury markets
(including futures markets for U.S. Treasuries) that could result in the
Fund’s short positions performing ineffectively, exacerbating losses or
causing greater tracking error. In addition, when interest rates fall, an
unhedged investment in the same long portfolio of bonds will outperform
the Fund. | |
■ |
High Yield Securities
Risk. |
■ |
Investment
Risk. |
■ |
Market
Risk. |
■ |
Shares of the Fund May
Trade at Prices Other Than NAV. |
■ |
Cash Redemption
Risk. |
■ |
Counterparty and Issuer
Credit Risk. |
■ |
Cybersecurity Risk.
|
40 Prospectus |
to
purchase and redeem shares directly from the Fund (
i.e., | |
■ |
Derivatives
Risk. |
■ |
Geopolitical
Risk. |
■ |
Index and Data
Risk. |
■ |
Interest Rate
Risk. |
■ |
Investment Style
Risk. |
■ |
Issuer-Specific
Risk. |
■ |
Non-Correlation
Risk. |
■ |
Non-Diversification
Risk. |
■ |
Portfolio Turnover
Risk. |
■ |
Short Sales
Risk. |
WisdomTree
Trust
Prospectus
41 |
value
of the security sold short and is potentially unlimited unlike the risk of
loss on a long position, which is limited to the amount paid for the
investment plus transaction costs. Therefore, short sales involve the risk
that losses may be exaggerated, potentially losing more money than the
actual cost of the investment. Also, there is the risk that the third
party to the short sale may fail to honor its contract terms, causing a
loss to the Fund. Further, in times of unusual or adverse economic, market
or political conditions, the Fund may not be able to fully or partially
implement its short selling strategy. | |
■ |
U.S. Treasury Exposure
Risk. |
■ |
Yield Curve Risk.
|
Return |
Quarter/Year | |
|
|
|
|
( |
|
42 Prospectus |
WisdomTree Interest Rate
Hedged High Yield Bond Fund* |
1
Year |
5
Years |
Since
Inception |
Return
Before Taxes Based on NAV |
( |
|
|
Return
After Taxes on Distributions |
( |
|
|
Return
After Taxes on Distributions and Sale of Fund Shares |
( |
|
|
ICE
BofA Merrill Lynch 0-5 Year U.S. High Yield Constrained, Zero Duration Index/WisdomTree U.S. High Yield Corporate Bond, Zero Duration Spliced Index (Reflects no deduction for fees, expenses or taxes) |
|
|
|
* |
The
Fund’s objective changed effective June 1, 2020. Prior to that date, the
Fund sought to track the price and yield performance, before fees and
expenses, of the ICE BofA Merrill Lynch 0-5 Year U.S. High Yield
Constrained, Zero Duration Index. As of June 1, 2020, the Fund’s objective
seeks to track the price and yield performance, before fees and expenses,
of the WisdomTree U.S. High Yield Corporate Bond, Zero Duration
Index. |
WisdomTree
Trust
Prospectus
43 |
44 Prospectus |
Shareholder Fees
|
|
Annual Fund Operating
Expenses |
|
Management
Fees |
|
Distribution
and/or Service (12b-1) Fees |
|
Other
Expenses |
|
Total Annual Fund
Operating Expenses |
|
1
Year |
3
Years |
5
Years |
10
Years | |
$
|
$
|
$
|
$
|
WisdomTree
Trust
Prospectus
45 |
■ |
Hedging
Risk. i.e. |
46 Prospectus |
■ |
Investment
Risk. |
■ |
Market
Risk. |
■ |
Shares of the Fund May
Trade at Prices Other Than NAV. |
■ |
Cash Redemption
Risk. |
■ |
Counterparty and Issuer
Credit Risk. |
■ |
Cybersecurity Risk.
i.e., |
■ |
Derivatives
Risk. |
■ |
Futures Contracts
Risk. |
WisdomTree
Trust
Prospectus
47 |
(2)
an imperfect or no correlation between the changes in market value of the
currencies or securities and the prices of futures contracts; and (3)
there is no guarantee that an active market will exist for the contracts
at any particular time. |
■ |
Geopolitical
Risk. |
■ |
Index and Data
Risk. |
■ |
Interest Rate
Risk. |
■ |
Investment Style
Risk. |
■ |
Issuer-Specific
Risk. |
■ |
Mortgage- and Asset-Backed
Securities Risk. |
■ |
Non-Correlation
Risk. |
■ |
Non-Diversification
Risk. |
■ |
Portfolio Turnover
Risk. |
■ |
Short Sales
Risk. |
48 Prospectus |
value
of the security sold short and is potentially unlimited unlike the risk of
loss on a long position, which is limited to the amount paid for the
investment plus transaction costs. Therefore, short sales involve the risk
that losses may be exaggerated, potentially losing more money than the
actual cost of the investment. Also, there is the risk that the third
party to the short sale may fail to honor its contract terms, causing a
loss to the Fund. Further, in times of unusual or adverse economic, market
or political conditions, the Fund may not be able to fully or partially
implement its short selling strategy. | |
■ |
TBA Transactions
Risk. |
■ |
U.S. Treasury Exposure
Risk. |
■ |
Yield Curve Risk.
|
WisdomTree
Trust
Prospectus
49 |
Return |
Quarter/Year | |
|
|
|
|
( |
|
WisdomTree Interest Rate
Hedged U.S. Aggregate Bond Fund |
1
Year |
5
Years |
Since
Inception |
Return
Before Taxes Based on NAV |
|
|
|
Return
After Taxes on Distributions |
( |
|
|
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
|
Bloomberg
Rate Hedged U.S. Aggregate Bond Index, Zero Duration (Reflects no deduction for fees, expenses or taxes) |
|
|
|
50 Prospectus |
WisdomTree
Trust
Prospectus
51 |
Shareholder Fees
|
|
Annual Fund Operating
Expenses |
|
Management
Fees |
|
Distribution
and/or Service (12b-1) Fees |
|
Other
Expenses |
|
Total Annual Fund
Operating Expenses |
|
1
Year |
3
Years |
5
Years |
10
Years | |
$
|
$
|
$
|
$
|
52 Prospectus |
■ |
Agency Mortgage-Backed
Securities Risk. |
■ |
Investment
Risk. |
■ |
Market
Risk. |
WisdomTree
Trust
Prospectus
53 |
disease
caused by a novel coronavirus (COVID-19) has spread globally for over a
year, resulting in a global pandemic and major disruption to economies and
markets around the world, including the United States. During this time,
financial markets have experienced extreme volatility and severe losses,
and trading in many instruments has been disrupted or suspended. Liquidity
for many instruments has been greatly reduced for periods of time.
Although many global economies have begun to re-open as infection and
hospitalization rates decline, some economies, including those of
countries with limited access to COVID-19 vaccines, have struggled to
control the spread of the virus and re-open their economies. As a result,
it remains unclear how COVID-19 will impact global markets in the
future. | |
■ |
Shares of the Fund May
Trade at Prices Other Than NAV. |
■ |
Active Management Risk.
|
■ |
Cash Redemption
Risk. |
■ |
Counterparty and Issuer
Credit Risk. |
■ |
Cybersecurity Risk.
i.e., |
■ |
Derivatives
Risk. |
■ |
Futures Contracts
Risk. |
■ |
Geopolitical
Risk. |
54 Prospectus |
market
dislocations (including due to events outside of the United States) that
have led, and in the future may lead, to increased short-term market
volatility and may have adverse long-term effects on the U.S. and world
economies and markets generally, each of which may negatively impact the
Fund’s investments. | |
■ |
High Yield Securities
Risk. |
■ |
Interest Rate
Risk. |
■ |
Issuer-Specific
Risk. |
■ |
Liquidity
Risk. |
■ |
Non-Agency Mortgage-Backed
Securities Risk. |
■ |
Non-Diversification
Risk. |
■ |
Portfolio Turnover
Risk. |
■ |
Prepayment Risk and
Extension Risk. |
■ |
Repurchase Agreement Risk.
|
WisdomTree
Trust
Prospectus
55 |
the
Fund may encounter delay and incur costs before being able to sell the
security. Such a delay may involve loss of interest or a decline in price
of the security, which could result in a loss. In addition, if the Fund is
characterized by a court as an unsecured creditor, it would be at risk of
losing some or all of the principal and interest involved in the
transaction. | |
■ |
Securitized Credit
Securities Risk. |
■ |
TBA Transactions
Risk. |
Return |
Quarter/
Ye ar | |
|
|
|
|
|
|
56 Prospectus |
WisdomTree Mortgage Plus
Bond Fund |
1
Year |
Since
Inception |
Return
Before Taxes Based on NAV |
|
|
Return
After Taxes on Distributions |
|
|
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
Bloomberg
U.S. Securitized MBS/ABS/CMBS Index (Reflects no deduction for fees,
expenses or taxes) |
|
|
WisdomTree
Trust
Prospectus
57 |
58 Prospectus
|
Shareholder Fees
|
|
Annual Fund Operating
Expenses |
|
Management
Fees |
|
Distribution
and/or Service (12b-1) Fees |
|
Other
Expenses |
|
Total Annual Fund
Operating Expenses |
|
1
Year |
3
Years |
5
Years |
10
Years | |
$
|
$
|
$
|
$
|
WisdomTree
Trust
Prospectus
59 |
60 Prospectus
|
■ |
Interest Rate
Risk. |
■ |
Investment
Risk. |
■ |
Market
Risk. |
■ |
Shares of the Fund May
Trade at Prices Other Than NAV. |
■ |
Cash Redemption
Risk. |
■ |
Cybersecurity Risk.
i.e., |
■ |
Index and Data
Risk. Index may
occur from time to time and may not be identified and/or corrected by the
Index |
WisdomTree
Trust
Prospectus
61 |
Provider,
Index calculation agent or other applicable party for a period of time or
at all, which may have an adverse impact on the Fund and its shareholders.
The potential risk of continuing error may be particularly heightened in
the case of the Index, which is generally not used as a benchmark by other
funds or managers. | |
■ |
Investment Style
Risk. |
■ |
Issuer Credit
Risk. |
■ |
Issuer-Specific
Risk. |
■ |
Mortgage- and Asset-Backed
Securities Risk. |
■ |
Non-Correlation
Risk. |
■ |
Non-Diversification
Risk. |
■ |
Portfolio Turnover
Risk. |
■ |
TBA Transactions
Risk. can be no
assurance that a security purchased on a forward commitment basis will
ultimately be issued or delivered by the counterparty. During the
settlement period, the Fund will still bear the risk of any decline in the
value of the security to be delivered. Because TBA Transactions do not
require the purchase and sale of identical securities, the characteristics
of the security delivered to the Fund may be less favorable than the
security delivered to the dealer. If the counterparty to a transaction
fails to deliver the securities, the Fund could suffer a loss. At the time
of its acquisition, a TBA security may be valued at less than the purchase
price. |
62 Prospectus
|
Return |
Quarter/
Ye ar | |
|
|
|
|
( |
|
WisdomTree Yield Enhanced
U.S. Aggregate Bond Fund |
1
Year |
5
Years |
Since
Inception |
Return
Before Taxes Based on NAV |
|
|
|
Return
After Taxes on Distributions |
|
|
|
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
|
Bloomberg
US Aggregate Enhanced Yield Index (Reflects no deduction for fees, expenses or taxes) |
|
|
|
Bloomberg
US Aggregate Index (Reflects no deduction for fees, expenses or
taxes) |
|
|
|
WisdomTree
Trust
Prospectus
63 |
64 Prospectus
|
Shareholder Fees
|
|
Annual Fund Operating
Expenses |
|
Management
Fees |
|
Distribution
and/or Service (12b-1) Fees |
|
Other
Expenses |
|
Total Annual Fund
Operating Expenses |
|
1
Year |
3
Years |
5
Years |
10
Years | |
$
|
$
|
$
|
$
|
WisdomTree
Trust
Prospectus
65 |
■ |
Interest Rate
Risk. |
■ |
Investment
Risk. |
■ |
Market
Risk. |
66 Prospectus
|
|
periods of
time. Although many global economies have begun to re-open as infection
and hospitalization rates decline, some economies, including those of
countries with limited access to COVID-19 vaccines, have struggled to
control the spread of the virus and re-open their economies. As a result,
it remains unclear how COVID-19 will impact global markets in the
future. |
|
|
■ |
Shares of the Fund May
Trade at Prices Other Than NAV. As with all
ETFs, Fund shares may be bought and sold in the secondary market at market
prices. The trading prices of the Fund’s shares in the secondary market
generally differ from the Fund’s daily NAV and there may be times when the
market price of the shares is more than the NAV (premium) or less than the
NAV (discount). This risk is heightened in times of market volatility or
periods of steep market declines. |
|
|
■ |
Cash Redemption
Risk. The Fund
generally redeems shares for cash or otherwise includes cash as part of
its redemption proceeds. The Fund may be required to sell or unwind
portfolio investments in order to obtain the cash needed to distribute
redemption proceeds. This may cause the Fund to recognize a capital gain
that it might not have recognized if it had made a redemption in-kind. As
a result, the Fund may pay out higher annual capital gain distributions
than if the in-kind redemption process was used. |
|
|
■ |
Cybersecurity Risk.
