WisdomTree U.S. SmallCap Earnings Fund (EES US) – Portfolio Construction Methodology

The underlying WisdomTree U.S. SmallCap Index offers earnings-weighted exposure to U.S. small caps. Starting from the WisdomTree U.S. Total Market Index, the 500 largest companies are removed and the bottom 25% of remaining market cap is selected. Constituents must be U.S.-incorporated and listed, with positive cumulative earnings over the most recent four quarters; at the November Screening Date they must have market cap ≥ USD 100m, average DTV ≥ USD 200k for each of the prior 6 months, and P/E ≥ 2. Weights are set each December in proportion to each company’s earnings from continuing operations over the past four quarters. Ongoing caps reduce any single name above 24% to 20%, and limit the combined weight of ≥5% names to 40% if it exceeds 50%; sector exposure is capped at 25%. The index reconstitutes and rebalances annually in December.

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