Smart Beta: Will rules-based factor investing commoditize active management? by Global Interdependence Center

Smart Beta: Will rules-based factor investing commoditize active management?

FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH RETAIL INVESTORS.

January 2018

Earnings Peer Rankings 10 Years Ending 9/30/17 MorningStar Category: U.S. Large Cap Blend

Indicates % of Passive and Active Managers Beaten

EXT

EPS

89.0%

79%

MorningStar Category: U.S. Mid Cap Blend

MorningStar Category: U.S. Small Cap Blend

EZM

EES

99%

97%

Source: WisdomTree, Morningstar as of 9/30/17. # of managers in category: U.S. Large Cap Blend: 808. U.S. Mid Cap Blend: 216. U.S. Small Cap Blend: 395. Past performance is not indicative of future results. 2017 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance, rankings and ratings are no guarantee of future results. The % of Peer Group Beaten is the fundâ&#x20AC;&#x2122;s total-return percentile rank compared to all funds within the same Morningstar Category and is subject to change each month. Please see slide 5 for standardized performance.

FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH RETAIL INVESTORS.

Domestic Dividend Peer Dividends 10 Years Ending 9/30/17 MorningStar Category: U.S. Large Cap Value

DTD

84.0%

Indicates % of Passive and Active Managers Beaten

DTN

90.0%

DLN

75.0%

MorningStar Category: U.S. Mid Cap Value

MorningStar Category: U.S. Small Cap Value

DON

DES

94.0%

77.0%

Source: WisdomTree, Morningstar as of 9/30/17. # of managers in category: U.S. Large Cap Value: 696. U.S. Mid Cap Value: 226. U.S. Small Cap Value: 198. Past performance is not indicative of future results. 2017 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance, rankings and ratings are no guarantee of future results. The % of Peer Group Beaten is the fundâ&#x20AC;&#x2122;s total-return percentile rank compared to all funds within the same Morningstar Category and is subject to change each month. Please see slide 5 for standardized performance.

FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH RETAIL INVESTORS.

International Dividends MorningStar Category: Foreign Large Cap Value

MorningStar Category: Foreign Mid/Sm Cap Value

DWM

DLS

74%

MorningStar Categories: Europe Stock; Japan Stock

Indicates % of Passive and Active Managers Beaten

DFE

100%

DFJ 71%

MorningStar Category: Emerging Market Equity

DEM* 70%

DGS* 95%

Source: WisdomTree, Morningstar as of 9/30/17. *Since inception figures shown for funds with less than 10 years of live history. DGS Inception: 10/30/07; DEM Inception: 7/13/07. # of managers in category: Foreign Large Cap Value: 136. Foreign Mid/Sm Cap Value: 24. Europe Stock: 59. Japan Stock: 15. Emerging Market Equity: since DEM Inception: 180; since DGS Inception: 189. Past performance is not indicative of future results. 2017 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance, rankings and ratings are no guarantee of future results. The % of Peer Group Beaten is the fundâ&#x20AC;&#x2122;s total-return percentile rank compared to all funds within the same Morningstar Category and is subject to change each month. Please see slide 6 for standardized performance.

FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH RETAIL INVESTORS.

Standard Returns Average Annual Total Returns

EQUITY Fund

NAV Returns (%)

Fund Information Ticker

Exp. Ratio

DTD

0.28%

Inception Date

as of 9/30/2017

1-Yr.

3-Yr.

5-Yr.

15.44%

10.22%

13.03%

10-Yr.

Market Price Returns (%) Since Fund Inception

1-Yr.

3-Yr.

5-Yr.

8.10%

15.23%

10.17%

13.02%

10-Yr.