The Fund and
its service providers may be susceptible to operational and information
security risks resulting from a breach in cybersecurity, including
cyber-attacks. A breach in cybersecurity, intentional or unintentional,
may adversely impact the Fund in many ways, including, but not limited to,
disruption of the Fund’s operational capacity, loss of proprietary
information, theft or corruption of data, denial-of-service attacks on
websites or network resources, and the unauthorized release of
confidential information. Cyber-attacks affecting the Fund’s third-party
service providers, market makers, institutional investors authorized to
purchase and redeem shares directly from the Fund (
i.e., Authorized
Participants), or the issuers of securities in which the Fund invests may
subject the Fund to many of the same risks associated with direct
cybersecurity breaches. |
|
|
■ |
Index and Data
Risk. The Fund is
not “actively” managed and seeks to track the price and yield performance,
before fees and expenses, of the Index. The Index Provider has the right
to make adjustments to the Index or to cease making the Index available
without regard to the particular interests of the Fund or its
shareholders. If the computers or other facilities of the Index Provider,
Index calculation agent, data providers and/or relevant stock exchange
malfunction for any reason, calculation and dissemination of Index values
may be delayed and trading in Fund shares may be suspended for a period of
time. Errors in Index data, Index calculations and/or the construction of
the Index may occur from time to time and may not be identified and/or
corrected by the Index Provider, Index calculation agent or other
applicable party for a period of time or at all, which may have an adverse
impact on the Fund and its shareholders. The potential risk of continuing
error may be particularly heightened in the case of the Index, which is
generally not used as a benchmark by other funds or
managers. |
|
|
■ |
Investment Style
Risk. The Fund
invests in the securities included in, or representative of, the Index
regardless of their investment merit. The Fund does not attempt to
outperform the Index or take defensive positions in declining markets. As
a result, the Fund’s performance may be adversely affected by a general
decline in the market segments relating to the Index. |
|
|
■ |
Issuer Credit
Risk. The financial
condition of an issuer of a debt security or other instrument may cause
such issuer to default, become unable to pay interest or principal due or
otherwise fail to honor its obligations or cause such issuer to be
perceived (whether by market participants, rating agencies, pricing
services or otherwise) as being in such situations. The value of an
investment in the Fund may change quickly and without warning in response
to issuer defaults, changes in the credit ratings of the Fund’s portfolio
investments and/or perceptions related thereto. |
|
|
■ |
Issuer-Specific
Risk. Issuer-specific
events, including changes in the actual or perceived financial condition
of an issuer, can have a negative impact on the value of the
Fund. |
|
|
■ |
Mortgage- and Asset-Backed
Securities Risk. Movements in
interest rates (both increases and decreases) may quickly and
significantly reduce the value of certain types of mortgage- and
asset-backed securities. Mortgage- and asset-backed securities can also be
subject to the risk of default on the underlying mortgages or other
assets. Mortgage- and asset-backed securities are subject to fluctuations
in yield due to prepayment rates that may be faster or slower than
expected. Default or bankruptcy of a counterparty to a mortgage-related
transaction would expose the Fund to possible loss. |
|
|
■ |
Non-Correlation
Risk. As with all
index funds, the performance of the Fund and its Index may differ from
each other for a variety of reasons. |
WisdomTree
Trust
Prospectus
67 |
■ |
Non-Diversification Risk.
|
■ |
Portfolio Turnover Risk.
|
■ |
TBA Transactions Risk.
|
Return |
Qu arter/Y
e ar | |
|
|
|
|
( |
|
68 Prospectus
|
WisdomTree Yield Enhanced
U.S. Short-Term Aggregate Bond Fund |
1
Year |
Since
Inception |
Return
Before Taxes Based on NAV |
|
|
Return
After Taxes on Distributions |
|
|
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
Bloomberg
U.S. Short Aggregate Enhanced Yield Index (Reflects no deduction for fees,
expenses or taxes) |
|
|
Bloomberg
U.S. Short Aggregate Composite Index (Reflects no deduction for fees,
expenses or taxes) |
|
|
WisdomTree
Trust
Prospectus
69 |
70 Prospectus
|
Shareholder Fees
|
|
Annual Fund Operating
Expenses |
|
Management
Fees |
|
Distribution
and/or Service (12b-1) Fees |
|
Other
Expenses |
|
Total Annual Fund
Operating Expenses |
|
1
Year |
3
Years |
5
Years |
10
Years | |
$
|
$
|
$
|
$
|
WisdomTree
Trust
Prospectus
71 |
■ |
Put Option
Risk. i.e. |
■ |
Investment
Risk. |
■ |
Market
Risk. |
■ |
Shares of the Fund May
Trade at Prices Other Than NAV. |
■ |
Cash Redemption
Risk. |
■ |
Cybersecurity Risk.
|
72 Prospectus
|
disruption
of the Fund’s operational capacity, loss of proprietary information, theft
or corruption of data, denial-of-service attacks on websites or network
resources, and the unauthorized release of confidential information.
Cyber-attacks affecting the Fund’s third-party service providers, market
makers, institutional investors authorized to purchase and redeem shares
directly from the Fund (
i.e., | |
■ |
Derivatives
Risk. |
■ |
Implied Volatility
Risk. i.e. |
■ |
Index and Data
Risk. |
■ |
Investment Style
Risk. |
■ |
Issuer-Specific
Risk. |
■ |
Non-Correlation
Risk. |
■ |
Non-Diversification
Risk. |
■ |
Portfolio Turnover
Risk. e.g. |
WisdomTree
Trust
Prospectus
73 |
Return |
Quarter/Year | |
|
|
|
|
( |
|
WisdomTree CBOE S&P
500 PutWrite Strategy Fund |
1
Year |
Since
Inception |
Return
Before Taxes Based on NAV |
|
|
Return
After Taxes on Distributions |
|
|
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
CBOE
S&P 500 PutWrite Index (Reflects no deduction for fees, expenses or
taxes) |
|
|
S&P
500 Index (Reflects no deduction for fees, expenses or taxes) |
|
|
74 Prospectus
|
WisdomTree
Trust
Prospectus
75 |
Shareholder Fees
|
|
Annual Fund Operating
Expenses |
|
Management
Fees |
|
Distribution
and/or Service (12b-1) Fees |
|
Other
Expenses |
|
Total Annual Fund
Operating Expenses |
|
1
Year |
3
Years |
5
Years |
10
Years | |
$
|
$
|
$
|
$
|
76 Prospectus
|
■ |
Commodity
Risk. |
■ |
Futures Rolling
Risk |
WisdomTree
Trust
Prospectus
77 |
known
as “backwardation”), which can impact the Fund’s returns. Because of the
frequency with which the Fund expects to roll futures contracts, the
impact of such contango or backwardation may be greater than the impact
would be if the Fund experienced less portfolio turnover. | |
■ |
Investment
Risk. |
■ |
Market
Risk. |
■ |
Shares of the Fund May
Trade at Prices Other Than NAV. |
■ |
Active Management
Risk |
■ |
Cash Redemption
Risk. |
■ |
Counterparty and Issuer
Credit Risk. |
■ |
Cybersecurity Risk.
i.e., |
■ |
Derivatives
Risk. |
78 Prospectus
|
In
addition to the other risks associated with the use of derivatives
described elsewhere in this Prospectus, there are risks associated with
the Fund’s use of futures contracts. With respect to futures contracts,
these risks include but are not limited to: (1) the success of the
adviser’s and sub-adviser’s ability to predict movements in the prices of
individual commodities, fluctuations in markets and movements in interest
rates or prices; (2) an imperfect or no correlation between the changes in
market value of the commodities and the prices of futures contracts; and
(3) no guarantee that an active market will exist for the futures
contracts at any particular time. | |
■ |
Geopolitical
Risk. |
■ |
Interest Rate
Risk. |
■ |
Issuer-Specific
Risk. |
■ |
Liquidity
Risk. |
■ |
Non-Diversification
Risk. |
■ |
Subsidiary Investment
Risk. |
■ |
Tax Risk. |
WisdomTree
Trust
Prospectus
79 |
the
90% test noted above, or may not be able to accurately predict the
non-qualifying income from these investments. Failure to comply with this
restriction would have significant negative tax consequences to Fund
shareholders. |
80 Prospectus
|
Shareholder Fees
|
|
Annual Fund Operating
Expenses |
|
Management
Fees |
|
Distribution
and/or Service (12b-1) Fees |
|
Other
Expenses |
|
Total Annual Fund
Operating Expenses |
1 |
1
Year |
3
Years |
5
Years |
10
Years | |
$
|
$
|
$
|
$
|
WisdomTree
Trust
Prospectus
81 |
■ |
Futures Contracts
Risk. A
futures contract may generally be described as an agreement for the future
sale by one party and the purchase by another of a specified security or
instrument at a specified price and time. The risks of futures contracts
include but are not limited to: (1) the success of the adviser’s and
sub-adviser’s ability to predict movements in the prices of individual
currencies or securities, fluctuations in markets and movements in
interest rates; (2) an imperfect or no correlation between the changes in
market value of the currencies or securities and the prices of futures
contracts; and (3) no guarantee that an active market will exist for the
contracts at any particular
time. |
82 WisdomTree
Trust
Prospectus |
■ |
Commodity
Risk. The
value of commodities and commodity-linked derivative instruments typically
is based upon the price movements of a physical commodity or an economic
variable linked to such price movements. The prices of commodities and
commodity-related investments may fluctuate quickly and dramatically and
may not correlate to price movements in other asset classes. An active
trading market may not exist for certain commodities. Prices of
commodity-linked derivatives instruments have a historically low
correlation with the returns of the stock and bond markets and are subject
to change based on a variety of factors that may not be anticipated. In
addition, bitcoin and bitcoin futures are a relatively new asset class.
They are subject to unique and substantial risks, and historically, have
been subject to significant price volatility. The market for bitcoin
futures is also relatively new and commenced trading on the Chicago
Mercantile Exchange in 2017. As a result, the market for bitcoin futures
may be less developed, and potentially less liquid and more volatile, than
more established futures markets. While the bitcoin futures market has
grown substantially since bitcoin futures commenced trading, there can be
no assurance that this growth will continue. The price of bitcoin could
drop precipitously (including to zero), which would be expected to have a
similar impact on the bitcoin futures price. Each of these factors and
events could have a significant negative impact on the
Fund. |
|
|
■ |
Investment
Risk. As
with all investments, an investment in the Fund is subject to loss,
including the possible loss of the entire principal amount of an
investment, over short or long periods of time. |
|
|
■ |
Market
Risk. The
trading prices of commodities, currencies, equities, fixed income
securities and other instruments fluctuate in response to a variety of
factors, such as economic, financial or political events that impact the
entire market, market segments, or specific issuers. The Fund’s NAV and
market price may fluctuate significantly in response to these and other
factors. As a result, an investor could lose money over short or long
periods of time. In addition, the respiratory disease caused by a novel
coronavirus (COVID-19) has spread globally for over a year, resulting in a
global pandemic and major disruption to economies and markets around the
world, including the United States. During this time, financial markets
have experienced extreme volatility and severe losses, and trading in many
instruments has been disrupted or suspended. Liquidity for many
instruments has been greatly reduced for periods of time. Although many
global economies have begun to re-open as infection and hospitalization
rates decline, some economies, including those of countries with limited
access to COVID-19 vaccines, have struggled to control the spread of the
virus and re-open their economies. As a result, it remains unclear how
COVID-19 will impact global markets in the future. |
|
|
■ |
Shares of the Fund May
Trade at Prices Other Than NAV. As
with all ETFs, Fund shares may be bought and sold in the secondary market
at market prices. The trading prices of the Fund’s shares in the secondary
market generally differ from the Fund’s daily NAV and there may be times
when the market price of the shares is more than the NAV (premium) or less
than the NAV (discount). This risk is heightened in times of market
volatility or periods of steep market declines. Because securities held by
the Fund trade on, or have exposure to, foreign exchanges that are closed
when the Fund’s primary listing exchange is open, the Fund is likely to
experience premiums and discounts greater than those of domestic ETFs.
Additionally, in stressed market conditions, the market for the Fund’s
shares may become less liquid in response to deteriorating liquidity in
the markets for the Fund’s underlying portfolio
holdings. |
|
|
■ |
Active Management Risk.
The
Fund is actively managed using proprietary investment strategies and
processes. There can be no guarantee that these strategies and processes
will be successful or that the Fund will achieve its investment
objective. |
|
|
■ |
Cash Redemption
Risk. The
Fund generally redeems shares for cash or otherwise includes cash as part
of its redemption proceeds. The Fund may be required to sell or unwind
portfolio investments in order to obtain the cash needed to distribute
redemption proceeds. This may cause the Fund to recognize a capital gain
that it might not have recognized if it had made a redemption in-kind. As
a result, the Fund may pay out higher annual capital gain distributions
than if the in-kind redemption process was used. |
|
|
■ |
Counterparty and Issuer
Credit Risk. As
a result of its financial condition, the issuer of a debt security or
other instrument, or the counterparty to a derivative or other contract,
may default, become unable to pay interest or principal due, or otherwise
fail to honor its obligations or be perceived (whether by market
participants, rating agencies, pricing services or otherwise) as being in
such situations. The value of an investment in the Fund may change quickly
and without warning in response to issuer or counterparty defaults,
changes in the credit ratings of the Fund’s portfolio investments and/or
perceptions related
thereto. |
WisdomTree
Trust
Prospectus 83 |
■ |
Currency Exchange Rate
Risk. Changes
in currency exchange rates and the relative value of non-U.S. currencies
will affect the value of the Fund’s investment and the value of your Fund
shares. Currency exchange rates can be very volatile and can change
quickly and unpredictably. As a result, the value of an investment in the
Fund may also change quickly, unpredictably, and without warning, and you
may lose money. |
|
|
■ |
Cybersecurity Risk.
The
Fund and its service providers may be susceptible to operational and
information security risks resulting from a breach in cybersecurity,
including cyber-attacks. A breach in cybersecurity, intentional or
unintentional, may adversely impact the Fund in many ways, including, but
not limited to, disruption of the Fund’s operational capacity, loss of
proprietary information, theft or corruption of data, denial-of-service
attacks on websites or network resources, and the unauthorized release of
confidential information. Cyber-attacks affecting the Fund’s third-party
service providers, market makers, institutional investors authorized to
purchase and redeem shares directly from the Fund (
i.e., Authorized
Participants), or the issuers of securities in which the Fund invests may
subject the Fund to many of the same risks associated with direct
cybersecurity breaches. |
|
|
■ |
Derivatives
Risk. Derivatives
are financial instruments that derive their performance from an underlying
reference asset, such as a commodity, index, interest rate or inflation
rate. The return on a derivative instrument may not correlate with the
return of its underlying reference asset. Derivatives are subject to a
number of risks described elsewhere in the Fund’s Prospectus, such as
counterparty and issuer credit risk, interest rate risk, market risk and
issuer-specific risk. Derivatives can be volatile and may be less liquid
than other securities. As a result, the value of an investment in the Fund
may change quickly and without warning and you may lose
money. |
|
|
■ |
Foreign Securities
Risk .
Investments in non-U.S. securities involve political, regulatory, and
economic risks that may not be present in U.S. securities. For example,
investments in non-U.S. securities may be subject to risk of loss due to
foreign currency fluctuations, political or economic instability, or
geographic events that adversely impact issuers of foreign securities.
