WisdomTree Efficient Rare Earth Plus Strategic Metals Fund – WDIG (Cboe BZX Exchange, Inc.)
Summary Prospectus – April 6, 2026, as supplemented May 12, 2026
Before you invest in the Fund, as defined below, you may want to review the Fund’s prospectus and statement of additional information (“SAI”), which contain more information about the Fund and the risks of investing in the Fund. The Fund’s current prospectus, as supplemented, and SAI, as supplemented, are incorporated by reference into this summary prospectus. You can find the Fund’s prospectus and SAI, each as supplemented, reports to shareholders, as well as other information about the Fund, online at https://www.wisdomtree.com/investments/resource-library/prospectus-regulatory-reports. You may also obtain this information at no charge by calling 1-866-909-9473 or by sending an e-mail request to getinfo@wisdomtree.com.
Investment Objective
The WisdomTree Efficient Rare Earth Plus Strategic Metals Fund (the “Fund”) seeks total return.
Fees and Expenses of the Fund
The following table describes the fees and expenses you may pay if you buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and example below. The fees are expressed as a percentage of the Fund’s average net assets.
| Shareholder Fees (fees paid directly from your investment) | None |
| Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) | |
| Management Fees | 0.55% |
| Distribution and/or Service (12b-1) Fees | None |
| Other Expenses | 0.00%1 |
| Total Annual Fund Operating Expenses | 0.55% |
| 1 | Other Expenses are based on estimated amounts for the current fiscal year. |
Example
This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. The example assumes you invest $10,000 in the Fund for the time periods indicated and then redeem or hold all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
| 1 Year | 3 Years |
| $56 | $176 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in the Fund’s Annual Fund Operating Expenses or in the example, affect the Fund’s performance. The Fund is newly organized and therefore, portfolio turnover information is not yet available.
Principal Investment Strategies of the Fund
The Fund is actively managed using a model-based approach. The model is a proprietary model designed by WisdomTree Asset Management, Inc., the Fund’s investment adviser (“WisdomTree Asset Management” or the
| WisdomTree Trust Prospectus 1 |
“Adviser”), that produces targeted allocation exposures to issuers engaged in strategic metals and rare earth mining activities, which the Fund then implements. The Fund seeks to achieve its investment objective by investing, either directly or through a wholly-owned subsidiary, in a portfolio composed of (i) a basket of commodity metals futures contracts from an eligible exchange, including but not limited to the Chicago Mercantile Exchange (“CME”) or the London Metals Exchange (“LME”) (collectively, the “Commodity Components”) and (ii) a basket of equity securities issued by global companies primarily involved in strategic metals and rare earths mining activities (collectively, the “Equity Components”). The Fund uses commodity metals futures contracts to enhance the capital efficiency of the Fund. Capital efficiency is the ability for an investment to gain exposure to a particular market using fewer assets. Under normal circumstances, the Fund will invest at least 80% of the value of its net assets, plus the amount of any borrowings for investment purposes, in investments, including equity securities, such as the common stocks or preferred stocks of an issuer, and futures contracts, that provide exposure to strategic metals and/or rare earth mining activities.
To be eligible for investment as an Equity Component, a company must be involved in a mining business in certain strategic metals and rare earth elements categories (the “Categories”) listed in the following sentence and derive at least 10% of its revenue from such business. Currently, the Categories include, but are not limited to: Aluminum, Cobalt, Copper, Lead, Lithium, Nickel, Platinum, Silver, Tin, Zinc, and Rare Earth Elements. Each Category corresponds to a metal that is central to modern strategic and high-technology supply chains. These metals are critical inputs for applications such as defense systems, artificial-intelligence and data-center infrastructure, semiconductor manufacturing, aerospace, and advanced industrial technologies.
In addition, a company must (i) conduct its Primary Business Activities and list its shares on a securities exchange operating in one or more of the following countries: Australia, Austria, Belgium, Brazil, Canada, Chile, Czech Republic, Denmark, Finland, France, Germany, Hong Kong, Hungary, India, Indonesia, Ireland, Israel, Italy, Japan (Tokyo Stock Exchange only), Malaysia, Mexico, Netherlands, Norway, Poland, Portugal, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, the United Kingdom, and the United States; (ii) have a minimum market capitalization of at least $250 million; and (iii) have a median daily dollar volume greater than $1,000,000 in the last three months preceding the model screening date.