Since Fund Inception

Domestic Dividend WisdomTree U.S. Total Dividend Fund

6/16/2006

Russell 3000 Value Index WisdomTree U.S. LargeCap Dividend Fund

15.53% DLN

0.28%

6/16/2006

Russell 1000 Value Index WisdomTree U.S. MidCap Dividend Fund

15.12% DON

0.38%

6/16/2006

Russell Midcap Value Index WisdomTree U.S. SmallCap Dividend Fund

DES

0.38%

6/16/2006

DHS

0.38%

6/16/2006

Russell 1000 Value Index WisdomTree U.S. Dividend ex-Financials Fund

12.67% 13.37%

Russell 2000 Value Index WisdomTree U.S. High Dividend Fund

15.87%

14.98%

0.38%

6/16/2006

Dow Jones U.S. Select Dividend Index

9.89% 8.53% 11.49%

13.20% 12.73% 13.20% 15.08%

9.19%

14.33%

12.31%

14.16%

6.01% 6.57% 5.92% 9.16% 7.85% 8.30%

12.12%

8.62%

9.31%

11.83%

8.53%

13.20%

5.92%

8.43%

12.15%

7.27%

12.26%

14.28%

11.23% 13.21%

13.27%

6.92%

20.55%

15.12% DTN

8.79%

7.14% 5.68%

7.50%

7.28% 7.90% 7.26% 9.50% 8.71% 8.41% 7.50% 6.90% 7.26% 8.52% 8.05%

15.53% 15.76% 15.12% 12.58% 13.37% 14.97% 20.55% 8.41% 15.12%

8.79% 9.85% 8.53% 11.46%

13.20% 12.71% 13.20% 15.07%

9.19%

14.33%

12.33%

14.11%

12.12% 9.23% 8.53%

11.15%

8.39%

13.21%

12.26%

13.27% 11.80% 13.20% 12.12% 14.28%

6.93% 6.01% 6.57% 5.92% 9.16% 7.85% 8.30% 7.14% 5.68% 5.92% 7.27% 7.50%

8.08% 7.28% 7.87% 7.26% 9.53% 8.71% 8.41% 7.50% 6.89% 7.26% 8.50% 8.05%

Domestic Earnings WisdomTree U.S. Total Earnings Fund

EXT

0.28%

2/23/2007

Russell 3000 Index WisdomTree U.S. Earnings 500 Fund

18.71% EPS

0.28%

2/23/2007

S&P 500 Index WisdomTree U.S. MidCap Earnings Fund

22.06% 18.61%

EZM

0.38%

2/23/2007

S&P MidCap 400 Index WisdomTree U.S. SmallCap Earnings Fund

21.80%

18.27% 17.52%

EES

0.38%

2/23/2007

Russell 2000 Index

24.40% 20.74%

10.35% 10.74% 10.37% 10.81% 9.94% 11.18% 12.55% 12.18%

14.04% 14.23% 13.96% 14.22% 14.95% 14.43% 14.74% 13.79%

7.68% 7.57%

7.73% 7.63%

7.35%

7.52%

7.44%

7.62%

10.03% 9.00% 9.96% 7.85%

9.34% 8.74% 8.55% 7.20%

21.71% 18.71% 21.92% 18.61% 18.10% 17.52% 24.42% 20.74%

10.33% 10.74% 10.34% 10.81% 9.93% 11.18% 12.56% 12.18%

14.04% 14.23% 13.98% 14.22% 14.96% 14.43% 14.72% 13.79%

7.68% 7.57% 7.35% 7.44% 10.04% 9.00% 9.97% 7.85%

7.73% 7.63% 7.51% 7.62% 9.34% 8.74% 8.53% 7.20%

Past performance is not indicative of future results. Performance is historical and does not guarantee future results. Current performance may be lower or higher than quoted. Investment returns and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance data for the most recent month-end is available at wisdomtree.com. WisdomTree shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Total Returns are calculated using the daily 4:00 p.m. EST net asset value (NAV). Market price returns reflect the midpoint of the bid/ask spread as of the close of trading on the exchange where Fund shares are listed. Market price returns do not represent the returns you would receive if you traded shares at other times.

FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH RETAIL INVESTORS.

Standard Returns (continued) Average Annual Total Returns

EQUITY Fund

Fund Information Ticker

Exp. Ratio

Inception Date

as of 9/30/2017

NAV Returns (%) 1-Yr.