Investments in non-U.S. securities also may be subject to withholding or
other taxes and may be subject to additional trading, settlement,
custodial, and operational risks. These and other factors can make
investments in the Fund more volatile and potentially less liquid than
other types of investments and may be heightened in connection with
investments in developing or emerging markets countries. |
|
|
■ |
Interest Rate
Risk. Interest
rate risk is the risk that fixed income securities will decline in value
because of an increase in interest rates and changes to other factors,
such as perception of an issuer’s creditworthiness. Funds with higher
durations generally are subject to greater interest rate risk. For
example, the price of a security with a ten-year duration would be
expected to drop by approximately 10% in response to a 1% increase in
interest rates. |
|
|
■ |
Issuer-Specific
Risk. Issuer-specific
events, including changes in the actual or perceived financial condition
of an issuer, can have a negative impact on the value of the
Fund. |
|
|
■ |
Liquidity
Risk. The
Fund may invest in derivatives and other instruments that may be less
liquid than other types of investments. The derivatives in which the Fund
invests may not always be liquid. This could have a negative effect on the
Fund’s ability to achieve its investment objective and may result in
losses to Fund shareholders. |
|
|
■ |
Models and Data
Risk. While
the Fund will be actively managed, the Fund’s investment process is
expected to be heavily dependent on quantitative models and the models may
not perform as intended. Errors in data used in the models may occur from
time to time and may not be identified and/or corrected, which may have an
adverse impact on the Fund and its shareholders. |
|
|
■ |
Non-Diversification
Risk. The
Fund is considered to be non-diversified, which means that it may invest
more of its assets in the securities of a single issuer or a smaller
number of issuers than if it were a diversified fund. To the extent the
Fund invests a significant percentage of its assets in a limited number of
issuers, the Fund is subject to the risks of investing in those few
issuers, and may be more susceptible to a single adverse economic or
regulatory occurrence. As a result, changes in the market value of a
single security could cause greater fluctuations in the value of Fund
shares than would occur in a diversified
fund. |
|
|
■ |
Portfolio Turnover Risk.
The
Fund’s strategy may frequently involve buying and selling portfolio
securities to rebalance the Fund’s exposure to various market sectors.
Higher portfolio turnover may result in the Fund paying higher levels of
transaction costs and generating greater tax liabilities for shareholders.
Portfolio turnover risk may cause the Fund’s performance to be less than
you expect. |
84 WisdomTree
Trust
Prospectus |
■ |
Repurchase Agreement Risk.
The
Fund’s investment in repurchase agreements may be subject to market and
credit risk with respect to the collateral securing the repurchase
agreements. Investments in repurchase agreements also may be subject to
the risk that the market value of the underlying obligations may decline
prior to the expiration of the repurchase agreement
term. |
|
|
■ |
Short Sales
Risk. The
Fund may engage in “short sale” transactions. The Fund will lose value if
the security or instrument that is the subject of a short sale increases
in value. The Fund also may enter into a short derivative position through
a futures contract, swap agreement, structured note, or short positions on
currency forwards. If the price of the security or derivative that is the
subject of a short sale increases, then the Fund will incur a loss equal
to the increase in price from the time that the short sale was entered
into plus any premiums and interest paid to a third party in connection
with the short sale. The risk of loss on a shorted position arises from
the increase in value of the security sold short and is potentially
unlimited unlike the risk of loss on a long position, which is limited to
the amount paid for the investment plus transaction costs. Therefore,
short sales involve the risk that losses may be exaggerated, potentially
losing more money than the actual cost of the investment. Also, there is
the risk that the third party to the short sale may fail to honor its
contract terms, causing a loss to the Fund. |
|
|
■ |
Subsidiary Investment
Risk. Changes
in the laws of the United States and/or the Cayman Islands, under which
the Fund and the WisdomTree Subsidiary are organized, respectively, could
result in the inability of the WisdomTree Subsidiary to operate as
intended and could negatively affect the Fund and its
shareholders. |
|
|
■ |
Tax
Risk. To
qualify for the favorable U.S. federal income tax treatment accorded to
RICs, the Fund must, among other things, derive in each taxable year at
least 90% of its gross income from certain prescribed sources. The Fund
may obtain exposure to the commodities markets by directly entering into
commodity-linked derivative instruments, such as listed futures contracts,
forward currency contracts, swaps, and structured notes. Income from
certain commodity-linked derivative instruments in which the Fund invests
may not be considered qualifying income under the 90% test noted above.
The Fund intends to invest in such commodity-linked derivative instruments
indirectly through the WisdomTree Subsidiary. The Fund’s investment in the
WisdomTree Subsidiary is expected to provide the Fund with exposure to the
commodities markets within the limitations of the federal tax requirements
of the Code for qualification as a RIC. The “Subpart F” income (defined in
Section 951 of the Code to include passive income, including from
commodity-linked derivatives and futures) of the Fund attributable to the
Fund’s investment in the WisdomTree Subsidiary is “qualifying income” to
the Fund to the extent that such income is derived with respect to the
Fund’s business of investing in stock, securities or currencies. The Fund
expects its “Subpart F” income attributable to its investment in the
WisdomTree Subsidiary to be derived with respect to the Fund’s business of
investing in stock, securities or currencies and to be treated as
“qualifying income”. The Adviser intends to conduct the Fund’s investments
in the WisdomTree Subsidiary in a manner consistent with the terms and
conditions of the regulations promulgated by the U.S. Treasury, and will
monitor the Fund's investments in the WisdomTree Subsidiary to ensure that
no more than 25% of the Fund’s assets are invested in the WisdomTree
Subsidiary. To the extent the Fund makes a direct investment in
commodity-linked derivative instruments, it will seek to restrict the
resulting income from such instruments so that, when combined with its
other non-qualifying income, the Fund’s non-qualifying income is less than
10% of its gross income. However, the Fund may generate more
non-qualifying income than anticipated, may not be able to generate
qualifying income in a particular taxable year at levels sufficient to
meet the 90% test noted above, or may not be able to accurately predict
the non-qualifying income from these investments. Failure to comply with
this restriction would have significant negative tax consequences to Fund
shareholders. |
|
|
■ |
Volatility
Risk. The
Fund is designed to
capture
the long-term economic benefits of rising or declining market
trends. Frequent or significant short-term price movements could adversely
impact the performance of the
Fund. |
WisdomTree
Trust
Prospectus 85 |
|
Return |
Quarter/Year |
Highest
Return |
% |
|
Lowest
Return |
(
% |
|
WisdomTree Managed Futures
Strategy Fund* |
1
Year |
5
Years |
Since
Inception |
Return
Before Taxes Based on NAV |
|
( |
( |
Return
After Taxes on Distributions |
|
( |
( |
Return
After Taxes on Distributions and Sale of Fund Shares |
|
( |
( |
S&P
Diversified Trends Indicator Index (Reflects no deduction for fees,
expenses or taxes) |
|
|
( |
S&P
GSCI Index (Reflects no deduction for fees, expenses or
taxes) |
( |
( |
( |
86 WisdomTree
Trust
Prospectus |
WisdomTree
Trust
Prospectus 87 |
Shareholder Fees
(fees
paid directly from your investment) |
|
Annual Fund Operating
Expenses (expenses
that you pay each year as a percentage of the value of your
investment) |
|
Management
Fees |
% |
Distribution
and/or Service (12b-1) Fees |
|
Other
Expenses |
% 1 |
Acquired
Fund Fees and Expenses |
% 1 |
Total Annual Fund
Operating Expenses |
% 2 |
|
1
Year |
3
Years |
|
$
|
$
|
88 WisdomTree
Trust
Prospectus |
■ |
CEF and BDC Investing
Risk. The
value of the underlying securities held by a CEF could decrease or the
portfolio could become illiquid. CEFs that are financially leveraged may
create an opportunity for greater total return, but with more volatility
than other investments, and greater potential for loss. Shares of CEFs
frequently trade at a discount from their NAV. There can be no assurance
that the market discount on shares of any CEF purchased by the Fund will
ever decrease. In fact, it is possible that this market discount may
increase, and the Fund may suffer realized or unrealized capital losses
due to further decline in the market price of the securities of such CEF,
thereby adversely affecting the Fund’s NAV. In addition to the foregoing
risks with respect to CEFs, federal securities laws impose restraints upon
the organization and operations of BDCs that can limit or negatively
impact the performance of a BDC. BDCs generally invest in less mature
private companies, which involve greater risk than well-established,
publicly traded companies, and BDCs are subject to high failure rates
among the companies in which they invest. BDCs may have relatively
concentrated portfolios, which include a small number of investments. A
significant portion of a BDC’s investments are recorded at fair value as
determined by its board of directors, which may potentially result in
material differences between a BDC’s NAV and its market price. As a
result, shares of BDCs may trade at a discount from their NAV. There can
be no assurance that the market discount on shares of any BDC purchased by
the Fund will ever decrease. In fact, it is possible that this market
discount may increase, and the Fund may suffer realized or unrealized
capital losses due to further decline in the market price of the
securities of such BDC, thereby adversely affecting the Fund’s
NAV. |
|
|
■ |
Interest Rate
Risk. Interest
rate risk is the risk that fixed income securities will decline in value
because of an increase in interest rates and changes to other factors,
such as perception of an issuer’s creditworthiness. Funds with higher
durations generally are subject to greater interest rate risk. For
example, the price of a security with a three-year duration would be
expected to drop by approximately 3% in response to a 1% increase in
interest rates. |
WisdomTree
Trust
Prospectus 89 |
■ |
REIT Investing
Risk. By
investing in REITs, the Fund will be exposed to the risks of owning real
estate, such as decreases in real estate values, overbuilding, increased
competition and other risks related to local or general economic
conditions, increases in operating costs and property taxes, changes in
zoning laws, casualty or condemnation losses, possible environmental
liabilities, regulatory limitations on rent and fluctuations in rental
income. In addition, REITs are subject to the possibility of failing to
qualify for the favorable U.S. federal income tax treatment generally
available to them under the Internal Revenue Code of 1986, as amended (the
“Code”), and failing to maintain exemption from the registration
requirements of the 1940 Act. REITs may use leverage (and some may be
highly leveraged), which increases risk and could adversely affect a
REIT’s operations and market value in periods of rising interest
rates. |
|
|
■ |
Investment
Risk. As
with all investments, an investment in the Fund is subject to loss,
including the possible loss of the entire principal amount of an
investment, over short or long periods of time. |
|
|
■ |
Market
Risk. The
trading prices of fixed income securities and other instruments fluctuate
in response to a variety of factors, such as economic, financial or
political events that impact the entire market, market segments, or
specific issuers. The Fund’s NAV and market price may fluctuate
significantly in response to these and other factors. As a result, an
investor could lose money over short or long periods of time. In addition,
the respiratory disease caused by a novel coronavirus (COVID-19) has
spread globally for over a year, resulting in a global pandemic and major
disruption to economies and markets around the world, including the United
States. During this time, financial markets have experienced extreme
volatility and severe losses, and trading in many instruments has been
disrupted or suspended. Liquidity for many instruments has been greatly
reduced for periods of time. Although many global economies have begun to
re-open as infection and hospitalization rates decline, some economies,
including those of countries with limited access to COVID-19 vaccines,
have struggled to control the spread of the virus and re-open their
economies. As a result, it remains unclear how COVID-19 will impact global
markets in the future. |
|
|
■ |
Shares of the Fund May
Trade at Prices Other Than NAV. As
with all ETFs, Fund shares may be bought and sold in the secondary market
at market prices. The trading prices of the Fund’s shares in the secondary
market generally differ from the Fund’s daily NAV and there may be times
when the market price of the shares is more than the NAV (premium) or less
than the NAV (discount). This risk is heightened in times of market
volatility or periods of steep market declines. |
|
|
■ |
Agency Mortgage-Backed
Securities Risk. The
Fund may invest in mortgage-related fixed income securities issued or
guaranteed by the U.S. government or its agencies or instrumentalities
such as the Government National Mortgage Association (“GNMA”), the Federal
National Mortgage Association (“FNMA”) and the Federal Home Loan Mortgage
Corporation (“FHLMC”). FNMA and FHLMC are generally backed only by the
general creditworthiness and reputation of the U.S. government agency,
government-sponsored entity, or government corporation issuing the
security and are not guaranteed by the U.S. Department of the Treasury or
backed by the full faith and credit of the U.S. government. As a result,
there is uncertainty as to the current status of many obligations of FNMA
or FHLMC and other agencies that are placed under conservatorship of the
U.S. government. GNMA securities are generally backed by the full faith
and credit of the U.S. government. Agency mortgage-backed securities may
be more sensitive to changes in interest rates than other types of debt
securities. Movements in interest rates (both increases and decreases) may
quickly and significantly reduce the value of agency mortgage-backed
securities. Agency mortgage-backed securities are subject to fluctuations
in yield due to prepayment rates that may be faster or slower than
expected. Agency mortgage-backed securities can also be subject to the
risk of default on the underlying mortgages. Default or bankruptcy of a
counterparty to a mortgage-related transaction would expose the Fund to
possible loss. These risks may reduce the Fund’s
returns. |
|
|
■ |
Asset-Backed Securities
Risk. Movements
in interest rates (both increases and decreases) may quickly and
significantly reduce the value of certain types of asset-backed
securities. Asset-backed securities can also be subject to the risk of
default on underlying assets. Asset-backed securities are subject to
fluctuations in yield due to prepayment rates that may be faster or slower
than expected. |
|
|
■ |
Cybersecurity Risk.
