UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-23659
WisdomTree Digital Trust
(Exact name of registrant as specified in charter)
250 West 34th Street, 3rd Floor
New York, NY 10119
(Address of principal executive offices) (Zip code)
Ryan M. Louvar
WisdomTree Digital Trust
250 West 34th Street, 3rd Floor
New York, NY 10119
(Name and address of agent for service)
Registrant’s telephone number, including area code: 1-866-909-9473
Date of fiscal year end: June 30
Date of reporting period: June 30, 2024
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
| Item 1. | Reports to Stockholders. |
| (a) | The following is a copy of the reports transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). |
WisdomTree 3-7 Year Treasury Digital Fund
Ticker: WTTSX
Annual Shareholder Report - June 30, 2024
This annual shareholder report contains important information about the WisdomTree 3-7 Year Treasury Digital Fund (the "Fund") for the period of July 1, 2023 to June 30, 2024. You can find additional information about the Fund at www.wisdomtree.com/investments/regulatory. You can also request this information by contacting us at 1-866-909-WISE (9473) or getinfo@wisdomtree.com.
What were the Fund's costs for the last year?
(based on a hypothetical $10,000 investment)
| Fund Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
| WisdomTree 3-7 Year Treasury Digital Fund | $5 | 0.05% |
How did the Fund perform last year and what affected its performance?
The Fund returned 2.95% at net asset value ("NAV") for the fiscal year ended June 30, 2024 (for more complete performance information please see the table below). During the specified period, due to persistent inflation and a shift in market expectations regarding the Federal Reserve's first rate cut, interest rates in the medium to long maturity segment of the curve increased. However, this increase was less than the longer maturity treasuries. Consequently, the Fund achieved better performance compared to broader U.S. Treasuries by having a lower duration. However, as a high-grade Treasury fund, it lagged the riskier segments of the fixed income market during the period, where investors maintained a strong risk-on appetite for corporate issues and other securities with lower credit ratings.
Fund Performance
The following line graph and average annual total return table reflects performance over the past 10 fiscal year periods or since inception if the Fund lacks 10 fiscal years of operating history. The graph and table show how the Fund's performance compares to the Bloomberg U.S. Aggregate Bond Index, a broad-based securities market index, and one or more additional indexes that more closely align with the Fund's investment strategy. Fund performance assume dividends and capital gain distributions, if any, are reinvested. Index returns do not include expenses, which are deducted from Fund returns. Past performance is not a good predictor of future results. The performance shown in the following graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. For the most recent month-end performance information visit www.wisdomtree.com/investments.
Growth of $10,000 Investment
Cumulative Performance from January 19, 2023 (inception) through June 30, 2024
| WisdomTree 3-7 Year Treasury Digital Fund $10,160 | Bloomberg U.S. Aggregate Bond Index $10,112 | Solactive US 3-7 Year Treasury Bond Index $10,173 | |
|---|---|---|---|
| 1/19/23 | $10,000 | $10,000 | $10,000 |
| 1/31/23 | $9,950 | $9,948 | $9,924 |
| 2/28/23 | $9,730 | $9,691 | $9,722 |
| 3/31/23 | $10,013 | $9,937 | $9,990 |
| 4/30/23 | $10,073 | $9,997 | $10,051 |
| 5/31/23 | $9,993 | $9,888 | $9,980 |
| 6/30/23 | $9,869 | $9,853 | $9,853 |
| 7/31/23 | $9,879 | $9,846 | $9,861 |
| 8/31/23 | $9,879 | $9,783 | $9,863 |
| 9/30/23 | $9,754 | $9,534 | $9,745 |
| 10/31/23 | $9,702 | $9,384 | $9,696 |
| 11/30/23 | $9,958 | $9,809 | $9,944 |
| 12/31/23 | $10,180 | $10,184 | $10,178 |
| 1/31/24 | $10,211 | $10,156 | $10,209 |
| 2/29/24 | $10,066 | $10,013 | $10,071 |
| 3/31/24 | $10,115 | $10,105 | $10,117 |
| 4/30/24 | $9,938 | $9,850 | $9,947 |
| 5/31/24 | $10,063 | $10,017 | $10,045 |
| 6/30/24 | $10,160 | $10,112 | $10,173 |
Average Annual Total Returns (%)
| 1 Year | Since Inception 1/19/23 | |
|---|---|---|
| Fund NAV Returns | 2.95% | 1.10% |
| Bloomberg U.S. Aggregate Bond Index | 2.63% | 0.77% |
| Solactive US 3-7 Year Treasury Bond Index | 3.26% | 1.19% |
Key Fund Statistics
| Total Net Assets | $966,289 |
| # of Portfolio Holdings | 10 |
| Portfolio Turnover Rate | 101% |
| Total Advisory Fees Paid | $485 |
What did the Fund invest in?
The tables below show the investment makeup of the Fund on June 30, 2024, as a percentage of net assets.
Top 10 Holdings (% of Net Assets)
| U.S. Treasury Notes, 1.13%, due 8/31/28 | 30.2% |
| U.S. Treasury Notes, 1.38%, due 10/31/28 | 29.0% |
| U.S. Treasury Bonds, 5.38%, due 2/15/31 | 21.0% |
| U.S. Treasury Notes, 0.50%, due 10/31/27 | 10.9% |
| U.S. Treasury Notes, 4.25%, due 6/30/29 | 2.8% |
| U.S. Treasury Notes, 3.75%, due 6/30/30 | 1.7% |
| U.S. Treasury Notes, 4.00%, due 7/31/30 | 1.3% |
| U.S. Treasury Notes, 3.75%, due 5/31/30 | 1.0% |
| U.S. Treasury Notes, 0.63%, due 5/15/30 | 0.4% |
| U.S. Treasury Notes, 4.50%, due 5/31/29 | 0.3% |
Investment Breakdown (% of Net Assets)
| U.S. Government Obligations | 98.6% |
| Other Assets and Liabilities, Net | 1.4% |
| Total | 100.0% |
Additional Information
If you wish to view additional information about the Fund, including, but not limited to, financial statements, holdings, prospectus and proxy voting information, please visit www.wisdomtree.com/investments/regulatory.
WisdomTree Digital Fund shares are distributed by Foreside Fund Services, LLC.
Phone: 1-866-909-WISE (9473) Email: getinfo@wisdomtree.com
WMF-597670-2024-08-26
WisdomTree 3-7 Year Treasury Digital Fund
Annual Shareholder Report - June 30, 2024
Ticker: WTTSX
WTTSX - 062024
WisdomTree 500 Digital Fund
Ticker: SPXUX
Annual Shareholder Report - June 30, 2024
This annual shareholder report contains important information about the WisdomTree 500 Digital Fund (the "Fund") for the period of July 1, 2023 to June 30, 2024. You can find additional information about the Fund at www.wisdomtree.com/investments/regulatory. You can also request this information by contacting us at 1-866-909-WISE (9473) or getinfo@wisdomtree.com.
What were the Fund's costs for the last year?
(based on a hypothetical $10,000 investment)
| Fund Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
| WisdomTree 500 Digital Fund | $6 | 0.05% |
How did the Fund perform last year and what affected its performance?
The Fund returned 25.77% at net asset value ("NAV") for the fiscal year ended June 30, 2024 (for more complete performance information please see the table below). Health Care, Financials and Information Technology exposures were additive during the period, primarily due to strong stock selection in each. Consumer Staples was the only sector to hurt performance, though its impact was negligible. The Fund is primarily concentrated in U.S. large cap equities, which delivered strong returns over the period as investor excitement about the growth of, and opportunities involving, artificial intelligence (AI) led markets higher. Among the most successful beneficiaries was the cohort known as the "Magnificent 7", which includes Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta, and Tesla. These companies were extremely valuable to portfolio performance during the period and contributed significantly to the Fund's large total return.
Fund Performance
The following line graph and average annual total return table reflects performance over the past 10 fiscal year periods or since inception if the Fund lacks 10 fiscal years of operating history. The graph and table show how the Fund's performance compares to the S&P 500® Index, a broad-based securities market index, and one or more additional indexes that more closely align with the Fund's investment strategy. Fund performance assume dividends and capital gain distributions, if any, are reinvested. Index returns do not include expenses, which are deducted from Fund returns. Past performance is not a good predictor of future results. The performance shown in the following graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. For the most recent month-end performance information visit www.wisdomtree.com/investments.
Growth of $10,000 Investment
Cumulative Performance from January 19, 2023 (inception) through June 30, 2024
| WisdomTree 500 Digital Fund $14,431 | S&P 500® Index $14,220 | WisdomTree 500 Index $14,431 | |
|---|---|---|---|
| 1/19/23 | $10,000 | $10,000 | $10,000 |
| 1/31/23 | $10,400 | $10,380 | $10,398 |
| 2/28/23 | $10,160 | $10,127 | $10,155 |
| 3/31/23 | $10,537 | $10,499 | $10,537 |
| 4/30/23 | $10,677 | $10,662 | $10,679 |
| 5/31/23 | $10,768 | $10,709 | $10,767 |
| 6/30/23 | $11,474 | $11,416 | $11,476 |
| 7/31/23 | $11,867 | $11,783 | $11,877 |
| 8/31/23 | $11,685 | $11,596 | $11,688 |
| 9/30/23 | $11,140 | $11,043 | $11,149 |
| 10/31/23 | $10,897 | $10,810 | $10,902 |
| 11/30/23 | $11,898 | $11,798 | $11,904 |
| 12/31/23 | $12,444 | $12,334 | $12,448 |
| 1/31/24 | $12,667 | $12,541 | $12,665 |
| 2/29/24 | $13,367 | $13,211 | $13,368 |
| 3/31/24 | $13,785 | $13,636 | $13,795 |
| 4/30/24 | $13,255 | $13,079 | $13,257 |
| 5/31/24 | $13,907 | $13,727 | $13,910 |
| 6/30/24 | $14,431 | $14,220 | $14,431 |
Average Annual Total Returns (%)
| 1 Year | Since Inception 1/19/23 | |
|---|---|---|
| Fund NAV Returns | 25.77% | 28.86% |
S&P 500® Index | 24.56% | 27.49% |
| WisdomTree 500 Index | 25.84% | 28.86% |
Key Fund Statistics
| Total Net Assets | $3,560,713 |
| # of Portfolio Holdings | 499 |
| Portfolio Turnover Rate | 3% |
| Total Advisory Fees Paid | $1,550 |
What did the Fund invest in?
The tables below show the investment makeup of the Fund on June 30, 2024, as a percentage of net assets.
Top 10 Holdings (% of Net Assets)
| Microsoft Corp. | 6.9% |
| Apple, Inc. | 6.7% |
| NVIDIA Corp. | 6.4% |
| Alphabet, Inc., Class A | 4.7% |
| Amazon.com, Inc. | 4.1% |
| Meta Platforms, Inc., Class A | 2.7% |
| Berkshire Hathaway, Inc., Class B | 1.8% |
| Eli Lilly & Co. | 1.7% |
| Broadcom, Inc. | 1.5% |
| Tesla, Inc. | 1.3% |
Sector Breakdown (% of Net Assets)
| Information Technology | 32.2% |
| Financials | 13.0% |
| Health Care | 11.1% |
| Communication Services | 10.6% |
| Consumer Discretionary | 9.9% |
| Industrials | 7.5% |
| Consumer Staples | 6.1% |
| Energy | 3.7% |
| Utilities | 2.1% |
| Real Estate | 1.9% |
| Materials | 1.7% |
| Other Assets and Liabilities, Net | 0.2% |
| Total | 100.0% |
Additional Information
If you wish to view additional information about the Fund, including, but not limited to, financial statements, holdings, prospectus and proxy voting information, please visit www.wisdomtree.com/investments/regulatory.
WisdomTree Digital Fund shares are distributed by Foreside Fund Services, LLC.
Phone: 1-866-909-WISE (9473) Email: getinfo@wisdomtree.com
WMF-597672-2024-08-26
WisdomTree 500 Digital Fund
Annual Shareholder Report - June 30, 2024
Ticker: SPXUX
SPXUX - 062024
WisdomTree 7-10 Year Treasury Digital Fund
Ticker: WTSTX
Annual Shareholder Report - June 30, 2024
This annual shareholder report contains important information about the WisdomTree 7-10 Year Treasury Digital Fund (the "Fund") for the period of July 1, 2023 to June 30, 2024. You can find additional information about the Fund at www.wisdomtree.com/investments/regulatory. You can also request this information by contacting us at 1-866-909-WISE (9473) or getinfo@wisdomtree.com.
What were the Fund's costs for the last year?
(based on a hypothetical $10,000 investment)
| Fund Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
| WisdomTree 7-10 Year Treasury Digital Fund | $5 | 0.05% |
How did the Fund perform last year and what affected its performance?
The Fund returned 0.24% at net asset value ("NAV") for the fiscal year ended June 30, 2024 (for more complete performance information please see the table below). During the specified period, due to persistent inflation and a shift in market expectations regarding the Federal Reserve's first rate cut, interest rates in the medium to long maturity segment of the curve increased. However, this increase was less than the longer maturity treasuries, but more than shorter maturity treasuries. Consequently, the Fund achieved lower performance compared to broader U.S. Treasuries by having a lower duration. Also, as a high-grade Treasury fund, it lagged the riskier segments of the fixed income market during the period, where investors maintained a strong risk-on appetite for corporate issues and other securities with lower credit ratings.
Fund Performance
The following line graph and average annual total return table reflects performance over the past 10 fiscal year periods or since inception if the Fund lacks 10 fiscal years of operating history. The graph and table show how the Fund's performance compares to the Bloomberg U.S. Aggregate Bond Index, a broad-based securities market index, and one or more additional indexes that more closely align with the Fund's investment strategy. Fund performance assume dividends and capital gain distributions, if any, are reinvested. Index returns do not include expenses, which are deducted from Fund returns. Past performance is not a good predictor of future results. The performance shown in the following graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. For the most recent month-end performance information visit www.wisdomtree.com/investments.
Growth of $10,000 Investment
Cumulative Performance from January 19, 2023 (inception) through June 30, 2024
| WisdomTree 7-10 Year Treasury Digital Fund $9,806 | Bloomberg U.S. Aggregate Bond Index $10,112 | Solactive US 7-10 Year Treasury Bond Index $9,800 | |
|---|---|---|---|
| 1/19/23 | $10,000 | $10,000 | $10,000 |
| 1/31/23 | $9,930 | $9,948 | $9,889 |
| 2/28/23 | $9,610 | $9,691 | $9,590 |
| 3/31/23 | $9,970 | $9,937 | $9,944 |
| 4/30/23 | $10,050 | $9,997 | $10,016 |
| 5/31/23 | $9,900 | $9,888 | $9,891 |
| 6/30/23 | $9,782 | $9,853 | $9,763 |
| 7/31/23 | $9,721 | $9,846 | $9,702 |
| 8/31/23 | $9,650 | $9,783 | $9,639 |
| 9/30/23 | $9,349 | $9,534 | $9,338 |
| 10/31/23 | $9,175 | $9,384 | $9,176 |
| 11/30/23 | $9,584 | $9,809 | $9,565 |
| 12/31/23 | $9,945 | $10,184 | $9,941 |
| 1/31/24 | $9,955 | $10,156 | $9,939 |
| 2/29/24 | $9,748 | $10,013 | $9,735 |
| 3/31/24 | $9,816 | $10,105 | $9,806 |
| 4/30/24 | $9,513 | $9,850 | $9,506 |
| 5/31/24 | $9,680 | $10,017 | $9,635 |
| 6/30/24 | $9,806 | $10,112 | $9,800 |
Average Annual Total Returns (%)
| 1 Year | Since Inception 1/19/23 | |
|---|---|---|
| Fund NAV Returns | 0.24% | (1.35)% |
| Bloomberg U.S. Aggregate Bond Index | 2.63% | 0.77% |
| Solactive US 7-10 Year Treasury Bond Index | 0.38% | (1.39)% |
Key Fund Statistics
| Total Net Assets | $932,328 |
| # of Portfolio Holdings | 6 |
| Portfolio Turnover Rate | 79% |
| Total Advisory Fees Paid | $470 |
What did the Fund invest in?
The tables below show the investment makeup of the Fund on June 30, 2024, as a percentage of net assets.
Top Holdings (% of Net Assets)
| U.S. Treasury Notes, 1.88%, due 2/15/32 | 50.1% |
| U.S. Treasury Notes, 4.50%, due 11/15/33 | 20.7% |
| U.S. Treasury Notes, 4.38%, due 5/15/34 | 17.4% |
| U.S. Treasury Notes, 3.88%, due 8/15/33 | 5.7% |
| U.S. Treasury Notes, 3.50%, due 2/15/33 | 4.5% |
| U.S. Treasury Notes, 1.38%, due 11/15/31 | 0.7% |
Investment Breakdown (% of Net Assets)
| U.S. Government Obligations | 99.1% |
| Other Assets and Liabilities, Net | 0.9% |
| Total | 100.0% |
Additional Information
If you wish to view additional information about the Fund, including, but not limited to, financial statements, holdings, prospectus and proxy voting information, please visit www.wisdomtree.com/investments/regulatory.
WisdomTree Digital Fund shares are distributed by Foreside Fund Services, LLC.
Phone: 1-866-909-WISE (9473) Email: getinfo@wisdomtree.com
WMF-597671-2024-08-26
WisdomTree 7-10 Year Treasury Digital Fund
Annual Shareholder Report - June 30, 2024
Ticker: WTSTX
WTSTX - 062024
WisdomTree Floating Rate Treasury Digital Fund
Ticker: FLTTX
Annual Shareholder Report - June 30, 2024
This annual shareholder report contains important information about the WisdomTree Floating Rate Treasury Digital Fund (the "Fund") for the period of July 1, 2023 to June 30, 2024. You can find additional information about the Fund at www.wisdomtree.com/investments/regulatory. You can also request this information by contacting us at 1-866-909-WISE (9473) or getinfo@wisdomtree.com.
What were the Fund's costs for the last year?
(based on a hypothetical $10,000 investment)
| Fund Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
| WisdomTree Floating Rate Treasury Digital Fund | $5 | 0.05% |
How did the Fund perform last year and what affected its performance?
The Fund returned 5.52% at net asset value ("NAV") for the fiscal year ended June 30, 2024 (for more complete performance information please see the table below). During the specified period, due to persistent inflation and a shift in market expectations regarding the Federal Reserve's first rate cut, interest rates in the medium to long maturity segment of the curve increased. However, since the fund maintains almost no duration and sensitivity to interest rate increases, the Fund achieved higher performance compared to broader U.S. Treasuries. Also, as a high-grade Treasury fund, it only lagged the riskiest segments of the fixed income market (mainly High Yield securities) during the period, where investors maintained a strong risk-on appetite for corporate issues and other securities with lower credit ratings.
Fund Performance
The following line graph and average annual total return table reflects performance over the past 10 fiscal year periods or since inception if the Fund lacks 10 fiscal years of operating history. The graph and table show how the Fund's performance compares to the Bloomberg U.S. Aggregate Bond Index, a broad-based securities market index, and one or more additional indexes that more closely align with the Fund's investment strategy. Fund performance assume dividends and capital gain distributions, if any, are reinvested. Index returns do not include expenses, which are deducted from Fund returns. Past performance is not a good predictor of future results. The performance shown in the following graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. For the most recent month-end performance information visit www.wisdomtree.com/investments.