A company’s engagement in strategic metals and rare earths mining businesses is assessed via applicable language in its company description, regulatory filings (e.g., Annual Report or 10-K), earnings call transcripts, patent submissions, news and press releases, as well as via exposure to relevant industry classifications. In determining whether a company is involved in strategic metals and rare earths mining businesses and the extent of such involvement, the Adviser expects to rely on publicly available information and analyses of such information performed by third-party data providers.
The Fund seeks to invest in a minimum of 20 Equity Components. To satisfy this minimum, the Adviser may determine to invest in companies with lesser revenue exposure or market capitalization and volume than the criteria mentioned above.
The Fund’s Commodity Components will consist of listed commodity metals futures contracts, including but not limited to, CME or LME listed Aluminum, Cobalt, Copper, Lead, Lithium, Nickel, Platinum, Silver, Tin, and Zinc futures contracts.
Under normal circumstances, the Fund will have approximately equal exposure to Equity Components and Commodity Components. The Fund generally invests approximately 90% of its net assets in Equity Components, while the Fund typically invests in Commodity Components representing a notional exposure of approximately 90% of the Fund’s net assets. Fund invests in U.S. Treasury securities and cash and cash equivalents to serve as collateral or margin for the Fund’s investments in Commodity Components. The Fund will not invest directly in physical commodities.
The Fund’s portfolio will be rebalanced quarterly to the target allocation exposures. As a result, between quarterly rebalances, the Fund’s exposure to Equity Components and Commodity Components may vary from the targeted exposures, and the Fund’s Equity Components may vary from the targeted market-capitalization weighting. To the extent the Fund’s exposure deviates from the targeted exposure by greater than 10%, it is anticipated that the Fund will be rebalanced intra-quarter to more closely align its portfolio with the target exposures. Between rebalances, the Fund’s portfolio may temporarily include Equity Components that no longer meet the model’s investment criteria.
The Fund seeks to gain exposure to the Commodity Components, in whole or in part, through investments in a subsidiary organized in the Cayman Islands (the “WisdomTree Subsidiary”). The WisdomTree Subsidiary is wholly owned and controlled by the Fund. The Fund’s investment in the WisdomTree Subsidiary may not exceed 25% of
2 WisdomTree Trust Prospectus |
the Fund’s total assets at each quarter-end of the Fund’s fiscal year. The Fund’s investment in the WisdomTree Subsidiary is intended to provide the Fund with exposure to the investment returns of the relevant metals markets while enabling the Fund to satisfy source-of-income requirements that apply to regulated investment companies (“RICs”) under the Internal Revenue Code of 1986, as amended (the “Code”). Except as noted, references to the investment strategies and risks of the Fund include the investment strategies and risks of the WisdomTree Subsidiary.
The Adviser currently uses a widely recognized industry classification methodology to identify the extent of the Fund’s exposure to a sector or industry. A sector typically is composed of multiple industries. While the Fund’s sector exposure may vary from time to time, the Fund is expected to have significant exposure (e.g., approximately 15% or more of the Fund’s holdings) to the Materials Sector.
The Fund will concentrate its investments (i.e., invest more than 25% of its net assets) in securities in the Metals and Mining Industry.
Although the Fund’s geographic exposure may change from time to time, the equity securities of companies that conduct their Primary Business Activities in the United States, Canada, and South Africa are expected to comprise a significant portion of the Fund’s holdings (e.g., approximately 15% or more).
Principal Risks of Investing in the Fund
You can lose money on your investment in the Fund. While certain of the risks are prioritized in terms of their relevance to the Fund’s investment strategies, most risks are presented in alphabetical order. This ordering approach is designed to both facilitate an investor’s understanding of the Fund’s risks and enable an investor to easily locate and compare risks among funds. Each risk summarized below is considered a “principal risk” of investing in the Fund, regardless of the order in which it appears. Some or all of these risks may adversely affect the Fund’s net asset value per share (“NAV”), trading price, yield, total return and/or ability to meet its investment objective. For more information about the risks of investing in the Fund, see the sections in the Fund’s Prospectus titled “Additional Principal Risk Information About the Fund” and “Additional Non-Principal Risk Information.”
