Frequently Asked Questions

Exchange-traded funds (ETFs) are index funds whose shares are listed on a stock exchange and traded like equity securities at market prices. ETFs allow investors to buy or sell shares of a fund that represents the collective performance of a selected group of securities. ETFs are designed to add the flexibility, ease and liquidity of stock trading to the benefits of traditional index-fund investing.

ETFs trade like stocks on major national exchanges. Like stocks, they can be bought and sold through a brokerage account during the trading day. Because ETFs are transacted through a broker, investors pay commissions on their transactions. ETF shares typically trade at, above or below their per share net asset value.

Creation and redemptions of ETF shares are restricted to institutional investors known as Authorized Participants (APs). These investors are authorized to purchase or redeem "Creation Units" directly from the issuing Fund in exchange for a basket of securities that are typically worth several million dollars. Unlike mutual funds, ETF shares are not individually redeemable. Individuals wishing to sell their shares must do so through their brokerage account.

WisdomTree Investments, Inc.
WisdomTree Investments, Inc. is the creator of the WisdomTree Indexes and the proprietary rules-based methodology governing the WisdomTree Indexes. WisdomTree Investments has patent applications pending on the methodology and operation of the WisdomTree Indexes.

WisdomTree Asset Management, Inc.
WisdomTree Asset Management, Inc. is registered as an investment advisor with the Securities and Exchange Commission. WisdomTree Asset Management serves as investment adviser to the WisdomTree Trust and the WisdomTree exchange-traded funds, as well as for separate accounts.

WisdomTree Trust
WisdomTree Trust is a Delaware statutory trust registered as an Investment Company with the Securities and Exchange Commission pursuant to the Investment Company Act of 1940. The WisdomTree ETFs are each separate series of WisdomTree Trust. The WisdomTree ETFs are registered with the SEC as an open-end investment company.

WisdomTree Retirements Services, Inc.
WisdomTree Retirement Services, Inc. supports the use of the WisdomTree ETFs in retirement plans by financial professionals.

The WisdomTree Trust represents the first global family of fundamentally weighted ETFs based on proprietary dividend-weighted and earnings-weighted indexes.

WisdomTree Asset Management provides an investment program for each WisdomTree ETF. WisdomTree Asset Management also arranges for sub-advisory, transfer agency, custody, fund administration, and all other non-distribution related services necessary for the Funds to operate. Mellon Capital Management Corporation, an investment boutique within BNY Mellon Asset Management, serves as the sub-advisor for each WisdomTree ETF. The sub-advisor performs the day-to-day functions relating to portfolio management.

Each WisdomTree ETF seeks investment returns that closely correspond to the price and yield performance, before fees and expenses, of a particular index created by WisdomTree Investments. Each index consists of securities in the market suggested by its name that meet specific criteria developed by WisdomTree Investments.

Index investing is often referred to as "passive" investing because the stocks that index funds buy are largely pre-determined by the rules that select stocks for inclusion in the fund's underlying index. Because time and resources are not spent "picking stocks," a hallmark of "active" management, the fees and transaction costs associated with running an index fund are typically lower than the fees and expenses associated with running an actively managed fund. Higher fees and expenses eat away at investment returns. One potential disadvantage of index funds is that they are usually fully invested in stocks and may decline more in declining markets than actively managed funds that have larger cash positions.

WisdomTree’s dividend-weighted indexes and earnings weighted indexes differ from most traditional market cap-weighted indexes in that the proportion - or "weighting" - of the securities in each index is based on either the amount of cash dividends that companies in each index pay, the core earnings that companies in each index pay, the dividend yield of the companies in each index or the earnings yield that companies in each index pay. In the case of the dividend family, this means that companies that pay higher amounts of cash dividends or that have higher dividend yields generally will be more heavily weighted in each index and fund. In the case of the earnings family, this means that companies that have higher levels of core earnings or that have higher earnings yields generally will be more heavily weighted in each index and fund. Most indexes weight their securities based almost solely on market capitalization.