Growth of $10,000 Investment
Cumulative Performance from January 19, 2023 (inception) through June 30, 2024
| WisdomTree Floating Rate Treasury Digital Fund $10,789 | Bloomberg U.S. Aggregate Bond Index $10,112 | Solactive US Treasury Floating Rate $10,801 | |
|---|---|---|---|
| 1/19/23 | $10,000 | $10,000 | $10,000 |
| 1/31/23 | $10,013 | $9,948 | $10,013 |
| 2/28/23 | $10,050 | $9,691 | $10,049 |
| 3/31/23 | $10,089 | $9,937 | $10,087 |
| 4/30/23 | $10,136 | $9,997 | $10,131 |
| 5/31/23 | $10,180 | $9,888 | $10,181 |
| 6/30/23 | $10,225 | $9,853 | $10,226 |
| 7/31/23 | $10,271 | $9,846 | $10,276 |
| 8/31/23 | $10,315 | $9,783 | $10,321 |
| 9/30/23 | $10,361 | $9,534 | $10,366 |
| 10/31/23 | $10,411 | $9,384 | $10,418 |
| 11/30/23 | $10,453 | $9,809 | $10,462 |
| 12/31/23 | $10,495 | $10,184 | $10,500 |
| 1/31/24 | $10,547 | $10,156 | $10,554 |
| 2/29/24 | $10,594 | $10,013 | $10,606 |
| 3/31/24 | $10,644 | $10,105 | $10,650 |
| 4/30/24 | $10,695 | $9,850 | $10,708 |
| 5/31/24 | $10,744 | $10,017 | $10,759 |
| 6/30/24 | $10,789 | $10,112 | $10,801 |
Average Annual Total Returns (%)
| 1 Year | Since Inception 1/19/23 | |
|---|---|---|
| Fund NAV Returns | 5.52% | 5.39% |
| Bloomberg U.S. Aggregate Bond Index | 2.63% | 0.77% |
| Solactive US Treasury Floating Rate | 5.62% | 5.46% |
Key Fund Statistics
| Total Net Assets | $1,563,289 |
| # of Portfolio Holdings | 7 |
| Portfolio Turnover Rate | 78% |
| Total Advisory Fees Paid | $648 |
What did the Fund invest in?
The tables below show the investment makeup of the Fund on June 30, 2024, as a percentage of net assets.
Top Holdings (% of Net Assets)
| U.S. Treasury Floating Rate Notes, 5.55%, due 1/31/26 | 27.2% |
| U.S. Treasury Floating Rate Notes, 5.48%, due 10/31/25 | 24.2% |
| U.S. Treasury Floating Rate Notes, 5.34%, due 7/31/24 | 20.8% |
| U.S. Treasury Floating Rate Notes, 5.45%, due 10/31/24 | 12.5% |
| U.S. Treasury Floating Rate Notes, 5.47%, due 4/30/25 | 6.6% |
| U.S. Treasury Floating Rate Notes, 5.46%, due 4/30/26 | 6.1% |
| U.S. Treasury Floating Rate Notes, 5.43%, due 7/31/25 | 1.3% |
Investment Breakdown (% of Net Assets)
| U.S. Government Obligations | 98.7% |
| Other Assets and Liabilities, Net | 1.3% |
| Total | 100.0% |
Additional Information
If you wish to view additional information about the Fund, including, but not limited to, financial statements, holdings, prospectus and proxy voting information, please visit www.wisdomtree.com/investments/regulatory.
WisdomTree Digital Fund shares are distributed by Foreside Fund Services, LLC.
Phone: 1-866-909-WISE (9473) Email: getinfo@wisdomtree.com
WMF-597673-2024-08-26
WisdomTree Floating Rate Treasury Digital Fund
Annual Shareholder Report - June 30, 2024
Ticker: FLTTX
FLTTX - 062024
WisdomTree Government Money Market Digital Fund
Ticker: WTGXX
Annual Shareholder Report - June 30, 2024
This annual shareholder report contains important information about the WisdomTree Government Money Market Digital Fund (the "Fund") for the period of November 7, 2023 (inception) to June 30, 2024. You can find additional information about the Fund at www.wisdomtree.com/investments/regulatory. You can also request this information by contacting us at 1-866-909-WISE (9473) or getinfo@wisdomtree.com.
What were the Fund's costs for the last period?
(based on a hypothetical $10,000 investment)
| Fund Name | Cost of a $10,000 investmentFootnote Reference* | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
| WisdomTree Government Money Market Digital Fund | $16 | 0.25% |
| Footnote | Description |
Footnote* | The Fund commenced operations on 11/7/23. Actual expenses are calculated using the Fund's annualized expense ratio, multiplied by the average account value for the period, multiplied by 237/366 (to reflect the period since commencement of operations). |
How did the Fund perform last year and what affected its performance?
The Fund returned 3.38% at net asset value ("NAV") for the period ended June 30, 2024 (for more complete performance information please see the table below). During the specified period, due to persistent inflation and a shift in market expectations regarding the Federal Reserve's first rate cut, overnight and short-term interest rates remained elevated. The Fund achieved lower performance compared to riskier segments of the fixed income market during the period, where investors maintained a strong risk-on appetite for corporate issues and other securities with lower credit ratings.
Fund Performance
The following line graph and average annual total return table reflects performance over the past 10 fiscal year periods or since inception if the Fund lacks 10 fiscal years of operating history. The graph and table show how the Fund's performance compares to the ICE US 1-Month Treasury Bill Index, a broad-based securities market index. Fund performance assume dividends and capital gain distributions, if any, are reinvested. Index returns do not include expenses, which are deducted from Fund returns. Past performance is not a good predictor of future results. The performance shown in the following graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. For the most recent month-end performance information visit www.wisdomtree.com/investments.
Growth of $10,000 Investment
Cumulative Performance from November 7, 2023 (inception) through June 30, 2024
| WisdomTree Government Money Market Digital Fund $10,338 | ICE US 1-Month Treasury Bill Index $10,349 | |
|---|---|---|
| 11/07/23 | $10,000 | $10,000 |
| 11/30/23 | $10,034 | $10,034 |
| 12/31/23 | $10,078 | $10,081 |
| 1/31/24 | $10,122 | $10,126 |
| 2/29/24 | $10,163 | $10,167 |
| 3/31/24 | $10,208 | $10,214 |
| 4/30/24 | $10,250 | $10,257 |
| 5/31/24 | $10,295 | $10,307 |
| 6/30/24 | $10,338 | $10,349 |
Average Annual Total Returns (%)
Since Inception 11/7/23Footnote Reference* | |
|---|---|
| Fund NAV Returns | 3.38% |
| ICE US 1-Month Treasury Bill Index | 3.49% |
| Footnote | Description |
Footnote* | Returns of less than one year are cumulative. |
Key Fund Statistics
| Total Net Assets | $5,676,391 |
| # of Portfolio Holdings | 15 |
| Portfolio Turnover Rate | 0% |
| Total Advisory Fees Paid | $7,473 |
What did the Fund invest in?
The tables below show the investment makeup of the Fund on June 30, 2024, as a percentage of net assets.
Top 10 Holdings (% of Net Assets)
| U.S. Treasury Bills, 5.34%, due 7/5/24 | 31.0% |
| U.S. Treasury Floating Rate Notes, 5.34%, due 7/31/24 | 20.3% |
| U.S. Treasury Bills, 5.41%, due 9/19/24 | 8.7% |
| Federal Home Loan Banks, 5.35%, due 8/27/24 | 7.0% |
| Federal Home Loan Banks, 5.35%, due 9/24/24 | 4.4% |
| Federal Home Loan Banks, 5.34%, due 7/9/24 | 4.4% |
| Federal Home Loan Banks, 3.00%, due 7/8/24 | 4.4% |
| U.S. Treasury Bills, 5.34%, due 7/16/24 | 4.4% |
| U.S. Treasury Bills, 5.40%, due 10/29/24 | 4.3% |
| U.S. Treasury Bills, 5.40%, due 11/14/24 | 4.3% |
Investment Breakdown (% of Net Assets)
| U.S. Government Obligations | 76.5% |
| U.S. Government Agencies | 27.8% |
| Other Assets and Liabilities, Net | (4.3%) |
| Total | 100.0% |
Additional Information
If you wish to view additional information about the Fund, including, but not limited to, financial statements, holdings, prospectus and proxy voting information, please visit www.wisdomtree.com/investments/regulatory.
WisdomTree Digital Fund shares are distributed by Foreside Fund Services, LLC.
Phone: 1-866-909-WISE (9473) Email: getinfo@wisdomtree.com
WMF-597675-2024-08-26
WisdomTree Government Money Market Digital Fund
Annual Shareholder Report - June 30, 2024
Ticker: WTGXX
WTGXX - 062024
WisdomTree Long Term Treasury Digital Fund
Ticker: WTLGX
Annual Shareholder Report - June 30, 2024
This annual shareholder report contains important information about the WisdomTree Long Term Treasury Digital Fund (the "Fund") for the period of July 1, 2023 to June 30, 2024. You can find additional information about the Fund at www.wisdomtree.com/investments/regulatory. You can also request this information by contacting us at 1-866-909-WISE (9473) or getinfo@wisdomtree.com.
What were the Fund's costs for the last year?
(based on a hypothetical $10,000 investment)
| Fund Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
| WisdomTree Long Term Treasury Digital Fund | $5 | 0.05% |
How did the Fund perform last year and what affected its performance?
The Fund returned -7.12% at net asset value ("NAV") for the fiscal year ended June 30, 2024 (for more complete performance information please see the table below). During the specified period, due to persistent inflation and a shift in market expectations regarding the Federal Reserve's first rate cut, interest rates in the medium to long maturity segment of the curve increased. This increase was more than the shorter maturity treasuries. Consequently, the Fund achieved lower performance compared to broader U.S. Treasuries by having a lower duration. Also, as a high-grade Treasury fund, it lagged the riskier segments of the fixed income market during the period, where investors maintained a strong risk-on appetite for corporate issues and other securities with lower credit ratings.
Fund Performance
The following line graph and average annual total return table reflects performance over the past 10 fiscal year periods or since inception if the Fund lacks 10 fiscal years of operating history. The graph and table show how the Fund's performance compares to the Bloomberg U.S. Aggregate Bond Index, a broad-based securities market index, and one or more additional indexes that more closely align with the Fund's investment strategy. Fund performance assume dividends and capital gain distributions, if any, are reinvested. Index returns do not include expenses, which are deducted from Fund returns. Past performance is not a good predictor of future results. The performance shown in the following graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. For the most recent month-end performance information visit www.wisdomtree.com/investments.
Growth of $10,000 Investment
Cumulative Performance from January 19, 2023 (inception) through June 30, 2024
| WisdomTree Long Term Treasury Digital Fund $8,938 | Bloomberg U.S. Aggregate Bond Index $10,112 | Solactive US 20+ Year Treasury Bond Index $8,926 | |
|---|---|---|---|
| 1/19/23 | $10,000 | $10,000 | $10,000 |
| 1/31/23 | $9,900 | $9,948 | $9,807 |
| 2/28/23 | $9,410 | $9,691 | $9,355 |
| 3/31/23 | $9,856 | $9,937 | $9,808 |
| 4/30/23 | $9,896 | $9,997 | $9,874 |
| 5/31/23 | $9,614 | $9,888 | $9,570 |
| 6/30/23 | $9,623 | $9,853 | $9,592 |
| 7/31/23 | $9,390 | $9,846 | $9,356 |
| 8/31/23 | $9,095 | $9,783 | $9,087 |
| 9/30/23 | $8,371 | $9,534 | $8,352 |
| 10/31/23 | $7,919 | $9,384 | $7,972 |
| 11/30/23 | $8,710 | $9,809 | $8,694 |
| 12/31/23 | $9,479 | $10,184 | $9,446 |
| 1/31/24 | $9,240 | $10,156 | $9,234 |
| 2/29/24 | $9,043 | $10,013 | $9,028 |
| 3/31/24 | $9,126 | $10,105 | $9,106 |
| 4/30/24 | $8,539 | $9,850 | $8,524 |
| 5/31/24 | $8,791 | $10,017 | $8,704 |
| 6/30/24 | $8,938 | $10,112 | $8,926 |
Average Annual Total Returns (%)
| 1 Year | Since Inception 1/19/23 | |
|---|---|---|
| Fund NAV Returns | (7.12)% | (7.47)% |
| Bloomberg U.S. Aggregate Bond Index | 2.63% | 0.77% |
| Solactive US 20+ Year Treasury Bond Index | (6.95)% | (7.54)% |
Key Fund Statistics
| Total Net Assets | $844,866 |
| # of Portfolio Holdings | 6 |
| Portfolio Turnover Rate | 6% |
| Total Advisory Fees Paid | $431 |
What did the Fund invest in?
The tables below show the investment makeup of the Fund on June 30, 2024, as a percentage of net assets.
Top Holdings (% of Net Assets)
| U.S. Treasury Bonds, 3.00%, due 5/15/47 | 39.3% |
| U.S. Treasury Bonds, 1.88%, due 11/15/51 | 38.9% |
| U.S. Treasury Bonds, 3.00%, due 5/15/45 | 12.3% |
| U.S. Treasury Bonds, 1.63%, due 11/15/50 | 4.7% |
| U.S. Treasury Bonds, 4.25%, due 2/15/54 | 3.2% |
| U.S. Treasury Bonds, 4.13%, due 8/15/53 | 0.3% |
Investment Breakdown (% of Net Assets)
| U.S. Government Obligations | 98.7% |
| Other Assets and Liabilities, Net | 1.3% |
| Total | 100.0% |
Additional Information
If you wish to view additional information about the Fund, including, but not limited to, financial statements, holdings, prospectus and proxy voting information, please visit www.wisdomtree.com/investments/regulatory.
WisdomTree Digital Fund shares are distributed by Foreside Fund Services, LLC.
Phone: 1-866-909-WISE (9473) Email: getinfo@wisdomtree.com
WMF-597677-2024-08-26
WisdomTree Long Term Treasury Digital Fund
Annual Shareholder Report - June 30, 2024
Ticker: WTLGX
WTLGX - 062024
WisdomTree Short-Duration Income Digital Fund
Ticker: WTSIX
Annual Shareholder Report - June 30, 2024
This annual shareholder report contains important information about the WisdomTree Short-Duration Income Digital Fund (the "Fund") for the period of July 1, 2023 to June 30, 2024. You can find additional information about the Fund at www.wisdomtree.com/investments/regulatory. You can also request this information by contacting us at 1-866-909-WISE (9473) or getinfo@wisdomtree.com.
What were the Fund's costs for the last year?
(based on a hypothetical $10,000 investment)
| Fund Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
| WisdomTree Short-Duration Income Digital Fund | $15 | 0.15% |
How did the Fund perform last year and what affected its performance?
The Fund returned 5.60% at net asset value ("NAV") for the fiscal year ended June 30, 2024 (for more complete performance information please see the table below). During the specified period, due to persistent inflation and a shift in market expectations regarding the Federal Reserve's first rate cut, interest rates in the medium to long maturity segment of the curve increased. Asset classes that are typically described as "risk-on", like corporate debt, generated negative performance during the first half of the period as the global markets continued to grapple with sticky inflation. Since November 2023, there has been a reversal in the markets and many risk-on asset classes have rallied. The Fund's largest allocations were WisdomTree Yield Enhanced U.S. Short-Term Aggregate Bond Fund (SHAG), and WisdomTree U.S. Short-Term Corporate Bond Fund (SFIG), generating the bulk of positive performance during the period.
Fund Performance
The following line graph and average annual total return table reflects performance over the past 10 fiscal year periods or since inception if the Fund lacks 10 fiscal years of operating history. The graph and table show how the Fund's performance compares to the Bloomberg U.S. Aggregate Bond Index, a broad-based securities market index, and one or more additional indexes that more closely align with the Fund's investment strategy. Fund performance assume dividends and capital gain distributions, if any, are reinvested. Index returns do not include expenses, which are deducted from Fund returns. Past performance is not a good predictor of future results. The performance shown in the following graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. For the most recent month-end performance information visit www.wisdomtree.com/investments.
Growth of $10,000 Investment
Cumulative Performance from January 19, 2023 (inception) through June 30, 2024
| WisdomTree Short-Duration Income Digital Fund $10,619 | Bloomberg U.S. Aggregate Bond Index $10,112 | Bloomberg U.S. Short Aggregate Composite Index $10,431 | Bloomberg U.S. Short Aggregate Enhanced Yield Index $10,511 | |
|---|---|---|---|---|
| 1/19/23 | $10,000 | $10,000 | $10,000 | $10,000 |
| 1/31/23 | $10,000 | $9,948 | $9,979 | $9,985 |
| 2/28/23 | $9,900 | $9,691 | $9,852 | $9,857 |
| 3/31/23 | $9,994 | $9,937 | $10,031 | $10,010 |
| 4/30/23 | $10,025 | $9,997 | $10,079 | $10,065 |
| 5/31/23 | $9,984 | $9,888 | $10,031 | $10,025 |
| 6/30/23 | $10,056 | $9,853 | $9,968 | $9,979 |
| 7/31/23 | $10,127 | $9,846 | $10,006 | $10,027 |
| 8/31/23 | $10,137 | $9,783 | $10,026 | $10,047 |
| 9/30/23 | $10,065 | $9,534 | $9,977 | $10,003 |
| 10/31/23 | $10,035 | $9,384 | $9,978 | $10,005 |
| 11/30/23 | $10,260 | $9,809 | $10,159 | $10,195 |
| 12/31/23 | $10,453 | $10,184 | $10,331 | $10,365 |
| 1/31/24 | $10,495 | $10,156 | $10,367 | $10,409 |
| 2/29/24 | $10,463 | $10,013 | $10,297 | $10,359 |
| 3/31/24 | $10,537 | $10,105 | $10,349 | $10,417 |
| 4/30/24 | $10,463 | $9,850 | $10,261 | $10,348 |
| 5/31/24 | $10,558 | $10,017 | $10,360 | $10,446 |
| 6/30/24 | $10,619 | $10,112 | $10,431 | $10,511 |
Average Annual Total Returns (%)
| 1 Year | Since Inception 1/19/23 | |
|---|---|---|
| Fund NAV Returns | 5.60% | 4.24% |
| Bloomberg U.S. Aggregate Bond Index | 2.63% | 0.77% |
| Bloomberg U.S. Short Aggregate Composite Index | 4.65% | 2.95% |
| Bloomberg U.S. Short Aggregate Enhanced Yield Index | 5.34% | 3.50% |
Key Fund Statistics
| Total Net Assets | $1,010,909 |
| # of Portfolio Holdings | 5 |
| Portfolio Turnover Rate | 14% |
| Total Advisory Fees Paid | $1,505 |
What did the Fund invest in?
The tables below show the investment makeup of the Fund on June 30, 2024, as a percentage of net assets.
Top Holdings (% of Net Assets)
| WisdomTree Yield Enhanced U.S. Short-Term Aggregate Bond Fund | 29.9% |
| WisdomTree U.S. Short Term Corporate Bond Fund | 20.0% |
| WisdomTree Mortgage Plus Bond Fund | 19.8% |
| WisdomTree Interest Rate Hedged High Yield Bond Fund | 15.2% |
| WisdomTree Floating Rate Treasury Fund | 15.1% |
Investment Breakdown (% of Net Assets)
| Exchange-Traded Funds | 100.0% |
| Other Assets and Liabilities, Net | 0.0%Footnote Reference* |
| Total | 100.0% |
| Footnote | Description |
Footnote* | Represents less than 0.1% |
Additional Information
If you wish to view additional information about the Fund, including, but not limited to, financial statements, holdings, prospectus and proxy voting information, please visit www.wisdomtree.com/investments/regulatory.
WisdomTree Digital Fund shares are distributed by Foreside Fund Services, LLC.
Phone: 1-866-909-WISE (9473) Email: getinfo@wisdomtree.com
WMF-597678-2024-08-26
WisdomTree Short-Duration Income Digital Fund
Annual Shareholder Report - June 30, 2024
Ticker: WTSIX
WTSIX - 062024
WisdomTree Short-Term Treasury Digital Fund
Ticker: WTSYX
Annual Shareholder Report - June 30, 2024
This annual shareholder report contains important information about the WisdomTree Short-Term Treasury Digital Fund (the "Fund") for the period of July 1, 2023 to June 30, 2024. You can find additional information about the Fund at www.wisdomtree.com/investments/regulatory. You can also request this information by contacting us at 1-866-909-WISE (9473) or getinfo@wisdomtree.com.