The
Fund and its service providers may be susceptible to operational and
information security risks resulting from a breach in cybersecurity,
including cyber-attacks. A breach in cybersecurity, intentional or
unintentional, may adversely impact the Fund in many ways, including, but
not limited to, disruption of the Fund’s operational capacity, loss of
proprietary information, theft or corruption of data, denial-of-service
attacks on websites or network resources, and the unauthorized release of
confidential information. Cyber-attacks affecting the Fund’s third-party
service providers, market makers, institutional investors
authorized |
90 WisdomTree
Trust
Prospectus |
|
to
purchase and redeem shares directly from the Fund (
i.e., Authorized
Participants), or the issuers of securities in which the Fund invests may
subject the Fund to many of the same risks associated with direct
cybersecurity breaches. |
|
|
■ |
Dividend Paying Securities
Risk. Securities
that pay dividends, as a group, may be out of favor with the market and
underperform the overall equity market or stocks of companies that do not
pay dividends. In addition, changes in the dividend policies of the
companies held by the Fund or the capital resources available for such
company’s dividend payments may adversely affect the
Fund. |
|
|
■ |
Geopolitical
Risk. The
United States has experienced security concerns, war, threats of war,
aggression and/or conflict, terrorism, economic uncertainty, sanctions or
the threat of sanctions, natural and environmental disasters, the spread
of infectious illness, widespread disease or other public health issues
and/or systemic market dislocations (including due to events outside
of the United States) that have led, and in the future may lead, to
increased short-term market volatility and may have adverse long-term
effects on the U.S. and world economies and markets generally, each of
which may negatively impact the Fund’s investments. |
|
|
■ |
Illiquid Investments
Risk. Illiquid
investments may be difficult to sell at an acceptable price, they may be
subject to greater volatility and may result in a loss to the Fund.
Investments acquired by the Fund that are liquid at the time of purchase
may subsequently become illiquid due to events relating to the issuer of
the securities, market events, economic conditions and/or investor
perception. |
|
|
■ |
Index and Data
Risk. The
Fund is not “actively” managed and seeks to track the price and yield
performance, before fees and expenses, of the Index. The Index Provider
has the right to make adjustments to the Index or to cease making the
Index available without regard to the particular interests of the Fund or
its shareholders. If the computers or other facilities of the Index
Provider, Index calculation agent, data providers and/or relevant stock
exchange malfunction for any reason, calculation and dissemination of
Index values may be delayed and trading in Fund shares may be suspended
for a period of time. Errors in Index data, Index calculations and/or the
construction of the Index may occur from time to time and may not be
identified and/or corrected by the Index Provider, Index calculation agent
or other applicable party for a period of time or at all, which may have
an adverse impact on the Fund and its shareholders. The potential risk of
continuing error may be particularly heightened in the case of the Index,
which is generally not used as a benchmark by other funds or
managers. |
|
|
■ |
Investments in Underlying
Funds Risk. Because
the Fund invests in Underlying Funds, its investment performance largely
depends on the investment performance of the Underlying Funds in which it
invests. The Fund will pay indirectly a proportional share of the fees and
expenses of the Underlying Funds in which it invests, including their
investment advisory and administration fees, in addition to its own fees
and expenses. In addition, at times certain segments of the market
represented by constituent Underlying Funds may be out of favor and
underperform other segments. Investments by the Fund in an Underlying Fund
are subject to, among other risks, the risk that the listing exchange may
halt trading of the Underlying Fund’s shares. In addition, the Fund may be
subject to the following risks as a result of investments and strategies
pursued by the Underlying Funds: |
|
■ |
Collateralized Loan
Obligation Risk. A
collateralized loan obligation is a trust collateralized by a pool of
credit-related assets. Accordingly, collateralized loan obligation
securities present risks similar to those of other types of credit
investments, including credit and interest rate risks. The extent of these
risks depend largely on the type of securities used as collateral and the
class of the collateralized loan obligation in which the Fund invests.
Collateralized loan obligations are typically leveraged, and such leverage
will magnify the loss on collateralized loan obligation investments, which
may result in investment loss experienced by the Fund. The cumulative
effect of the use of leverage with respect to any investments in a market
that moves adversely to such investments could result in a substantial
loss that would be greater than if the Fund’s investments were not
leveraged. |
|
|
|
|
■ |
High Yield Securities
Risk. Higher
yielding securities, sometimes referred to as junk bonds, may present
additional risk because these securities may be less liquid and present
more credit risk than investment grade bonds. The price of high yield
securities tends to be more susceptible to issuer-specific operating
results and outlook and to real or perceived adverse economic and
competitive industry conditions. High yield securities may be regarded as
predominantly speculative with respect to the issuer’s continuing ability
to meet principal and interest payments. |
|
|
|
|
■ |
Issuer Credit
Risk. The
financial condition of an issuer of a debt security or other instrument
may cause
such
issuer to default, become unable to pay interest or principal due or
otherwise fail to honor its obligations or cause such issuer to be
perceived (whether by market participants, rating agencies, pricing
services or |
|
WisdomTree
Trust
Prospectus 91 |
|
|
otherwise)
as being in such situations. The value of an investment in the Fund may
change quickly and without warning in response to issuer defaults, changes
in the credit ratings of the Fund’s portfolio investments and/or
perceptions related thereto. |
|
|
|
|
■ |
Micro-Capitalization
Investing Risk. Micro
cap companies may be newly formed or in the early stages of development
with limited product lines, markets or financial resources. Micro cap
companies may be less financially secure and may be more vulnerable to key
personnel losses. Micro cap stock prices may be more volatile than large-,
mid- and small-capitalization companies and such stocks may be more thinly
traded and thus difficult for the Fund to buy and sell in the
market. |
|
|
|
|
■ |
Private Credit
Risk. Investments
in private securities are not traded in public markets, are illiquid, can
be subject to various restrictions on resale, and there can be no
assurance that the Fund will be able to realize the value of such
investments in a timely manner. Additionally, private credit investments
can range in credit quality depending on security-specific factors,
including total leverage, amount of leverage senior to the security in
question, variability in the issuer’s cash flows, the size of the issuer,
the quality of assets securing debt and the degree to which such assets
cover the subject company’s debt obligations. The companies in which the
Fund invests may be leveraged, often as a result of leveraged buyouts or
other recapitalization transactions, and often will not be rated by
national credit rating agencies. |
|
|
|
|
■ |
Senior Loan Investing
Risk. Substantial
increases in interest rates may cause an increase in loan defaults as
borrowers may lack resources to meet higher debt service requirements. The
value of the Fund’s assets may also be affected by other uncertainties
such as economic developments affecting the market for senior secured term
loans or affecting borrowers generally. Moreover, the security for the
Fund’s investments in secured debt may not be recognized for a variety of
reasons, including the failure to make required filings by lenders,
trustees or other responsible parties and, as a result, the Fund may not
have priority over other creditors as
anticipated. |
■ |
Investment Style
Risk. The
Fund invests in the securities included in, or representative of, the
Index regardless of their investment merit. The Fund does not attempt to
outperform the Index or take defensive positions in declining markets. As
a result, the Fund’s performance may be adversely affected by a general
decline in the market segments relating to the Index. |
|
|
■ |
Issuer-Specific
Risk. Issuer-specific
events, including changes in the actual or perceived financial condition
of an issuer, can have a negative impact on the value of the
Fund. |
|
|
■ |
Non-Agency Mortgage-Backed
Securities Risk. Non-agency
mortgage-backed securities are subject to heightened risks as compared to
agency mortgage-backed securities, including that non-agency
mortgage-backed securities are not subject to the same underwriting
requirements for the underlying mortgages that are applicable to those
mortgage-backed securities that have a government or government-sponsored
entity guarantee. As a result, the mortgage loans underlying non-agency
mortgage-backed securities may, and frequently do, have less favorable
collateral, credit risk, or other underwriting characteristics than
government or government-sponsored mortgage-backed securities and have
wider variances in a number of terms including interest rate, term, size,
purpose, and borrower characteristics. There may be a limited market for
such securities. |
|
|
■ |
Non-Correlation
Risk. As
with all index funds, the performance of the Fund and its Index may differ
from each other for a variety of reasons. |
|
|
■ |
Non-Diversification
Risk. The
Fund is considered to be non-diversified, which means that it may invest
more of its assets in the securities of a single issuer or a smaller
number of issuers than if it were a diversified fund. To the extent the
Fund invests a significant percentage of its assets in a limited number of
issuers, the Fund is subject to the risks of investing in those few
issuers, and may be more susceptible to a single adverse economic or
regulatory occurrence. As a result, changes in the market value of a
single security could cause greater fluctuations in the value of Fund
shares than would occur in a diversified
fund. |
|
|
■ |
Small-Capitalization
Investing Risk. The
Fund may invest a relatively large percentage of its assets in the
securities of small-capitalization companies. As a result, the Fund may be
more volatile than funds that invest in larger, more established
companies. The securities of small-capitalization companies generally
trade in lower volumes and are subject to greater and more unpredictable
price changes than larger capitalization stocks or the stock market as a
whole. Small-capitalization companies may be particularly sensitive to
adverse economic developments as well as changes in interest rates,
government regulation, borrowing costs and
earnings. |
|
92 WisdomTree
Trust
Prospectus |
WisdomTree
Trust
Prospectus 93 |
|
■ |
Futures
contract – a standardized contract traded on a recognized
exchange in which two parties agree to exchange either a specified
financial asset or the cash equivalent of said asset of standardized
quantity and quality for a price agreed to today (the futures price or the
strike price) with delivery occurring at a specified future
date. |
|
|
|
|
■ |
Listed
currency option – a call or put option on a foreign currency,
either on an exchange or in the over-the-counter market, that gives the
purchaser of the option the right to buy or sell, respectively, the
foreign currency at the exercise price until the option
expires. |
94 WisdomTree
Trust
Prospectus |
WisdomTree
Trust
Prospectus 95 |
96 WisdomTree
Trust
Prospectus |
Alternative Credit
Sector |
|
Primary Alternative Credit
Investments |
|
|
|
Private
Corporate Lending |
|
Private
loans made to middle market corporations and/or any other type of private
middle market corporate lending or financing |
|
|
|
Public
Corporate Debt |
|
High
yield bonds (“junk bonds”), broadly syndicated loans and/or collateralized
loan obligations (“CLOs”) |
|
|
|
Commercial
Real Estate Lending |
|
Commercial
real estate-backed loans, non-agency commercial mortgage-backed
securities, and/or commercial real estate CLOs |
|
|
|
Agency
Real Estate Debt |
|
Agency
residential mortgage-backed securities (including mortgage servicing
rights) and/or agency commercial mortgage-backed
securities |
|
|
|
Non-Agency
Real Estate Debt |
|
Real
estate-backed debt including residential and commercial real estate loans
and/or non-agency mortgage-backed securities |
|
|
|
Multi-Sector
Alternative Credit |
|
Combination
of investments in the above-referenced five
sectors |
WisdomTree
Trust
Prospectus 97 |
98 WisdomTree
Trust
Prospectus |
WisdomTree
Trust
Prospectus 99 |
|
■ |
A
change in economic conditions, such as a recession, can adversely affect
the price of both industrial and precious metals. An economic downturn may
have a negative impact on the usage and demand of metals, which may result
in a loss for the Fund. |
|
|
|
|
■ |
A
sudden shift in political conditions of the world’s leading metal
producers may have a negative effect on the global pricing of
metals. |
|
|
|
|
■ |
An
increase in the hedging of precious metals may result in a decline in the
price of precious metals. |
|
|
|
|
■ |
Changes
in global supply and demand for industrial and precious
metals. |
|
|
|
|
■ |
The
price and quantity of imports and exports of industrial and precious
metals. |
|
|
|
|
■ |
Technological
advances in the processing and mining of industrial and precious
metals. |
|
■ |
Farmer
planting decisions, and general economic, market and regulatory factors
all influence the price of agricultural
commodities. |
100 WisdomTree
Trust
Prospectus |
|
■ |
Weather
conditions, including hurricanes, tornadoes, storms and droughts, may have
a material adverse effect on crops, live cattle, live hogs and lumber,
which may result in significant fluctuations in prices in such
commodities. |
|
|
|
|
■ |
Changes
in global supply and demand for agriculture products. |
|
|
|
|
■ |
The
price and quantity of imports and exports of agricultural
commodities. |
|
|
|
|
■ |
Political
conditions, including embargoes and war, in or affecting agricultural
production, imports and exports. |
|
|
|
|
■ |
Technological
advances in agricultural production. |
|
|
|
|
■ |
The
price and availability of alternative agricultural
commodities. |
|
■ |
Changes
in global supply and demand for oil and natural gas. By way of example,
the oil market has recently experienced fluctuations in supply and demand,
significantly impacting the price and volatility of oil, |
|
|
|
|
■ |
The
price and quantity of imports and exports of oil and natural
gas. |
|
|
|
|
■ |
Political
conditions, including embargoes and war, in or affecting other oil
producing activities. |
|
|
|
|
■ |
The
level of global oil and natural gas exploration, inventories, production
or pricing. |
|
|
|
|
■ |
Weather
conditions. |
|
|
|
|
■ |
Technological
advances effecting energy consumption. |
|
|
|
|
■ |
The
price and availability of alternative
fuels. |
WisdomTree
Trust
Prospectus 101 |
102 WisdomTree
Trust
Prospectus |
WisdomTree
Trust
Prospectus 103 |
104 WisdomTree
Trust
Prospectus |
WisdomTree
Trust
Prospectus 105 |
106 WisdomTree
Trust
Prospectus |
WisdomTree
Trust
Prospectus 107 |
108 WisdomTree
Trust
Prospectus |
WisdomTree
Trust
Prospectus 109 |
110 WisdomTree
Trust
Prospectus |
WisdomTree
Trust
Prospectus 111 |
112 WisdomTree
Trust
Prospectus |
WisdomTree
Trust
Prospectus 113 |
114 WisdomTree
Trust
Prospectus |
WisdomTree
Trust
Prospectus 115 |
116 WisdomTree
Trust
Prospectus |
WisdomTree
Trust
Prospectus 117 |
Name of
Fund |
Management
Fee |
Bloomberg
U.S. Dollar Bullish Fund |
0.50% |
Chinese
Yuan Strategy Fund |
0.45% |
Emerging
Currency Strategy Fund |
0.55% |
Emerging
Markets Corporate Bond Fund |
0.60% |
Emerging
Markets Local Debt Fund |
0.55% |
Floating
Rate Treasury Fund |
0.15% |
Interest
Rate Hedged High Yield Bond Fund |
0.43% |
Interest
Rate Hedged U.S. Aggregate Bond Fund |
0.23% |
Mortgage
Plus Bond Fund |
0.45% |
Yield
Enhanced U.S. Aggregate Bond Fund |
0.12% |
Yield
Enhanced U.S. Short-Term Aggregate Bond Fund |
0.12% |
CBOE
S&P 500 PutWrite Strategy Fund |
0.44% |
Managed
Futures Strategy Fund |
0.65% (1) |
Alternative
Income Fund |
0.50% |
Enhanced
Commodity Strategy Fund |
0.55% |
(1) |
The
Fund's contractual Management Fee waiver, which limited the Management Fee
to 0.65%, expired on December 31, 2020, and the Fund's Board of Trustees
reduced the Fund's Management Fee to 0.65% effective January 1,
2021. |
118 WisdomTree
Trust
Prospectus |
WisdomTree
Trust
Prospectus 119 |
120 WisdomTree
Trust
Prospectus |
WisdomTree
Trust
Prospectus 121 |
122 WisdomTree
Trust
Prospectus |
WisdomTree
Trust
Prospectus 123 |
124 WisdomTree
Trust
Prospectus |
WisdomTree
Trust
Prospectus 125 |
|
■ |
A
Fund makes distributions; |
|
|
|
|
■ |
You
sell Fund shares; and |
|
|
|
|
■ |
You
purchase or redeem Creation Units (APs
only). |
126 WisdomTree
Trust
Prospectus |
WisdomTree
Trust
Prospectus 127 |
128 WisdomTree
Trust
Prospectus |
WisdomTree
Trust
Prospectus 129 |
130 WisdomTree
Trust
Prospectus |
WisdomTree
Trust
Prospectus 131 |
132 WisdomTree
Trust
Prospectus |
WisdomTree
Trust
Prospectus 133 |
WisdomTree Bloomberg U.S.