The WisdomTree Dreyfus Currency Income Funds are exchange-traded funds (ETFs) that invest either in non-U.S. money market securities, or in a combination of U.S. money market instruments and instruments that are designed to provide exposure to non-U.S. money market securities or rates. They seek to offer investors current income reflective of foreign money market rates available to U.S. investors, as well as exposure to changes in the value of a specified currency relative to the U.S. dollar.

ETFs investing in the developed markets, including the WisdomTree Dreyfus Euro Fund and WisdomTree Dreyfus Japanese Yen Fund, intend to utilize direct investments into locally denominated money market securities. Each of these ETFs intends to invest primarily in very short-term, investment-grade money market securities, denominated in the non-U.S. currency specified in its name. Eligible investments include short-term securities issued by non-U.S. governments, bank time deposits, bankers' acceptances, commercial paper, short-term corporate debt obligations and repurchase agreements. Each security acquired by a Fund will be rated or deemed to be of investment-grade quality, and each Fund expects to maintain an average portfolio maturity of 90 days or less.

ETFs provide exposure to the developing markets-including the WisdomTree Dreyfus Chinese Yuan Fund, WisdomTree Dreyfus Brazilian Real Fund and WisdomTree Dreyfus Indian Rupee Fund-by investing primarily in short-term U.S. money market securities and foreign currency instruments. Because the market for money market instruments in these countries generally is less liquid and accessible to foreign investors than corresponding markets in more developed economies, the combination of U.S. money market securities and forward currency contracts is designed to create a position economically similar to a money market security denominated in the specific currency. A forward currency contract is an agreement to buy or sell a specific currency at a future date at a price set at the time of the contract.

The Funds generally will maintain a weighted average portfolio maturity of 90 days or less. The complete list of holdings will be available daily on WisdomTree.com

Investments in the WisdomTree Dreyfus Currency Income Funds enable investors to diversify their portfolios with non-correlated assets and access potentially higher yields across the globe, as well as gain exposure to movements in non-U.S. currencies relative to the dollar.

Global money market yields differ dramatically, depending on various factors, including underlying economic fundamentals and confidence in monetary policy. Attractive yields tend to be related with positive near-term currency strength and are often the result of economic growth and monetary stability. Investing in foreign money markets can add yield enhancement to a U.S.-focused portfolio, in addition to having diversification benefits. Keep in mind that diversification does not guarantee a profit from your investment, and global yields can fluctuate significantly.

Shares of the Funds are listed on a National Stock Exchange, such as the NYSE Arca, and can be bought and sold throughout the trading day, as with other shares of publicly traded securities.

No. The Currency Income ETFs are designed to provide exposure to non-U.S. money market securities or rates. They seek to offer investors current income reflective of foreign money market rates available to U.S. investors, as well as exposure to changes in the value of a foreign currency relative to the U.S. dollar.

Yes. The Currency Income ETFs do not track an index and are considered to be actively managed funds. The Dreyfus Corporation's investment professionals, who are dual employees of Mellon Capital Management Corporation and Dreyfus' affiliate, manage the assets of the Funds. The managers regularly review portfolio holdings and discuss purchase and sale activity. The managers adjust holdings in the portfolio, as they deem appropriate, in the pursuit of each Fund's investment objectives.

Yes. The Currency Income ETFs are each separate investment portfolios of the WisdomTree Trust, which is a registered investment company. ETFs offer daily transparency of portfolio holdings and intraday trading access in an affordable package. Daily reporting of portfolio holdings enables investors to know what they hold. The daily transparency of portfolio holdings should help investors better understand their investments and their actual risk exposure.

Yes. The WisdomTree Dreyfus Euro Fund and WisdomTree Dreyfus Japanese Yen Fund intend to pay dividends, if any, on a quarterly basis. The WisdomTree Dreyfus Chinese Yuan Fund, WisdomTree Dreyfus Brazilian Real Fund and WisdomTree Dreyfus Indian Rupee Fund intend to make distributions annually, at year end.