What were the Fund's costs for the last year?
(based on a hypothetical $10,000 investment)
| Fund Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
| WisdomTree Short-Term Treasury Digital Fund | $5 | 0.05% |
How did the Fund perform last year and what affected its performance?
The Fund returned 4.14% at net asset value ("NAV") for the fiscal year ended June 30, 2024 (for more complete performance information please see the table below). During the specified period, interest rates for the 1- and 3-year tenors on the U.S. Treasury Yield curve experienced a slight decline. However, due to persistent inflation and a shift in market expectations regarding the Federal Reserve's first rate cut, interest rates in the intermediate to long maturity segment of the curve increased. Consequently, the Fund achieved better performance compared to broader U.S. Treasuries by having a lower duration. However, as a high-grade Treasury fund, it lagged the riskier segments of the fixed income market during the period, where investors maintained a strong risk-on appetite for corporate issues and other securities with lower credit ratings.
Fund Performance
The following line graph and average annual total return table reflects performance over the past 10 fiscal year periods or since inception if the Fund lacks 10 fiscal years of operating history. The graph and table show how the Fund's performance compares to the Bloomberg U.S. Aggregate Bond Index, a broad-based securities market index, and one or more additional indexes that more closely align with the Fund's investment strategy. Fund performance assume dividends and capital gain distributions, if any, are reinvested. Index returns do not include expenses, which are deducted from Fund returns. Past performance is not a good predictor of future results. The performance shown in the following graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. For the most recent month-end performance information visit www.wisdomtree.com/investments.
Growth of $10,000 Investment
Cumulative Performance from December 14, 2022 (inception) through June 30, 2024
| WisdomTree Short-Term Treasury Digital Fund $10,495 | Bloomberg U.S. Aggregate Bond Index $10,267 | Solactive US 1-3 Year Treasury Bond Index $10,542 | |
|---|---|---|---|
| 12/14/22 | $10,000 | $10,000 | $10,000 |
| 12/31/22 | $9,971 | $9,799 | $9,987 |
| 1/31/23 | $10,042 | $10,101 | $10,051 |
| 2/28/23 | $9,968 | $9,839 | $9,983 |
| 3/31/23 | $10,124 | $10,089 | $10,139 |
| 4/30/23 | $10,155 | $10,151 | $10,163 |
| 5/31/23 | $10,121 | $10,040 | $10,136 |
| 6/30/23 | $10,077 | $10,004 | $10,084 |
| 7/31/23 | $10,112 | $9,997 | $10,121 |
| 8/31/23 | $10,149 | $9,933 | $10,161 |
| 9/30/23 | $10,148 | $9,681 | $10,161 |
| 10/31/23 | $10,181 | $9,528 | $10,195 |
| 11/30/23 | $10,277 | $9,960 | $10,299 |
| 12/31/23 | $10,379 | $10,341 | $10,414 |
| 1/31/24 | $10,419 | $10,313 | $10,455 |
| 2/29/24 | $10,374 | $10,167 | $10,412 |
| 3/31/24 | $10,404 | $10,261 | $10,443 |
| 4/30/24 | $10,365 | $10,002 | $10,412 |
| 5/31/24 | $10,436 | $10,171 | $10,471 |
| 6/30/24 | $10,495 | $10,267 | $10,542 |
Average Annual Total Returns (%)
| 1 Year | Since Inception 12/14/22 | |
|---|---|---|
| Fund NAV Returns | 4.14% | 3.18% |
| Bloomberg U.S. Aggregate Bond Index | 2.63% | 1.72% |
| Solactive US 1-3 Year Treasury Bond Index | 4.54% | 3.47% |
Key Fund Statistics
| Total Net Assets | $990,812 |
| # of Portfolio Holdings | 13 |
| Portfolio Turnover Rate | 256% |
| Total Advisory Fees Paid | $513 |
What did the Fund invest in?
The tables below show the investment makeup of the Fund on June 30, 2024, as a percentage of net assets.
Top 10 Holdings (% of Net Assets)
| U.S. Treasury Notes, 0.38%, due 11/30/25 | 37.2% |
| U.S. Treasury Notes, 1.25%, due 11/30/26 | 15.8% |
| U.S. Treasury Notes, 4.63%, due 6/15/27 | 10.1% |
| U.S. Treasury Notes, 4.63%, due 3/15/26 | 9.5% |
| U.S. Treasury Notes, 3.75%, due 4/15/26 | 6.8% |
| U.S. Treasury Notes, 4.38%, due 12/15/26 | 6.0% |
| U.S. Treasury Notes, 4.13%, due 6/15/26 | 4.5% |
| U.S. Treasury Notes, 2.00%, due 8/15/25 | 3.9% |
| U.S. Treasury Notes, 4.63%, due 6/30/26 | 2.7% |
| U.S. Treasury Notes, 4.13%, due 2/15/27 | 0.4% |
Investment Breakdown (% of Net Assets)
| U.S. Government Obligations | 97.7% |
| Other Assets and Liabilities, Net | 2.3% |
| Total | 100.0% |
Additional Information
If you wish to view additional information about the Fund, including, but not limited to, financial statements, holdings, prospectus and proxy voting information, please visit www.wisdomtree.com/investments/regulatory.
WisdomTree Digital Fund shares are distributed by Foreside Fund Services, LLC.
Phone: 1-866-909-WISE (9473) Email: getinfo@wisdomtree.com
WMF-597680-2024-08-26
WisdomTree Short-Term Treasury Digital Fund
Annual Shareholder Report - June 30, 2024
Ticker: WTSYX
WTSYX - 062024
WisdomTree Siegel Global Equity Digital Fund
Ticker: EQTYX
Annual Shareholder Report - June 30, 2024
This annual shareholder report contains important information about the WisdomTree Siegel Global Equity Digital Fund (the "Fund") for the period of December 6, 2023 (inception) to June 30, 2024. You can find additional information about the Fund at www.wisdomtree.com/investments/regulatory. You can also request this information by contacting us at 1-866-909-WISE (9473) or getinfo@wisdomtree.com.
What were the Fund's costs for the last period?
(based on a hypothetical $10,000 investment)
| Fund Name | Cost of a $10,000 investmentFootnote Reference* | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
| WisdomTree Siegel Global Equity Digital Fund | $9 | 0.15% |
| Footnote | Description |
Footnote* | The Fund commenced operations on 12/6/23. Actual expenses are calculated using the Fund's annualized expense ratio, multiplied by the average account value for the period, multiplied by 208/366 (to reflect the period since commencement of operations). |
How did the Fund perform last year and what affected its performance?
The Fund returned 13.54% at net asset value ("NAV") for the fiscal period ended June 30, 2024 (for more complete performance information please see the table below). Please note that this represents performance since Fund inception on December 6, 2023. As part of its investment strategy, the Fund allocates to a variety of WisdomTree and non-WisdomTree equity ETFs to provide capital appreciation and income potential over a long-term investment horizon. The iShares Core S&P 500 ETF (IVV) and WisdomTree U.S. Quality Dividend Growth Fund (DGRW) were additive as they primarily allocate to U.S. large cap equities, which delivered strong returns due to investor sentiment and excitement about the growth of, and opportunities involving, artificial intelligence (AI). The WisdomTree Emerging Markets High Dividend Fund (DEM) and Vanguard High Dividend Yield ETF (VYM) were also beneficial for performance, as they both delivered strong returns relative to broader emerging markets and U.S. equity benchmarks while maintaining a dividend emphasis. Though the WisdomTree International Quality Dividend Growth Fund (IQDG) still provided positive absolute returns, Fund performance would have benefitted from currency-hedged international equity exposure during the period since most G10 currencies weakened versus the U.S. dollar, but IQDG does not currency-hedge.
Fund Performance
The following line graph and average annual total return table reflects performance over the past 10 fiscal year periods or since inception if the Fund lacks 10 fiscal years of operating history. The graph and table show how the Fund's performance compares to the MSCI ACWI Index, a broad-based securities market index, and one or more additional indexes that more closely align with the Fund's investment strategy. Fund performance assume dividends and capital gain distributions, if any, are reinvested. Index returns do not include expenses, which are deducted from Fund returns. Past performance is not a good predictor of future results. The performance shown in the following graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. For the most recent month-end performance information visit www.wisdomtree.com/investments.
Growth of $10,000 Investment
Cumulative Performance from December 6, 2023 (inception) through June 30, 2024
| WisdomTree Siegel Global Equity Digital Fund $11,354 | MSCI ACWI Index $11,684 | MSCI ACWI Value Index $11,184 | |
|---|---|---|---|
| 12/06/23 | $10,000 | $10,000 | $10,000 |
| 12/31/23 | $10,549 | $10,498 | $10,529 |
| 1/31/24 | $10,529 | $10,559 | $10,514 |
| 2/29/24 | $10,881 | $11,012 | $10,785 |
| 3/31/24 | $11,292 | $11,358 | $11,251 |
| 4/30/24 | $10,879 | $10,983 | $10,913 |
| 5/31/24 | $11,332 | $11,429 | $11,235 |
| 6/30/24 | $11,354 | $11,684 | $11,184 |
Average Annual Total Returns (%)
Since Inception 12/6/23Footnote Reference* | |
|---|---|
| Fund NAV Returns | 13.54% |
| MSCI ACWI Index | 16.84% |
| MSCI ACWI Value Index | 11.84% |
| Footnote | Description |
Footnote* | Returns of less than one year are cumulative. |
Key Fund Statistics
| Total Net Assets | $390,351 |
| # of Portfolio Holdings | 11 |
| Portfolio Turnover Rate | 26% |
| Total Advisory Fees Paid | $264 |
What did the Fund invest in?
The tables below show the investment makeup of the Fund on June 30, 2024, as a percentage of net assets.
Top 10 Holdings (% of Net Assets)
| WisdomTree U.S. Quality Dividend Growth Fund | 22.4% |
| WisdomTree U.S. Total Dividend Fund | 15.0% |
| iShares Core S&P 500 ETF | 13.5% |
| Vanguard International High Dividend Yield ETF | 11.0% |
| WisdomTree International Quality Dividend Growth Fund | 9.9% |
| Vanguard High Dividend Yield ETF | 8.0% |
| SPDR Portfolio S&P 400 Mid Cap ETF | 5.0% |
| WisdomTree Japan Hedged Equity Fund | 4.0% |
| WisdomTree Emerging Markets High Dividend Fund | 4.0% |
| WisdomTree Emerging Markets SmallCap Dividend Fund | 4.0% |
Investment Breakdown (% of Net Assets)
| Exchange-Traded Funds | 99.8% |
| Other Assets and Liabilities, Net | 0.2% |
| Total | 100.0% |
Additional Information
If you wish to view additional information about the Fund, including, but not limited to, financial statements, holdings, prospectus and proxy voting information, please visit www.wisdomtree.com/investments/regulatory.
WisdomTree Digital Fund shares are distributed by Foreside Fund Services, LLC.
Phone: 1-866-909-WISE (9473) Email: getinfo@wisdomtree.com
WMF-597681-2024-08-26
WisdomTree Siegel Global Equity Digital Fund
Annual Shareholder Report - June 30, 2024
Ticker: EQTYX
EQTYX - 062024
WisdomTree Siegel Longevity Digital Fund
Ticker: LNGVX
Annual Shareholder Report - June 30, 2024
This annual shareholder report contains important information about the WisdomTree Siegel Longevity Digital Fund (the "Fund") for the period of December 6, 2023 (inception) to June 30, 2024. You can find additional information about the Fund at www.wisdomtree.com/investments/regulatory. You can also request this information by contacting us at 1-866-909-WISE (9473) or getinfo@wisdomtree.com.
What were the Fund's costs for the last period?
(based on a hypothetical $10,000 investment)
| Fund Name | Cost of a $10,000 investmentFootnote Reference* | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
| WisdomTree Siegel Longevity Digital Fund | $9 | 0.15% |
| Footnote | Description |
Footnote* | The Fund commenced operations on 12/6/23. Actual expenses are calculated using the Fund's annualized expense ratio, multiplied by the average account value for the period, multiplied by 208/366 (to reflect the period since commencement of operations). |
How did the Fund perform last year and what affected its performance?
The Fund returned 10.40% at net asset value ("NAV") for the fiscal period ended June 30, 2024 (for more complete performance information please see the table below). Please note that this represents performance since Fund inception on December 6, 2023. As part of its investment strategy, the Fund invests in several WisdomTree and non-WisdomTree ETFs that intend to provide supplementary income over a long-term investment horizon via dividends from equity securities and interest income from fixed income securities, while also seeking capital appreciation. This results in approximately 75% global equity and 25% fixed income exposure. The WisdomTree Emerging Markets High Dividend Fund (DEM) and Vanguard High Dividend Yield ETF (VYM) were additive, as they both delivered strong returns relative to broader emerging markets and U.S. equity benchmarks while maintaining a dividend emphasis. Though the WisdomTree International Quality Dividend Growth Fund (IQDG) still provided positive absolute returns, Fund performance would have benefitted from currency-hedged international equity exposure during the period since most G10 currencies weakened versus the U.S. dollar, but IQDG does not currency-hedge. Within fixed income exposures, each of the Fund's underlying allocations were additive, including the WisdomTree Yield Enhanced U.S. Aggregate Bond Fund (AGGY) and WisdomTree U.S. High Yield Corporate Bond Fund (WFHY).
Fund Performance
The following line graph and average annual total return table reflects performance over the past 10 fiscal year periods or since inception if the Fund lacks 10 fiscal years of operating history. The graph and table show how the Fund's performance compares to the S&P 500® Index, a broad-based securities market index, and one or more additional indexes that more closely align with the Fund's investment strategy. Fund performance assume dividends and capital gain distributions, if any, are reinvested. Index returns do not include expenses, which are deducted from Fund returns. Past performance is not a good predictor of future results. The performance shown in the following graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. For the most recent month-end performance information visit www.wisdomtree.com/investments.
Growth of $10,000 Investment
Cumulative Performance from December 6, 2023 (inception) through June 30, 2024
| WisdomTree Siegel Longevity Digital Fund $11,040 | S&P 500® Index $12,053 | 75% MSCI ACWI Value Index/25% Bloomberg U.S. Bond Index Composite $10,930 | |
|---|---|---|---|
| 12/06/23 | $10,000 | $10,000 | $10,000 |
| 12/31/23 | $10,462 | $10,454 | $10,462 |
| 1/31/24 | $10,442 | $10,630 | $10,444 |
| 2/29/24 | $10,703 | $11,198 | $10,609 |
| 3/31/24 | $11,020 | $11,558 | $10,972 |
| 4/30/24 | $10,657 | $11,086 | $10,660 |
| 5/31/24 | $11,020 | $11,636 | $10,942 |
| 6/30/24 | $11,040 | $12,053 | $10,930 |
Average Annual Total Returns (%)
Since Inception 12/6/23Footnote Reference* | |
|---|---|
| Fund NAV Returns | 10.40% |
S&P 500® Index | 20.53% |
| 75% MSCI ACWI Value Index/25% Bloomberg U.S. Aggregate Bond Index Composite | 9.30% |
| Footnote | Description |
Footnote* | Returns of less than one year are cumulative. |
Key Fund Statistics
| Total Net Assets | $171,739 |
| # of Portfolio Holdings | 15 |
| Portfolio Turnover Rate | 23% |
| Total Advisory Fees Paid | $117 |
What did the Fund invest in?
The tables below show the investment makeup of the Fund on June 30, 2024, as a percentage of net assets.
Top 10 Holdings (% of Net Assets)
| WisdomTree Yield Enhanced U.S. Aggregate Bond Fund | 14.8% |
| WisdomTree U.S. Total Dividend Fund | 13.4% |
| WisdomTree U.S. Quality Dividend Growth Fund | 10.9% |
| iShares Core S&P 500 ETF | 8.0% |
| Vanguard International High Dividend Yield ETF | 7.9% |
| WisdomTree International Quality Dividend Growth Fund | 7.9% |
| Vanguard High Dividend Yield ETF | 6.0% |
| WisdomTree Managed Futures Strategy Fund | 4.9% |
| SPDR Portfolio S&P 400 Mid Cap ETF | 4.5% |
| WisdomTree Emerging Markets High Dividend Fund | 4.0% |
Investment Breakdown (% of Net Assets)
| Exchange-Traded Funds | 99.2% |
| Other Assets and Liabilities, Net | 0.8% |
| Total | 100.0% |
Additional Information
If you wish to view additional information about the Fund, including, but not limited to, financial statements, holdings, prospectus and proxy voting information, please visit www.wisdomtree.com/investments/regulatory.
WisdomTree Digital Fund shares are distributed by Foreside Fund Services, LLC.
Phone: 1-866-909-WISE (9473) Email: getinfo@wisdomtree.com
WMF-597683-2024-08-26
WisdomTree Siegel Longevity Digital Fund
Annual Shareholder Report - June 30, 2024
Ticker: LNGVX
LNGVX - 062024
WisdomTree Siegel Moderate Digital Fund
Ticker: MODRX
Annual Shareholder Report - June 30, 2024
This annual shareholder report contains important information about the WisdomTree Siegel Moderate Digital Fund (the "Fund") for the period of December 6, 2023 (inception) to June 30, 2024. You can find additional information about the Fund at www.wisdomtree.com/investments/regulatory. You can also request this information by contacting us at 1-866-909-WISE (9473) or getinfo@wisdomtree.com.
What were the Fund's costs for the last period?
(based on a hypothetical $10,000 investment)
| Fund Name | Cost of a $10,000 investmentFootnote Reference* | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
| WisdomTree Siegel Moderate Digital Fund | $9 | 0.15% |
| Footnote | Description |
Footnote* | The Fund commenced operations on 12/6/23. Actual expenses are calculated using the Fund's annualized expense ratio, multiplied by the average account value for the period, multiplied by 208/366 (to reflect the period since commencement of operations). |
How did the Fund perform last year and what affected its performance?
The Fund returned 8.85% at net asset value ("NAV") for the fiscal period ended June 30, 2024 (for more complete performance information please see the table below). Please note that this represents performance since Fund inception on December 6, 2023. As part of its 60% equity and 40% fixed income investment strategy, the Fund invests in several WisdomTree and non-WisdomTree ETFs that exhibited mixed performance. The iShares Core S&P 500 ETF (IVV) and WisdomTree U.S. Quality Dividend Growth Fund (DGRW) were additive as they primarily allocate to U.S. large cap equities, which delivered strong returns due to investor sentiment and excitement about the growth of, and opportunities involving, artificial intelligence (AI). Though the WisdomTree International Quality Dividend Growth Fund (IQDG) still provided positive returns, Fund performance would have benefitted from currency-hedged international equity exposure during the period since most G10 currencies weakened versus the U.S. dollar, but IQDG does not currency-hedge. Within fixed income exposures, the WisdomTree Floating Rate Treasury Fund (USFR) and WisdomTree Mortgage Plus Bond Fund (MTGP) were beneficial in the prevailing high interest rate environment due to income generation effects. The iShares 10-20 Year Treasury Bond ETF (TLH) slightly hampered performance, as its underlying bond exposures suffered from rising interest rates during the period.
Fund Performance
The following line graph and average annual total return table reflects performance over the past 10 fiscal year periods or since inception if the Fund lacks 10 fiscal years of operating history. The graph and table show how the Fund's performance compares to the S&P 500® Index, a broad-based securities market index, and one or more additional indexes that more closely align with the Fund's investment strategy. Fund performance assume dividends and capital gain distributions, if any, are reinvested. Index returns do not include expenses, which are deducted from Fund returns. Past performance is not a good predictor of future results. The performance shown in the following graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. For the most recent month-end performance information visit www.wisdomtree.com/investments.