Dollar Bullish Fund |
|
For the Year Ended August 31, 2021 |
|
For the Year Ended August 31, 2020 |
|
For the Year Ended August 31, 2019 |
|
For the Year Ended August 31, 2018 |
|
For the Year Ended August 31, 2017 | ||||||||||
Net
asset value, beginning of year |
|
$ |
26.23 |
|
|
$ |
28.11 |
|
|
$ |
26.73 |
|
|
$ |
25.64 |
|
|
$ |
26.34 |
|
Investment
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)
1 |
|
|
(0.12 |
) |
|
|
0.05 |
|
|
|
0.47 |
|
|
|
0.21 |
|
|
|
0.00 |
2 |
Net
realized and unrealized gain (loss) |
|
|
(0.37 |
) |
|
|
(1.11 |
) |
|
|
1.15 |
|
|
|
0.88 |
* |
|
|
(0.70 |
) |
Total
from investment operations |
|
|
(0.49 |
) |
|
|
(1.06 |
) |
|
|
1.62 |
|
|
|
1.09 |
|
|
|
(0.70 |
) |
Dividends
to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
(0.17 |
) |
|
|
(0.82 |
) |
|
|
(0.24 |
) |
|
|
— |
|
|
|
— |
|
Net
asset value, end of year |
|
$ |
25.57 |
|
|
$ |
26.23 |
|
|
$ |
28.11 |
|
|
$ |
26.73 |
|
|
$ |
25.64 |
|
TOTAL
RETURN
3 |
|
|
(1.85 |
)% |
|
|
(3.87 |
)% |
|
|
6.09 |
% |
|
|
4.25 |
%
4 |
|
|
(2.66 |
)% |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of year (000’s omitted) |
|
$ |
143,168 |
|
|
$ |
83,951 |
|
|
$ |
44,974 |
|
|
$ |
90,884 |
|
|
$ |
138,462 |
|
Ratios
to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.50 |
%
5,6 |
|
|
0.50 |
%
5,6 |
|
|
0.50 |
%
5,6 |
|
|
0.50 |
%
5,6 |
|
|
0.50 |
% |
Net
investment income (loss) |
|
|
(0.45 |
)%
6 |
|
|
0.19 |
%
6 |
|
|
1.71 |
%
6 |
|
|
0.83 |
%
6 |
|
|
0.00 |
%
7 |
Portfolio
turnover rate
8 |
|
|
55 |
%
9 |
|
|
266 |
%
9 |
|
|
23 |
%
9 |
|
|
0 |
% |
|
|
0 |
% |
WisdomTree Chinese Yuan
Strategy Fund |
|
For the Year Ended August 31, 2021 |
|
For the Year Ended August 31, 2020 |
|
For the Year Ended August 31, 2019 |
|
For the Year Ended August 31, 2018 |
|
For the Year Ended August 31, 2017 | ||||||||||
Net
asset value, beginning of year |
|
$ |
25.80 |
|
|
$ |
24.80 |
|
|
$ |
25.49 |
|
|
$ |
25.54 |
|
|
$ |
24.42 |
|
Investment
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)
1 |
|
|
(0.11 |
) |
|
|
0.15 |
|
|
|
0.47 |
|
|
|
0.24 |
|
|
|
0.02 |
|
Net
realized and unrealized gain (loss) |
|
|
2.27 |
|
|
|
1.36 |
|
|
|
(0.87 |
) |
|
|
(0.29 |
) |
|
|
1.10 |
|
Total
from investment operations |
|
|
2.16 |
|
|
|
1.51 |
|
|
|
(0.40 |
) |
|
|
(0.05 |
) |
|
|
1.12 |
|
Dividends
to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
(0.11 |
) |
|
|
(0.51 |
) |
|
|
(0.29 |
) |
|
|
— |
|
|
|
— |
|
Net
asset value, end of year |
|
$ |
27.85 |
|
|
$ |
25.80 |
|
|
$ |
24.80 |
|
|
$ |
25.49 |
|
|
$ |
25.54 |
|
TOTAL
RETURN
3 |
|
|
8.39 |
% |
|
|
6.16 |
% |
|
|
(1.59 |
)% |
|
|
(0.20 |
)% |
|
|
4.59 |
% |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of year (000’s omitted) |
|
$ |
43,166 |
|
|
$ |
24,507 |
|
|
$ |
26,044 |
|
|
$ |
31,861 |
|
|
$ |
38,312 |
|
Ratios to
average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.45 |
%
5,6 |
|
|
0.45 |
%
5,6 |
|
|
0.45 |
%
5,6 |
|
|
0.45 |
%
5,6 |
|
|
0.45 |
% |
Net
investment income (loss) |
|
|
(0.41 |
)%
6 |
|
|
0.60 |
%
6 |
|
|
1.82 |
%
6 |
|
|
0.92 |
%
6 |
|
|
0.09 |
% |
Portfolio
turnover rate
8 |
|
|
25 |
%
10 |
|
|
0 |
% |
|
|
0 |
% |
|
|
0 |
% |
|
|
0 |
% |
* |
Includes
a voluntary reimbursement from the sub-advisor of less than $0.01 per
share for investment losses on certain foreign currency contract
transactions during the fiscal year ended August 31,
2018. |
1 |
Based on
average shares outstanding. |
2 |
Amount
represents less than $0.005. |
3 |
Total
return is calculated assuming an initial investment made at the net asset
value at the beginning of the period, reinvestment of all dividends and
distributions at net asset value during the period and redemption on the
last day of the period. For the periods in which the investment advisor
waived advisory fees, the total return would have been lower if certain
expenses had not been waived. |
4 |
Includes
a voluntary reimbursement from the sub-advisor for investment losses on
certain foreign currency contract transactions during the period.
Excluding this voluntary reimbursement, total return would have been
unchanged. |
5 |
The
expense ratio includes investment advisory fee waivers. Without these
investment advisory fee waivers, the expense ratio would have been
unchanged. |
6 |
The
ratios to average net assets do not include net investment income (loss)
or expenses of other funds in which the Fund invests. |
7 |
Amount
represents less than 0.005%. |
8 |
Portfolio
turnover rate excludes the value of the portfolio securities received or
delivered as a result of in-kind creations or redemptions of the Fund’s
capital shares. Short-term securities with maturities less than or equal
to 365 days are excluded from the portfolio turnover
calculation. |
9 |
During
the fiscal years ended August 31, 2021, August 31, 2020 and August 31,
2019, the Fund invested in the WisdomTree Floating Rate Treasury Fund
which is considered a long term security for purposes of computing the
portfolio turnover rate. During the fiscal years ended August 31, 2021,
August 31, 2020 and August 31, 2019, the WisdomTree Floating Rate Fund was
the only long-term security held or transacted in the portfolio, as a
result, the variability in the portfolio turnover was primarily driven by
the transaction activity during the fiscal year for this security only
(see the “Investment in Affiliates” supplementary table included in the
Schedule of Investments for transaction activity related to this security
for the current fiscal year). |
10 |
During
the fiscal year ended August 31, 2021, the Fund invested in the WisdomTree
Floating Rate Treasury Fund which is considered a long term security for
purposes of computing the portfolio turnover rate. During the fiscal year
ended August 31, 2021, the WisdomTree Floating Rate Fund was the only
long-term security held or transacted in the portfolio, as a result, the
variability in the portfolio turnover was primarily driven by the
transaction activity during the fiscal year for this security only (see
the “Investment in Affiliates” supplementary table included in the
Schedule of Investments for transaction activity related to this security
for the current fiscal year). |
134 WisdomTree
Trust
Prospectus |
WisdomTree Emerging
Currency Strategy Fund |
|
For the Year Ended August 31, 2021 |
|
For the Year Ended August 31, 2020 |
|
For the Year Ended August 31, 2019 |
|
For the Year Ended August 31, 2018 |
|
For the Year Ended August 31, 2017 | ||||||||||
Net
asset value, beginning of year |
|
$ |
17.55 |
|
|
$ |
18.19 |
|
|
$ |
17.97 |
|
|
$ |
19.14 |
|
|
$ |
17.97 |
|
Investment
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)
1 |
|
|
(0.09 |
) |
|
|
0.12 |
|
|
|
0.31 |
|
|
|
0.16 |
|
|
|
0.00 |
2 |
Net
realized and unrealized gain (loss) |
|
|
0.85 |
|
|
|
(0.41 |
) |
|
|
0.25 |
|
|
|
(1.33 |
) |
|
|
1.17 |
|
Total
from investment operations |
|
|
0.76 |
|
|
|
(0.29 |
) |
|
|
0.56 |
|
|
|
(1.17 |
) |
|
|
1.17 |
|
Dividends
to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
(0.12 |
) |
|
|
(0.35 |
) |
|
|
(0.34 |
) |
|
|
— |
|
|
|
— |
|
Net
asset value, end of year |
|
$ |
18.19 |
|
|
$ |
17.55 |
|
|
$ |
18.19 |
|
|
$ |
17.97 |
|
|
$ |
19.14 |
|
TOTAL
RETURN
3 |
|
|
4.31 |
% |
|
|
(1.68 |
)% |
|
|
3.12 |
% |
|
|
(6.11 |
)% |
|
|
6.51 |
% |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of year (000’s omitted) |
|
$ |
12,732 |
|
|
$ |
10,532 |
|
|
$ |
20,009 |
|
|
$ |
28,746 |
|
|
$ |
49,755 |
|
Ratios to
average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.55 |
%
4,5 |
|
|
0.55 |
%
4,5 |
|
|
0.55 |
%
4,5 |
|
|
0.55 |
%
4,5 |
|
|
0.55 |
% |
Net
investment income (loss) |
|
|
(0.51 |
)%
5 |
|
|
0.65 |
%
5 |
|
|
1.68 |
%
5 |
|
|
0.82 |
%
5 |
|
|
0.01 |
% |
Portfolio
turnover rate
6 |
|
|
26 |
%
7 |
|
|
0 |
% |
|
|
0 |
% |
|
|
0 |
% |
|
|
0 |
% |
WisdomTree Emerging
Markets Corporate Bond Fund |
|
For the Year Ended August 31, 2021 |
|
For the Year Ended August 31, 2020 |
|
For the Year Ended August 31, 2019 |
|
For the Year Ended August 31, 2018 |
|
For the Year Ended August 31, 2017 | ||||||||||
Net
asset value, beginning of year |
|
$ |
74.14 |
|
|
$ |
72.72 |
|
|
$ |
68.58 |
|
|
$ |
72.91 |
|
|
$ |
71.93 |
|
Investment
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income
1 |
|
|
2.63 |
|
|
|
2.99 |
|
|
|
3.00 |
|
|
|
2.84 |
|
|
|
2.87 |
|
Net
realized and unrealized gain (loss) |
|
|
1.94 |
|
|
|
1.47 |
8 |
|
|
4.17 |
|
|
|
(4.30 |
) |
|
|
0.98 |
|
Total
from investment operations |
|
|
4.57 |
|
|
|
4.46 |
|
|
|
7.17 |
|
|
|
(1.46 |
) |
|
|
3.85 |
|
Dividends
to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
(2.60 |
) |
|
|
(3.04 |
) |
|
|
(3.03 |
) |
|
|
(2.87 |
) |
|
|
(2.87 |
) |
Net
asset value, end of year |
|
$ |
76.11 |
|
|
$ |
74.14 |
|
|
$ |
72.72 |
|
|
$ |
68.58 |
|
|
$ |
72.91 |
|
TOTAL
RETURN
3 |
|
|
6.26 |
% |
|
|
6.37 |
% |
|
|
10.69 |
% |
|
|
(2.08 |
)% |
|
|
5.51 |
% |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of year (000’s omitted) |
|
$ |
53,279 |
|
|
$ |
29,655 |
|
|
$ |
36,362 |
|
|
$ |
41,150 |
|
|
$ |
51,035 |
|
Ratios to
average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
|
|
0.60 |
% |
Net
investment income |
|
|
3.48 |
% |
|
|
4.13 |
% |
|
|
4.26 |
% |
|
|
3.96 |
% |
|
|
4.03 |
% |
Portfolio
turnover rate
6 |
|
|
56 |
% |
|
|
43 |
% |
|
|
54 |
% |
|
|
132 |
% |
|
|
36 |
% |
1 |
Based on
average shares outstanding. |
2 |
Amount
represents less than $0.005. |
3 |
Total
return is calculated assuming an initial investment made at the net asset
value at the beginning of the period, reinvestment of all dividends and
distributions at net asset value during the period and redemption on the
last day of the period. For the periods in which the investment advisor
waived advisory fees for the WisdomTree Emerging Currency Strategy Fund,
the total return would have been lower if certain expenses had not been
waived. |
4 |
The
expense ratio includes investment advisory fee waivers. Without these
investment advisory fee waivers, the expense ratio would have been
unchanged. |
5 |
The
ratios to average net assets do not include net investment income (loss)
or expenses of other funds in which the Fund invests. |
6 |
Portfolio
turnover rate excludes the value of the portfolio securities received or
delivered as a result of in-kind creations or redemptions of the Fund’s
capital shares. Short-term securities with maturities less than or equal
to 365 days are excluded from the portfolio turnover
calculation. |
7 |
During
the fiscal year ended August 31, 2021, the Fund invested in the WisdomTree
Floating Rate Treasury Fund which is considered a long term security for
purposes of computing the portfolio turnover rate. During the fiscal year
ended August 31, 2021, the WisdomTree Floating Rate Fund was the only
long-term security held or transacted in the portfolio, as a result, the
variability in the portfolio turnover was primarily driven by the
transaction activity during the fiscal year for this security only (see
the “Investment in Affiliates” supplementary table included in the
Schedule of Investments for transaction activity related to this security
for the current fiscal year). |
8 |
The
amount of net realized and unrealized gain per share does not correspond
with the amounts reported within the Statements of Changes due to the
