WTPIXWisdomTree Equity Premium Income Digital Fund
The WisdomTree Equity Premium Income Digital Fund seeks to track the price and yield performance, before fees and expenses, of the Volos US Large Cap Target 2.5% PutWrite Index.
Important Risk Information
This information must be preceded or accompanied by a prospectus, click here to view or download prospectus. We advise you to consider the fund's objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other important information about the fund. Please read the prospectus carefully before you invest.
There are risks associated with investing, including possible loss of principal. Because the Fund is new, it has limited performance history. Blockchain technology is a relatively new and untested technology, with little regulation. Potential risks include vulnerability to fraud, theft, or inaccessibility, and future regulatory developments effect its viability. EPXC will invest in derivatives, including put options on the SPDR S&P 500 ETF Trust (“SPY Puts”). Derivative investments can be volatile, and these investments may be less liquid than securities, and more sensitive to the effects of varied economic conditions. All SPY Puts are exchange-listed standardized options. The SPY Puts are selected to target a premium of 2.5%. THE SPY Puts sold by the Fund may have imperfect correlation to the returns of the Index. Although the Fund collects premiums on the SPY Puts it writes, the Fund’s risk of loss if the price of SPY falls below the strike price and the SPY Puts are exercised as of the Roll Date may outweigh the gains to the fund from the receipt of such option premiums. The sale of cash-secured SPY Puts serves to partially offset a decline in the price of SPY to the extent of the premiums received. The potential return to the Fund is limited to the amount of option premiums it receives; however, the Fund can potentially lose up to the entire strike price of each option it sells. By virtue of its put option sales strategy, Fund returns will be subject to an upside limitation on returns attributable to SPY, and the Fund will not participate in gains beyond such upside limitation. The Fund's investment strategy is subject to risks related to rolling. To the extent the Fund's portfolio managers are unable to roll the SPY Puts as described in the Fund's principal investment strategy, the Fund may be unable to achieve its investment objective. Due to the investment strategy of the Fund, it may make higher capital gain distributions than other funds. Please read the Fund’s prospectus for specific details regarding the Fund’s risk profile.
Blockchain Fees, Functionality and Transaction Processing.
A blockchain is an open, distributed ledger that digitally records transactions in a verifiable and immutable (i.e., permanent) way using cryptography. A distributed ledger is a database in which data is stored in a decentralized manner. Cryptography is a method of storing and transmitting data in a particular form so that only those for whom it is intended can read and process it. A blockchain stores transaction data in “blocks” that are linked together to form a “chain”, and hence the name blockchain. Users of blockchains, such as Stellar and Ethereum, must pay transaction fees to the blockchain in order to validate a transaction, which in the case of Stellar and Ethereum is in the form of lumens or ether, the native digital asset for the operation of Stellar and Ethereum, respectively. These transaction fees will be the responsibility of WisdomTree Digital Management or its affiliates; Fund investors will not be required to purchase any such blockchain native digital currency, such as lumens or ether.
Weighted Average Coupon - The mean of the coupon rate of the underlying bonds in the Fund’s portfolio.
Average Years to Maturity - The mean of the remaining term to maturity of the underlying bonds in the Fund’s portfolio.
Effective Duration - This statistic provides a measure of the sensitivity of the Fund’s price to changes in interest rate changes and is calculated as the weighted average of the individual bond durations. For each bond, it also addresses that interest rate changes can alter expected bond future cash flows through embedded options. The calculation also includes the contribution of derivatives, if applicable, to the overall interest rate risk sensitivity to the portfolio.
Average Yield to Maturity - Average Yield to Maturity represents the weighted average yield to maturity of the Fund’s investments in money market securities and short-term fixed income securities as of a specified date. Yield to maturity is the rate of return generated on a fixed income instrument assuming interest payments and capital gains or losses as if the instrument is held to maturity. The weighted average yield is calculated based on the market value of each fixed-income investment. The calculation does not incorporate yield from any currency forward contracts that might be part of the Fund’s investments and does not reflect Fund expenses.
Embedded income yield represents the annualized rate of return generated by a Fund’s investment in both fixed income securities and derivatives, if applicable, exclusive of interest rate changes and movement in foreign exchange spot rates, if applicable. The calculation is intended to capture the Fund’s potential to earn income return over the following year given current holdings and market conditions. The embedded income yield will differ from the Fund’s yield to maturity, due to the incorporation of derivatives, if applicable, in the embedded income yield. Embedded income yield and yield to maturity may differ from the Fund’s actual distribution and SEC yield and do not reflect Fund expenses.
Fund Distribution Yield - Fund distribution yield is calculated by annualizing the most recent Fund distribution and dividing by the current Fund NAV. The yield represents a single distribution from the Fund and does not represent the total returns of the Fund.
SEC 30–day Yield - The yield figure reflects the dividends and interest earned during the period, after the deduction of the Fund’s expenses. This is also referred to as the “standardized yield.”
Quality – Credit ratings apply to the underlying holdings of the Fund and not to the Fund itself. S&P and Moody’s study the financial condition of an entity to ascertain its creditworthiness. The credit rating reflects the rating agency’s opinion of the entity’s financial condition and history. The ratings shown are all considered investment grade and are listed by highest to lowest in percentage of what the Fund holds.
Volos US Large Cap Target 2.5% PutWrite Index – Tracks the value of a cash-secured (i.e., collateralized) put option sales strategy, which consists of selling (or “writing”) put options on the SPDR S&P 500 ETF Trust (SPY) and a cash collateral account that accrues interest at a theoretical three-month Treasury bill rate.
Neither WisdomTree, Inc., nor its affiliates, provide tax advice. All references to tax matters or information provided on this site are for illustrative purposes only and should not be considered tax advice and cannot be used for the purpose of avoiding tax penalties. Investors seeking tax advice should consult an independent tax advisor.