Growth of $10,000 Investment
Cumulative Performance from December 6, 2023 (inception) through June 30, 2024
| WisdomTree Siegel Moderate Digital Fund $10,885 | S&P 500® Index $12,053 | 60% MSCI ACWI Value Index/40% Bloomberg U.S. Aggregate Bond Index $10,780 | |
|---|---|---|---|
| 12/06/23 | $10,000 | $10,000 | $10,000 |
| 12/31/23 | $10,441 | $10,454 | $10,422 |
| 1/31/24 | $10,410 | $10,630 | $10,402 |
| 2/29/24 | $10,571 | $11,198 | $10,504 |
| 3/31/24 | $10,844 | $11,558 | $10,811 |
| 4/30/24 | $10,501 | $11,086 | $10,511 |
| 5/31/24 | $10,834 | $11,636 | $10,768 |
| 6/30/24 | $10,885 | $12,053 | $10,780 |
Average Annual Total Returns (%)
Since Inception 12/6/23Footnote Reference* | |
|---|---|
| Fund NAV Returns | 8.85% |
S&P 500® Index | 20.53% |
| 60% MSCI ACWI Value Index/40% Bloomberg U.S. Aggregate Bond Index | 7.80% |
| Footnote | Description |
Footnote* | Returns of less than one year are cumulative. |
Key Fund Statistics
| Total Net Assets | $145,308 |
| # of Portfolio Holdings | 17 |
| Portfolio Turnover Rate | 66% |
| Total Advisory Fees Paid | $101 |
What did the Fund invest in?
The tables below show the investment makeup of the Fund on June 30, 2024, as a percentage of net assets.
Top 10 Holdings (% of Net Assets)
| WisdomTree Yield Enhanced U.S. Aggregate Bond Fund | 16.1% |
| WisdomTree U.S. Quality Dividend Growth Fund | 13.4% |
| WisdomTree Mortgage Plus Bond Fund | 9.1% |
| WisdomTree U.S. Total Dividend Fund | 9.0% |
| iShares Core S&P 500 ETF | 7.9% |
| Vanguard International High Dividend Yield ETF | 6.6% |
| WisdomTree International Quality Dividend Growth Fund | 6.0% |
| iShares 10-20 Year Treasury Bond ETF | 5.5% |
| Vanguard High Dividend Yield ETF | 4.8% |
| WisdomTree Floating Rate Treasury Fund | 4.4% |
Investment Breakdown (% of Net Assets)
| Exchange-Traded Funds | 99.4% |
| Other Assets and Liabilities, Net | 0.6% |
| Total | 100.0% |
Additional Information
If you wish to view additional information about the Fund, including, but not limited to, financial statements, holdings, prospectus and proxy voting information, please visit www.wisdomtree.com/investments/regulatory.
WisdomTree Digital Fund shares are distributed by Foreside Fund Services, LLC.
Phone: 1-866-909-WISE (9473) Email: getinfo@wisdomtree.com
WMF-597684-2024-08-26
WisdomTree Siegel Moderate Digital Fund
Annual Shareholder Report - June 30, 2024
Ticker: MODRX
MODRX - 062024
WisdomTree Technology and Innovation 100 Digital Fund
Ticker: TECHX
Annual Shareholder Report - June 30, 2024
This annual shareholder report contains important information about the WisdomTree Technology and Innovation 100 Digital Fund (the "Fund") for the period of July 1, 2023 to June 30, 2024. You can find additional information about the Fund at www.wisdomtree.com/investments/regulatory. You can also request this information by contacting us at 1-866-909-WISE (9473) or getinfo@wisdomtree.com.
What were the Fund's costs for the last year?
(based on a hypothetical $10,000 investment)
| Fund Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
| WisdomTree Technology and Innovation 100 Digital Fund | $12 | 0.10% |
How did the Fund perform last year and what affected its performance?
The Fund returned 39.21% at net asset value ("NAV") for the fiscal year ended June 30, 2024 (for more complete performance information please see the table below). The Fund is primarily concentrated in U.S. technology companies (by over 50% weight), which delivered strong returns over the period as investor excitement about the growth of, and opportunities involving, artificial intelligence (AI) led markets higher. Among the most successful beneficiaries was the cohort known as the "Magnificent 7", which includes Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta, and Tesla. These companies, collectively, were extremely valuable to portfolio performance during the period and contributed significantly to the Fund's total return. Communication Services exposure was also additive, as it was the second-best performing U.S. equity sector during the period and amounts to about 20% weight in the Fund. At roughly 10% weight each, Health Care and Consumer Discretionary also delivered positive returns, but they were not as impactful as Communication Services and Information Technology during the period.
Fund Performance
The following line graph and average annual total return table reflects performance over the past 10 fiscal year periods or since inception if the Fund lacks 10 fiscal years of operating history. The graph and table show how the Fund's performance compares to the S&P 500® Index, a broad-based securities market index, and one or more additional indexes that more closely align with the Fund's investment strategy. Fund performance assume dividends and capital gain distributions, if any, are reinvested. Index returns do not include expenses, which are deducted from Fund returns. Past performance is not a good predictor of future results. The performance shown in the following graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. For the most recent month-end performance information visit www.wisdomtree.com/investments.
Growth of $10,000 Investment
Cumulative Performance from January 19, 2023 (inception) through June 30, 2024
| WisdomTree Technology and Innovation 100 Digital Fund $18,612 | S&P 500® Index $14,220 | WisdomTree Technology and Innovation 100 Index $18,616 | |
|---|---|---|---|
| 1/19/23 | $10,000 | $10,000 | $10,000 |
| 1/31/23 | $10,620 | $10,380 | $10,624 |
| 2/28/23 | $10,560 | $10,127 | $10,556 |
| 3/31/23 | $11,590 | $10,499 | $11,593 |
| 4/30/23 | $11,520 | $10,662 | $11,520 |
| 5/31/23 | $12,560 | $10,709 | $12,568 |
| 6/30/23 | $13,370 | $11,416 | $13,377 |
| 7/31/23 | $14,030 | $11,783 | $14,031 |
| 8/31/23 | $13,940 | $11,596 | $13,943 |
| 9/30/23 | $13,190 | $11,043 | $13,199 |
| 10/31/23 | $12,840 | $10,810 | $12,841 |
| 11/30/23 | $14,300 | $11,798 | $14,287 |
| 12/31/23 | $15,089 | $12,334 | $15,076 |
| 1/31/24 | $15,582 | $12,541 | $15,569 |
| 2/29/24 | $16,672 | $13,211 | $16,666 |
| 3/31/24 | $17,039 | $13,636 | $17,036 |
| 4/30/24 | $16,221 | $13,079 | $16,214 |
| 5/31/24 | $17,270 | $13,727 | $17,268 |
| 6/30/24 | $18,612 | $14,220 | $18,616 |
Average Annual Total Returns (%)
| 1 Year | Since Inception 1/19/23 | |
|---|---|---|
| Fund NAV Returns | 39.21% | 53.64% |
S&P 500® Index | 24.56% | 27.49% |
| WisdomTree Technology and Innovation 100 Index | 39.17% | 53.54% |
Key Fund Statistics
| Total Net Assets | $3,660,444 |
| # of Portfolio Holdings | 98 |
| Portfolio Turnover Rate | 17% |
| Total Advisory Fees Paid | $3,004 |
What did the Fund invest in?
The tables below show the investment makeup of the Fund on June 30, 2024, as a percentage of net assets.
Top 10 Holdings (% of Net Assets)
| NVIDIA Corp. | 11.4% |
| Alphabet, Inc., Class A | 8.2% |
| Microsoft Corp. | 7.4% |
| Meta Platforms, Inc., Class A | 7.4% |
| Amazon.com, Inc. | 7.2% |
| Apple, Inc. | 6.0% |
| Broadcom, Inc. | 4.4% |
| Tesla, Inc. | 2.4% |
| Oracle Corp. | 2.3% |
| AbbVie, Inc. | 1.8% |
Sector Breakdown (% of Net Assets)
| Information Technology | 57.3% |
| Communication Services | 20.7% |
| Consumer Discretionary | 10.1% |
| Health Care | 8.8% |
| Financials | 1.6% |
| Industrials | 1.2% |
| Real Estate | 0.2% |
| Other Assets and Liabilities, Net | 0.1% |
| Total | 100.0% |
Additional Information
If you wish to view additional information about the Fund, including, but not limited to, financial statements, holdings, prospectus and proxy voting information, please visit www.wisdomtree.com/investments/regulatory.
WisdomTree Digital Fund shares are distributed by Foreside Fund Services, LLC.
Phone: 1-866-909-WISE (9473) Email: getinfo@wisdomtree.com
WMF-597685-2024-08-26
WisdomTree Technology and Innovation 100 Digital Fund
Annual Shareholder Report - June 30, 2024
Ticker: TECHX
TECHX - 062024
WisdomTree TIPS Digital Fund
Ticker: TIPSX
Annual Shareholder Report - June 30, 2024
This annual shareholder report contains important information about the WisdomTree TIPS Digital Fund (the "Fund") for the period of July 1, 2023 to June 30, 2024. You can find additional information about the Fund at www.wisdomtree.com/investments/regulatory. You can also request this information by contacting us at 1-866-909-WISE (9473) or getinfo@wisdomtree.com.
What were the Fund's costs for the last year?
(based on a hypothetical $10,000 investment)
| Fund Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
| WisdomTree TIPS Digital Fund | $5 | 0.05% |
How did the Fund perform last year and what affected its performance?
The Fund returned 2.22% at net asset value ("NAV") for the fiscal year ended June 30, 2024 (for more complete performance information please see the table below). During the specified period, due to persistent inflation and a shift in market expectations regarding the Federal Reserve's first rate cut, interest rates in the medium to long maturity segment of the curve increased. During this period, short-term inflation expectation measured by Treasury break-evens remained anchored while longer-term break-evens rose. Also, as a high-grade Treasury fund, it lagged the riskier segments of the fixed income market during the period, where investors maintained a strong risk-on appetite for corporate issues and other securities with lower credit ratings.
Fund Performance
The following line graph and average annual total return table reflects performance over the past 10 fiscal year periods or since inception if the Fund lacks 10 fiscal years of operating history. The graph and table show how the Fund's performance compares to the Bloomberg U.S. Aggregate Bond Index, a broad-based securities market index, and one or more additional indexes that more closely align with the Fund's investment strategy. Fund performance assume dividends and capital gain distributions, if any, are reinvested. Index returns do not include expenses, which are deducted from Fund returns. Past performance is not a good predictor of future results. The performance shown in the following graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. For the most recent month-end performance information visit www.wisdomtree.com/investments.
Growth of $10,000 Investment
Cumulative Performance from January 19, 2023 (inception) through June 30, 2024
| WisdomTree TIPS Digital Fund $10,230 | Bloomberg U.S. Aggregate Bond Index $10,112 | Solactive US Treasury Inflation-Linked Bond Index $10,277 | |
|---|---|---|---|
| 1/19/23 | $10,000 | $10,000 | $10,000 |
| 1/31/23 | $9,990 | $9,948 | $9,978 |
| 2/28/23 | $9,880 | $9,691 | $9,853 |
| 3/31/23 | $10,134 | $9,937 | $10,142 |
| 4/30/23 | $10,134 | $9,997 | $10,144 |
| 5/31/23 | $10,023 | $9,888 | $10,029 |
| 6/30/23 | $10,008 | $9,853 | $9,989 |
| 7/31/23 | $10,018 | $9,846 | $9,991 |
| 8/31/23 | $9,915 | $9,783 | $9,920 |
| 9/30/23 | $9,729 | $9,534 | $9,741 |
| 10/31/23 | $9,646 | $9,384 | $9,692 |
| 11/30/23 | $9,916 | $9,809 | $9,932 |
| 12/31/23 | $10,154 | $10,184 | $10,175 |
| 1/31/24 | $10,186 | $10,156 | $10,215 |
| 2/29/24 | $10,081 | $10,013 | $10,109 |
| 3/31/24 | $10,154 | $10,105 | $10,181 |
| 4/30/24 | $9,985 | $9,850 | $10,026 |
| 5/31/24 | $10,154 | $10,017 | $10,165 |
| 6/30/24 | $10,230 | $10,112 | $10,277 |
Average Annual Total Returns (%)
| 1 Year | Since Inception 1/19/23 | |
|---|---|---|
| Fund NAV Returns | 2.22% | 1.59% |
| Bloomberg U.S. Aggregate Bond Index | 2.63% | 0.77% |
| Solactive US Treasury Inflation-Linked Bond Index | 2.89% | 1.90% |
Key Fund Statistics
| Total Net Assets | $948,793 |
| # of Portfolio Holdings | 10 |
| Portfolio Turnover Rate | 51% |
| Total Advisory Fees Paid | $479 |
What did the Fund invest in?
The tables below show the investment makeup of the Fund on June 30, 2024, as a percentage of net assets.
Top 10 Holdings (% of Net Assets)
| U.S. Treasury Inflation-Indexed Notes, 0.13%, due 1/15/30 | 28.7% |
| U.S. Treasury Inflation-Indexed Notes, 0.88%, due 1/15/29 | 14.5% |
| U.S. Treasury Inflation-Indexed Bonds, 2.13%, due 2/15/41 | 9.4% |
| U.S. Treasury Inflation-Indexed Bonds, 3.63%, due 4/15/28 | 8.6% |
| U.S. Treasury Inflation-Indexed Bonds, 2.00%, due 1/15/26 | 8.2% |
| U.S. Treasury Inflation-Indexed Notes, 1.13%, due 1/15/33 | 7.3% |
| U.S. Treasury Inflation-Indexed Bonds, 0.13%, due 2/15/52 | 6.7% |
| U.S. Treasury Inflation-Indexed Notes, 0.13%, due 10/15/26 | 5.6% |
| U.S. Treasury Inflation-Indexed Notes, 0.63%, due 7/15/32 | 4.1% |
| U.S. Treasury Inflation-Indexed Bonds, 1.38%, due 2/15/44 | 0.8% |
Investment Breakdown (% of Net Assets)
| U.S. Government Obligations | 93.9% |
| Other Assets and Liabilities, Net | 6.1% |
| Total | 100.0% |
Additional Information
If you wish to view additional information about the Fund, including, but not limited to, financial statements, holdings, prospectus and proxy voting information, please visit www.wisdomtree.com/investments/regulatory.
WisdomTree Digital Fund shares are distributed by Foreside Fund Services, LLC.
Phone: 1-866-909-WISE (9473) Email: getinfo@wisdomtree.com
WMF-597686-2024-08-26
WisdomTree TIPS Digital Fund
Annual Shareholder Report - June 30, 2024
Ticker: TIPSX
TIPSX - 062024
| (b) | Not applicable. |
| Item 2. | Code of Ethics. |
| (a) | The Registrant, as of the end of the period covered by the Shareholder Reports, has adopted a code of ethics (the “Code”) that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the Registrant or a third party. |
| (b) | There have been no amendments, during the period covered by the Shareholder Reports, to a provision of the Code, and that relates to any element of the Code description. |
| (c) | The Registrant has not granted any waivers, including any implicit waiver, from a provision of the Code that relates to one or more of the items set forth in paragraph (b) of this item’s instructions. |
| (d) | The Code is attached hereto as exhibit 18(a)(1). |
Item 3. Audit Committee Financial Expert.
The Registrant’s Board of Trustees (the “Board”) has determined that the Registrant has at least one audit committee financial expert, as that term is defined under Item 3(b) and 3(c), serving on its Audit Committee. The Board has designated Nicholas Fusco as the audit committee financial expert. Mr. Fusco is “independent” as that term is defined under Item 3(a)(2).
Item 4. Principal Accountant Fees and Services.
Audit Fees
| (a) | The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the Registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were $314,568 for the fiscal year ended June 30, 2024 and $184,000 for the fiscal year ended June 30, 2023. |
Audit-Related Fees
| (b) | The aggregate fees billed for each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the Registrant’s financial statements and are not reported under paragraph (a) of this Item were $0 for the fiscal year ended June 30, 2024 and $0 for the fiscal year ended June 30, 2023. |
Tax Fees
| (c) | The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for Passive Foreign Investment Companies, tax compliance, tax advice, and tax planning service fees for analysis of potential Passive Foreign Investment Companies, tax compliance, tax advice, and tax planning were $120,567 for the fiscal year ended June 30, 2024 and $77,760 for the fiscal year ended June 30, 2023. |
All Other Fees
| (d) | The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item were $0 for the fiscal year ended June 30, 2024 and $0 for the fiscal year ended June 30, 2023. |
| (e)(1) | Disclose the Audit Committee’s pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. |
Per Rule-01(c) (7) (A), the registrant’s audit committee charter provides that the audit committee shall select and approve in advance the retention of independent accountants to annually audit and provide their opinion on the registrant’s financial statements. The audit committee also must approve, prior to appointment, the engagement of the principal accountant to provide other audit services to the registrant or to provide non-audit services to the registrant, its investment adviser, or any entity controlling, controlled by, or under common control with its investment adviser (“adviser/affiliate”) that provides ongoing services to the registrant, if the engagement by the investment adviser or adviser affiliate relates directly to the operations and financial reporting of the registrant. The audit committee also must, prior to appointment of the engagement of the principal accountant, review and approve the fees proposed to be charged to the registrant by the auditors for each audit and non-audit service. The audit committee also must consider whether non-audit services provided by the registrant’s principal accountant to the registrant’s investment adviser, or adviser/affiliate that provides ongoing services to the registrant, are compatible with maintaining the auditor’s independence.
The audit committee has authorized the Chair of the audit committee of the Trust to pre-approve on behalf of the audit committee certain audit and non-audit services and fees, pursuant to the delegation provision of the audit committee’s
pre-approval Policy, subject to the audit committee receiving a report of such pre-approvals at its next regular meeting.
| (e)(2) | There were no services described in each of paragraphs (b) through (d) of this Item 4 that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. |
| (f) | The percentage of hours expended on the principal accountant’s engagement to audit the Registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was less than 50%. |
| (g) | The aggregate non-audit fees billed by the Registrant’s principal accountant for services rendered to the Registrant, and rendered to the Registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the Registrant for each of the last two fiscal years of the Registrant was $120,567 for the fiscal year ended June 30, 2024 and $77,760 for the fiscal year ended June 30, 2023. |
| (h) | Not applicable. |
| (i) | Not applicable. |
| (j) | Not applicable. |
| Item 5. | Audit Committee of Listed Registrants. |
| (a) | Not applicable. |
| (b) | Not applicable. |
| Item 6. | Investments. |
| (a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period (i.e., June 30, 2024) is included under Item 7 of this form. |
| (b) | Not applicable. |
| Item 7. | Financial Statements and Financial Highlights for Open-End Management Investment Companies. |
The financial statements, including the financial highlights, are attached herewith.
WisdomTree Digital Trust
Annual Financial Statements and Other Information
June 30, 2024
Asset Allocation Digital Funds: WisdomTree Short-Duration Income Digital Fund (WTSIX) WisdomTree Siegel Global Equity Digital Fund (EQTYX) WisdomTree Siegel Longevity Digital Fund (LNGVX) WisdomTree Siegel Moderate Digital Fund (MODRX) Equity Digital Funds: WisdomTree 500 Digital Fund (SPXUX) WisdomTree Technology and Innovation 100 Digital Fund (TECHX) Fixed Income Digital Funds: WisdomTree 3-7 Year Treasury Digital Fund (WTTSX) WisdomTree 7-10 Year Treasury Digital Fund (WTSTX) WisdomTree Floating Rate Treasury Digital Fund (FLTTX) WisdomTree Long-Term Treasury Digital Fund (WTLGX) WisdomTree Short-Term Treasury Digital Fund (WTSYX) WisdomTree TIPS Digital Fund (TIPSX) Money Market Digital Fund: WisdomTree Government Money Market Digital Fund (WTGXX)
|
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“WisdomTree” is a registered mark of WisdomTree, Inc. and is licensed for use by the WisdomTree Digital Trust.