timing of capital share transactions of Fund shares and fluctuating market
values during the fiscal year. |
WisdomTree
Trust
Prospectus 135 |
WisdomTree Emerging
Markets Local Debt Fund |
|
For the Year Ended August 31, 2021 |
|
For the Year Ended August 31, 2020 |
|
For the Year Ended August 31, 2019 |
|
For the Year Ended August 31, 2018 |
|
For the Year Ended August 31, 2017 | ||||||||||
Net
asset value, beginning of year |
|
$ |
32.70 |
|
|
$ |
34.35 |
|
|
$ |
32.47 |
|
|
$ |
38.92 |
|
|
$ |
37.59 |
|
Investment
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income
1 |
|
|
1.64 |
|
|
|
1.83 |
|
|
|
1.96 |
|
|
|
2.15 |
|
|
|
2.07 |
|
Net
realized and unrealized gain (loss) |
|
|
(0.33 |
) |
|
|
(1.76 |
)
2 |
|
|
1.72 |
|
|
|
(6.48 |
) |
|
|
1.00 |
|
Total
from investment operations |
|
|
1.31 |
|
|
|
0.07 |
|
|
|
3.68 |
|
|
|
(4.33 |
) |
|
|
3.07 |
|
Dividends
and distributions to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
(0.52 |
) |
|
|
(0.60 |
) |
|
|
(0.82 |
) |
|
|
(2.06 |
) |
|
|
(0.82 |
) |
Tax
return of capital |
|
|
(1.01 |
) |
|
|
(1.12 |
) |
|
|
(0.98 |
) |
|
|
(0.06 |
) |
|
|
(0.92 |
) |
Total
dividends and distributions to shareholders |
|
|
(1.53 |
) |
|
|
(1.72 |
) |
|
|
(1.80 |
) |
|
|
(2.12 |
) |
|
|
(1.74 |
) |
Net
asset value, end of year |
|
$ |
32.48 |
|
|
$ |
32.70 |
|
|
$ |
34.35 |
|
|
$ |
32.47 |
|
|
$ |
38.92 |
|
TOTAL
RETURN
3 |
|
|
4.06 |
% |
|
|
0.20 |
% |
|
|
11.54 |
% |
|
|
(11.66 |
)% |
|
|
8.46 |
% |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of year (000’s omitted) |
|
$ |
134,784 |
|
|
$ |
127,519 |
|
|
$ |
195,783 |
|
|
$ |
172,083 |
|
|
$ |
256,851 |
|
Ratios to
average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.55 |
% |
|
|
0.55 |
% |
|
|
0.55 |
% |
|
|
0.55 |
% |
|
|
0.55 |
% |
Net
investment income |
|
|
4.97 |
% |
|
|
5.42 |
% |
|
|
5.77 |
% |
|
|
5.71 |
% |
|
|
5.51 |
% |
Portfolio
turnover rate
4 |
|
|
31 |
% |
|
|
29 |
% |
|
|
27 |
% |
|
|
44 |
% |
|
|
39 |
% |
WisdomTree Floating Rate
Treasury Fund |
|
For the Year Ended August 31, 2021 |
|
For the Year Ended August 31, 2020 |
|
For the Year Ended August 31, 2019 |
|
For the Year Ended August 31, 2018 |
|
For the Year Ended August 31, 2017 | ||||||||||
Net
asset value, beginning of year |
|
$ |
25.12 |
|
|
$ |
25.05 |
|
|
$ |
25.07 |
|
|
$ |
25.07 |
|
|
$ |
25.03 |
|
Investment
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)
1 |
|
|
(0.00 |
)
5 |
|
|
0.24 |
|
|
|
0.56 |
|
|
|
0.45 |
|
|
|
0.17 |
|
Net
realized and unrealized gain (loss) |
|
|
0.01 |
|
|
|
0.07 |
|
|
|
(0.05 |
) |
|
|
(0.07 |
) |
|
|
0.04 |
|
Total
from investment operations |
|
|
0.01 |
|
|
|
0.31 |
|
|
|
0.51 |
|
|
|
0.38 |
|
|
|
0.21 |
|
Dividends
and distributions to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
(0.01 |
) |
|
|
(0.24 |
) |
|
|
(0.53 |
) |
|
|
(0.35 |
) |
|
|
(0.17 |
) |
Capital
gains |
|
|
(0.01 |
) |
|
|
— |
|
|
|
— |
|
|
|
(0.03 |
) |
|
|
— |
|
Total
dividends and distributions to shareholders |
|
|
(0.02 |
) |
|
|
(0.24 |
) |
|
|
(0.53 |
) |
|
|
(0.38 |
) |
|
|
(0.17 |
) |
Net
asset value, end of year |
|
$ |
25.11 |
|
|
$ |
25.12 |
|
|
$ |
25.05 |
|
|
$ |
25.07 |
|
|
$ |
25.07 |
|
TOTAL
RETURN
3 |
|
|
0.00 |
%
6 |
|
|
1.26 |
% |
|
|
2.06 |
% |
|
|
1.53 |
% |
|
|
0.85 |
% |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of year (000’s omitted) |
|
$ |
1,086,455 |
|
|
$ |
1,491,940 |
|
|
$ |
1,652,361 |
|
|
$ |
272,044 |
|
|
$ |
1,254 |
|
Ratios
to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses,
net of expense waivers |
|
|
0.15 |
% |
|
|
0.15 |
% |
|
|
0.15 |
% |
|
|
0.15 |
% |
|
|
0.15 |
% |
Expenses,
prior to expense waivers |
|
|
0.15 |
% |
|
|
0.15 |
% |
|
|
0.15 |
% |
|
|
0.17 |
% |
|
|
0.20 |
% |
Net
investment income (loss) |
|
|
(0.02 |
)% |
|
|
0.95 |
% |
|
|
2.22 |
% |
|
|
1.83 |
% |
|
|
0.68 |
% |
Portfolio
turnover rate
4 |
|
|
147 |
% |
|
|
163 |
% |
|
|
170 |
% |
|
|
170 |
% |
|
|
160 |
% |
1 |
Based
on average shares outstanding. |
2 |
The
amount of net realized and unrealized loss per share does not correspond
with the amounts reported within the Statements of Changes due to the
timing of capital share transactions of Fund shares and fluctuating market
values during the fiscal year. |
3 |
Total
return is calculated assuming an initial investment made at the net asset
value at the beginning of the period, reinvestment of all dividends and
distributions at net asset value during the period and redemption on the
last day of the period. For the periods in which the investment advisor
waived advisory fees for the WisdomTree Floating Rate Treasury Fund, the
total return would have been lower if certain expenses had not been
waived. |
4 |
Portfolio
turnover rate excludes the value of the portfolio securities received or
delivered as a result of in-kind creations or redemptions of the Fund’s
capital shares. Short-term securities with maturities less than or equal
to 365 days are excluded from the portfolio turnover
calculation. |
5 |
Amount
represents less than $0.005. |
6 |
Amount
represents less than 0.005%. |
136 WisdomTree
Trust
Prospectus |
WisdomTree Interest Rate
Hedged High Yield Bond Fund |
|
For the Year Ended August 31, 2021 |
|
For the Year Ended August 31, 2020 |
|
For the Year Ended August 31, 2019 |
|
For the Year Ended August 31, 2018 |
|
For the Year Ended August 31, 2017 | ||||||||||
Net
asset value, beginning of year |
|
$ |
21.40 |
|
|
$ |
23.13 |
|
|
$ |
24.07 |
|
|
$ |
23.91 |
|
|
$ |
23.39 |
|
Investment
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income
1 |
|
|
0.96 |
|
|
|
1.20 |
|
|
|
1.30 |
|
|
|
1.23 |
|
|
|
1.24 |
|
Net
realized and unrealized gain (loss) |
|
|
0.78 |
|
|
|
(1.73 |
) |
|
|
(0.91 |
) |
|
|
0.10 |
|
|
|
0.53 |
|
Net
increase from payment by affiliate |
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total
from investment operations |
|
|
1.75 |
|
|
|
(0.53 |
) |
|
|
0.39 |
|
|
|
1.33 |
|
|
|
1.77 |
|
Dividends
and distributions to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
(0.96 |
) |
|
|
(1.20 |
) |
|
|
(1.30 |
) |
|
|
(1.17 |
) |
|
|
(1.25 |
) |
Capital
gains |
|
|
— |
|
|
|
— |
|
|
|
(0.03 |
) |
|
|
— |
|
|
|
— |
|
Total
dividends and distributions to shareholders |
|
|
(0.96 |
) |
|
|
(1.20 |
) |
|
|
(1.33 |
) |
|
|
(1.17 |
) |
|
|
(1.25 |
) |
Net
asset value, end of year |
|
$ |
22.19 |
|
|
$ |
21.40 |
|
|
$ |
23.13 |
|
|
$ |
24.07 |
|
|
$ |
23.91 |
|
TOTAL
RETURN
2 |
|
|
8.33 |
%
3 |
|
|
(2.26 |
)% |
|
|
1.68 |
% |
|
|
5.68 |
% |
|
|
7.73 |
% |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of year (000’s omitted) |
|
$ |
166,447 |
|
|
$ |
128,377 |
|
|
$ |
247,466 |
|
|
$ |
262,332 |
|
|
$ |
54,997 |
|
Ratios
to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.43 |
% |
|
|
0.43 |
% |
|
|
0.43 |
% |
|
|
0.43 |
% |
|
|
0.43 |
% |
Net
investment income |
|
|
4.40 |
% |
|
|
5.43 |
% |
|
|
5.52 |
% |
|
|
5.14 |
% |
|
|
5.19 |
% |
Portfolio
turnover rate
4 |
|
|
40 |
% |
|
|
101 |
%
5,6 |
|
|
61 |
% |
|
|
60 |
% |
|
|
57 |
% |
WisdomTree
Interest Rate Hedged U.S. Aggregate Bond Fund |
|
For
the Year Ended August 31, 2021 |
|
For
the Year Ended August 31, 2020 |
|
For
the Year Ended August 31, 2019 |
|
For
the Year Ended August 31, 2018 |
|
For
the Year Ended August 31, 2017 | ||||||||||
Net
asset value, beginning of year |
|
$ |
47.04 |
|
|
$ |
47.71 |
|
|
$ |
47.82 |
|
|
$ |
47.89 |
|
|
$ |
48.01 |
|
Investment
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income 1 |
|
|
0.69 |
|
|
|
1.11 |
|
|
|
1.36 |
|
|
|
1.18 |
|
|
|
0.95 |
|
Net
realized and unrealized loss |
|
|
(0.06 |
) |
|
|
(0.60 |
) |
|
|
(0.10 |
) |
|
|
(0.07 |
) |
|
|
(0.03 |
) |
Total
from investment operations |
|
|
0.63 |
|
|
|
0.51 |
|
|
|
1.26 |
|
|
|
1.11 |
|
|
|
0.92 |
|
Dividends
to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
(0.86 |
) |
|
|
(1.18 |
) |
|
|
(1.37 |
) |
|
|
(1.18 |
) |
|
|
(1.04 |
) |
Net
asset value, end of year |
|
$ |
46.81 |
|
|
$ |
47.04 |
|
|
$ |
47.71 |
|
|
$ |
47.82 |
|
|
$ |
47.89 |
|
TOTAL
RETURN 2 |
|
|
1.34 |
% |
|
|
1.08 |
% |
|
|
2.69 |
% |
|
|
2.35 |
% |
|
|
1.93 |
% |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of year (000’s omitted) |
|
$ |
215,330 |
|
|
$ |
94,088 |
|
|
$ |
76,337 |
|
|
$ |
52,606 |
|
|
$ |
23,945 |
|
Ratios
to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
0.23 |
% |
|
|
0.23 |
% |
|
|
0.23 |
% |
|
|
0.23 |
% |
|
|
0.23 |
% |
Net
investment income |
|
|
1.47 |
% |
|
|
2.36 |
% |
|
|
2.86 |
% |
|
|
2.46 |
% |
|
|
1.99 |
% |
Portfolio
turnover rate 4,7 |
|
|
81 |
% |
|
|
70 |
% |
|
|
39 |
% |
|
|
81 |
% |
|
|
187 |
% |
1 |
Based
on average shares outstanding. |
2 |
Total
return is calculated assuming an initial investment made at the net asset
value at the beginning of the period, reinvestment of all dividends and
distributions at net asset value during the period and redemption on the
last day of the period. |
3 |
Includes
a voluntary reimbursement from the sub-advisor for an operational error
that resulted in investment transaction losses. Excluding the voluntary
reimbursement, total return would have been 0.05% lower. |
4 |
Portfolio
turnover rate excludes the value of the portfolio securities received or
delivered as a result of in-kind creations or redemptions of the Fund’s
capital shares. Short-term securities with maturities less than or equal
to 365 days are excluded from the portfolio turnover
calculation. |
5 |
The
increase in the portfolio turnover rate was primarily a result of the
change in investment objective and strategy on June 1,
2020. |
6 |
On
June 4, 2020, Voya Investment Management Co., LLC replaced Mellon
Investments Corporation as sub-advisor to the Fund. |
7 |
The
portfolio turnover rates excluding TBA roll transactions for the years
ended August 31, 2021, August 31, 2020, August 31, 2019, August 31, 2018
and August 31, 2017 were 23%, 33%, 12%, 28% and 45%,
respectively. |
WisdomTree
Trust
Prospectus 137 |
WisdomTree Mortgage Plus
Bond Fund |
|
For the Year Ended August 31, 2021 |
|
For the Period November 14, 2019* through August 31, 2020 | ||||
Net
asset value, beginning of period |
|
$ |
51.64 |
|
|
$ |
50.26 |
|
Investment
operations: |
|
|
|
|
|
|
|
|
Net
investment income
1 |
|
|
0.45 |
|
|
|
0.66 |
|
Net
realized and unrealized gain |
|
|
0.06 |
|
|
|
1.55 |
|
Total
from investment operations |
|
|
0.51 |
|
|
|
2.21 |
|
Dividends
and distributions to shareholders: |
|
|
|
|
|
|
|
|
Net
investment income |
|
|
(0.88 |
) |
|
|
(0.83 |
) |
Capital
gains |
|
|
(0.32 |
) |
|
|
— |
|
Tax
return of capital |
|
|
(0.01 |
) |
|
|
— |
|
Total
dividends and distributions to shareholders |
|
|
(1.21 |
) |
|
|
(0.83 |
) |
Net
asset value, end of period |
|
$ |
50.94 |
|
|
$ |
51.64 |
|
TOTAL
RETURN
2 |
|
|
0.99 |
% |
|
|
4.45 |
% |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
|
|
|
Net
assets, end of period (000’s omitted) |
|
$ |
40,754 |
|
|
$ |
30,986 |
|
Ratios
to average net assets of: |
|
|
|
|
|
|
|
|
Expenses |
|
|
0.45 |
% |
|
|
0.45 |
%
3 |
Net
investment income |
|
|
0.88 |
% |
|
|
1.64 |
%
3 |
Portfolio
turnover rate
4,5 |
|
|
430 |
% |
|
|
278 |
% |
WisdomTree Yield Enhanced
U.S. Aggregate Bond Fund |
|
For the Year Ended August 31, 2021 |
|
For the Year Ended August 31, 2020 |
|
For the Year Ended August 31, 2019 |
|
For the Year Ended August 31, 2018 |
