WisdomTree U.S. MidCap Earnings Fund (EZM US) – Portfolio Construction Methodology
The underlying WisdomTree U.S. MidCap Index targets profitable U.S. mid-caps by carving the universe from the WisdomTree U.S. Total Market Index after removing the 500 largest companies; the top 75% of the remaining market cap defines the mid-cap segment. Constituents must have positive cumulative earnings over the most recent four fiscal quarters. At the December reconstitution, weights are proportional to each company’s Earnings Stream (latest four quarters), then adjusted by rules to preserve investability: sector weights are kept within ±5% of their sector weights in a market-cap version of the index; each company’s weight is bounded to 3×/0.33× its market-cap-based weight; and a liquidity volume factor screen requires ≥USD 200M, with weights scaled down if the factor is