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Schedule of Investments WisdomTree Short-Duration Income Digital Fund (WTSIX) June 30, 2024
|
Investments | Shares | Value | |||
EXCHANGE-TRADED FUNDS – 100.0% |
| ||||
United States – 100.0% |
| ||||
WisdomTree Floating Rate Treasury Fund(a) | 3,028 | $ | 152,339 | ||
WisdomTree Interest Rate Hedged High Yield Bond Fund(a) | 7,042 |
| 153,938 | ||
WisdomTree Mortgage Plus Bond Fund(a) | 4,635 |
| 199,906 | ||
WisdomTree U.S. Short Term Corporate Bond Fund(a) | 4,241 |
| 201,909 | ||
WisdomTree Yield Enhanced U.S. Short-Term Aggregate Bond Fund(a) | 6,441 |
| 302,346 | ||
TOTAL INVESTMENTS IN SECURITIES – 100.0% (Cost: $1,010,016) |
| 1,010,438 | |||
Other Assets less Liabilities – 0.0% |
| 471 | |||
NET ASSETS – 100.0% | $ | 1,010,909 | |||
(a) Affiliated holding. See “Investment in Affiliates” supplementary table included in this Schedule of Investments for additional information.
INVESTMENT IN AFFILIATES
Affiliated holdings are investments in entities which are under common ownership or control or have an affiliated adviser. Investments in affiliates during the fiscal year ended June 30, 2024 were as follows:
Affiliate | Value at | Purchases/ | Sales/ | Realized | Change in | Value at | Dividend | |||||||||
WisdomTree Floating Rate Treasury Fund | $ 98,678 | $ 58,970 | $ 5,278 | $ (12 | ) | $ (19 | ) | $ 152,339 | $ 7,430 | |||||||
WisdomTree Interest Rate Hedged High Yield Bond Fund | 249,066 | 6,568 | 108,161 | 442 |
| 6,023 |
| 153,938 | 10,837 | |||||||
WisdomTree Mortgage Plus Bond Fund | 148,437 | 62,492 | 12,299 | (293 | ) | 1,569 |
| 199,906 | 6,519 | |||||||
WisdomTree U.S. Short-Term Corporate Bond Fund | 197,330 | 7,833 | 6,476 | (48 | ) | 3,270 |
| 201,909 | 7,762 | |||||||
WisdomTree Yield Enhanced U.S. Short-Term Aggregate Bond Fund | 296,240 | 14,787 | 10,660 | (157 | ) | 2,136 |
| 302,346 | 11,487 | |||||||
Total | $989,751 | $150,650 | $142,874 | $ (68) |
| $12,979 |
| $1,010,438 | $44,035 | |||||||
FAIR VALUATION SUMMARY
The following is a summary of the fair valuations according to the inputs used in valuing the Fund’s investments (See Note 2 — Fair Value Measurement):
Quoted | Other | Significant | Total | |||||
Assets: | ||||||||
Investments in Securities | ||||||||
Exchange-Traded Funds | $1,010,438 | $— | $— | $1,010,438 | ||||
Total Investments in Securities | $1,010,438 | $— | $— | $1,010,438 |
See Notes to Financial Statements.
WisdomTree Digital Trust 1
Schedule of Investments WisdomTree Siegel Global Equity Digital Fund (EQTYX) June 30, 2024
|
Investments | Shares | Value | ||
EXCHANGE-TRADED FUNDS – 99.8% | ||||
United States – 99.8% | ||||
iShares Core S&P 500 ETF | 96 | $ 52,534 | ||
SPDR Portfolio S&P 400 Mid Cap ETF | 380 | 19,494 | ||
Vanguard High Dividend Yield ETF | 263 | 31,192 | ||
Vanguard International High Dividend Yield ETF | 627 | 42,968 | ||
WisdomTree Emerging Markets High Dividend Fund(a) | 362 | 15,678 | ||
WisdomTree Emerging Markets SmallCap Dividend Fund(a) | 304 | 15,638 | ||
WisdomTree International Quality Dividend Growth Fund(a) | 1,046 | 38,796 | ||
WisdomTree Japan Hedged Equity Fund(a) | 139 | 15,682 | ||
WisdomTree U.S. Quality Dividend Growth Fund(a) | 1,120 | 87,416 | ||
WisdomTree U.S. SmallCap Quality Dividend Growth Fund(a) | 250 | 11,778 | ||
WisdomTree U.S. Total Dividend Fund(a) | 827 | 58,577 | ||
TOTAL INVESTMENTS IN SECURITIES – 99.8% (Cost: $366,102) | 389,753 | |||
Other Assets less Liabilities – 0.2% | 598 | |||
NET ASSETS – 100.0% | $390,351 |
(a) Affiliated holding. See “Investment in Affiliates” supplementary table included in this Schedule of Investments for additional information.
INVESTMENT IN AFFILIATES
Affiliated holdings are investments in entities which are under common ownership or control or have an affiliated adviser. Investments in affiliates during the period ended June 30, 2024 were as follows:
Affiliate | Value at | Purchases/ | Sales/ | Realized | Change in | Value at | Dividend | |||||||
WisdomTree Emerging Markets High Dividend Fund | $— | $ 14,623 | $ 130 | $ (1) | $ 1,186 | $ 15,678 | $ 357 | |||||||
WisdomTree Emerging Markets SmallCap Dividend Fund | — | 14,948 | 51 | (1) | 742 | 15,638 | 274 | |||||||
WisdomTree International Quality Dividend Growth Fund | — | 43,883 | 6,615 | (3) | 1,531 | 38,796 | 599 | |||||||
WisdomTree International SmallCap Dividend Fund^ | — | 25,447 | 25,820 | 373 | — | — | 681 | |||||||
WisdomTree Japan Hedged Equity Fund | — | 15,682 | — | — | — | 15,682 | — | |||||||
WisdomTree U.S. MidCap Dividend Fund^ | — | 21,848 | 22,679 | 831 | — | — | 280 | |||||||
WisdomTree U.S. Quality Dividend Growth Fund | — | 82,287 | 78 | — | 5,207 | 87,416 | 440 | |||||||
WisdomTree U.S. SmallCap Quality Dividend Growth Fund | — | 28,756 | 17,384 | (94) | 500 | 11,778 | 307 | |||||||
WisdomTree U.S. Total Dividend Fund | — | 54,927 | 850 | 2 | 4,498 | 58,577 | 660 | |||||||
Total | $— | $302,401 | $73,607 | $1,107 | $13,664 | $243,565 | $3,598 |
* Commencement of operations.
^ As of June 30, 2024, the Fund did not hold a position in this affiliate.
FAIR VALUATION SUMMARY
The following is a summary of the fair valuations according to the inputs used in valuing the Fund’s investments (See Note 2 — Fair Value Measurement):
Quoted | Other | Significant | Total | |||||
Assets: | ||||||||
Investments in Securities | ||||||||
Exchange-Traded Funds | $389,753 | $— | $— | $389,753 | ||||
Total Investments in Securities | $389,753 | $— | $— | $389,753 |
See Notes to Financial Statements.
2 WisdomTree Digital Trust
Schedule of Investments WisdomTree Siegel Longevity Digital Fund (LNGVX) June 30, 2024
|
Investments | Shares | Value | |||
EXCHANGE-TRADED FUNDS – 99.2% |
| ||||
United States – 99.2% |
| ||||
Global X U.S. Preferred ETF | 345 | $ | 6,790 | ||
iShares Core S&P 500 ETF | 25 |
| 13,681 | ||
SPDR Portfolio S&P 400 Mid Cap ETF | 150 |
| 7,695 | ||
Vanguard High Dividend Yield ETF | 87 |
| 10,318 | ||
Vanguard International High Dividend Yield ETF | 198 |
| 13,569 | ||
WisdomTree Emerging Markets High Dividend Fund(a) | 159 |
| 6,886 | ||
WisdomTree Emerging Markets SmallCap Dividend Fund(a) | 100 |
| 5,144 | ||
WisdomTree International Quality Dividend Growth Fund(a) | 365 |
| 13,538 | ||
WisdomTree Japan Hedged Equity Fund(a) | 46 |
| 5,190 | ||
WisdomTree Managed Futures Strategy Fund(a) | 233 |
| 8,451 | ||
Investments | Shares | Value | |||
WisdomTree U.S. High Yield Corporate Bond Fund(a) | 152 | $ | 6,779 | ||
WisdomTree U.S. Quality Dividend Growth Fund(a) | 240 |
| 18,732 | ||
WisdomTree U.S. SmallCap Quality Dividend Growth Fund(a) | 109 |
| 5,135 | ||
WisdomTree U.S. Total Dividend Fund(a) | 326 |
| 23,091 | ||
WisdomTree Yield Enhanced U.S. Aggregate Bond Fund(a) | 592 |
| 25,432 | ||
TOTAL INVESTMENTS IN SECURITIES – 99.2% (Cost: $162,156) |
| 170,431 | |||
Other Assets less Liabilities – 0.8% |
| 1,308 | |||
NET ASSETS – 100.0% | $ | 171,739 | |||
(a) Affiliated holding. See “Investment in Affiliates” supplementary table included in this Schedule of Investments for additional information.
INVESTMENT IN AFFILIATES
Affiliated holdings are investments in entities which are under common ownership or control or have an affiliated adviser. Investments in affiliates during the period ended June 30, 2024 were as follows:
Affiliate | Value at | Purchases/ | Sales/ | Realized | Change in | Value at | Dividend | |||||||
WisdomTree Emerging Markets ex-State-Owned Enterprises Fund^ | $— | $ 2,724 | $ 2,817 | $ 93 | $ — | $ — | $ 17 | |||||||
WisdomTree Emerging Markets High Dividend Fund | — | 6,656 | 260 | (0)1 | 490 | 6,886 | 160 | |||||||
WisdomTree Emerging Markets SmallCap Dividend Fund | — | 5,043 | 153 | 2 | 252 | 5,144 | 101 | |||||||
WisdomTree International Quality Dividend Growth Fund | — | 15,835 | 3,050 | 120 | 633 | 13,538 | 220 | |||||||
WisdomTree International SmallCap Dividend Fund^ | — | 5,026 | 5,012 | (14) | — | — | 118 | |||||||
WisdomTree Japan Hedged Equity Fund | — | 5,190 | — | — | — | 5,190 | — | |||||||
WisdomTree Managed Futures Strategy Fund | — | 8,473 | 216 | (6) | 200 | 8,451 | 49 | |||||||
WisdomTree U.S. High Yield Corporate Bond Fund | — | 6,925 | 135 | (1) | (10) | 6,779 | 196 | |||||||
WisdomTree U.S. MidCap Dividend Fund^ | — | 7,536 | 7,901 | 365 | — | — | 97 | |||||||
WisdomTree U.S. Quality Dividend Growth Fund | — | 17,704 | 458 | 14 | 1,472 | 18,732 | 121 | |||||||
WisdomTree U.S. SmallCap Quality Dividend Growth Fund | — | 9,779 | 4,803 | (73) | 232 | 5,135 | 104 | |||||||
WisdomTree U.S. Total Dividend Fund | — | 22,438 | 1,333 | 24 | 1,962 | 23,091 | 273 | |||||||
WisdomTree Yield Enhanced U.S. Aggregate Bond Fund | — | 25,979 | 476 | (4) | (67) | 25,432 | 495 | |||||||
Total | $— | $ 139,308 | $26,614 | $520 | $ 5,164 | $ 118,378 | $ 1,951 |
* Commencement of operations.
^ As of June 30, 2024, the Fund did not hold a position in this affiliate.
1Amount represents less than $1.
FAIR VALUATION SUMMARY
The following is a summary of the fair valuations according to the inputs used in valuing the Fund’s investments (See Note 2 — Fair Value Measurement):
Quoted | Other | Significant | Total | |||||
Assets: | ||||||||
Investments in Securities | ||||||||
Exchange-Traded Funds | $170,431 | $— | $— | $170,431 | ||||
Total Investments in Securities | $170,431 | $— | $— | $170,431 |
See Notes to Financial Statements.
WisdomTree Digital Trust 3
Schedule of Investments WisdomTree Siegel Moderate Digital Fund (MODRX) June 30, 2024
|
Investments | Shares | Value | |||
EXCHANGE-TRADED FUNDS – 99.4% |
| ||||
United States – 99.4% |
| ||||
iShares 10-20 Year Treasury Bond ETF | 78 | $ | 8,011 | ||
iShares Core S&P 500 ETF | 21 |
| 11,492 | ||
SPDR Portfolio S&P 400 Mid Cap ETF | 85 |
| 4,361 | ||
Vanguard High Dividend Yield ETF | 59 |
| 6,997 | ||
Vanguard International High Dividend Yield ETF | 140 |
| 9,594 | ||
WisdomTree Emerging Markets High Dividend Fund(a) | 82 |
| 3,551 | ||
WisdomTree Emerging Markets Local Debt Fund(a) | 110 |
| 2,900 | ||
WisdomTree Emerging Markets SmallCap Dividend Fund(a) | 68 |
| 3,498 | ||
WisdomTree Floating Rate Treasury Fund(a) | 126 |
| 6,339 | ||
WisdomTree International Quality Dividend Growth Fund(a) | 233 |
| 8,642 | ||
WisdomTree Japan Hedged Equity Fund(a) | 31 |
| 3,497 | ||
Investments | Shares | Value | |||
WisdomTree Mortgage Plus Bond Fund(a) | 307 | $ | 13,241 | ||
WisdomTree U.S. High Yield Corporate Bond Fund(a) | 81 |
| 3,612 | ||
WisdomTree U.S. Quality Dividend Growth Fund(a) | 250 |
| 19,513 | ||
WisdomTree U.S. SmallCap Quality Dividend Growth Fund(a) | 56 |
| 2,638 | ||
WisdomTree U.S. Total Dividend Fund(a) | 184 |
| 13,033 | ||
WisdomTree Yield Enhanced U.S. Aggregate Bond Fund(a) | 546 |
| 23,456 | ||
TOTAL INVESTMENTS IN SECURITIES – 99.4% (Cost: $138,410) |
| 144,375 | |||
Other Assets less Liabilities – 0.6% |
| 933 | |||
NET ASSETS – 100.0% | $ | 145,308 | |||
(a) Affiliated holding. See “Investment in Affiliates” supplementary table included in this Schedule of Investments for additional information.
INVESTMENT IN AFFILIATES
Affiliated holdings are investments in entities which are under common ownership or control or have an affiliated adviser. Investments in affiliates during the period ended June 30, 2024 were as follows:
Affiliate | Value at | Purchases/ | Sales/ | Realized | Change in | Value at | Dividend | |||||||||
WisdomTree Emerging Markets High Dividend Fund | $— | $ 4,622 | $ 1,360 | $ (9 | ) | $ 298 |
| $ 3,551 | $ 89 | |||||||
WisdomTree Emerging Markets Local Debt Fund | — | 4,065 | 1,078 | (3 | ) | (84 | ) | 2,900 | 70 | |||||||
WisdomTree Emerging Markets SmallCap Dividend Fund | — | 4,627 | 1,321 | (4 | ) | 196 |
| 3,498 | 72 | |||||||
WisdomTree Floating Rate Treasury Fund | — | 8,510 | 2,168 | (0 | )1 | (3 | ) | 6,339 | 160 | |||||||
WisdomTree International Quality Dividend Growth Fund | — | 15,108 | 7,042 | 111 |
| 465 |
| 8,642 | 146 | |||||||
WisdomTree International SmallCap Dividend Fund^ | — | 7,252 | 7,408 | 156 |
| — |
| — | 162 | |||||||
WisdomTree Japan Hedged Equity Fund | — | 3,497 | — | — |
| — |
| 3,497 | — | |||||||
WisdomTree Mortgage Plus Bond Fund | — | 16,738 | 3,513 | 15 |
| 1 |
| 13,241 | 211 | |||||||
WisdomTree U.S. High Yield Corporate Bond Fund | — | 6,632 | 3,046 | 24 |
| 2 |
| 3,612 | 114 | |||||||
WisdomTree U.S. MidCap Dividend Fund^ | — | 6,899 | 7,198 | 299 |
| — |
| — | 68 | |||||||
WisdomTree U.S. Quality Dividend Growth Fund | — | 22,293 | 4,121 | (21 | ) | 1,362 |
| 19,513 | 107 | |||||||
WisdomTree U.S. SmallCap Quality Dividend Growth Fund | — | 7,945 | 5,474 | (21 | ) | 188 |
| 2,638 | 71 | |||||||
WisdomTree U.S. Total Dividend Fund | — | 17,207 | 5,386 | (3 | ) | 1,215 |
| 13,033 | 159 | |||||||
WisdomTree Yield Enhanced U.S. Aggregate Bond Fund | — | 31,772 | 8,270 | 18 |
| (64 | ) | 23,456 | 469 | |||||||
Total | $— | $ 157,167 | $ 57,385 | $ 562 |
| $ 3,576 |
| $ 103,920 | $ 1,898 | |||||||
* Commencement of operations.
1 Amount represents less than $1.
^ As of June 30, 2024, the Fund did not hold a position in this affiliate.
FAIR VALUATION SUMMARY
The following is a summary of the fair valuations according to the inputs used in valuing the Fund’s investments (See Note 2 — Fair Value Measurement):
Quoted | Other | Significant | Total | |||||
Assets: | ||||||||
Investments in Securities | ||||||||
Exchange-Traded Funds | $144,375 | $— | $— | $144,375 | ||||
Total Investments in Securities | $144,375 | $— | $— | $144,375 |
See Notes to Financial Statements.
