DXJ

About DXJ

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 securities in the Index whose risk, return and othercharacteristics resemble the risk, return and other characteristics of the Index as a whole. Under normal circumstances, at least 95%of the Fund’s total assets (exclusive of collateral held from securities lending) will be invested in constituent securities ofthe Index and investments that have economic characteristics that are substantially identical to the economic characteristics of suchconstituent securities. WisdomTree, Inc. (“WisdomTree”), the Index Providerand parent company of WisdomTree Asset Management, Inc. (“WisdomTree Asset Management” or the “Adviser”), hascreated the Index to provide exposure to Japanese equity markets while at the same time “hedging” or neutralizing exposureto fluctuations in the value of the Japanese yen relative to the U.S. dollar. The Index consists of dividend-paying companies incorporated inJapan and traded on the Tokyo Stock Exchange that derive less than 80% of their revenue from sources in Japan. By excluding companiesthat derive 80% or more of their revenue from Japan, the Index is tilted towards companies with a more significant global revenue base.The companies included in the Index typically have greater exposure to the value of global currencies and, in many cases, their businessprospects historically have improved when the value of the yen has declined and have weakened when the value of the yen has increased.To be eligible for inclusion in the Index, a company must meet the following criteria as of the annual Index screening date: (i) paymentof at least $5 million in cash dividends on common shares during the preceding annual cycle; (ii) market capitalization of at least $100million; (iii) median daily dollar trading volume of at least $100,000 for the preceding three months; and (iv) trading of at least 250,000shares per month for each of the preceding six months. 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 single securityin the Index is capped at 5%, and the Index caps the weight of constituents exposed to a single sector (except for the real estate sector)at 25%. 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 reallocatedon a pro rata basis among the other constituents. Similarly, if the Index increases a constituent’s weight, the weight of the otherconstituents will be reduced on a pro rata basis to contribute the weight needed for such increase. The Index weight of a sector or individualconstituent may fluctuate above or below specified caps and thresholds, respectively, between screening dates in response to market conditions. WisdomTree currently uses the GlobalIndustry Classification Standard (GICS®), awidely 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 and Financials Sectors. 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. The Index “hedges” against, or seeks to minimize theimpact of, fluctuations in the relative value of the Japanese yen and the U.S. dollar. The Index is designed to have higher returns thanan equivalent un-hedged investment in Japanese equity securities when the U.S. dollar is going up in value relative to the Japanese yen.Conversely, the Index is designed to have lower returns than an equivalent un-hedged investment in Japanese equity securities when theU.S. dollar is falling in value relative to the Japanese yen. To hedge its currency exposure to the Japanese yen, the Index applies apublished one-month forward rate of the Japanese yen in U.S. dollars to the Index’s total equity exposure. Currency forward contracts and/or currency futures contracts areused to hedge the Fund’s exposure to the Japanese yen. The contract value of currency forward contracts and currency futures contractsin the Fund is based on the aggregate exposure of the Fund and Index to the Japanese yen. While this approach is designed to minimizethe impact of currency fluctuations on Fund returns, it does not necessarily eliminate the Fund’s exposure to all currency fluctuations.The return of the currency forward contracts and currency futures contracts held by the Fund may not fully hedge or completely offsetthe Fund’s exposure to the Japanese yen or fluctuations in its value relative to that of the U.S. dollar.