XSOE

About XSOE

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 is a modified float-adjusted market cap weighted indexthat consists of common stocks in emerging markets, excluding common stocks of “state-owned enterprises.” WisdomTree, Inc.(“WisdomTree”), as Index Provider, defines state-owned enterprises as companies with over 20% government ownership. The startinguniverse for the Index (the “pre-screening universe”) includes companies that: (i) are incorporated or domiciled (i.e.,maintain their principal place of business) in one of the following emerging market countries: Argentina, Brazil, Chile, China, CzechRepublic, Hungary, India, Indonesia, Korea, Malaysia, Mexico, the Philippines, Poland, Russia, Saudi Arabia, South Africa, Taiwan, Thailand,or Turkey; (ii) list shares on a stock exchange in one of the foregoing emerging market countries or the United States (except Chinesecompanies may have shares listed in Hong Kong); (iii) have a float-adjusted market capitalization of at least $1 billion as of the Indexscreening date (“float-adjusted” means that the share amounts reflect only shares available to investors); (iv) have a mediandaily dollar trading volume of at least $100,000 for the three months preceding the Index screening date; and (v) trade at least 250,000shares per month or $25 million notional for each of the six months preceding the Index screening date. The Index is comprised of thecompanies in the pre-screening universe that are not state-owned enterprises as of the annual Index screening date. Securities are weighted in the Index based on a modified marketcap weighting scheme that adjusts the weight of Index securities from each country to approximate the weight of securities from thatcountry in the pre-screening universe (excluding any domestic listed Chinese securities). The weight of Index securities from a singlecountry, however, will not be multiplied by a factor greater than three. After applying the foregoing country weight adjustment, shouldany sector have a weight that is 3% higher or lower than its pre-screening universe sector weight, such sector’s weight will beadjusted by a factor so that the sector’s weight is 3% higher or lower, respectively, than its pre-screening universe weight. Companiesthat are not state-owned, but are incorporated within countries that have relatively high government ownership among initial screeningconstituents, could potentially see higher weights than they would under a normal market cap weighting scheme. Companies that are notstate-owned, but are incorporated within countries that have relatively low government ownership among initial screening constituents,could potentially see lower weights than they would under a normal market cap weighting scheme. 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 market capitalization and trading volume. To the extent the Index reduces an individual constituent’s weight,the excess weight will be reallocated pro rata among the other constituents. Similarly, if the Index increases a constituent’sweight, the weight of the other constituents will be reduced on a pro rata basis to contribute the weight needed for such increase. Theweight of a sector or individual constituent in the Index may fluctuate above or below specified caps and thresholds, respectively, betweenscreening dates in response to market conditions. WisdomTree, the Index Provider andparent company of WisdomTree Asset Management, Inc. (“WisdomTree Asset Management” or the “Adviser”), currentlyuses 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 Information Technology, Financials and Consumer Discretionary Sectors. Tothe extent the Index’s constituents are concentrated (i.e., holds more than 25% of constituents) in the securities of companiesassigned to a particular industry or group of industries, the Fund will seek to concentrate its investments in such industry or groupof industries to approximately the same extent as the Index. As of June 30, 2024, the equity securities of companies domiciledin or otherwise tied to India, China and Taiwan comprised a significant portion (e.g., approximately 15% or more of the Index’stotal weight) of the Index, although the Index’s geographic exposure may change from time to time. As a result, the Fund can beexpected to also have significant exposure to these countries and/or regions.