IHDG

About IHDG

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 least80% 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 consists of dividend-paying common stocks with growth characteristicsof companies in the industrialized world, excluding Canada and the United States, while at the same time neutralizing exposure to fluctuationsof the value of foreign currencies relative to the U.S. dollar. The Index is generally comprised of the 300 companies in the WisdomTreeInternational Equity Index with the best combined rank of certain growth and quality factors, specifically: medium-term earnings growthexpectations, return on equity, and return on assets. The WisdomTree International Equity Index is a fundamentally weighted index thatis comprised of companies that pay regular cash dividends. To be eligible for inclusion in the WisdomTree International Equity Indexa company must be incorporated in one of 15 developed European countries (Austria, Belgium, Denmark, Finland, France, Germany, Ireland,Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, or the United Kingdom), Israel, Japan, Australia, Hong Kong or Singapore. To be eligible for inclusion in the Index, a company must meet the followingcriteria as of the annual Index screening date: (i) payment of at least $5 million in cash dividends on common shares during the precedingannual cycle; (ii) market capitalization of at least $1 billion; (iii) median daily dollar trading volume of at least $100,000 for eachof the preceding three months; (iv) trading of at least 250,000 shares per month for each of the preceding six months; and (v) an earningsyield greater than the dividend yield. 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 5%, and the Index caps the weight of constituents exposed to any one country and any one sector (except for the realestate sector) at 20%. The weight of constituents exposed to the real estate sector is capped at 15%. The Index also may adjust the weightof individual constituents on the annual screening date based on certain quantitative thresholds or limits tied to key metrics of a constituentsecurity, such as its trading volume. To the extent the Index reduces an individual constituent’s weight, the excess weight willbe reallocated pro rata among the other constituents. Similarly, if the Index increases a constituent’s weight, the weight of theother constituents will be reduced on a pro rata basis to contribute the weight needed for such increase. The weight of a sector, country,or individual constituent in the Index may fluctuate above or below specified caps and thresholds, respectively, between screening datesin response to market conditions. 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 Health Care, Consumer Discretionary and Industrials 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. As of June 30, 2024, the equity securities of companies domiciledin or otherwise tied to Europe, particularly the United Kingdom, and Japan, comprised a significant portion (e.g., approximately15% or more of the Index’s total weight) of the Index, although the Index’s geographic exposure may change from time to time.As a result, the Fund can be expected to also have significant exposure to these countries and/or regions. The Index “hedges” against, or seeks to minimize theimpact of, fluctuations in the relative value of foreign currencies and the U.S. dollar. The Index is designed to have higher returnsthan an equivalent unhedged investment in foreign equity securities when foreign currencies are weakening relative to the U.S. dollar.Conversely, the Index is designed to have lower returns than an equivalent unhedged investment in foreign equity securities when foreigncurrencies are rising relative to the U.S. dollar. To hedge its currency exposure to foreign currencies, the Index applies a publishedone-month forward rate of the foreign currencies 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 foreign currencies. The contract value of currency forward contracts and currency futurescontracts in the Fund is based on the aggregate exposure of the Fund and Index to the specified foreign currencies. While this approachis designed to minimize the impact of currency fluctuations on Fund returns, it does not necessarily eliminate the Fund’s exposureto all currency fluctuations. The return of the currency forward contracts and currency futures contracts held by the Fund may not fullyhedge or completely offset the Fund’s exposure to the foreign currencies or fluctuations in their value relative to that of theU.S. dollar.