| ■ | Metal Commodities Risk. The value of metal commodities, such as various mined metals and commodity-linked derivative instruments, such as commodity metals futures contracts, typically is based upon the price movements of the physical commodity or an economic variable linked to such price movements. Price movements in metals and commodity metals futures contracts may fluctuate quickly and dramatically, have a historically low correlation with the returns of the stock and bond markets, and may not correlate to price movements in other asset classes. Some factors that impact the price of metals and commodity metals futures contracts include, but are not limited to, overall market movements, changes in interest rates, changes in the global supply and demand for metals, the quantity of metal imports and exports, factors that impact metal mining, such as drought, floods and weather conditions, technological advances in the processing and mining of metal, an increase in the hedging of precious metals, and changes in economic and/or political conditions, including regulatory developments and trade or currency restrictions between countries. |
| ■ | Metal Mining Companies Risk. By investing in the equity securities of metal miners, the Fund may be susceptible to financial, economic, political, or market events that impact the metal mining industry. Additional factors that affect metal miners and the metal mining industry include, but are not limited to: commodity prices; extraction and production costs; tax and government regulations; central bank operations; competitive pressures; the success of exploration projects; and adverse environmental developments. Metal mining companies may have significant operations in areas at risk for social and political unrest, security concerns, and environmental damage. The profitability of metal miners can be dramatically affected by the fluctuation in the price of the metals they mine, which can be impacted by the factors set forth under Metal Commodities Risk. |
| ■ | Derivatives Risk. Derivatives are financial instruments that derive their performance from an underlying reference asset, such as a currency or a commodity. Generally, derivatives are sophisticated investments that may pose risks that are different from or greater than those posed by investing directly in the underlying reference asset. For example, the return on a derivative instrument may not correlate with that of its underlying reference asset, and minimal requisite initial investments necessary to purchase derivatives positions may expose the Fund to losses in excess of those amounts. Derivatives also can be volatile and may be less liquid than other investments. As a result, the value of an investment in the Fund may change quickly and without warning and you may lose money. The Fund expects to use futures contracts to implement its principal investment strategies. Risks specific to futures contracts, as well as other risks related to the use of derivatives, generally, such as counterparty and issuer credit risk, are described in greater detail elsewhere in the Fund’s Prospectus. |
| WisdomTree Trust Prospectus 3 |
| ■ | 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 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. |
| ■ | Shares of the Fund May Trade at Prices Other Than NAV. As with all exchange-traded funds (“ETFs”), Fund shares may be bought and sold in the secondary market at market prices. The market 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 certain of the investments 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. |
| ■ | Capital Controls and Sanctions Risk. Economic conditions, such as volatile currency exchange rates and interest rates, political events, military action and other conditions may, without prior warning, lead to foreign government intervention (including intervention by the U.S. government with respect to foreign governments, economic sectors, foreign companies and related securities and interests) and the imposition of capital controls and/or sanctions, which may also include retaliatory actions of one government against another government, such as seizure of assets. Capital controls and/or sanctions include the prohibition of, or restrictions on, the ability to own or transfer currency, securities or other assets, which may potentially include derivative instruments related thereto. Capital controls and/or sanctions may also impact the ability of the Fund to buy, sell, transfer, receive, deliver or otherwise obtain exposure to, foreign securities or currency, negatively impact the value and/or liquidity of such instruments, adversely affect the trading market and price for shares of the Fund, and cause the Fund to decline in value. |
| ■ | 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 its portfolio investments to obtain the cash needed to pay out redemption proceeds. This may cause the Fund to recognize capital gains that it might not have recognized if it had satisfied such redemption requests with securities held by the Fund (i.e., redeemed its shares in kind). As a result, the Fund may pay out higher annual capital gains distributions than a fund that redeems its shares in kind. |
| ■ | Concentration Risk. To the extent that the Fund’s portfolio is concentrated in the securities of issuers in a particular industry or group of industries, the Fund may be adversely affected by the performance of those securities, and more susceptible to adverse economic, market, political, or regulatory occurrences affecting that industry or group of industries. The Fund’s investments, are concentrated in securities issued by companies in one or more of the industries comprising the industry group described below. As such, the Fund is subject to the risks described below. The industries in which the Fund may be concentrated may vary over time. |
| ■ | Companies in Capital Goods Industries |