|
For the Year Ended August 31, 2017 | ||||||||||
Net
asset value, beginning of year |
|
$ |
53.93 |
|
|
$ |
52.71 |
|
|
$ |
48.68 |
|
|
$ |
50.94 |
|
|
$ |
52.04 |
|
Investment
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income
1 |
|
|
0.85 |
|
|
|
1.28 |
|
|
|
1.61 |
|
|
|
1.53 |
|
|
|
1.35 |
|
Net
realized and unrealized gain (loss) |
|
|
(0.76 |
) |
|
|
1.38 |
|
|
|
4.05 |
|
|
|
(2.26 |
) |
|
|
(0.85 |
) |
Total
from investment operations |
|
|
0.09 |
** |
|
|
2.66 |
|
|
|
5.66 |
|
|
|
(0.73 |
) |
|
|
0.50 |
|
Dividends
and distributions to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
(1.14 |
) |
|
|
(1.44 |
) |
|
|
(1.63 |
) |
|
|
(1.53 |
) |
|
|
(1.38 |
) |
Capital
gains |
|
|
(0.27 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.22 |
) |
Total
dividends and distributions to shareholders |
|
|
(1.41 |
) |
|
|
(1.44 |
) |
|
|
(1.63 |
) |
|
|
(1.53 |
) |
|
|
(1.60 |
) |
Net
asset value, end of year |
|
$ |
52.61 |
|
|
$ |
53.93 |
|
|
$ |
52.71 |
|
|
$ |
48.68 |
|
|
$ |
50.94 |
|
TOTAL
RETURN
2 |
|
|
0.18 |
% |
|
|
5.14 |
% |
|
|
11.92 |
% |
|
|
(1.44 |
)% |
|
|
1.05 |
% |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of year (000’s omitted) |
|
$ |
1,089,075 |
|
|
$ |
1,315,856 |
|
|
$ |
880,193 |
|
|
$ |
418,662 |
|
|
$ |
168,105 |
|
Ratios
to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses,
net of expense waivers |
|
|
0.12 |
%
6 |
|
|
0.12 |
% |
|
|
0.12 |
% |
|
|
0.12 |
% |
|
|
0.12 |
% |
Expenses,
prior to expense waivers |
|
|
0.15 |
% |
|
|
0.20 |
% |
|
|
0.20 |
% |
|
|
0.20 |
% |
|
|
0.20 |
% |
Net
investment income |
|
|
1.61 |
% |
|
|
2.43 |
% |
|
|
3.25 |
% |
|
|
3.10 |
% |
|
|
2.69 |
% |
Portfolio
turnover rate
4,7 |
|
|
148 |
% |
|
|
88 |
% |
|
|
54 |
% |
|
|
82 |
% |
|
|
134 |
% |
* |
Commencement
of operations. The commencement of operations date is considered to be the
date that the Fund began trading in the secondary
market. |
** |
The
total from investment operations per share does not correspond with the
amount reported within the Statements of Changes due to the timing of
capital share transactions of Fund shares and fluctuating market values
during the fiscal year. |
1 |
Based
on average shares outstanding. |
2 |
Total
return is calculated assuming an initial investment made at the net asset
value at the beginning of the period, reinvestment of all dividends and
distributions at net asset value during the period and redemption on the
last day of the period. Total return calculated for a period of less than
one year is not annualized. For the periods in which the investment
advisor waived advisory fees for the WisdomTree Yield Enhanced U.S.
Aggregate Bond Fund, the total return would have been lower if certain
expenses had not been waived. |
3 |
Annualized. |
4 |
Portfolio
turnover rate is not annualized for fiscal periods less than one year and
excludes the value of the portfolio securities received or delivered as a
result of in-kind creations or redemptions of the Fund’s capital shares.
Short-term securities with maturities less than or equal to 365 days are
excluded from the portfolio turnover calculation. |
5 |
The
portfolio turnover rates excluding TBA roll transactions for the periods
ended August 31, 2021 and August 31, 2020 were 47% and 70%,
respectively. |
6 |
The
investment advisor had contractually agreed to limit the advisory fee to
0.12% through December 31, 2020. On December 31, 2020, the contractual
waiver expired and the advisory fee was permanently reduced to
0.12%. |
7 |
The
portfolio turnover rates excluding TBA roll transactions for the years
ended August 31, 2021, August 31, 2020, August 31, 2019, August 31, 2018
and August 31, 2017, were 41%, 65%, 44%, 38% and 59%,
respectively. |
138 WisdomTree
Trust
Prospectus |
WisdomTree Yield Enhanced
U.S. Short-Term Aggregate Bond Fund |
|
For the Year Ended August 31, 2021 |
|
For the Year Ended August 31, 2020 |
|
For the Year Ended August 31, 2019 |
|
For the Year Ended August 31, 2018 |
|
For the Period May 18, 2017* through August 31, 2017 | ||||||||||
Net
asset value, beginning of period |
|
$ |
51.60 |
|
|
$ |
50.58 |
|
|
$ |
48.88 |
|
|
$ |
50.25 |
|
|
$ |
50.06 |
|
Investment
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income
1 |
|
|
0.50 |
|
|
|
1.19 |
|
|
|
1.40 |
|
|
|
1.17 |
|
|
|
0.26 |
|
Net
realized and unrealized gain (loss) |
|
|
(0.14 |
) |
|
|
1.05 |
|
|
|
1.69 |
|
|
|
(1.41 |
) |
|
|
0.17 |
|
Total
from investment operations |
|
|
0.36 |
|
|
|
2.24 |
|
|
|
3.09 |
|
|
|
(0.24 |
) |
|
|
0.43 |
|
Dividends
and distributions to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
(0.51 |
) |
|
|
(1.22 |
) |
|
|
(1.39 |
) |
|
|
(1.07 |
) |
|
|
(0.24 |
) |
Capital
gains |
|
|
(0.22 |
) |
|
|
— |
|
|
|
— |
|
|
|
(0.06 |
) |
|
|
— |
|
Total
dividends and distributions to shareholders |
|
|
(0.73 |
) |
|
|
(1.22 |
) |
|
|
(1.39 |
) |
|
|
(1.13 |
) |
|
|
(0.24 |
) |
Net
asset value, end of period |
|
$ |
51.23 |
|
|
$ |
51.60 |
|
|
$ |
50.58 |
|
|
$ |
48.88 |
|
|
$ |
50.25 |
|
TOTAL
RETURN
2 |
|
|
0.69 |
% |
|
|
4.51 |
% |
|
|
6.43 |
% |
|
|
(0.47 |
)% |
|
|
0.86 |
% |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of year (000’s omitted) |
|
$ |
199,802 |
|
|
$ |
113,529 |
|
|
$ |
91,052 |
|
|
$ |
39,104 |
|
|
$ |
5,025 |
|
Ratios
to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses,
net of expense waivers |
|
|
0.12 |
%
3 |
|
|
0.12 |
% |
|
|
0.12 |
% |
|
|
0.12 |
% |
|
|
0.12 |
%
4 |
Expenses,
prior to expense waivers |
|
|
0.15 |
% |
|
|
0.20 |
% |
|
|
0.20 |
% |
|
|
0.20 |
% |
|
|
0.20 |
%
4 |
Net
investment income |
|
|
0.97 |
% |
|
|
2.34 |
% |
|
|
2.83 |
% |
|
|
2.40 |
% |
|
|
1.76 |
%
4 |
Portfolio
turnover rate
5,6 |
|
|
224 |
% |
|
|
106 |
% |
|
|
49 |
% |
|
|
177 |
% |
|
|
44 |
% |
WisdomTree Alternative
Income Fund |
|
For the Period May 6, 2021* through August 31, 2021 | ||
Net
asset value, beginning of period |
|
$ |
24.96 |
|
Investment
operations: |
|
|
|
|
Net
investment income
1 |
|
|
0.43 |
|
Net
realized and unrealized gain |
|
|
0.40 |
|
Total
from investment operations |
|
|
0.83 |
|
Net
asset value, end of period |
|
$ |
25.79 |
|
TOTAL
RETURN
2 |
|
|
3.33 |
% |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
Net
assets, end of period (000’s omitted) |
|
$ |
10,315 |
|
Ratios
to average net assets
7 of: |
|
|
|
|
Expenses |
|
|
0.50 |
%
4 |
Net
investment income |
|
|
5.39 |
%
4 |
Portfolio
turnover rate
5 |
|
|
2 |
% |
* |
Commencement
of operations. The commencement of operations date is considered to be the
date that the Fund began trading in the secondary
market. |
1 |
Based
on average shares outstanding. |
2 |
Total
return is calculated assuming an initial investment made at the net asset
value at the beginning of the period, reinvestment of all dividends and
distributions at net asset value during the period and redemption on the
last day of the period. Total return calculated for a period of less than
one year is not annualized. For the periods in which the investment
advisor waived advisory fees for the WisdomTree Yield Enhanced U.S.
Short-Term Aggregate Bond Fund, the total return would have been lower if
certain expenses had not been waived. |
3 |
The
investment advisor had contractually agreed to limit the advisory fee to
0.12% through December 31, 2020. On December 31, 2020, the contractual
waiver expired and the advisory fee was permanently reduced to
0.12%. |
4 |
Annualized. |
5 |
Portfolio
turnover rate is not annualized for fiscal periods less than one year and
excludes the value of the portfolio securities received or delivered as a
result of in-kind creations or redemptions of the Fund’s capital shares.
Short-term securities with maturities less than or equal to 365 days are
excluded from the portfolio turnover calculation. |
6 |
The
portfolio turnover rates excluding TBA roll transactions for the periods
ended August 31, 2021, August 31, 2020, August 31, 2019, August 31, 2018
and August 31, 2017 were 49%, 46%, 24%, 120% and 22%,
respectively. |
7 |
The
ratios to average net assets do not include net investment income (loss)
or expenses of other funds in which the Fund
invests. |
WisdomTree
Trust
Prospectus 139 |
WisdomTree CBOE S&P
500 PutWrite Strategy Fund |
|
For the Year Ended August 31, 2021 |
|
For the Year Ended August 31, 2020 |
|
For the Year Ended August 31, 2019 |
|
For the Year Ended August 31, 2018 |
|
For the Year Ended August 31, 2017 | ||||||||||
Net
asset value, beginning of year |
|
$ |
26.64 |
|
|
$ |
27.45 |
|
|
$ |
30.57 |
|
|
$ |
29.23 |
|
|
$ |
27.05 |
|
Investment
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)
1 |
|
|
(0.11 |
) |
|
|
0.24 |
|
|
|
0.49 |
|
|
|
0.22 |
|
|
|
0.06 |
|
Net
realized and unrealized gain (loss) |
|
|
6.67 |
|
|
|
(0.63 |
)
2 |
|
|
(1.96 |
) |
|
|
2.15 |
|
|
|
2.74 |
|
Total
from investment operations |
|
|
6.56 |
|
|
|
(0.39 |
) |
|
|
(1.47 |
) |
|
|
2.37 |
|
|
|
2.80 |
|
Dividends
and distributions to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
(0.41 |
) |
|
|
(0.42 |
) |
|
|
(0.25 |
) |
|
|
(0.06 |
) |
|
|
— |
|
Capital
gains |
|
|
— |
|
|
|
— |
|
|
|
(1.40 |
) |
|
|
(0.97 |
) |
|
|
(0.62 |
) |
Total
dividends and distributions to shareholders |
|
|
(0.41 |
) |
|
|
(0.42 |
) |
|
|
(1.65 |
) |
|
|
(1.03 |
) |
|
|
(0.62 |
) |
Net
asset value, end of year |
|
$ |
32.79 |
|
|
$ |
26.64 |
|
|
$ |
27.45 |
|
|
$ |
30.57 |
|
|
$ |
29.23 |
|
TOTAL RETURN
3 |
|
|
24.87 |
% |
|
|
(1.52 |
)% |
|
|
(4.72 |
)% |
|
|
8.28 |
% |
|
|
10.52 |
% |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of year (000’s omitted) |
|
$ |
63,940 |
|
|
$ |
117,225 |
|
|
$ |
211,350 |
|
|
$ |
238,434 |
|
|
$ |
204,635 |
|
Ratios
to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses,
net of expense waivers |
|
|
0.44 |
%
4 |
|
|
0.41 |
%
4 |
|
|
0.38 |
% |
|
|
0.38 |
% |
|
|
0.38 |
% |
Expenses,
prior to expense waivers |
|
|
0.44 |
%
4 |
|
|
0.44 |
%
4 |
|
|
0.44 |
% |
|
|
0.44 |
% |
|
|
0.44 |
% |
Net
investment income (loss) |
|
|
(0.38 |
)%
4 |
|
|
0.90 |
%
4 |
|
|
1.78 |
% |
|
|
0.76 |
% |
|
|
0.21 |
% |
Portfolio
turnover rate
5 |
|
|
18 |
%
6 |
|
|
72 |
%
6 |
|
|
0 |
% |
|
|
0 |
% |
|
|
0 |
% |
|
1 |
Based
on average shares outstanding. |
2 |
The
amount of net realized and unrealized loss per share does not correspond
with the amounts reported within the Statements of Changes due to the
timing of capital share transactions of Fund shares and fluctuating market
values during the fiscal year. |
3 |
Total
return is calculated assuming an initial investment made at the net asset
value at the beginning of the period, reinvestment of all dividends and
distributions at net asset value during the period and redemption on the
last day of the period. Total return calculated for a period of less than
one year is not annualized. For the periods in which the investment
advisor waived advisory fees, the total return would have been lower if
certain expenses had not been waived. |
4 |
The
ratios to average net assets do not include net investment income (loss)
or expenses of other funds in which the Fund invests. |
5 |
Portfolio
turnover rate is not annualized for fiscal periods less than one year and
excludes the value of the portfolio securities received or delivered as a
result of in-kind creations or redemptions of the Fund’s capital shares.
