WisdomTree India Earnings Fund (EPI US) – Portfolio Construction Methodology

The underlying WisdomTree India Earnings Index delivers broad Indian equity exposure selected and weighted by earnings. The universe is Indian-incorporated common stocks listed on the Bombay Stock Exchange that, at the November screening, have at least USD 5 million in trailing 12-month earnings, market cap ≥ USD 200 million, median ADTV ≥ USD 200,000 for each of the prior six months, ≥ 250,000 shares traded in each of those months, P/E ≥ 2, and available foreign room under ownership limits; ADRs, preferreds and funds are excluded. Weights are proportional to each company’s “Earnings Factor” (reported net income × an investability factor for foreign-purchasable shares). Caps and buffers include: sector weight trimmed to 25% at the annual reset; any single company ≥ 24% reduced to 20%; combined constituents ≥ 5% each limited so their sum is ≤ 40%; and liquidity-based weight haircuts if a calculated volume factor is < USD 400 million. The index reconstitutes annually with earnings-based reweighting.

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