| ■ | The Capital Goods Industry Group relies heavily on corporate spending and the prices of the securities of companies doing business in the Capital Goods Industry Group may fluctuate widely due to economic cycles and factors affecting manufacturing demands. The Capital Goods Industry Group tends to perform well during times of economic expansion when the demand for capital goods is strong. Conversely, the performance of the Capital Goods Industry Group tends to weaken in economic downturns as a result of low corporate profitability and spending and overall lesser demand for products. Many capital goods are sold internationally, and companies in this industry group may be affected by market conditions in other countries and regions. Legislative or regulatory changes and increased government supervision may also affect companies in the Capital Goods Industry Group. |
| ■ | Companies in Technology Hardware & Equipment Industries |
4 WisdomTree Trust Prospectus |
| ■ | The Technology Hardware & Equipment Industry Group is comprised of companies involved in the manufacturing of communication equipment, computers, electronic components, and other electronic equipment and instruments, as well as distributors of software and technology hardware and equipment. Companies in the industry group may experience effects from industry competition, evolving industry standards, product obsolescence, and changing government regulation. These companies may also be affected by risks that affect the broader Information Technology Sector. |
| ■ | 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. In addition, the Fund may enter into derivative transactions with a limited number of counterparties, which may increase the Fund’s exposure to counterparty credit risk. Furthermore, there is a risk that no suitable counterparties will be willing to enter into, or continue to enter into, transactions with the Fund and, as a result, the Fund may not be able to achieve its investment objective. |
| ■ | 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. |
| ■ | Emerging Markets Risk. Investments in securities and instruments traded in developing or emerging markets, or that provide exposure to such securities or markets, can involve additional risks relating to political, economic, or regulatory conditions not associated with investments in U.S. securities and instruments or investments in more developed international markets. Such conditions may impact the ability of the Fund to buy, sell or otherwise transfer securities, adversely affect the trading market and price for Fund shares and cause the Fund to decline in value. |
| ■ | Foreign Securities Risk. Investments in non-U.S. securities, including depositary receipts, involve political, regulatory, and economic risks that may not be present in investments in U.S. securities. For example, investments in non-U.S. securities may be subject to risk of loss due to 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 additional risks may make investments in the Fund more volatile and potentially less liquid than other types of investments. These risks may be heightened to the extent the Fund invests in companies domiciled in or otherwise tied to developing or emerging market countries. |
| ■ | Geographic Investment Risk. To the extent the Fund invests a significant portion of its assets in securities of companies of a single country or region, it is more likely to be impacted by events or conditions affecting that country or region. |
Investments in Canada
The economy of Canada is heavily dependent on the demand for natural resources and agricultural products. Canada is a major producer
of commodities such as forest products, metals, agricultural products, and energy related products like oil, gas, and hydroelectricity.
Canada is also a top producer of gold as well as nickel, aluminum, and lead. Accordingly, a change in the supply and demand of these resources,
both domestically and internationally, can have a significant effect on Canadian market performance. The U.S. is Canada’s largest
trading partner and foreign investor. As a result, changes to the U.S. economy may also significantly affect the Canadian economy.
| WisdomTree Trust Prospectus 5 |
Investments in Emerging Markets
Investments in securities and instruments traded in developing or emerging markets, or that provide exposure to such securities or
markets, can involve additional risks relating to political, economic, or regulatory conditions not associated with investments in U.S.
securities and instruments or investments in more developed international markets. For example, emerging markets may be subject to (i)
greater market volatility, (ii) lower trading volume and liquidity, (iii) greater social, political, and economic uncertainty, (iv) governmental
controls on foreign investments, market manipulation concerns, and limitations on repatriation of invested capital, (v) lower disclosure,
corporate governance, accounting, auditing, financial reporting, and recordkeeping standards, (vi) fewer protections of property rights,
(vii) limited investor rights and legal or practical remedies available to the Fund against portfolio companies, (viii) restrictions on
the transfer of securities or currency or payment of dividends, and (ix) settlement and trading practices that differ from U.S. markets.
Each of these factors may impact the Fund’s ability to buy, sell, transfer, receive, deliver, or otherwise obtain exposure to, emerging
market securities or currency, negatively impact the value and/or liquidity of such instruments, adversely affect the trading market and
price for shares of the Fund and cause the Fund to decline in value. The volatility of emerging markets may be heightened by the actions
(such as significant buying and selling) of a few major investors. For example, substantial increases or decreases in cash flows of funds
investing in these markets could significantly affect local securities’ prices and cause Fund share prices to decline. For these
and other reasons, investments in emerging markets are often considered speculative.