The WisdomTree Dreyfus Currency Income ETFs are each a series of the WisdomTree Trust, an open-end investment company, registered under the Investment Company Act of 1940. Exchange Traded Notes (or ETNs) are unsecured debt securities issued by a bank and tied to the performance of an underlying index.
The Funds pursue their objective by investing in a portfolio of underlying investments, and each Fund's net asset value will be tied to the performance of those securities. ETNs are notes issued by a bank and are a promise by the bank to pay a stated rate of return. They are "unsecured"-this means that the purchaser looks to the creditworthiness of the bank for payment. The value of an ETN is impacted not only by the performance of the underlying index, but also by the capacity of the issuing bank to pay the return promised by the note.

WisdomTree Investments, Inc., and the Dreyfus Corporation ("Dreyfus"), a subsidiary of the Bank of New York Mellon Corporation, announced a partnership on International Cash and Fixed Income ETF products. The products will be part of the WisdomTree Trust and will be co-branded and marketed by both organizations.

WisdomTree Asset Management, Inc., is the investment adviser to each Fund. Dreyfus is the sub-investment adviser for each WisdomTree International Currency Income Fund. Mellon Capital Management Corporation is the sub-investment adviser for the WisdomTree U.S. Current Income Fund.

The Currency Income ETFs should generate interest from a wide variety of investor groups. The transparency, low-cost*; and intraday access provides all investors a vehicle to gain access to foreign currency exposure and yield. The Funds provide a convenient method for individual investors, institutional investors, corporate treasurers and portfolio managers to hedge currency exposure, diversify cash balances, and execute various currency-investment strategies. The Funds are not designed for investors seeking a fixed-price money market product.

* Ordinary brokerage commissions apply.

Income distributions by the Funds, including distributions of short-term capital gains, will be taxed as ordinary income. Capital gain distributions by the Funds, if any, will be taxed as long-term capital gains. Gains from sales of fund shares will generally be taxed as capital gains in accordance with the investor's holding period. Shareholders should refer to the applicable WisdomTree Dreyfus Currency Income ETF prospectus for important tax information and should consult their tax advisers regarding their personal tax situation.

DND – The WisdomTree Pacific ex-Japan Total Dividend Fund
DNH – The WisdomTree Pacific ex-Japan Equity Income Fund
DBN – The WisdomTree International Basic Materials Sector Fund
DKA – The WisdomTree International Energy Sector Fund
DRW – The WisdomTree International Real Estate Fund
DBU – The WisdomTree International Utilities Sector Fund
DNL – The WisdomTree World ex-US Growth Fund
EU – The WisdomTree Dreyfus Euro Fund
BNZ – The WisdomTree Dreyfus New Zealand Dollar Fund

We believe these changes represent compelling long-term strategies for investors. The changes are designed to further diversify existing portfolios, provide the potential for additional yield, income, or growth. Specifics on each restructuring are as follows:

Effective June 17, 2011 changes were made to the following WisdomTree ETFs:

Effective October 19, 2011, changes were made to the following WisdomTree ETF:

Effective October 25^th, 2011, changes were made to the following WisdomTree ETF:

Effective June 17, 2011 changes were made to the following WisdomTree ETFs:

Effective October 19, 2011, changes were made to the following WisdomTree ETF:

Effective October 25^th, 2011, changes were made to the following WisdomTree ETF:

No. The expense ratios for the Funds will not change.

No, these changes are not expected to generate any significant tax consequences for investors

If you are comfortable with these changes, you do not need to do anything.

If you would prefer, you can sell out of your Fund position(s) and reallocate to a different investment product. Note: Trading WisdomTree Funds will generate tax consequences and transaction expenses. Tax consequences regarding dividend distributions may vary by investor. Neither WisdomTree Investments, Inc., nor its affiliates, nor ALPS Distributors Inc. and its affiliates provide tax advice. Information provided herein should not be considered tax advice. Investors seeking tax advice should consult an independent tax advisor.