Amendment to index methodologies
On or around the 6 May 2020 there will be an amendment to the methodology of the WisdomTree Emerging Markets High Dividend Index, the WisdomTree Europe Equity Income Index and the WisdomTree UK Equity Income Index, which WisdomTree Emerging Markets Equity Income UCITS ETF, WisdomTree Europe Equity UCITS ETF and WisdomTree UK Equity Income UCITS ETF track respectively.
The methodologies will incorporate a new screening and weighting adjustment based on a composite risk score.
Stocks that would initially be eligible based on the dividend yield screen will be removed if they fall within the bottom quintile (20%) of the universe based on the composite risk score.
Eligible companies that pass both screens will then be weighted by their adjusted dividend stream, i.e., companies projected to pay more dividends and have higher composite risk scores will be more heavily weighted.
The change to the index methodologies will only cause a change in the underlying components of the index at the next rebalance date.
For more information, see the below resources: