Investment objective & strategy
As of Dec. 12, 2023 · prospectusObjective. The WisdomTree Emerging Markets ESG Fund (the Fund) seeks capital appreciation.
Strategy. The Fund is actively managed using a model-based approach, and seeks to achieve its investment objective by investing primarily in equity securities of companies that exhibit the highest potential for returns based on proprietary measures of fundamental factors ( e.g., value and quality) and technical factors ( e.g., momentum and correlation), as well as favorable environmental, social, and governance (ESG) characteristics. The Fund invests primarily in equity securities of companies in emerging markets. WisdomTree Asset Management, Inc., the Funds investment adviser (WisdomTree Asset Management or the Adviser), primarily uses a proprietary multi-factor model to select the Funds investments. The Adviser has designed the model to apply multiple factors to refine the initial universe of broad market equity securities. The models … The Fund is actively managed using a model-based approach, and seeks to achieve its investment objective by investing primarily in equity securities of companies that exhibit the highest potential for returns based on proprietary measures of fundamental factors ( e.g., value and quality) and technical factors ( e.g., momentum and correlation), as well as favorable environmental, social, and governance (ESG) characteristics. The Fund invests primarily in equity securities of companies in emerging markets. WisdomTree Asset Management, Inc., the Funds investment adviser (WisdomTree Asset Management or the Adviser), primarily uses a proprietary multi-factor model to select the Funds investments. The Adviser has designed the model to apply multiple factors to refine the initial universe of broad market equity securities. The models factors are constructed using a variety of data, including ESG-related data provided by Morningstar Sustainalytics (Sustainalytics) and OWL ESG, each of which is a third-party ESG data and research firm. In addition to identifying companies with strong fundamental and technical factors through the use of traditional financial data, the model seeks to identify companies with the most favorable ESG characteristics using ESG data provided by Sustainalytics and ESG Consensus Scores developed and administered by OWL ESG. A companys ESG Consensus Score reflects a consensus view, comprised of more than 500 sources, of the importance of certain ESG metrics determined to be key to that companys industry. The model applies ESG investment screens to the initial universe of equity securities. The ESG investment screens are based on Sustainalytics data, which identifies publicly-listed companies involved in a range of product areas, including products that affect the environment, energy, health, and military and values-based products, and provides detail regarding the nature and level of each such companys involvement in the relevant product area. The ESG investment screens exclude securities of companies identified by Sustainalytics as engaged in certain business activities, at the time of investment by the Fund or at the time of the Funds quarterly rebalances, involving, for example, tobacco, small arms, controversial weapons, and Arctic Oil and Gas, Oil Sands, Thermal Coal or Shale Energy exploration and/or production activities (collectively, fossil fuel-related activities). The ESG investment screens also take into consideration Sustainalytics Global Standards Screening (GSS) data to exclude companies that cause, contribute or are linked to violations of international norms and standards. The GSS data assesses companies impact on stakeholders and activities with respect to the following international norms and standards: the United Nations Global Compact Principles related to human rights, labor, the environment and corruption, International Labor Organizations Conventions, OECD Guidelines for Multinational Enterprises, and the UN Guiding Principles on Business and Human Rights. To further complement the exclusion of fossil fuel-related activities based on Sustainalytics data, the model also excludes the securities of companies assigned to the Energy Sector, as defined by the Global Industry Classification Standard (GICS ), a widely recognized industry classification methodology developed by MSCI, Inc. and Standard & Poors Financial Services LLC. The model recommends those remaining companies that exhibit the highest combined ESG Consensus Score and fundamental and technical factors, which are then weighted on a modified market-capitalization basis. The Funds portfolio will be rebalanced quarterly to implement the results of the model and modified market-capitalization weighting. As a result, between quarterly rebalances, the Funds portfolio may temporarily include securities of companies that no longer meet the Funds model investment criteria described above. For example, if a company meets the Funds investment criteria at the time of investment but subsequently is involved in a controversial product or activity, the Fund generally will continue to hold the securities of that company until the next quarterly rebalance of its portfolio. In addition, the data provided to the Fund by third-party ESG data and research firms, currently, Sustainalytics and OWL ESG, and the methodologies and criteria used by those firms to produce such data are continuously evolving and subject to ongoing refinement and/or modification. It, therefore, is possible that the Fund may invest in securities of companies that are later determined to be inconsistent with the Funds model investment criteria not because the companys activities or products have changed as in the prior example, but because relevant information about that company was not known or was inaccurate at the time of investment or because the third-party ESG data and research firm now considers additional information that causes the company to no longer meet the investment criteria. As of September 30, 2023, companies assigned to the Information Technology, Financials, and Consumer Discretionary Sectors comprised a significant portion ( i.e. , approximately 15% or more) of the Funds assets, although the Funds sector exposure may change from time to time. As of September 30, 2023, the equity securities of companies domiciled in or otherwise tied ( e.g. , a companys principal place of business is maintained in that region or country) to each of China, India, Taiwan, and South Korea comprised a significant portion ( i.e. , approximately 15% or more) of the Funds assets, although the Funds geographic exposure may change from time to time.
Top holdings
As of Dec. 31, 2023 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| TSMC | — | $1.49M | 6.31% |
| SAMSUNG ELECTRONICS CO LTD | — | $921.47K | 3.91% |
| BABA-W | — | $672.88K | 2.85% |
| State Street Navigator Securities Lending Government Money Market Portfolio | — | $452.13K | 1.92% |
| INFOSYS LTD COMMON STOCK | INFY* | $249.62K | 1.06% |
| HDFC BANK LTD | — | $230.77K | 0.98% |
| SK HYNIX INC | — | $200.84K | 0.85% |
| TURKCELL | — | $200.14K | 0.85% |
| PING AN-H | — | $196.93K | 0.84% |
| PDD HOLDINGS INC ADR | — | $181.13K | 0.77% |
Portfolio moves
Sep 30, 2023 → Dec 31, 2023How many positions this fund opened, exited, grew, trimmed, or left unchanged between its two most recent N-PORT snapshots — net changes between point-in-time reports, not a trade log.
Similar funds
Funds whose portfolios most overlap this one, by weight| Fund | Overlap | Net exp. |
|---|---|---|
| FlexShares ESG & Climate Emerging Markets Core Index Fund · FEEM | 37% | 0.18% |
| Fidelity Total Emerging Markets Fund | 25% | 0.98% |
| GMO Emerging Markets Select Equity Fund | 23% | 0.67% |
Footnotes
- Net assets and holdings count as of December 31, 2023, from the fund's N-PORT filing.
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