3-Yr.

5-Yr.

10-Yr.

Market Price Returns (%) Since Fund Inception

1-Yr.

3-Yr.

5-Yr.

10-Yr.

Since Fund Inception

Developed World Ex-U.S. WisdomTree International Equity Fund WisdomTree International LargeCap Dividend Fund

DWM

0.48%

6/16/2006

19.48%

4.79%

8.28%

1.32%

4.40%

19.45%

4.89%

8.46%

1.31%

4.42%

DOL

0.48%

6/16/2006

18.69%

3.26%

7.05%

0.73%

3.75%

18.47%

3.28%

7.05%

0.67%

3.67%

MSCI EAFE Index WisdomTree International MidCap Dividend Fund

19.10% DIM

0.58%

6/16/2006

MSCI EAFE Mid Cap Index WisdomTree International SmallCap Dividend Fund

19.60% DLS

0.58%

6/16/2006

MSCI EAFE Small Cap Index WisdomTree International High Dividend Fund

DTH

0.58%

6/16/2006

19.20% 22.55%

DFE

0.58%

6/16/2006

MSCI Europe Small Cap Index WisdomTree Japan SmallCap Dividend Fund

24.31% 21.84%

MSCI EAFE Value Index WisdomTree Europe SmallCap Dividend Fund

21.28%

28.92% 26.14%

DFJ

0.58%

6/16/2006

MSCI Japan Small Cap Index

24.50% 18.70%

5.04%

8.38%

8.17%

10.56%

8.67% 10.88%

10.83% 12.95%

11.13%

12.85%

2.77%

7.19%

3.50%

7.80%

12.99%

17.07%

11.68% 15.11% 13.35%

14.74% 13.88% 13.85%

1.34% 2.90% 2.48% 4.49% 4.63% 0.45% 0.49% 4.97% 5.17% 6.12% 5.73%

4.00% 5.96% 4.98% 7.02% 6.06% 3.41% 3.12% 7.51% 7.55% 5.23% 4.04%

19.10% 21.53% 19.60% 24.12% 21.84% 19.26% 22.55% 29.52% 26.14% 24.22% 18.70%

5.04% 8.44% 8.67% 11.02% 11.13% 2.87%

8.38% 10.77% 10.83% 13.03% 12.85% 7.26%

1.34% 2.92% 2.48% 4.46% 4.63% 0.44%

3.50%

7.80%

0.49%

13.38%

17.04%

5.06%

11.68% 15.14% 13.35%

14.74% 14.07% 13.85%

5.17% 6.16% 5.73%

4.00% 5.92% 4.98% 6.99% 6.06% 3.39% 3.12% 7.42% 7.55% 5.38% 4.04%

Emerging / Frontier Markets WisdomTree Emerging Markets High Dividend Fund

DEM

0.63%

7/13/2007

MSCI Emerging Markets Index WisdomTree Emerging Markets SmallCap Dividend Fund

22.46% DGS

0.63%

10/30/2007

MSCI Emerging Markets Small Cap Index WisdomTree India Earnings Fund

19.19%

22.02% 14.89%

EPI

0.84%

2/22/2008

MSCI India Index

17.12% 14.18%

0.32% 4.90% 4.87% 3.14% 5.50% 4.48%

-0.41% 3.99% 4.40%

2.32% 1.32% N/A

4.60%

1.74%

6.77%

N/A

6.57%

1.48%

2.51% 1.84% 2.90% 1.13% 0.92% 1.40%

19.12%

0.69%

-0.27%

2.27%

22.46%

4.90%

3.99%

1.32%

21.19%

5.23%

4.54%

N/A

4.60%

1.74%

14.89% 17.60% 14.18%

3.14% 5.80% 4.48%

6.97% 6.57%

N/A 1.48%

2.28% 1.84% 2.95% 1.13% 0.90% 1.40%

FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH RETAIL INVESTORS.