Short-term securities with maturities less than or equal to 365 days are
excluded from the portfolio turnover calculation. |
6 |
During
the fiscal years ended August 31, 2021 and August 31, 2020, the Fund
invested in the WisdomTree Floating Rate Treasury Fund which is considered
a long-term security for purposes of computing the portfolio turnover
rate. During the fiscal years ended August 31, 2021 and August 31, 2020,
the WisdomTree Floating Rate Treasury Fund was the only long-term security
held or transacted in the portfolio, as a result, the variability in the
portfolio turnover rate was primarily driven by the transaction activity
during the fiscal year for this security only (see the “Investment in
Affiliates” supplementary table included in the Schedule of Investments
for transaction activity related to this security for the current fiscal
year). |
140 WisdomTree
Trust
Prospectus |
WisdomTree
Enhanced Commodity Strategy Fund (consolidated)* |
|
For the Period December 19, 2020 through August 31, 2021 |
|
For the Period January 1, 2020 through December 18, 2020 |
|
For the Year Ended December 31, 2019 |
|
For the Year Ended December 31, 2018 |
|
For the Year Ended December 31, 2017 | ||||||||||
|
|
Post-Reorganization |
|
Pre-Reorganization |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net
asset value, beginning of period |
|
$ |
18.74 |
|
|
$ |
18.80 |
|
|
$ |
17.50 |
|
|
$ |
19.25 |
|
|
$ |
19.35 |
|
Investment
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)
1 |
|
|
(0.08 |
) |
|
|
(0.03 |
) |
|
|
0.23 |
|
|
|
0.18 |
|
|
|
0.00 |
2 |
Net
realized and unrealized gain (loss) |
|
|
3.46 |
|
|
|
(0.03 |
) |
|
|
1.07 |
|
|
|
(1.93 |
) |
|
|
(0.10 |
) |
Net
increase from payment by affiliate |
|
|
0.00 |
2 |
|
|
0.00 |
2 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total
from investment operations |
|
|
3.38 |
|
|
|
(0.06 |
) |
|
|
1.30 |
|
|
|
(1.75 |
) |
|
|
(0.10 |
) |
Net
asset value, end of period |
|
$ |
22.12 |
|
|
$ |
18.74 |
|
|
$ |
18.80 |
|
|
$ |
17.50 |
|
|
$ |
19.25 |
|
TOTAL
RETURN
3 |
|
|
18.04 |
%
4 |
|
|
(0.32 |
)%
4 |
|
|
7.43 |
% |
|
|
(9.09 |
)% |
|
|
(0.52 |
)% |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000’s omitted) |
|
$ |
193,552 |
|
|
$ |
99,333 |
|
|
$ |
127,836 |
|
|
$ |
154,855 |
|
|
$ |
154,956 |
|
Ratios
to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses,
net of expense waivers |
|
|
0.55 |
%
5,6 |
|
|
0.75 |
%
6 |
|
|
0.75 |
% |
|
|
0.75 |
% |
|
|
0.75 |
% |
Expenses,
prior to expense waivers |
|
|
0.55 |
%
5,6 |
|
|
0.85 |
%
6 |
|
|
0.85 |
% |
|
|
0.85 |
% |
|
|
0.85 |
% |
Net
investment income (loss) |
|
|
(0.52 |
)%
5,6 |
|
|
(0.18 |
)%
6 |
|
|
1.30 |
% |
|
|
0.94 |
% |
|
|
0.01 |
% |
Portfolio
turnover rate
7 |
|
|
22 |
%
8 |
|
|
0 |
% |
|
|
0 |
% |
|
|
0 |
% |
|
|
0 |
% |
* |
After
the close of business on December 18, 2020, the WisdomTree Continuous
Commodity Index Fund (the “Predecessor Fund”), a commodity pool that was
not registered under the Investment Company Act of 1940, as amended (“1940
Act”), was reorganized into the WisdomTree Enhanced Commodity Strategy
Fund (the “Successor Fund”), an investment company registered under the
1940 Act. The Successor Fund adopted the financial information for the
Predecessor Fund. Accordingly, information presented prior to the close of
business on December 18, 2020 is that of the Predecessor Fund prior to the
reorganization into a regulated investment company under the 1940
Act. |
1 |
Based
on average shares outstanding. |
2 |
Amount
represents less than $0.005. |
3 |
Total
return is calculated assuming an initial investment made at the net asset
value at the beginning of the period, reinvestment of all dividends and
distributions at net asset value during the period and redemption on the
last day of the period. Total return calculated for a period of less than
one year is not annualized. For the periods in which the investment
advisor (or the Managing Owner, with respect to the Predecessor Fund)
waived advisory fees, the total return would have been lower if certain
expenses had not been waived. |
4 |
Includes
a voluntary reimbursement from the advisor for brokerage commissions
incurred in connection with the Reorganization. Excluding this voluntary
reimbursement, total return would have been unchanged. |
5 |
The
ratios to average net assets do not include net investment income (loss)
or expenses of other funds in which the Fund invests. |
6 |
Annualized. |
7 |
Portfolio
turnover rate is not annualized for fiscal periods less than one year and
excludes the value of the portfolio securities received or delivered as a
result of in-kind creations or redemptions of the Fund’s capital shares.
Short-term securities with maturities less than or equal to 365 days are
excluded from the portfolio turnover calculation. |
8 |
During
the fiscal period ended August 31, 2021, the Fund invested in the
WisdomTree Floating Rate Treasury Fund which is considered a long-term
security for purposes of computing the portfolio turnover rate. During the
fiscal period ended August 31, 2021, the WisdomTree Floating Rate Treasury
Fund was the only long-term security held or transacted in the portfolio,
as a result, the variability in the portfolio turnover rate was primarily
driven by the transaction activity during the fiscal period for this
security only (see the “Investment in Affiliates” supplementary table
included in the Schedule of Investments for transaction activity related
to this security for the current fiscal
period). |
WisdomTree
Trust
Prospectus 141 |
WisdomTree Managed
Futures Strategy Fund (consolidated) |
|
For the Year Ended August 31, 2021 |
|
For the Year Ended August 31, 2020 |
|
For the Year Ended August 31, 2019 |
|
For the Year Ended August 31, 2018 |
|
For the Year Ended August 31, 2017 | ||||||||||
Net
asset value, beginning of year |
|
$ |
35.31 |
|
|
$ |
39.08 |
|
|
$ |
40.57 |
|
|
$ |
38.84 |
|
|
$ |
41.12 |
|
Investment
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss)
1 |
|
|
(0.23 |
) |
|
|
0.17 |
|
|
|
0.55 |
|
|
|
0.26 |
|
|
|
(0.07 |
) |
Net
realized and unrealized gain (loss) |
|
|
6.50 |
|
|
|
(3.34 |
) |
|
|
(0.65 |
) |
|
|
1.47 |
|
|
|
(2.21 |
) |
Net
increase from payment by affiliate |
|
|
0.00 |
2 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total
from investment operations |
|
|
6.27 |
|
|
|
(3.17 |
) |
|
|
(0.10 |
) |
|
|
1.73 |
|
|
|
(2.28 |
) |
Dividends
to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
|
(0.17 |
) |
|
|
(0.60 |
) |
|
|
(1.39 |
) |
|
|
— |
|
|
|
— |
|
Net
asset value, end of year |
|
$ |
41.41 |
|
|
$ |
35.31 |
|
|
$ |
39.08 |
|
|
$ |
40.57 |
|
|
$ |
38.84 |
|
TOTAL
RETURN
3 |
|
|
17.83 |
%
6 |
|
|
(8.17 |
)% |
|
|
(0.22 |
)%
4 |
|
|
4.45 |
% |
|
|
(5.54 |
)%
5 |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of year (000’s omitted) |
|
$ |
147,001 |
|
|
$ |
112,993 |
|
|
$ |
216,875 |
|
|
$ |
160,250 |
|
|
$ |
170,879 |
|
Ratios
to average net assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses,
net of expense waivers |
|
|
0.65 |
%
7,8 |
|
|
0.65 |
%
7 |
|
|
0.65 |
% |
|
|
0.65 |
% |
|
|
0.65 |
% |
Expenses,
prior to expense waivers |
|
|
0.68 |
%
7 |
|
|
0.75 |
%
7 |
|
|
0.75 |
% |
|
|
0.75 |
% |
|
|
0.75 |
% |
Net
investment income (loss) |
|
|
(0.60 |
)%
7 |
|
|
0.46 |
%
7 |
|
|
1.40 |
% |
|
|
0.66 |
% |
|
|
(0.18 |
)% |
Portfolio
turnover rate
9 |
|
|
25 |
%
10 |
|
|
97 |
%
10 |
|
|
0 |
% |
|
|
0 |
% |
|
|
0 |
% |
1 |
Based
on average shares outstanding. |
2 |
Amount
represents less than $0.005. |
3 |
Total
return is calculated assuming an initial investment made at the net asset
value at the beginning of the period, reinvestment of all dividends and
distributions at net asset value during the period and redemption on the
last day of the period. For the periods in which the investment advisor
waived advisory fees, the total return would have been lower if certain
expenses had not been waived. |
4 |
Includes
a voluntary reimbursement from the sub-advisor for investment losses on
certain futures contract transactions during the period. Excluding this
voluntary reimbursement, total return would have been
unchanged. |
5 |
Includes
a voluntary reimbursement from the sub-advisor for investment losses on
certain futures contract transactions during the period. Excluding this
voluntary reimbursement, total return would have been 0.08%
lower. |
6 |
Includes
a voluntary reimbursement from the sub-advisor for investment losses on
certain futures contract transactions during the period. Excluding this
voluntary reimbursement, total return would have been
unchanged. |
7 |
The
ratios to average net assets do not include net investment income (loss)
or expenses of other funds in which the Fund invests. |
8 |
The
investment advisor had contractually agreed to limit the advisory fee to
0.65% through December 31, 2020. On December 31, 2020, the contractual
waiver expired and the advisory fee was permanently reduced to
0.65%. |
9 |
Portfolio
turnover rate excludes the value of the portfolio securities received or
delivered as a result of in-kind creations or redemptions of the Fund’s
capital shares. Short-term securities with maturities less than or equal
to 365 days are excluded from the portfolio turnover
calculation. |
10 |
During
the fiscal years ended August 31, 2021 and August 31, 2020, the Fund
invested in the WisdomTree Floating Rate Treasury Fund which is considered
a long term security for purposes of computing the portfolio turnover
rate. During the fiscal years ended August 31, 2021 and August 31, 2020,
the WisdomTree Floating Rate Fund was the only long-term security held or
transacted in the portfolio, as a result, the variability in the portfolio
turnover was primarily driven by the transaction activity during the
fiscal year for this security only (see the “Investment in Affiliates”
supplementary table included in the Schedule of Investments for
transaction activity related to this security for the current fiscal
year). |
142 WisdomTree
Trust
Prospectus |
|
|
|
|
|
|
|
|
The
Funds' current SAI provides additional detailed information about the
Funds. The Trust has electronically filed the SAI with the SEC. It is
incorporated by reference in this Prospectus.
Additional
information about the Funds' investments is available in the Funds' annual
and semi-annual reports to shareholders. In the annual report you will
find a discussion of the market conditions and investment strategies that
significantly affected the Funds' performance during the last fiscal
year.
To
make shareholder inquiries, for more detailed information on the Funds, or
to request the SAI or annual or semi-annual shareholder reports, as
applicable, free of charge, please:
|
|
| |||
Call: |
1-866-909-9473 Monday through Friday 9:00 a.m. to 5:30 p.m. (Eastern time) |
Write: |
WisdomTree Trust c/o Foreside Fund Services, LLC Three Canal Plaza, Suite 100 Portland, Maine 04101 |
|
|
Visit: |
www.wisdomtree.com |
|
|
|
|
|
|
| |||
Reports
and other information about the Funds are available on the EDGAR Database
on the SEC’s Internet site at www.sec.gov, and copies of this information
may be obtained, after paying a duplicating fee, by electronic request at
the following e-mail address: [email protected].
No
person is authorized to give any information or to make any
representations about any Fund and its shares not contained in this
Prospectus and you should not rely on any other information. Read and keep
this Prospectus for future reference. |
|
©
2022 WisdomTree Trust
WisdomTree
Funds are distributed in the U.S. by
Foreside Fund Services, LLC Three Canal Plaza, Suite 100 Portland, Maine 04101 WisdomTree
® is
a registered mark of WisdomTree Investments, Inc. INVESTMENT
COMPANY ACT FILE NO.
811-21864 WIS-PR-002-0722 |