DFJ

About DFJ

The Fund employs a “passive management” – or indexing– investment approach designed to track the performance of the Index. The Fund generally uses a representative sampling strategyto achieve its investment objective, meaning it generally will invest in a sample of the securities in the Index whose risk, return andother characteristics resemble the risk, return and other characteristics of the Index as a whole. Under normal circumstances, at least95% of the Fund’s total assets (exclusive of collateral held from securities lending) will be invested in constituent securitiesof the Index and investments that have economic characteristics that are substantially identical to the economic characteristics of suchconstituent securities. The Index is a fundamentally weighted index that is comprised ofdividend-paying small capitalization companies in Japan. As of June 30, 2024, the Index had a market capitalization range from $101.9million to $3.7 billion, with an average market capitalization of $857.0 million. To be eligible for inclusion in the Index, a companymust meet the following criteria as of the annual Index screening date: (i) incorporation in Japan; (ii) payment of at least $5 millionin cash dividends on common shares during the preceding annual cycle; (iii) market capitalization of at least $100 million; (iv) mediandaily dollar trading volume of at least $100,000 for the preceding three months; and (v) trading of at least 250,000 shares per monthfor each of the preceding six months. The Index is then created by removing the 300 largest companies by market capitalization from thelist of eligible companies, as of the annual Index screening date. Securities are weighted in the Index based on dividends paid overthe prior annual cycle. Companies that pay a greater total dollar amount of dividends are more heavily weighted. To derive a company’sinitial Index weight, (i) multiply the U.S. dollar value of the company’s annual gross dividend per share by the numberof common shares outstanding for that company (the “Cash Dividend Factor”); (ii) calculate the Cash Dividend Factor for eachcompany; (iii) add together all of the companies’ Cash Dividend Factors; and (iv) divide the company’s Cash DividendFactor by the sum of all Cash Dividend Factors. On the Index’s annual screening date, the maximum weight of any security in theIndex is capped at 2%, and the Index caps the weight of constituents exposed to any one sector (except for the real estate sector) at25%. The weight of constituents exposed to the real estate sector is capped at 15%. The Index also may adjust the weight of individualconstituents on the annual screening date based on certain quantitative thresholds or limits tied to key metrics of a constituent security,such as its trading volume. To the extent the Index reduces an individual constituent’s weight, the excess weight will be reallocatedpro rata among the other constituents. Similarly, if the Index increases a constituent’s weight, the weight of the other constituentswill be reduced on a pro rata basis to contribute the weight needed for such increase. The weight of a sector or individual constituentin the Index may fluctuate above or below specified caps and thresholds, respectively, between screening dates in response to marketconditions. WisdomTree, Inc. (“WisdomTree”),the Index Provider and parent company of WisdomTree Asset Management, Inc. (“WisdomTree Asset Management” or the “Adviser”),currently uses the Global Industry Classification Standard (GICS®),a widely recognized industry classification methodology developed by MSCI, Inc. and Standard & Poor’s Financial Services LLC,to identify the extent of the Index’s exposure to a sector or industry. A GICS sector typically is comprised of multiple industries.Because the Fund seeks to track the Index it is expected to have the same sector and industry exposure as the Index. While the Index’sand the Fund’s sector exposure may vary from time to time, as of June 30, 2024, the Index had significant exposure (e.g.,approximately 15% or more of the Index’s total weight) to the Industrials, Consumer Discretionary, Information Technology and MaterialsSectors. To the extent the Index’s constituents are concentrated (i.e.,holds more than 25% of constituents) in the securities of companies assigned to a particular industry or group of industries, the Fundwill seek to concentrate its investments in such industry or group of industries to approximately the same extent as the Index.