What is Smart Beta? Tracking Error: 6% and up Tracking Error: 4–6%

SMART BETA

Tracking Error: 2–4% Tracking Error: 0–1% Beta • Rules-Based • Market Cap-Weighted • Representative of Asset Class • Average Return of All Stocks

Beta-Driven Smart Beta • Rules-Based • Non-Market Cap-Weighted • Behaves like Comparable Beta Index While Tilting Toward Sources of Alpha, Such as Factors • Low Tracking Error and Beta Closer to 1

Alpha-Driven Smart Beta

• Active Stock Picking • Stock Selection Risk • Human Judgment

• Rules-Based • Non-Market Cap-Weighted • Alpha-Seeking Stock Selection • Deviates Further from the “Beta Experience” in Pursuit of Alpha • Higher Tracking Error and May Have Beta Further from 1

Past performance is not indicative of future results. Tracking error numbers meant to serve as a guideline and not exact measurements. FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH RETAIL INVESTORS.

Alpha

WisdomTree Multi-Factor: Blending Fundamental, Technical Indicators

Value Factor •Sales-to-Price, Book-to-Price, Earnings-to-Price, Estimated Earnings-to-Price, EBITDA-to-Enterprise Value, Operating Cash Flow-to-Price

Quality Factor •Static observations and trends of Return on Equity, Return on Assets, Gross Profits over Assets, Cash Flow over Assets

Momentum Factor •Risk-adjusted total returns over historical periods (6 and 12 months)

Low Correlation Factor •Incorporates diversification potential of stocks that are less correlated to the market

Fundamental Factors

Technical Factors

FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH RETAIL INVESTORS.

PIP Disclosures and WisdomTree Factor Index Definitions The returns, yield and other information presented in this presentation with respect to the WisdomTree U.S. Multifactor Index (WT U.S. Multifactor) prior to June 12, 2017, represent pre-inception index data (“PIP Data”) to illustrate how the Indexes may have performed had they been in existence prior to their respective inception dates. PIP Data is based on a criteria applied retroactively with the benefit of hindsight and knowledge of factors that may have positively affected performance, and cannot account for all financial risk that may affect the actual performance of The WisdomTree U.S. Multifactor Fund (the “ETF”), which seeks to track the Index, and has a net expense ratio of 0.28%. The ETF commenced on June 29th, 2017, and any performance prior to the inception of its Index on June 12, 2017 is hypothetical performance. PIP Performance may differ from actual performance of the ETF, including due to Index tracking error and the imposition of transaction costs for the ETF; and it does not reflect the potential deviation between the market price and net asset value for ETF shares. While an investor cannot invest directly in the Index, for purposes of showing the PIP Data herein, all Index information labeled as “(net)” represents the Index information net of the expense ratios of the ETFs. Call 866.909.WISE (9743) for a full description of the Index Methodologies. Past performance is not indicative of future results.

WT Factor Index Definitions (Value, Momentum, Quality, Low Correlation) - This research represents how these various factors performed over time. Each represent a basket of 200 stocks, using the same screening, scoring and weighting methodology as the WisdomTree U.S. Multifactor Index, but focusing only on one respective factor rather than all four. These Factors are not sector neutral, and are not meant to represent the individual pieces of the WisdomTree U.S. Multifactor Index. They are meant to provide research regarding specific factors, screening methods and their performance, providing a research foundation for which our U.S. Multifactor Index is constructed.

FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH RETAIL INVESTORS.

WisdomTree U.S. Multifactor Index Performance

Hypothetical PIP Performance for WT U.S. Multifactor Index vs. WT 800 Equal Weight Index and S&P 500 Index, 3/1/2001–5/31/2017 (Adjusted for expenses of the WisdomTree U.S. Multifactor Fund) 3/1/2001–5/31/2017 (Full Analysis Period)

Hypothetical Average Annual Total Returns as of 5/31/2017

Avg. Ann. Total Return

Std Dev (%)

Sharpe Ratio

1-Year

3-Year

5-Year

10-Year

15-Year

WT U.S. Multifactor Index (Net)