Investments in South Africa
Investing in South Africa involves special considerations not typically associated with investing in countries with more established
economies or currency markets. Although South Africa is a developing country with a solid economic infrastructure (in some regards rivaling
other developed countries), certain issues, such as unemployment, access to health care, limited economic opportunity, and other financial
constraints, continue to present obstacles to full economic development. Disparities of wealth, the pace and success of democratization
and capital market development and religious and racial disaffection also have led to social and political unrest. South Africa’s
currency has recently fluctuated significantly and may be vulnerable to significant devaluation. There can be no assurance that initiatives
by the government to address these issues will achieve the desired results. South Africa’s economy is heavily dependent on natural
resources and commodity prices. South Africa’s currency may be vulnerable to devaluation. These and other factors could have a negative
impact on the Fund’s performance and increase the volatility of an investment in the Fund.
Investments in the United
States
The economic, political, regulatory, and other events and conditions that affect issuers and investments in the United States differ
significantly from those associated with other countries and regions. For example, routine political events, such as a presidential election,
can have a significant effect on the U.S. markets and lead to periods of increased volatility. U.S. financial markets also have become
increasingly globalized, hosting participants from all over the world and on a more macro level, becoming more integrated with financial
markets around the world. As a result, U.S. financial markets are also increasingly vulnerable to the risks that may affect non-U.S. financial
markets. The Fund’s investments in the United States are particularly subject to the risk that they, and the U.S. economy more generally,
will be adversely affected by a decrease in imports or exports, changes in trade regulations, inflation, and/or an economic recession
in the United States. Relatedly, the extensive economic sanctions levied against Russia by a multilateral coalition, including the United
States, in response to Russia’s invasion of Ukraine in February 2022, have adversely affected and may continue to adversely affect
specific U.S. companies and sectors that previously engaged with Russia, such as certain financial institutions with exposure to Russia
and companies dependent on raw materials previously sourced from Russia. There also remains a concern that reduced energy supplies from
Russia could lead to higher gas prices and exacerbate inflation in the United States. In addition, proposed and adopted policy and legislative
changes in the United States have changed and may continue to change many aspects of financial, public health, environmental, and other
regulation. Certain of these changes may have a significant effect, either positive or negative, on U.S. markets and issuers, including
issuers in which the Fund may invest. The Fund’s investments in the United States also may be adversely affected by any one of several
geopolitical risks to which the United States is subject, including its precarious strategic competitive relationship with China, increasing
environmental and climate risk, and the ever-increasing threat of damaging cyberattacks. The United States has also experienced elevated
debt levels and increased internal political discord, as well as significant challenges in managing and containing the outbreak of COVID-19.
If these trends were to continue or any of the other risks were to manifest, whether due to conditions or an event originating from within
or outside of the United States, it may have an adverse effect on the Fund’s investments in the United States and thus, the Fund’s
performance.
6 WisdomTree Trust Prospectus |
| ■ | Geopolitical Risk. The United States, as well as other countries and regions in which the Fund invests have and may continue to experience 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 that lead to increased short-term market volatility, have adverse long-term effects on the U.S. and world economies, and disrupt the orderly functioning of securities markets generally, which may negatively impact the Fund’s investments. |
| ■ | Leveraging Risk. Certain transactions of the Fund, such as the use of derivative instruments, will give rise to leverage, magnifying gains and losses and causing the Fund to be more volatile than if it had not been leveraged. This means that leverage entails a heightened risk of loss. |
| ■ | 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. |
| ■ | Materials Sector Risk. The Fund currently invests a significant portion of its assets in the Materials Sector. This sector includes, for example, metals and mining, chemicals, construction materials, glass, paper and related packaging products and forest product companies. This sector can be significantly affected by, among other things, commodity price volatility, demand for basic materials, world economic growth, depletion of natural resources, technological progress, and government regulations. |