4 WisdomTree Digital Trust
Schedule of Investments WisdomTree 500 Digital Fund (SPXUX) June 30, 2024
|
Investments | Shares | Value |
COMMON STOCKS – 99.8% | ||
South Korea – 0.1% | ||
Broadline Retail – 0.1% | ||
Coupang, Inc.* | 128 | $ 2,682 |
United States – 99.7% | ||
Aerospace & Defense – 1.5% | ||
Axon Enterprise, Inc.* | 5 | 1,471 |
Boeing Co.* | 43 | 7,826 |
General Dynamics Corp. | 19 | 5,513 |
HEICO Corp. | 10 | 2,236 |
Howmet Aerospace, Inc. | 29 | 2,251 |
L3Harris Technologies, Inc. | 13 | 2,920 |
Lockheed Martin Corp. | 18 | 8,408 |
Northrop Grumman Corp. | 11 | 4,796 |
RTX Corp. | 102 | 10,240 |
Textron, Inc. | 14 | 1,202 |
TransDigm Group, Inc. | 4 | 5,110 |
Total Aerospace & Defense | 51,973 | |
Air Freight & Logistics – 0.4% | ||
Expeditors International of Washington, Inc. | 10 | 1,248 |
FedEx Corp. | 18 | 5,397 |
United Parcel Service, Inc., Class B | 60 | 8,211 |
Total Air Freight & Logistics | 14,856 | |
Automobiles – 1.6% | ||
Ford Motor Co. | 277 | 3,474 |
General Motors Co. | 94 | 4,367 |
Rivian Automotive, Inc., Class A* | 64 | 859 |
Tesla, Inc.* | 234 | 46,304 |
Total Automobiles | 55,004 | |
Banks – 3.1% | ||
Bank of America Corp. | 564 | 22,430 |
Citigroup, Inc. | 134 | 8,504 |
Citizens Financial Group, Inc. | 32 | 1,153 |
Fifth Third Bancorp | 46 | 1,678 |
First Citizens BancShares, Inc., Class A | 1 | 1,684 |
Huntington Bancshares, Inc. | 101 | 1,331 |
JPMorgan Chase & Co. | 206 | 41,665 |
KeyCorp | 62 | 881 |
M&T Bank Corp. | 11 | 1,665 |
PNC Financial Services Group, Inc. | 27 | 4,198 |
Regions Financial Corp. | 66 | 1,323 |
Truist Financial Corp. | 93 | 3,613 |
U.S. Bancorp | 106 | 4,208 |
Wells Fargo & Co. | 261 | 15,501 |
Total Banks | 109,834 | |
Beverages – 1.4% | ||
Brown-Forman Corp., Class B | 34 | 1,468 |
Coca-Cola Co. | 311 | 19,795 |
Constellation Brands, Inc., Class A | 13 | 3,345 |
Investments | Shares | Value |
Keurig Dr. Pepper, Inc. | 99 | $ 3,307 |
Molson Coors Beverage Co., Class B | 17 | 864 |
Monster Beverage Corp.* | 74 | 3,696 |
PepsiCo, Inc. | 99 | 16,328 |
Total Beverages | 48,803 | |
Biotechnology – 1.9% | ||
AbbVie, Inc. | 126 | 21,611 |
Alnylam Pharmaceuticals, Inc.* | 9 | 2,187 |
Amgen, Inc. | 38 | 11,873 |
Biogen, Inc.* | 11 | 2,550 |
BioMarin Pharmaceutical, Inc.* | 13 | 1,070 |
Gilead Sciences, Inc. | 88 | 6,038 |
GRAIL, Inc.* | 2 | 26 |
Incyte Corp.* | 16 | 970 |
Moderna, Inc.* | 27 | 3,206 |
Regeneron Pharmaceuticals, Inc.* | 8 | 8,408 |
Vertex Pharmaceuticals, Inc.* | 19 | 8,906 |
Total Biotechnology | 66,845 | |
Broadline Retail – 4.1% | ||
Amazon.com, Inc.* | 753 | 145,517 |
eBay, Inc. | 37 | 1,988 |
Total Broadline Retail | 147,505 | |
Building Products – 0.3% | ||
Builders FirstSource, Inc.* | 9 | 1,246 |
Carlisle Cos., Inc. | 3 | 1,215 |
Carrier Global Corp. | 59 | 3,722 |
Lennox International, Inc. | 2 | 1,070 |
Masco Corp. | 15 | 1,000 |
Owens Corning | 6 | 1,042 |
Total Building Products | 9,295 | |
Capital Markets – 3.2% | ||
Ameriprise Financial, Inc. | 7 | 2,990 |
Ares Management Corp., Class A | 14 | 1,866 |
Bank of New York Mellon Corp. | 56 | 3,354 |
BlackRock, Inc. | 11 | 8,661 |
Blackstone, Inc. | 85 | 10,523 |
Carlyle Group, Inc. | 24 | 964 |
Charles Schwab Corp. | 125 | 9,211 |
CME Group, Inc. | 26 | 5,112 |
Coinbase Global, Inc., Class A* | 15 | 3,333 |
FactSet Research Systems, Inc. | 3 | 1,225 |
Franklin Resources, Inc. | 35 | 782 |
Goldman Sachs Group, Inc. | 23 | 10,403 |
Intercontinental Exchange, Inc. | 41 | 5,612 |
KKR & Co., Inc. | 64 | 6,735 |
LPL Financial Holdings, Inc. | 5 | 1,397 |
Moody’s Corp. | 13 | 5,472 |
Morgan Stanley | 116 | 11,274 |
Morningstar, Inc. | 3 | 888 |
MSCI, Inc. | 6 | 2,890 |
See Notes to Financial Statements.
WisdomTree Digital Trust 5
Schedule of Investments (continued) WisdomTree 500 Digital Fund (SPXUX) June 30, 2024
|
Investments | Shares | Value |
Nasdaq, Inc. | 41 | $ 2,471 |
Northern Trust Corp. | 15 | 1,260 |
Raymond James Financial, Inc. | 15 | 1,854 |
S&P Global, Inc. | 22 | 9,812 |
State Street Corp. | 22 | 1,628 |
T Rowe Price Group, Inc. | 16 | 1,845 |
Tradeweb Markets, Inc., Class A | 15 | 1,590 |
Total Capital Markets | 113,152 | |
Chemicals – 0.9% | ||
Air Products & Chemicals, Inc. | 16 | 4,129 |
Albemarle Corp. | 9 | 860 |
Celanese Corp. | 8 | 1,079 |
CF Industries Holdings, Inc. | 14 | 1,038 |
Corteva, Inc. | 51 | 2,751 |
Dow, Inc. | 50 | 2,652 |
DuPont de Nemours, Inc. | 31 | 2,495 |
Ecolab, Inc. | 21 | 4,998 |
International Flavors & Fragrances, Inc. | 18 | 1,714 |
Mosaic Co. | 23 | 665 |
PPG Industries, Inc. | 17 | 2,140 |
RPM International, Inc. | 9 | 969 |
Sherwin-Williams Co. | 18 | 5,372 |
Westlake Corp. | 9 | 1,303 |
Total Chemicals | 32,165 | |
Commercial Services & Supplies – 0.6% | ||
Cintas Corp. | 7 | 4,902 |
Copart, Inc.* | 70 | 3,791 |
Republic Services, Inc. | 23 | 4,470 |
Rollins, Inc. | 35 | 1,708 |
Veralto Corp. | 18 | 1,718 |
Waste Management, Inc. | 29 | 6,187 |
Total Commercial Services & Supplies | 22,776 | |
Communications Equipment – 0.8% | ||
Arista Networks, Inc.* | 23 | 8,061 |
Cisco Systems, Inc. | 298 | 14,158 |
Motorola Solutions, Inc. | 12 | 4,633 |
Total Communications Equipment | 26,852 | |
Construction & Engineering – 0.1% | ||
AECOM | 11 | 969 |
Quanta Services, Inc. | 10 | 2,541 |
Total Construction & Engineering | 3,510 | |
Construction Materials – 0.1% | ||
Martin Marietta Materials, Inc. | 4 | 2,167 |
Vulcan Materials Co. | 10 | 2,487 |
Total Construction Materials | 4,654 | |
Consumer Finance – 0.6% | ||
American Express Co. | 52 | 12,041 |
Capital One Financial Corp. | 27 | 3,738 |
Discover Financial Services | 18 | 2,355 |
Synchrony Financial | 28 | 1,321 |
Total Consumer Finance | 19,455 |
Investments | Shares | Value |
Consumer Staples Distribution & Retail – 2.3% | ||
Albertsons Cos., Inc., Class A | 39 | $ 770 |
Costco Wholesale Corp. | 32 | 27,200 |
Dollar General Corp. | 15 | 1,983 |
Dollar Tree, Inc.* | 15 | 1,602 |
Kroger Co. | 51 | 2,546 |
Sysco Corp. | 36 | 2,570 |
Target Corp. | 33 | 4,885 |
Walgreens Boots Alliance, Inc. | 59 | 714 |
Walmart, Inc. | 587 | 39,746 |
Total Consumer Staples Distribution & Retail | 82,016 | |
Containers & Packaging – 0.1% | ||
Avery Dennison Corp. | 6 | 1,312 |
Ball Corp. | 22 | 1,320 |
International Paper Co. | 26 | 1,122 |
Packaging Corp. of America | 7 | 1,278 |
Total Containers & Packaging | 5,032 | |
Distributors – 0.1% | ||
Genuine Parts Co. | 10 | 1,383 |
LKQ Corp. | 19 | 790 |
Pool Corp. | 3 | 922 |
Total Distributors | 3,095 | |
Diversified REITs – 0.0% | ||
WP Carey, Inc. | 15 | 826 |
Diversified Telecommunication Services – 0.6% | ||
AT&T, Inc. | 512 | 9,784 |
Verizon Communications, Inc. | 305 | 12,578 |
Total Diversified Telecommunication Services | 22,362 | |
Electric Utilities – 1.4% | ||
Alliant Energy Corp. | 18 | 916 |
American Electric Power Co., Inc. | 37 | 3,246 |
Avangrid, Inc. | 29 | 1,030 |
Constellation Energy Corp. | 23 | 4,606 |
Duke Energy Corp. | 55 | 5,513 |
Edison International | 27 | 1,939 |
Entergy Corp. | 16 | 1,712 |
Evergy, Inc. | 16 | 848 |
Eversource Energy | 25 | 1,418 |
Exelon Corp. | 73 | 2,527 |
FirstEnergy Corp. | 41 | 1,569 |
NextEra Energy, Inc. | 147 | 10,409 |
PG&E Corp. | 152 | 2,654 |
PPL Corp. | 53 | 1,465 |
Southern Co. | 78 | 6,050 |
Xcel Energy, Inc. | 39 | 2,083 |
Total Electric Utilities | 47,985 | |
Electrical Equipment – 0.5% | ||
AMETEK, Inc. | 16 | 2,667 |
Emerson Electric Co. | 42 | 4,627 |
GE Vernova, Inc.* | 19 | 3,259 |
See Notes to Financial Statements.
6 WisdomTree Digital Trust
Schedule of Investments (continued) WisdomTree 500 Digital Fund (SPXUX) June 30, 2024
|
Investments | Shares | Value |
Hubbell, Inc. | 4 | $ 1,462 |
Rockwell Automation, Inc. | 8 | 2,202 |
Vertiv Holdings Co. | 26 | 2,251 |
Total Electrical Equipment | 16,468 | |
Electronic Equipment, Instruments & Components – 0.4% | ||
Amphenol Corp., Class A | 84 | 5,659 |
CDW Corp. | 10 | 2,238 |
Corning, Inc. | 61 | 2,370 |
Jabil, Inc. | 9 | 979 |
Keysight Technologies, Inc.* | 13 | 1,778 |
Teledyne Technologies, Inc.* | 3 | 1,164 |
Zebra Technologies Corp., Class A* | 4 | 1,236 |
Total Electronic Equipment, Instruments & Components | 15,424 | |
Energy Equipment & Services – 0.1% | ||
Baker Hughes Co. | 69 | 2,427 |
Halliburton Co. | 64 | 2,162 |
Total Energy Equipment & Services | 4,589 | |
Entertainment – 1.3% | ||
Electronic Arts, Inc. | 20 | 2,787 |
Liberty Media Corp. – Liberty Formula One, Class C* | 18 | 1,293 |
Live Nation Entertainment, Inc.* | 16 | 1,500 |
Netflix, Inc.* | 33 | 22,271 |
ROBLOX Corp., Class A* | 43 | 1,600 |
Roku, Inc.* | 10 | 599 |
Take-Two Interactive Software, Inc.* | 12 | 1,866 |
Walt Disney Co. | 133 | 13,206 |
Warner Bros Discovery, Inc.* | 162 | 1,205 |
Warner Music Group Corp., Class A | 36 | 1,103 |
Total Entertainment | 47,430 | |
Financial Services – 4.5% | ||
Apollo Global Management, Inc. | 58 | 6,848 |
Berkshire Hathaway, Inc., Class B* | 158 | 64,274 |
Block, Inc.* | 44 | 2,838 |
Corebridge Financial, Inc. | 47 | 1,369 |
Corpay, Inc.* | 5 | 1,332 |
Fidelity National Information Services, Inc. | 42 | 3,165 |
Fiserv, Inc.* | 43 | 6,409 |
Global Payments, Inc. | 19 | 1,837 |
Mastercard, Inc., Class A | 69 | 30,440 |
PayPal Holdings, Inc.* | 75 | 4,352 |
Visa, Inc., Class A | 148 | 38,846 |
Total Financial Services | 161,710 | |
Food Products – 0.7% | ||
Archer-Daniels-Midland Co. | 38 | 2,297 |
Campbell Soup Co. | 21 | 949 |
Conagra Brands, Inc. | 34 | 966 |
General Mills, Inc. | 42 | 2,657 |
Hershey Co. | 15 | 2,757 |
Hormel Foods Corp. | 38 | 1,159 |
JM Smucker Co. | 8 | 872 |
Investments | Shares | Value |
Kellanova | 24 | $ 1,384 |
Kraft Heinz Co. | 89 | 2,868 |
Lamb Weston Holdings, Inc. | 11 | 925 |
McCormick & Co., Inc., Non-Voting Shares | 19 | 1,348 |
Mondelez International, Inc., Class A | 97 | 6,348 |
Tyson Foods, Inc., Class A | 24 | 1,371 |
Total Food Products | 25,901 | |
Gas Utilities – 0.0% | ||
Atmos Energy Corp. | 10 | 1,166 |
Ground Transportation – 0.9% | ||
CSX Corp. | 137 | 4,583 |
JB Hunt Transport Services, Inc. | 7 | 1,120 |
Norfolk Southern Corp. | 16 | 3,435 |
Old Dominion Freight Line, Inc. | 16 | 2,826 |
Uber Technologies, Inc.* | 142 | 10,320 |
Union Pacific Corp. | 42 | 9,503 |
Total Ground Transportation | 31,787 | |
Health Care Equipment & Supplies – 1.9% | ||
Abbott Laboratories | 124 | 12,885 |
Align Technology, Inc.* | 5 | 1,207 |
Baxter International, Inc. | 38 | 1,271 |
Becton Dickinson & Co. | 21 | 4,908 |
Boston Scientific Corp.* | 107 | 8,240 |
Cooper Cos., Inc. | 15 | 1,310 |
Dexcom, Inc.* | 27 | 3,061 |
Edwards Lifesciences Corp.* | 43 | 3,972 |
GE HealthCare Technologies, Inc. | 32 | 2,493 |
Hologic, Inc.* | 18 | 1,337 |
IDEXX Laboratories, Inc.* | 5 | 2,436 |
Insulet Corp.* | 5 | 1,009 |
Intuitive Surgical, Inc.* | 25 | 11,121 |
ResMed, Inc. | 10 | 1,914 |
Solventum Corp.* | 9 | 476 |
Stryker Corp. | 28 | 9,527 |
Zimmer Biomet Holdings, Inc. | 15 | 1,628 |
Total Health Care Equipment & Supplies | 68,795 | |
Health Care Providers & Services – 2.3% | ||
Cardinal Health, Inc. | 18 | 1,770 |
Cencora, Inc. | 15 | 3,379 |
Centene Corp.* | 40 | 2,652 |
Cigna Group | 21 | 6,942 |
CVS Health Corp. | 92 | 5,434 |
Elevance Health, Inc. | 17 | 9,212 |
HCA Healthcare, Inc. | 19 | 6,104 |
Humana, Inc. | 9 | 3,363 |
Labcorp Holdings, Inc. | 6 | 1,221 |
McKesson Corp. | 10 | 5,840 |
Molina Healthcare, Inc.* | 4 | 1,189 |
Quest Diagnostics, Inc. | 8 | 1,095 |
UnitedHealth Group, Inc. | 68 | 34,630 |
Total Health Care Providers & Services | 82,831 |
See Notes to Financial Statements.
WisdomTree Digital Trust 7
Schedule of Investments (continued) WisdomTree 500 Digital Fund (SPXUX) June 30, 2024
|
Investments | Shares | Value |
Health Care REITs – 0.2% | ||
Ventas, Inc. | 28 | $ 1,435 |
Welltower, Inc. | 39 | 4,066 |
Total Health Care REITs | 5,501 | |
Health Care Technology – 0.1% | ||
Veeva Systems, Inc., Class A* | 11 | 2,013 |
Hotel & Resort REITs – 0.0% | ||
Host Hotels & Resorts, Inc. | 50 | 899 |
Hotels, Restaurants & Leisure – 1.9% | ||
Airbnb, Inc., Class A* | 44 | 6,672 |
Booking Holdings, Inc. | 3 | 11,884 |
Chipotle Mexican Grill, Inc.* | 100 | 6,265 |
Darden Restaurants, Inc. | 9 | 1,362 |
Domino’s Pizza, Inc. | 3 | 1,549 |
DoorDash, Inc., Class A* | 28 | 3,046 |
DraftKings, Inc., Class A* | 35 | 1,336 |
Expedia Group, Inc.* | 9 | 1,134 |
Hilton Worldwide Holdings, Inc. | 18 | 3,928 |
Hyatt Hotels Corp., Class A | 7 | 1,063 |
Las Vegas Sands Corp. | 55 | 2,434 |
Marriott International, Inc., Class A | 20 | 4,835 |
McDonald’s Corp. | 52 | 13,252 |
MGM Resorts International* | 24 | 1,067 |
Starbucks Corp. | 83 | 6,461 |
Yum! Brands, Inc. | 20 | 2,649 |
Total Hotels, Restaurants & Leisure | 68,937 | |
Household Durables – 0.2% | ||
DR Horton, Inc. | 24 | 3,382 |
Lennar Corp., Class A | 21 | 3,147 |
PulteGroup, Inc. | 16 | 1,762 |
Total Household Durables | 8,291 | |
Household Products – 1.1% | ||
Church & Dwight Co., Inc. | 18 | 1,866 |
Clorox Co. | 9 | 1,228 |
Colgate-Palmolive Co. | 59 | 5,726 |
Kimberly-Clark Corp. | 24 | 3,317 |
Procter & Gamble Co. | 172 | 28,366 |
Total Household Products | 40,503 | |
Independent Power & Renewable Electricity Producers – 0.1% | ||
Vistra Corp. | 24 | 2,063 |
Industrial Conglomerates – 0.8% | ||
3M Co. | 38 | 3,883 |
General Electric Co. | 79 | 12,559 |
Honeywell International, Inc. | 47 | 10,036 |
Total Industrial Conglomerates | 26,478 | |
Industrial REITs – 0.2% | ||
Prologis, Inc. | 65 | 7,300 |
Investments | Shares | Value |
Insurance – 1.5% | ||
Aflac, Inc. | 43 | $ 3,840 |
Allstate Corp. | 19 | 3,033 |
American International Group, Inc. | 51 | 3,786 |
Arthur J Gallagher & Co. | 16 | 4,149 |
Brown & Brown, Inc. | 21 | 1,878 |
Cincinnati Financial Corp. | 11 | 1,299 |
Erie Indemnity Co., Class A | 3 | 1,087 |
Fidelity National Financial, Inc. | 19 | 939 |
Hartford Financial Services Group, Inc. | 22 | 2,212 |
Loews Corp. | 16 | 1,196 |
Markel Group, Inc.* | 1 | 1,576 |
Marsh & McLennan Cos., Inc. | 36 | 7,586 |
MetLife, Inc. | 52 | 3,650 |
Principal Financial Group, Inc. | 17 | 1,334 |
Progressive Corp. | 42 | 8,724 |
Prudential Financial, Inc. | 26 | 3,047 |
Travelers Cos., Inc. | 16 | 3,253 |
WR Berkley Corp. | 19 | 1,493 |
Total Insurance | 54,082 | |
Interactive Media & Services – 7.6% | ||
Alphabet, Inc., Class A | 927 | 168,853 |
Meta Platforms, Inc., Class A | 190 | 95,802 |
Pinterest, Inc., Class A* | 48 | 2,115 |
Snap, Inc., Class A* | 115 | 1,910 |
Total Interactive Media & Services | 268,680 | |
IT Services – 0.8% | ||
Akamai Technologies, Inc.* | 11 | 991 |
Cloudflare, Inc., Class A* | 23 | 1,905 |
Cognizant Technology Solutions Corp., Class A | 36 | 2,448 |
EPAM Systems, Inc.* | 4 | 752 |
Gartner, Inc.* | 6 | 2,694 |
GoDaddy, Inc., Class A* | 10 | 1,397 |
International Business Machines Corp. | 65 | 11,242 |
MongoDB, Inc.* | 5 | 1,250 |
Snowflake, Inc., Class A* | 24 | 3,242 |
Twilio, Inc., Class A* | 12 | 682 |
VeriSign, Inc.* | 7 | 1,245 |
Total IT Services | 27,848 | |
Life Sciences Tools & Services – 1.2% | ||
Agilent Technologies, Inc. | 21 | 2,722 |
Avantor, Inc.* | 48 | 1,018 |
Danaher Corp. | 54 | 13,492 |
Illumina, Inc.* | 10 | 1,044 |
IQVIA Holdings, Inc.* | 13 | 2,749 |
Mettler-Toledo International, Inc.* | 2 | 2,795 |
Thermo Fisher Scientific, Inc. | 28 | 15,484 |
Waters Corp.* | 4 | 1,160 |
West Pharmaceutical Services, Inc. | 5 | 1,647 |
Total Life Sciences Tools & Services | 42,111 |
See Notes to Financial Statements.