11.04%

12.98

0.75

17.82%

9.10%

16.01%

8.23%

10.82%

WT 800 Equal Weight

8.87%

16.47

0.46

16.71%

8.87%

15.55%

7.87%

9.87%

S&P 500 Index

6.28%

14.44

0.34

17.47%

10.14%

15.42%

6.94%

7.77%

600

548

Normalized Index Value

500 400

398

300

269

200 100 0

WT U.S. Multifactor Index (Net)

WT 800 Equal Weight

S&P 500 Index

Source: WisdomTree, Zephyr StyleAdvisor as of 5/31/2017. Prior to June 12, 2017, the data associated with the WisdomTree U.S. Multifactor Index represent PIP data. See the important information on page 9 regarding PIP Data. Past performance is not indicative of future results. You cannot invest directly in an index. Index performance does not represent actual fund or portfolio performance. A fund or portfolio may differ significantly from the securities included in the index. Index performance assumes reinvestment of dividends but does not reflect any management fees, transaction costs or other expenses that would be incurred by a portfolio or fund, or brokerage commissions on transactions in fund shares. Such fees, expenses and commissions could reduce returns.

FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH RETAIL INVESTORS.

Existing U.S. Multi-Factor Indexes Index Goldman Sachs ActiveBeta U.S. Large Cap Equity

Summary

Quality

Low Correlation Momentum Volatility

Size

Equally Weight Factor Indexes; Constraints to Limit Tracking Error and Factor Impacts

Russell 1000 Diversified Factor

Composite Factor Stock Selection; Sector Weights Allocated by Risk Properties

MSCI USA Diversified Multiple-Factor

Optimization to Factors Using Constraints vs Parent Index

WisdomTree U.S. Multifactor

Value

Composite Scoring and Weighting Stocks by ½ Factor Score and ½ Volatility Score. Sector Neutral vs the Market Source: Respective Index fact sheets and methodology summaries

FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH RETAIL INVESTORS.

Investment Philosophy: U.S. Quality Shareholder Yield Fund (QSY) WisdomTree believes total shareholder yield (dividends plus buybacks) is a pre-eminent source of stock market returns and that an active, yet quantitative approach, that optimizes a basket of high shareholder yield companies can add value over general market averages + Why A Quantitative Active Approach? â&#x20AC;˘ The active management of QSY will allow flexibility in re-balancing portfolios and add qualitative portfolio and risk management oversight to our quantitatively driven equity exposures

FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH RETAIL INVESTORS.

U.S. Market Sorts by Share Issuance Share Issuance Quintiles

$100,000

$68,581 $68,180 $50,283

Negative Share Issuance Zero Share Issuance

$22,586 $22,140

Lowest Share Issuance

$10,000

$11,382

Low Share Issuance Mid Share Issuance High Share Issuance Highest Share Issuance

$1,000

Growth of $100

$1,860

Average Annual Return 12.78% 12.79% 10.47% 10.51% 12.15% 9.12% 5.54% 10.22%

Share Issuance Groups

$100

Negative Share Issuance Zero Share Issuance Lowest Share Issuance Low Share Issuance Mid Share Issuance High Share Issuance Highest Share Issuance Market

$10

Average Annual Standard Deviation 14.37% 14.70% 14.63% 15.81% 16.80% 18.29% 18.22% 15.18% Feb-17

Oct-14

Dec-15

Jun-12

Aug-13

Apr-11

Feb-10

Oct-07

Dec-08

Jun-05

Aug-06

Apr-04

Feb-03

Oct-00

Dec-01

Jun-98

Aug-99

Apr-97

Feb-96

Oct-93

Dec-94

Jun-91

Aug-92

Apr-90

Feb-89

Oct-86

Dec-87

Jun-84

Aug-85

Apr-83

Feb-82

Oct-79

Dec-80

Jun-77

Aug-78

Apr-76

Feb-75

Oct-72

Dec-73

Jun-70

Aug-71

Apr-69

Feb-68

Oct-65

Dec-66

Jun-63

Aug-64

Sources: WisdomTree, Kenneth French Data Library, 9/30/2017. Universe is U.S. listed equities grouped on the basis of their share repurchase or share issuance patterns. Past performance is not indicative of future results. You cannot invest directly in an index. FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH RETAIL INVESTORS.

