WisdomTree U.S. MidCap Quality Growth Fund (QMID US) – Portfolio Construction Methodology

The underlying WisdomTree U.S. MidCap Quality Growth Index delivers U.S. mid cap equity exposure tilted to profitability and growth. Eligible companies must list on a U.S. exchange, conduct primary business in the United States, have market cap ≥100 million USD, and maintain median daily dollar volume ≥1 million USD in each of the three months before the May and November screening dates. Common stocks, REITs, tracking stocks and holding companies are eligible, while depositary receipts, partnerships, BDCs, mortgage REITs and funds are excluded; for the mid cap index, Real Estate, Utilities and Banks are removed. From the eligible universe, the 500 largest companies by market cap are excluded, and of the remainder, the top 60% of cumulative market cap defines the mid cap band. Companies in this band are ranked on an equally weighted composite of growth and quality factors: growth (40% trailing 3-year earnings growth, 40% trailing 3-year sales growth, 20% median analyst earnings-growth forecast) and quality (50% trailing 3-year average ROE, 50% trailing 3-year average ROA). The top 30% of scoring mid caps become constituents. The index is market-cap weighted with individual positions capped at 5% at each semi-annual June and December rebalance; if the combined weight of all names at or above 5% exceeds 50%, those names are proportionally scaled back so their aggregate weight equals 40%. A liquidity adjustment further reduces weights where the ratio of three-month median dollar volume to index weight falls below 400 million USD, limiting capacity risk.

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