What is the investment Objective?

The WisdomTree Alternative Income Fund, HYIN, seeks to track before fees and expenses the Gapstow Liquid Alternative Credit Index. It was launched in 2021 as the first ETF with diversified exposure to alternative credit. It grants income investors access to a traditionally closed private credit market, the ability to seek high income potential in a cost-efficient and liquid ETF structure.

The underlying index holds 30 listed investment companies including Business Development Companies, known as BDCs, Mortgage REITS, and Closed End Funds. Each of these entities arrange for leverage in an attempt to further enhance both the expected income generation and total return of their underlying alternative credit portfolios.

Because each of HYIN’s underlying holdings is required to distribute at least 90% of its income, HYIN’s monthly distributions present investors with an attractive and competitive source for high yield potential.

Why now?

Credit is a familiar concept. It is the provision of money from a lender to a borrower based on a contractual commitment to repay both interest and principal. The primary risk is a borrower’s unwillingness or inability to fulfill those obligations, usually called “credit risk.”

Alternative credit refers to bonds and loans that carry a higher degree of credit risk. These investments are an alternative to traditional lower risk instruments (a.k.a., investment grade bonds). For assuming this higher risk, alternative credit investments are expected to deliver a higher yield and total return.

Gapstow differentiates three primary categories of alternative credit instruments:

1. Broadly syndicated high yield bonds and loans, which are originated by banks but then sold to a large group of investors.

2. Structured credit tranches, which includes owning the riskier tranches of securitized pools of loans or bonds, usually originated by someone other than the tranche buyer.

3. Private Credit, or directly originated loans which are originated by non-bank financial institutions, and typically made to higher risk borrowers (who can’t or won’t be financed by banks).

How should I utilize HYIN in my portfolio?

Three primary reasons: income, total return, and diversification. As I mentioned earlier, Alternative credit investments are expected to carry a higher yield and total return than bank deposits certainly, but also investment grade bonds. And, historically, alternative credit investments diversify away from equity risk and interest rate risk.

Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund before investing. For a prospectus or, if available, the summary prospectus containing this and other important information about the fund, call 866.909.9473 or visit WisdomTree.com/investments. Read the prospectus or, if available, the summary prospectus carefully before investing.

Alternative Income Fund (HYIN) There are risks associated with investing, including the possible loss of principal. The Fund invests in alternative credit sectors through investments in underlying closed-end investment companies (“CEFs”), including those that have elected to be regulated as business development companies (“BDCs”), and real estate investment trusts (“REITs”). The value of a CEF can decrease due to movements in the overall financial markets. BDCs generally invest in less mature private companies, which involve greater risk than well-established, publicly traded companies and are subject to high failure rates among the companies in which they invest. By investing in REITs, the Fund is exposed to the risks of owning real estate, such as decreases in real estate values, overbuilding, increased competition and other risks related to local or general economic conditions. The Fund invests in the securities included in, or representative of, its Index regardless of their investment merit, and the Fund does not attempt to outperform its Index or take defensive positions in declining markets. Please read the Fund’s prospectus for specific details regarding the Fund’s risk profile.

Gapstow Liquid Alternative Credit Index (GLACI): an equal-weighted index that tracks the performance of 35 “Publicly Traded Alternative Credit Vehicles” (PACs) using an objective, rules-based methodology.

Correlation: Statistical measure of how two sets of returns move in relation to each other.

WisdomTree Funds are distributed by Foreside Fund Services, LLC in the U.S. Foreside Fund Services LLC is not affiliated with the other entities mentioned.

Kevin Flanagan is a registered representative of Foreside Fund Services, LLC.