WisdomTree’s U.S. Quality Shareholder Yield Fund + Quality Screen • Strong and growing profitability is a common attribute of companies which allow them to raise dividends and buybacks in future.

Start with Universe of Large and Mid Cap Liquid Stocks Evaluate Profitability and Trends in Profitability Evaluate Risk Parameters

+ Screen for Minimum Yield • Higher conviction buybacks have led to better returns in historical research + Yield Weighting with Controls • Sector Weights and Risk controls will apply to portfolio positions

Identify Companies with Minimum Shareholder Yield Requirements

Yield Weight & Balance Exposure For appx. 200 Stocks

FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH RETAIL INVESTORS.

Shareholder Yield Across U.S. Exposures Name WisdomTree U.S. Quality Shareholder Yield Fund WisdomTree U.S. LargeCap Dividend Index WisdomTree U.S. Dividend ex-Financials Index WisdomTree U.S. Quality Dividend Growth Index WisdomTree U.S. High Dividend Index WisdomTree U.S. Dividend Index WisdomTree U.S. Earnings 500 Index WisdomTree U.S. Earnings Index MSCI USA Index WisdomTree U.S. SmallCap Dividend Index WisdomTree U.S. MidCap Dividend Index WisdomTree U.S. SmallCap Quality Dividend Growth Index WisdomTree U.S. MidCap Earnings Index WisdomTree U.S. SmallCap Earnings Index MSCI USA Small Cap Index

Dividend Yield 1.73% 2.71% 3.91% 2.16% 3.79% 2.84% 1.93% 1.88% 1.80% 3.94% 2.86% 2.38% 1.53% 1.34% 1.40%

Net Buyback Yield 4.81% 1.62% 0.35% 2.04% 0.36% 1.24% 2.11% 1.94% 1.71% -0.75% 0.20% 0.59% 1.29% -0.50% -0.87%

Shareholder Yield 6.54% 4.33% 4.26% 4.20% 4.15% 4.08% 4.04% 3.83% 3.50% 3.19% 3.05% 2.97% 2.82% 0.84% 0.53%

Source: WisdomTree, FactSet as of 12/29/2017. Refer to slide 17 for the SEC 30-day yield for the WisdomTree U.S. Quality Shareholder Yield Fund. Past performance is not indicative of future results. You cannot invest directly in an index. Index performance does not represent actual fund or portfolio performance. A fund or portfolio may differ significantly from the securities included in the index. Index performance assumes reinvestment of dividends but does not reflect any management fees, transaction costs or other expenses that would be incurred by a portfolio or fund, or brokerage commissions on transactions in fund shares. Such fees, expenses and commissions could reduce returns 15

FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH RETAIL INVESTORS.

Portfolio Characteristics Price/Earnings Earnings Growth Expectations Earnings Yield Dividend Yield/Earnings Yield Return on Equity Return on Assets ROE x Earnings Retention Dividend Yield Net Buyback Yield Shareholder Yield

WisdomTree U.S. Quality Shareholder Yield Fund 18.0x 8.78% 5.55% 31.19% 18.52% 3.51% 12.75% 1.73% 4.81% 6.54%

S&P 500 Index 23.3x 11.77% 4.30% 42.48% 13.75% 3.11% 7.91% 1.82% 1.76% 3.59%

WT Over/Under-Weight to S&P 500 Consumer Discretionary Industrials Consumer Staples Materials Financials Telecommunication Services Utilities Real Estate Health Care Information Technology Energy

-10.00%

-0.05% -1.60% -2.57% -2.89% -3.03% -3.17% -4.44% -6.00%

-2.00%

2.06% 1.67%

2.00%

5.12%

6.00%

8.90%

10.00%

Source: WisdomTree, FactSet as of 12/29/17. Subject to change. Past performance is not indicative of future results. You cannot invest directly in an index.

FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH RETAIL INVESTORS.

