WisdomTree U.S. SmallCap Quality Growth Fund (QSML US) – Portfolio Construction Methodology

The underlying WisdomTree U.S. SmallCap Quality Growth Index targets U.S. small-cap equities with strong quality and growth characteristics. The universe is U.S.-listed equities whose primary business is in the United States, with market cap ≥ USD 100 million and three-month median ADVT ≥ USD 1 million; depositary receipts, partnerships, BDCs and similar vehicles are excluded. After removing the 500 largest eligible companies, the remainder is split by cumulative market cap and the bottom 40% defines the small-cap universe. From this set, Real Estate, Utilities and Banks issuers are removed. Remaining stocks receive equally weighted growth and quality scores combining three-year earnings and sales growth, analyst earnings forecasts, ROE and ROA. The index selects the top 30% by composite score and weights them by market cap, capping each constituent at 5% at semi-annual rebalances.

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