WisdomTree Europe SmallCap Dividend Fund (DFE US) – Portfolio Construction Methodology

The underlying WisdomTree Europe SmallCap Dividend Index offers fundamentally weighted exposure to European dividend payers in the small-cap segment. Starting from the WisdomTree International Equity universe, it removes the 300 largest European companies and selects the bottom 25% by market cap, with a deletion buffer outside the bottom 30%. Eligibility requires ≥ USD 5m cash dividends paid in the prior annual cycle, market cap ≥ USD 100m, and median ADTV ≥ USD 100k over the three months before the International Screening Date; common stocks and REITs are eligible. Constituents are weighted by cash dividends paid, subject to a country exposure cap of 30%. A liquidity “volume factor” further reduces weights when (ADTV/weight) < USD 200m to improve tradability. The index reconstitutes annually with weights reset at the same time.

To explore DFE in more depth, visit our ETF analytics platform for institutional-grade insights — including performance and risk metrics, correlations, sensitivities, and factor exposure: https://www.etfstrategy.com/etf/DFE_US