| ■ | Models and Data Risk. The Fund uses an investment model to implement its investment strategy. The Fund is subject to the risk that the investment model may not perform as intended, including because the model may not adequately take into consideration certain factors relevant to the Fund’s investment strategy, investments, or the market environment, contains design flaws or incorporates faulty assumptions, or is informed by inaccurate or incomplete data. Errors in the data, assumptions and/or the design of the model may occur from time to time and may not be identified and/or corrected by the Sub-Adviser (defined below) or the Adviser for a significant period or at all, which may magnify the adverse effect on the Fund of any investment decisions made in reliance on the erroneous model results. Any of these circumstances may lead to investment decisions or the inclusion or exclusion of securities that adversely affect the value of the Fund. |
| ■ | 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. |
| ■ | 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. |
| ■ | 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. 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 |
| WisdomTree Trust Prospectus 7 |
| 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. |
| ■ | U.S. Government Securities Risk. U.S. government securities may or may not be backed by the full faith and credit of the U.S. government. U.S. government securities are subject to the risks associated with fixed income and debt securities, particularly interest rate risk and credit risk. In addition, U.S. government securities not backed by the full faith and credit of the U.S. government involve credit risk that is greater than other types of U.S. government securities. |
Fund Performance
The Fund is new and therefore does not yet have performance history. Once the Fund has completed a full calendar year of operations, a bar chart and table will be included that will provide some indication of the risks of investing in the Fund by showing the variability of the Fund’s return based on net assets and comparing the Fund’s performance to a broad measure of market performance. Updated performance information for the Fund will be available online on the Fund’s website at www.wisdomtree.com/investments.
Management
Investment Adviser and Sub-Adviser
WisdomTree Asset Management serves as investment adviser to the Fund. Mellon Investments Corporation (“Mellon” or the “Sub-Adviser”) serves as the investment sub-adviser to the Fund.
Portfolio Managers
The Fund is managed by the Sub-Adviser’s Equity Index Strategies portfolio management team. The individual members of the team jointly and primarily responsible for the day-to-day management of the Fund’s portfolio are identified below.
Marlene Walker-Smith, a Senior Director and Chief Investment Officer, has been a portfolio manager of the Fund since its inception.
David France, CFA, a Senior Vice President, Senior Portfolio Manager and Team Manager, has been a portfolio manager of the Fund since its inception.
Todd Frysinger, CFA, a Senior Vice President, Senior Portfolio Manager and Team Manager, has been a portfolio manager of the Fund since its inception.
Vlasta Sheremeta, CFA, a Senior Vice President, Senior Portfolio Manager and Team Manager, has been a portfolio manager of the Fund since its inception.
Michael Stoll, a Senior Vice President, Senior Portfolio Manager and Team Manager, has been a portfolio manager of the Fund since its inception.
Buying and Selling Fund Shares
The Fund is an ETF. This means that individual shares of the Fund are listed for trading on a national securities exchange, currently Cboe BZX Exchange, Inc. (the “Listing Exchange”), and may only be purchased and sold in the secondary market through a broker-dealer at market prices. Because Fund shares trade at market prices rather than NAV, shares may trade at a price greater than NAV (premium) or less than NAV (discount). In addition, an investor may incur costs attributable to the difference between the highest price a buyer is willing to pay to purchase shares (bid) and the lowest price a seller is willing to accept for shares (ask) when buying and selling shares in the secondary market (the “bid/ask spread”). Recent information regarding the Fund, including its NAV, market price, premiums and discounts, and bid/ask spreads, is available on the Fund’s website at www.wisdomtree.com/investments.
The Fund issues and redeems shares at NAV only in large blocks of shares (“Creation Units”), which only certain institutions or large investors (typically market makers or other broker-dealers) may purchase or redeem. The Fund issues and redeems Creation Units in exchange for a portfolio of securities and/or U.S. cash.
8 WisdomTree Trust Prospectus |
Tax Information
The Fund intends to make distributions that may be taxed as ordinary income, qualified dividend income, or capital gains.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank) (an “Intermediary”), WisdomTree Asset Management or its affiliates may pay Intermediaries for certain activities related to the Fund, including participation in activities that are designed to make Intermediaries more knowledgeable about exchange-traded products, including the Fund, or for other activities, such as marketing, educational training or other initiatives related to the sale or promotion of Fund shares. These payments may create a conflict of interest by influencing the Intermediary and your salesperson to recommend the Fund over another investment. Any such arrangements do not result in increased Fund expenses. Ask your salesperson or visit the Intermediary’s website for more information.
| WisdomTree Trust Prospectus 9 |
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WIS-WDIG-SUM-0526