WisdomTree Emerging Markets ex-State-Owned Enterprises Fund (XSOE US) - Portfolio Construction Methodology

Core Insights - The WisdomTree Emerging Markets ex-State-Owned Enterprises Index provides broad exposure to emerging markets while excluding state-owned enterprises, defined as those with government ownership exceeding 20% of shares outstanding [1] Group 1: Index Methodology - The index includes major emerging market listing venues, such as Stock Connect A-shares, and is subject to foreign ownership availability [1] - Constituents are float-adjusted and weighted by modified market capitalization [1] - Quarterly capping rules limit any single position from reaching 24% to 20% and restrict the combined weight of constituents above 5% to 40% if that sum exceeds 50% [1] Group 2: Weighting Adjustments - After excluding state-owned enterprises, country weights are scaled back toward pre-exclusion levels with a country factor capped at 3 times [1] - Sector weights are maintained within ±3% of the starting universe [1] - Onshore China exposure is capped at 7.5%, with any excess allocated to H-shares [1] Group 3: Reconstitution - The index undergoes annual reconstitution in October [1]