Standardized Performance

Average Annual Total Returns as of 12/31/2017 Fund Information

NAV Returns (%)

Fund

Ticker

Exp. Ratio

Inception S EC-30 1-Y r. Date Day Y ield

WisdomTree U.S . Quality S hareholder Yield Fund*

QS Y

0.38%

2/23/2007

1.36%

3-Y r.

5-Y r.

10-Y r.

23.33% 9.87% 14.52% 7.18%

Market P rice Returns (%) S ince Fund Inception 6.52%

1-Y r.

3-Y r.

5-Y r.

10-Y r.

23.34% 9.87% 14.56% 7.15%

S ince Fund Inception 6.54%

Source: WisdomTree, as of 12/29/17. *Formerly the WisdomTree U.S. LargeCap Value Fund (EZY) prior to modifications to the fundâ&#x20AC;&#x2122;s investment objective, as outlined in the prospectus supplement, that were implemented on December 18, 2017. 17 FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH RETAIL INVESTORS.

Standardized Performance

Average Annual Total Returns as of 12/31/17

Index WisdomTree U.S. Multifactor Index

Inception Date

YTD

1 year

3 years

5 years

10 years

6/12/2017

11.50%

N/A

Since Index Inception 11.50%

Past performance is not indicative of future results. Performance is historical and does not guarantee future results. Current performance may be lower or higher than quoted. Investment returns and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance data for the most recent month-end is available at wisdomtree.com. You cannot invest directly in an index. Index performance does not represent actual fund or portfolio performance. A fund or portfolio may differ significantly from the securities included in the index. Index performance assumes reinvestment of dividends but does not reflect any management fees, transaction costs or other expenses that would be incurred by a portfolio or fund, or brokerage commissions on transactions in fund shares. Such fees, expenses and commissions could reduce returns. WisdomTree, its affiliates and their independent providers are not liable for any informational errors, incompleteness or delays or for any actions taken in reliance on information contained herein. Source: WisdomTree, as of 12/29/17. 18

FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH RETAIL INVESTORS.

Important Information This material must be preceded or accompanied by a prospectus. Investors should carefully consider the investment objectives, risks, charges and expenses of the Funds before investing. To obtain a prospectus containing this and other important information, please call 866.909.9473, or visit WisdomTree.com to view or download a prospectus. Investors should read the prospectus carefully before investing. There are risks associated with investing, including possible loss of principal. Foreign investing involves special risks, such as risk of loss from currency fluctuation or political or economic uncertainty. Funds focusing their investments on certain sectors increase their vulnerability to any single economic or regulatory development. Investments in emerging, offshore or frontier markets such as India are generally less liquid and less efficient than investments in developed markets and are subject to additional risks, such as risks of adverse governmental regulation and intervention or political developments. This may result in greater share price volatility. While QSY is actively managed, the Fund’s investment process is expected to be heavily dependent on quantitative models and the models may not perform as intended. Due to the investment strategy of some Funds, they may make higher capital gain distributions than other ETFs. Please read the Fund’s prospectus for specific details regarding the Fund’s risk profile. Additional Index information is available at www.wisdomtree.com. Dividends are not guaranteed, and a company currently paying dividends may cease paying dividends at any time. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits), even if notified of the possibility of such. The Global Industry Classification Standard (“GICS”) was developed by and is the exclusive property and a service mark of MSCI Inc. (“MSCI”) and Standard & Poor’s (“S&P”), a division of The McGraw-Hill Companies, Inc., and is licensed for use by WisdomTree Investments, Inc. Neither MSCI, S&P nor any other party involved in making or compiling the GICS or any GICS classifications makes any express or implied warranties or representations with respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability and fitness for a particular purpose with respect to any such standard or classification. Without limiting any of the foregoing, in no event shall MSCI, S&P, any of their affiliates or any third party involved in making or compiling the GICS or any GICS classifications have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits), even if notified of the possibility of such damages. WisdomTree Funds are distributed by Foreside Fund Services, LLC, in the U.S. only. WTGM-0352 19

FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH RETAIL INVESTORS.