8 WisdomTree Digital Trust
Schedule of Investments (continued) WisdomTree 500 Digital Fund (SPXUX) June 30, 2024
|
Investments | Shares | Value |
Machinery – 1.5% | ||
Caterpillar, Inc. | 36 | $ 11,992 |
Cummins, Inc. | 10 | 2,769 |
Deere & Co. | 21 | 7,846 |
Dover Corp. | 10 | 1,804 |
Fortive Corp. | 25 | 1,852 |
Graco, Inc. | 12 | 951 |
IDEX Corp. | 5 | 1,006 |
Illinois Tool Works, Inc. | 21 | 4,976 |
Ingersoll Rand, Inc. | 30 | 2,725 |
Nordson Corp. | 4 | 928 |
Otis Worldwide Corp. | 29 | 2,792 |
PACCAR, Inc. | 37 | 3,809 |
Parker-Hannifin Corp. | 9 | 4,552 |
Snap-on, Inc. | 4 | 1,046 |
Stanley Black & Decker, Inc. | 11 | 879 |
Westinghouse Air Brake Technologies Corp. | 13 | 2,055 |
Xylem, Inc. | 17 | 2,306 |
Total Machinery | 54,288 | |
Media – 0.7% | ||
Charter Communications, Inc., Class A* | 11 | 3,289 |
Comcast Corp., Class A | 282 | 11,043 |
Fox Corp., Class A | 35 | 1,203 |
Interpublic Group of Cos., Inc. | 27 | 785 |
Liberty Broadband Corp., Class C* | 10 | 548 |
News Corp., Class A | 40 | 1,103 |
Omnicom Group, Inc. | 14 | 1,256 |
Sirius XM Holdings, Inc. | 284 | 804 |
Trade Desk, Inc., Class A* | 36 | 3,516 |
Total Media | 23,547 | |
Metals & Mining – 0.6% | ||
Freeport-McMoRan, Inc. | 101 | 4,909 |
Newmont Corp. | 82 | 3,433 |
Nucor Corp. | 18 | 2,846 |
Reliance, Inc. | 4 | 1,142 |
Southern Copper Corp. | 54 | 5,818 |
Steel Dynamics, Inc. | 12 | 1,554 |
Total Metals & Mining | 19,702 | |
Multi-Utilities – 0.5% | ||
Ameren Corp. | 21 | 1,493 |
CenterPoint Energy, Inc. | 44 | 1,363 |
CMS Energy Corp. | 21 | 1,250 |
Consolidated Edison, Inc. | 25 | 2,236 |
Dominion Energy, Inc. | 59 | 2,891 |
DTE Energy Co. | 15 | 1,665 |
Public Service Enterprise Group, Inc. | 37 | 2,727 |
Sempra | 47 | 3,575 |
WEC Energy Group, Inc. | 22 | 1,726 |
Total Multi-Utilities | 18,926 |
Investments | Shares | Value |
Office REITs – 0.0% | ||
Alexandria Real Estate Equities, Inc. | 11 | $ 1,287 |
Oil, Gas & Consumable Fuels – 3.6% | ||
Chevron Corp. | 135 | 21,117 |
ConocoPhillips | 86 | 9,837 |
Coterra Energy, Inc. | 55 | 1,467 |
Devon Energy Corp. | 46 | 2,180 |
Diamondback Energy, Inc. | 13 | 2,602 |
Energy Transfer LP | 238 | 3,860 |
Enterprise Products Partners LP | 157 | 4,550 |
EOG Resources, Inc. | 42 | 5,287 |
EQT Corp. | 30 | 1,109 |
Exxon Mobil Corp. | 329 | 37,875 |
Hess Corp. | 22 | 3,245 |
Kinder Morgan, Inc. | 158 | 3,139 |
Marathon Oil Corp. | 42 | 1,204 |
Marathon Petroleum Corp. | 27 | 4,684 |
MPLX LP | 71 | 3,024 |
Occidental Petroleum Corp. | 62 | 3,908 |
ONEOK, Inc. | 41 | 3,344 |
Ovintiv, Inc. | 20 | 937 |
Phillips 66 | 32 | 4,517 |
Targa Resources Corp. | 16 | 2,061 |
Texas Pacific Land Corp. | 2 | 1,469 |
Valero Energy Corp. | 24 | 3,762 |
Williams Cos., Inc. | 87 | 3,698 |
Total Oil, Gas & Consumable Fuels | 128,876 | |
Passenger Airlines – 0.1% | ||
Delta Air Lines, Inc. | 44 | 2,087 |
Southwest Airlines Co. | 42 | 1,202 |
United Airlines Holdings, Inc.* | 22 | 1,070 |
Total Passenger Airlines | 4,359 | |
Personal Care Products – 0.1% | ||
Estee Lauder Cos., Inc., Class A | 24 | 2,554 |
Kenvue, Inc. | 135 | 2,454 |
Total Personal Care Products | 5,008 | |
Pharmaceuticals – 3.7% | ||
Bristol-Myers Squibb Co. | 146 | 6,063 |
Eli Lilly & Co. | 69 | 62,471 |
Johnson & Johnson | 169 | 24,701 |
Merck & Co., Inc. | 178 | 22,036 |
Pfizer, Inc. | 422 | 11,808 |
Zoetis, Inc. | 32 | 5,548 |
Total Pharmaceuticals | 132,627 | |
Professional Services – 0.6% | ||
Automatic Data Processing, Inc. | 29 | 6,922 |
Booz Allen Hamilton Holding Corp. | 9 | 1,385 |
Broadridge Financial Solutions, Inc. | 8 | 1,576 |
Equifax, Inc. | 9 | 2,182 |
Jacobs Solutions, Inc. | 9 | 1,257 |
See Notes to Financial Statements.
WisdomTree Digital Trust 9
Schedule of Investments (continued) WisdomTree 500 Digital Fund (SPXUX) June 30, 2024
|
Investments | Shares | Value |
Leidos Holdings, Inc. | 10 | $ 1,459 |
Paychex, Inc. | 25 | 2,964 |
SS&C Technologies Holdings, Inc. | 18 | 1,128 |
Verisk Analytics, Inc. | 11 | 2,965 |
Total Professional Services | 21,838 | |
Real Estate Management & Development – 0.1% | ||
CBRE Group, Inc., Class A* | 21 | 1,871 |
CoStar Group, Inc.* | 29 | 2,150 |
Total Real Estate Management & Development | 4,021 | |
Residential REITs – 0.3% | ||
American Homes 4 Rent, Class A | 25 | 929 |
AvalonBay Communities, Inc. | 10 | 2,069 |
Equity LifeStyle Properties, Inc. | 13 | 847 |
Equity Residential | 27 | 1,872 |
Essex Property Trust, Inc. | 4 | 1,089 |
Invitation Homes, Inc. | 43 | 1,543 |
Mid-America Apartment Communities, Inc. | 8 | 1,141 |
Sun Communities, Inc. | 9 | 1,083 |
Total Residential REITs | 10,573 | |
Retail REITs – 0.2% | ||
Kimco Realty Corp. | 43 | 837 |
Realty Income Corp. | 52 | 2,747 |
Simon Property Group, Inc. | 23 | 3,491 |
Total Retail REITs | 7,075 | |
Semiconductors & Semiconductor Equipment – 11.5% | ||
Advanced Micro Devices, Inc.* | 119 | 19,303 |
Analog Devices, Inc. | 36 | 8,217 |
Applied Materials, Inc. | 61 | 14,395 |
Broadcom, Inc. | 34 | 54,588 |
Enphase Energy, Inc.* | 9 | 897 |
Entegris, Inc. | 10 | 1,354 |
First Solar, Inc.* | 8 | 1,804 |
Intel Corp. | 320 | 9,911 |
KLA Corp. | 10 | 8,245 |
Lam Research Corp. | 10 | 10,649 |
Marvell Technology, Inc. | 67 | 4,683 |
Microchip Technology, Inc. | 38 | 3,477 |
Micron Technology, Inc. | 81 | 10,654 |
Monolithic Power Systems, Inc. | 3 | 2,465 |
NVIDIA Corp. | 1,834 | 226,572 |
ON Semiconductor Corp.* | 30 | 2,057 |
QUALCOMM, Inc. | 80 | 15,935 |
Skyworks Solutions, Inc. | 11 | 1,172 |
Teradyne, Inc. | 10 | 1,483 |
Texas Instruments, Inc. | 64 | 12,450 |
Total Semiconductors & Semiconductor Equipment | 410,311 | |
Software – 11.5% | ||
Adobe, Inc.* | 33 | 18,333 |
ANSYS, Inc.* | 6 | 1,929 |
AppLovin Corp., Class A* | 24 | 1,997 |
Investments | Shares | Value |
Aspen Technology, Inc.* | 4 | $ 795 |
Atlassian Corp., Class A* | 18 | 3,184 |
Autodesk, Inc.* | 15 | 3,712 |
Bentley Systems, Inc., Class B | 21 | 1,037 |
Cadence Design Systems, Inc.* | 20 | 6,155 |
Crowdstrike Holdings, Inc., Class A* | 17 | 6,514 |
Datadog, Inc., Class A* | 23 | 2,983 |
Dynatrace, Inc.* | 21 | 940 |
Fair Isaac Corp.* | 2 | 2,977 |
Fortinet, Inc.* | 55 | 3,315 |
Gen Digital, Inc. | 46 | 1,149 |
HubSpot, Inc.* | 4 | 2,359 |
Intuit, Inc. | 20 | 13,144 |
Manhattan Associates, Inc.* | 4 | 987 |
Microsoft Corp. | 551 | 246,269 |
Oracle Corp. | 198 | 27,958 |
Palantir Technologies, Inc., Class A* | 171 | 4,331 |
Palo Alto Networks, Inc.* | 23 | 7,797 |
PTC, Inc.* | 8 | 1,453 |
Roper Technologies, Inc. | 8 | 4,509 |
Salesforce, Inc. | 71 | 18,254 |
Samsara, Inc., Class A* | 31 | 1,045 |
ServiceNow, Inc.* | 15 | 11,800 |
Synopsys, Inc.* | 11 | 6,546 |
Tyler Technologies, Inc.* | 3 | 1,508 |
Workday, Inc., Class A* | 19 | 4,248 |
Zoom Video Communications, Inc., Class A* | 22 | 1,302 |
Zscaler, Inc.* | 11 | 2,114 |
Total Software | 410,644 | |
Specialized REITs – 0.9% | ||
American Tower Corp. | 34 | 6,609 |
Crown Castle, Inc. | 31 | 3,029 |
Digital Realty Trust, Inc. | 22 | 3,345 |
Equinix, Inc. | 7 | 5,296 |
Extra Space Storage, Inc. | 14 | 2,176 |
Gaming & Leisure Properties, Inc. | 18 | 814 |
Iron Mountain, Inc. | 21 | 1,882 |
Public Storage | 12 | 3,452 |
SBA Communications Corp. | 8 | 1,570 |
VICI Properties, Inc. | 71 | 2,033 |
Weyerhaeuser Co. | 53 | 1,505 |
Total Specialized REITs | 31,711 | |
Specialty Retail – 1.6% | ||
AutoZone, Inc.* | 1 | 2,964 |
Best Buy Co., Inc. | 15 | 1,264 |
Home Depot, Inc. | 70 | 24,097 |
Lowe’s Cos., Inc. | 40 | 8,818 |
O’Reilly Automotive, Inc.* | 4 | 4,224 |
Ross Stores, Inc. | 24 | 3,488 |
TJX Cos., Inc. | 83 | 9,138 |
Tractor Supply Co. | 8 | 2,160 |
See Notes to Financial Statements.
10 WisdomTree Digital Trust
Schedule of Investments (concluded) WisdomTree 500 Digital Fund (SPXUX) June 30, 2024
|
Investments | Shares | Value |
Ulta Beauty, Inc.* | 3 | $ 1,158 |
Williams-Sonoma, Inc. | 4 | 1,130 |
Total Specialty Retail | 58,441 | |
Technology Hardware, Storage & Peripherals – 7.2% | ||
Apple, Inc. | 1,126 | 237,158 |
Dell Technologies, Inc., Class C | 57 | 7,861 |
Hewlett Packard Enterprise Co. | 94 | 1,990 |
HP, Inc. | 71 | 2,486 |
NetApp, Inc. | 15 | 1,932 |
Super Micro Computer, Inc.* | 4 | 3,277 |
Western Digital Corp.* | 24 | 1,819 |
Total Technology Hardware, Storage & Peripherals | 256,523 | |
Textiles, Apparel & Luxury Goods – 0.3% | ||
Deckers Outdoor Corp.* | 2 | 1,936 |
NIKE, Inc., Class B | 105 | 7,914 |
Total Textiles, Apparel & Luxury Goods | 9,850 | |
Tobacco – 0.5% | ||
Altria Group, Inc. | 126 | 5,740 |
Philip Morris International, Inc. | 113 | 11,450 |
Total Tobacco | 17,190 |
Investments | Shares | Value |
Trading Companies & Distributors – 0.3% | ||
Fastenal Co. | 40 | $ 2,513 |
United Rentals, Inc. | 5 | 3,234 |
Watsco, Inc. | 3 | 1,390 |
WW Grainger, Inc. | 4 | 3,609 |
Total Trading Companies & Distributors | 10,746 | |
Water Utilities – 0.1% | ||
American Water Works Co., Inc. | 14 | 1,808 |
Wireless Telecommunication Services – 0.4% | ||
T-Mobile U.S., Inc. | 82 | 14,447 |
Total United States | 3,552,600 | |
TOTAL INVESTMENTS IN SECURITIES – 99.8% | 3,555,282 | |
Other Assets less Liabilities – 0.2% | 5,431 | |
NET ASSETS – 100.0% | $3,560,713 |
* Non-income producing security.
FAIR VALUATION SUMMARY
The following is a summary of the fair valuations according to the inputs used in valuing the Fund’s investments (See Note 2 — Fair Value Measurement):
Quoted Active | Other | Significant | Total | |||||
Assets: | ||||||||
Investments in Securities | ||||||||
Common Stocks | $3,555,282 | $— | $— | $3,555,282 | ||||
Total Investments in Securities | $3,555,282 | $— | $— | $3,555,282 |
See Notes to Financial Statements.
WisdomTree Digital Trust 11
Schedule of Investments WisdomTree Technology and Innovation 100 Digital Fund (TECHX) June 30, 2024
|
Investments | Shares | Value | |||
COMMON STOCKS – 99.9% |
| ||||
South Korea – 0.2% |
| ||||
Broadline Retail – 0.2% |
| ||||
Coupang, Inc.* | 361 | $ | 7,563 | ||
United States – 99.7% |
| ||||
Automobiles – 2.4% |
| ||||
Tesla, Inc.* | 438 |
| 86,672 | ||
Biotechnology – 5.5% |
| ||||
AbbVie, Inc. | 391 |
| 67,064 | ||
Alnylam Pharmaceuticals, Inc.* | 26 |
| 6,318 | ||
Amgen, Inc. | 118 |
| 36,869 | ||
Biogen, Inc.* | 31 |
| 7,186 | ||
Gilead Sciences, Inc. | 273 |
| 18,731 | ||
Moderna, Inc.* | 81 |
| 9,619 | ||
Regeneron Pharmaceuticals, Inc.* | 27 |
| 28,378 | ||
Vertex Pharmaceuticals, Inc.* | 56 |
| 26,248 | ||
Total Biotechnology |
| 200,413 | |||
Broadline Retail – 7.3% |
| ||||
Amazon.com, Inc.* | 1,358 |
| 262,434 | ||
eBay, Inc. | 114 |
| 6,124 | ||
Total Broadline Retail |
| 268,558 | |||
Communications Equipment – 2.2% |
| ||||
Arista Networks, Inc.* | 66 |
| 23,132 | ||
Cisco Systems, Inc. | 898 |
| 42,664 | ||
Motorola Solutions, Inc. | 36 |
| 13,898 | ||
Total Communications Equipment |
| 79,694 | |||
Electronic Equipment, Instruments & Components – 1.0% | |||||
Amphenol Corp., Class A | 252 |
| 16,977 | ||
CDW Corp. | 29 |
| 6,491 | ||
Corning, Inc. | 181 |
| 7,032 | ||
Keysight Technologies, Inc.* | 37 |
| 5,060 | ||
Total Electronic Equipment, Instruments & Components |
| 35,560 | |||
Entertainment – 2.4% |
| ||||
Electronic Arts, Inc. | 60 |
| 8,360 | ||
Live Nation Entertainment, Inc.* | 25 |
| 2,343 | ||
Netflix, Inc.* | 99 |
| 66,813 | ||
ROBLOX Corp., Class A* | 123 |
| 4,577 | ||
Take-Two Interactive Software, Inc.* | 19 |
| 2,954 | ||
Warner Bros Discovery, Inc.* | 461 |
| 3,430 | ||
Total Entertainment |
| 88,477 | |||
Financial Services – 1.6% |
| ||||
Block, Inc.* | 121 |
| 7,803 | ||
Fidelity National Information Services, Inc. | 127 |
| 9,571 | ||
Fiserv, Inc.* | 136 |
| 20,269 | ||
Global Payments, Inc. | 58 |
| 5,609 | ||
PayPal Holdings, Inc.* | 242 |
| 14,043 | ||
Total Financial Services |
| 57,295 | |||
Investments | Shares | Value | |||
Health Care Technology – 0.2% |
| ||||
Veeva Systems, Inc., Class A* | 34 | $ | 6,222 | ||
Hotels, Restaurants & Leisure – 0.2% |
| ||||
DoorDash, Inc., Class A* | 78 |
| 8,485 | ||
Interactive Media & Services – 15.8% |
| ||||
Alphabet, Inc., Class A | 1,652 |
| 300,912 | ||
Meta Platforms, Inc., Class A | 537 |
| 270,766 | ||
Pinterest, Inc., Class A* | 73 |
| 3,217 | ||
Snap, Inc., Class A* | 174 |
| 2,890 | ||
Total Interactive Media & Services |
| 577,785 | |||
IT Services – 1.8% |
| ||||
Cloudflare, Inc., Class A* | 36 |
| 2,982 | ||
Cognizant Technology Solutions Corp., Class A | 111 |
| 7,548 | ||
Gartner, Inc.* | 17 |
| 7,634 | ||
International Business Machines Corp. | 195 |
| 33,725 | ||
MongoDB, Inc.* | 8 |
| 2,000 | ||
Snowflake, Inc., Class A* | 66 |
| 8,916 | ||
VeriSign, Inc.* | 22 |
| 3,911 | ||
Total IT Services |
| 66,716 | |||
Life Sciences Tools & Services – 3.1% |
| ||||
Agilent Technologies, Inc. | 65 |
| 8,426 | ||
Danaher Corp. | 163 |
| 40,726 | ||
IQVIA Holdings, Inc.* | 39 |
| 8,246 | ||
Mettler-Toledo International, Inc.* | 5 |
| 6,988 | ||
Thermo Fisher Scientific, Inc. | 88 |
| 48,664 | ||
West Pharmaceutical Services, Inc. | 8 |
| 2,635 | ||
Total Life Sciences Tools & Services |
| 115,685 | |||
Media – 1.2% |
| ||||
Charter Communications, Inc., Class A* | 32 |
| 9,567 | ||
Comcast Corp., Class A | 897 |
| 35,126 | ||
Total Media |
| 44,693 | |||
Professional Services – 1.2% |
| ||||
Automatic Data Processing, Inc. | 90 |
| 21,482 | ||
Equifax, Inc. | 25 |
| 6,062 | ||
Paychex, Inc. | 77 |
| 9,129 | ||
Verisk Analytics, Inc. | 35 |
| 9,434 | ||
Total Professional Services |
| 46,107 | |||
Real Estate Management & Development – 0.2% |
| ||||
CoStar Group, Inc.* | 86 |
| 6,376 | ||
Semiconductors & Semiconductor Equipment – 25.7% |
| ||||
Advanced Micro Devices, Inc.* | 354 |
| 57,422 | ||
Analog Devices, Inc. | 111 |
| 25,337 | ||
Applied Materials, Inc. | 185 |
| 43,658 | ||
Broadcom, Inc. | 101 |
| 162,158 | ||
Intel Corp. | 948 |
| 29,360 | ||
KLA Corp. | 30 |
| 24,735 | ||
Lam Research Corp. | 29 |
| 30,881 | ||
See Notes to Financial Statements.
12 WisdomTree Digital Trust
Schedule of Investments (concluded) WisdomTree Technology and Innovation 100 Digital Fund (TECHX) June 30, 2024
|
Investments | Shares | Value | |||
Marvell Technology, Inc. | 193 | $ | 13,491 | ||
Microchip Technology, Inc. | 117 |
| 10,705 | ||
Micron Technology, Inc. | 239 |
| 31,436 | ||
Monolithic Power Systems, Inc. | 5 |
| 4,108 | ||
NVIDIA Corp. | 3,383 |
| 417,936 | ||
ON Semiconductor Corp.* | 92 |
| 6,307 | ||
QUALCOMM, Inc. | 243 |
| 48,401 | ||
Texas Instruments, Inc. | 187 |
| 36,377 | ||
Total Semiconductors & Semiconductor Equipment |
| 942,312 | |||
Software – 19.6% |
| ||||
Adobe, Inc.* | 103 |
| 57,221 | ||
ANSYS, Inc.* | 19 |
| 6,108 | ||
Atlassian Corp., Class A* | 52 |
| 9,198 | ||
Autodesk, Inc.* | 46 |
| 11,383 | ||
Cadence Design Systems, Inc.* | 61 |
| 18,773 | ||
Crowdstrike Holdings, Inc., Class A* | 50 |
| 19,159 | ||
Datadog, Inc., Class A* | 66 |
| 8,559 | ||
Fair Isaac Corp.* | 3 |
| 4,466 | ||
Fortinet, Inc.* | 165 |
| 9,945 | ||
HubSpot, Inc.* | 5 |
| 2,949 | ||
Intuit, Inc. | 61 |
| 40,090 | ||
Microsoft Corp. | 607 |
| 271,299 | ||
Oracle Corp. | 596 |
| 84,155 | ||
Palantir Technologies, Inc., Class A* | 265 |
| 6,712 | ||
Investments | Shares | Value | |||
Palo Alto Networks, Inc.* | 65 | $ | 22,036 | ||
Roper Technologies, Inc. | 23 |
| 12,964 | ||
Salesforce, Inc. | 216 |
| 55,534 | ||
ServiceNow, Inc.* | 43 |
| 33,827 | ||
Synopsys, Inc.* | 33 |
| 19,637 | ||
Workday, Inc., Class A* | 56 |
| 12,519 | ||
Zoom Video Communications, Inc., Class A* | 66 |
| 3,906 | ||
Zscaler, Inc.* | 31 |
| 5,958 | ||
Total Software |
| 716,398 | |||
Technology Hardware, Storage & Peripherals – 7.0% |
| ||||
Apple, Inc. | 1,038 |
| 218,624 | ||
Dell Technologies, Inc., Class C | 174 |
| 23,996 | ||
Hewlett Packard Enterprise Co. | 289 |
| 6,118 | ||
HP, Inc. | 224 |
| 7,845 | ||
Total Technology Hardware, Storage & Peripherals |
| 256,583 | |||
Wireless Telecommunication Services – 1.3% |
| ||||
T-Mobile U.S., Inc. | 266 |
| 46,864 | ||
Total United States |
| 3,650,895 | |||
TOTAL INVESTMENTS IN SECURITIES – 99.9% |
| 3,658,458 | |||
Other Assets less Liabilities – 0.1% |
| 1,986 | |||
NET ASSETS – 100.0% | $ | 3,660,444 | |||
* Non-income producing security.
FAIR VALUATION SUMMARY
The following is a summary of the fair valuations according to the inputs used in valuing the Fund’s investments (See Note 2 — Fair Value Measurement):
Quoted | Other | Significant | Total | |||||
Assets: | ||||||||
Investments in Securities | ||||||||
Common Stocks | $3,658,458 | $— | $— | $3,658,458 | ||||
Total Investments in Securities | $3,658,458 | $— | $— | $3,658,458 |
See Notes to Financial Statements.
WisdomTree Digital Trust 13
Schedule of Investments WisdomTree 3-7 Year Treasury Digital Fund (WTTSX) June 30, 2024
|
Investments | Principal | Value | ||||
U.S. GOVERNMENT OBLIGATIONS – 98.6% |
|
| ||||
U.S. Treasury Bond – 20.9% |
|
| ||||
5.38%, 2/15/31 | $ | 190,000 | $ | 202,231 | ||
U.S. Treasury Notes – 77.7% |
|
| ||||
0.50%, 10/31/27 |
| 120,000 |
| 105,347 | ||
1.13%, 8/31/28 |
| 333,200 |
| 291,966 | ||
1.38%, 10/31/28 |
| 317,900 |
| 280,373 | ||
4.50%, 5/31/29 |
| 3,000 |
| 3,021 | ||
4.25%, 6/30/29 |
| 27,000 |
| 26,888 | ||
0.63%, 5/15/30 |
| 5,000 |
| 4,043 | ||
3.75%, 5/31/30 |
| 10,000 |
| 9,687 | ||
3.75%, 6/30/30 |
| 17,000 |
| 16,460 | ||
4.00%, 7/31/30 |
| 13,000 |
| 12,755 | ||
Total U.S. Treasury Notes |
|
| 750,540 | |||
TOTAL INVESTMENTS IN SECURITIES – 98.6% |
|
| 952,771 | |||
Other Assets less Liabilities – 1.4% |
|
| 13,518 | |||
NET ASSETS – 100.0% |
| $ | 966,289 | |||
FAIR VALUATION SUMMARY
The following is a summary of the fair valuations according to the inputs used in valuing the Fund’s investments (See Note 2 — Fair Value Measurement):
Quoted | Other | Significant | Total | |||||
Assets: | ||||||||
Investments in Securities | ||||||||
U.S. Government Obligations | $— | $952,771 | $— | $952,771 | ||||
Total Investments in Securities | $— | $952,771 | $— | $952,771 |
See Notes to Financial Statements.
14 WisdomTree Digital Trust
Schedule of Investments WisdomTree 7-10 Year Treasury Digital Fund (WTSTX) June 30, 2024
|
Investments | Principal | Value | ||||
U.S. GOVERNMENT OBLIGATIONS – 99.1% |
|
| ||||
U.S. Treasury Notes – 99.1% |
|
| ||||
1.38%, 11/15/31 | $ | 8,000 | $ | 6,509 | ||
1.88%, 2/15/32 |
| 556,900 |
| 467,535 | ||
3.50%, 2/15/33 |
| 44,400 |
| 41,618 | ||
3.88%, 8/15/33 |
| 55,000 |
| 52,925 | ||
4.50%, 11/15/33 |
| 191,300 |
| 193,108 | ||
4.38%, 5/15/34 |
| 162,500 |
| 162,563 | ||
TOTAL INVESTMENTS IN SECURITIES – 99.1% |
|
| ||||
(Cost: $957,934) |
|
| 924,258 | |||
Other Assets less Liabilities – 0.9% |
|
| 8,070 | |||
NET ASSETS – 100.0% |
| $ | 932,328 | |||
FAIR VALUATION SUMMARY
The following is a summary of the fair valuations according to the inputs used in valuing the Fund’s investments (See Note 2 — Fair Value Measurement):
Quoted | Other | Significant | Total | |||||
Assets: | ||||||||
Investments in Securities | ||||||||
U.S. Government Obligations | $— | $924,258 | $— | $924,258 | ||||
Total Investments in Securities | $— | $924,258 | $— | $924,258 |
See Notes to Financial Statements.
WisdomTree Digital Trust 15
Schedule of Investments WisdomTree Floating Rate Treasury Digital Fund (FLTTX) June 30, 2024
|
Investments | Principal | Value | ||||
U.S. GOVERNMENT OBLIGATIONS – 98.7% |
|
| ||||
U.S. Treasury Notes – 98.7% |
|
| ||||
U.S. Treasury Floating Rate Notes |
|
| ||||
5.34%, 7/31/24, (3-month U.S. Treasury Bill Money Market Yield + 0.037%)* | $ | 325,000 | $ | 324,996 | ||
5.45%, 10/31/24, (3-month U.S. Treasury Bill Money Market Yield + 0.14%)* |
| 196,000 |
| 196,058 | ||
5.47%, 4/30/25, (3-month U.S. Treasury Bill Money Market Yield + 0.17%)* |
| 103,000 |
| 103,079 | ||
5.43%, 7/31/25, (3-month U.S. Treasury Bill Money Market Yield + 0.13%)* |
| 20,000 |
| 20,008 | ||
5.48%, 10/31/25, (3-month U.S. Treasury Bill Money Market Yield + 0.17%)* |
| 378,000 |
| 378,256 | ||
5.55%, 1/31/26, (3-month U.S. Treasury Bill Money Market Yield + 0.25%)* |
| 425,000 |
| 425,634 | ||
5.46%, 4/30/26, (3-month U.S. Treasury Bill Money Market Yield + 0.15%)* |
| 95,000 |
| 94,993 | ||
TOTAL INVESTMENTS IN SECURITIES – 98.7% |
|
| ||||
(Cost: $1,542,411) |
|
| 1,543,024 | |||
Other Assets less Liabilities – 1.3% |
|
| 20,265 | |||
NET ASSETS – 100.0% |
| $ | 1,563,289 | |||
* Floating rate note. Coupon shown is in effect at June 30, 2024. Date represents the ultimate maturity date.
FAIR VALUATION SUMMARY
The following is a summary of the fair valuations according to the inputs used in valuing the Fund’s investments (See Note 2 — Fair Value Measurement):
Quoted | Other | Significant | Total | |||||
Assets: | ||||||||
Investments in Securities | ||||||||
U.S. Government Obligations | $— | $1,543,024 | $— | $1,543,024 | ||||
Total Investments in Securities | $— | $1,543,024 | $— | $1,543,024 |
See Notes to Financial Statements.
16 WisdomTree Digital Trust
Schedule of Investments WisdomTree Long-Term Treasury Digital Fund (WTLGX) June 30, 2024
|
Investments | Principal | Value | ||||
U.S. GOVERNMENT OBLIGATIONS – 98.7% |
|
| ||||
U.S. Treasury Bonds – 98.7% |
|
| ||||
3.00%, 5/15/45 | $ | 133,600 | $ | 103,895 | ||
3.00%, 5/15/47 |
| 434,300 |
| 332,409 | ||
1.63%, 11/15/50 |
| 72,000 |
| 39,426 | ||
1.88%, 11/15/51 |
| 565,500 |
| 328,387 | ||
4.13%, 8/15/53 |
| 3,000 |
| 2,795 | ||
4.25%, 2/15/54 |
| 28,500 |
| 27,148 | ||
TOTAL INVESTMENTS IN SECURITIES – 98.7% (Cost: $982,101) |
|
| 834,060 | |||
Other Assets less Liabilities – 1.3% |
|
| 10,806 | |||
NET ASSETS – 100.0% |
| $ | 844,866 | |||
FAIR VALUATION SUMMARY
The following is a summary of the fair valuations according to the inputs used in valuing the Fund’s investments (See Note 2 — Fair Value Measurement):
Quoted | Other | Significant | Total | |||||
Assets: | ||||||||
Investments in Securities | ||||||||
U.S. Government Obligations | $— | $834,060 | $— | $834,060 | ||||
Total Investments in Securities | $— | $834,060 | $— | $834,060 |
See Notes to Financial Statements.
WisdomTree Digital Trust 17
Schedule of Investments WisdomTree Short-Term Treasury Digital Fund (WTSYX) June 30, 2024
|
Investments | Principal | Value | ||||
U.S. GOVERNMENT OBLIGATIONS – 97.7% |
|
| ||||
U.S. Treasury Notes – 97.7% |
|
| ||||
2.00%, 8/15/25 | $ | 40,000 | $ | 38,678 | ||
0.38%, 11/30/25 |
| 392,800 |
| 368,534 | ||
4.63%, 3/15/26 |
| 94,000 |
| 93,686 | ||
3.75%, 4/15/26 |
| 68,700 |
| 67,474 | ||
4.88%, 5/31/26 |
| 2,000 |
| 2,004 | ||
4.13%, 6/15/26 |
| 44,700 |
| 44,194 | ||
4.63%, 6/30/26 |
| 27,000 |
| 26,952 | ||
1.25%, 11/30/26 |
| 170,000 |
| 157,037 | ||
4.38%, 12/15/26 |
| 60,000 |
| 59,667 | ||
4.00%, 1/15/27 |
| 4,000 |
| 3,942 | ||
4.13%, 2/15/27 |
| 4,000 |
| 3,955 | ||
4.25%, 3/15/27 |
| 2,000 |
| 1,984 | ||
4.63%, 6/15/27 |
| 100,000 |
| 100,301 | ||
TOTAL INVESTMENTS IN SECURITIES – 97.7% |
|
| ||||
(Cost: $978,199) |
|
| 968,408 | |||
Other Assets less Liabilities – 2.3% |
|
| 22,404 | |||
NET ASSETS – 100.0% |
| $ | 990,812 | |||
FAIR VALUATION SUMMARY
The following is a summary of the fair valuations according to the inputs used in valuing the Fund’s investments (See Note 2 — Fair Value Measurement):
Quoted | Other | Significant | Total | |||||
Assets: | ||||||||
Investments in Securities | ||||||||
U.S. Government Obligations | $— | $968,408 | $— | $968,408 | ||||
Total Investments in Securities | $— | $968,408 | $— | $968,408 |
See Notes to Financial Statements.
18 WisdomTree Digital Trust
Schedule of Investments WisdomTree TIPS Digital Fund (TIPSX) June 30, 2024
|
Investments | Principal | Value | ||||
U.S. GOVERNMENT OBLIGATIONS – 93.9% |
|
| ||||
U.S. Treasury Bonds – 33.8% |
|
| ||||
U.S. Treasury Inflation-Indexed Bonds |
|
| ||||
2.00%, 1/15/26 | $ | 78,978 | $ | 78,021 | ||
3.63%, 4/15/28 |
| 77,534 |
| 81,530 | ||
2.13%, 2/15/41 |
| 89,761 |
| 89,027 | ||
1.38%, 2/15/44 |
| 9,416 |
| 8,072 | ||
0.13%, 2/15/52 |
| 111,945 |
| 63,608 | ||
Total U.S. Treasury Bonds |
|
| 320,258 | |||
U.S. Treasury Notes – 60.1% |
|
| ||||
U.S. Treasury Inflation-Indexed Notes |
|
| ||||
0.13%, 10/15/26 |
| 55,415 |
| 52,759 | ||
0.88%, 1/15/29 |
| 145,267 |
| 137,703 | ||
0.13%, 1/15/30 |
| 302,439 |
| 272,396 | ||
0.63%, 7/15/32 |
| 43,161 |
| 38,705 | ||
1.13%, 1/15/33 |
| 74,516 |
| 68,957 | ||
Total U.S. Treasury Notes |
|
| 570,520 | |||
TOTAL INVESTMENTS IN SECURITIES – 93.9% (Cost: $940,682) |
|
| 890,778 | |||
Other Assets less Liabilities – 6.1% |
|
| 58,015 | |||
NET ASSETS – 100.0% |
| $ | 948,793 | |||
FAIR VALUATION SUMMARY
The following is a summary of the fair valuations according to the inputs used in valuing the Fund’s investments (See Note 2 — Fair Value Measurement):
Quoted Active | Other | Significant | Total | |||||
Assets: | ||||||||
Investments in Securities | ||||||||
U.S. Government Obligations | $— | $890,778 | $— | $890,778 | ||||
Total Investments in Securities | $— | $890,778 | $— | $890,778 |
See Notes to Financial Statements.
WisdomTree Digital Trust 19
Schedule of Investments WisdomTree Government Money Market Digital Fund (WTGXX) June 30, 2024
|
Investments | Principal | Value | ||||
U.S. GOVERNMENT AGENCIES – 27.8% |
|
| ||||
Federal Farm Credit Bank – 4.9% |
|
| ||||
0.31%, 8/20/24 | $ | 200,000 | $ | 198,602 | ||
5.43%, 9/16/24, (Secured Overnight Financing Rate + 0.09%)(a) |
| 80,000 |
| 79,998 | ||
Total Federal Farm Credit Bank |
|
| 278,600 | |||
Federal Home Loan Bank – 22.9% |
|
| ||||
3.00%, 7/8/24 |
| 250,000 |
| 249,878 | ||
5.34%, 7/9/24, (Secured Overnight Financing Rate + 0.00%)(a) |
| 250,000 |
| 250,000 | ||
5.35%, 8/27/24, (Secured Overnight Financing Rate + 0.01%)(a) |
| 395,000 |
| 395,000 | ||
2.88%, 9/13/24 |
| 50,000 |
| 49,737 | ||
5.35%, 9/24/24, (Secured Overnight Financing Rate + 0.01%)(a) |
| 250,000 |
| 250,000 | ||
5.37%, 5/20/25 |
| 105,000 |
| 104,955 | ||
Total Federal Home Loan Bank |
|
| 1,299,570 | |||
TOTAL U.S. GOVERNMENT AGENCIES (Cost: $1,578,170) |
|
| 1,578,170 | |||
U.S. GOVERNMENT OBLIGATIONS – 76.5% |
|
| ||||
U.S. Treasury Bills – 52.7% |
|
| ||||
5.34%, 7/5/24* |
| 1,760,000 |
| 1,758,973 | ||
5.34%, 7/16/24* |
| 250,000 |
| 249,455 | ||
5.41%, 9/19/24* |
| 500,000 |
| 494,169 | ||
5.40%, 10/29/24* |
| 250,000 |
| 245,686 | ||
5.40%, 11/14/24* |
| 250,000 |
| 245,120 | ||
Total U.S. Treasury Bills |
|
| 2,993,403 | |||
Investments | Principal | Value | |||||
U.S. Treasury Notes – 23.8% |
|
|
| ||||
U.S. Treasury Floating Rate Notes |
|
|
| ||||
5.34%, 7/31/24, (3-month U.S. | $ | 1,150,000 | $ | 1,150,008 |
| ||
5.45%, 10/31/24, (3-month U.S. |
| 200,000 |
| 200,066 |
| ||
Total U.S. Treasury Notes |
|
| 1,350,074 |
| |||
TOTAL U.S. GOVERNMENT OBLIGATIONS (Cost: $4,343,477) |
|
| 4,343,477 |
| |||
TOTAL INVESTMENTS IN SECURITIES – 104.3% |
|
| 5,921,647 |
| |||
Other Assets less Liabilities – (4.3)% |
|
| (245,256 | ) | |||
NET ASSETS – 100.0% |
| $ | 5,676,391 |
| |||
* Interest rate shown reflects the yield to maturity at the time of purchase.
** Floating rate note. Coupon shown is in effect at June 30, 2024. Date represents the ultimate maturity date.
(a) Rate shown reflects the accrual rate as of June 30, 2024 on securities with variable or step rates.
FAIR VALUATION SUMMARY
The following is a summary of the fair valuations according to the inputs used in valuing the Fund’s investments (See Note 2 — Fair Value Measurement):
Quoted | Other | Significant | Total | |||||
Assets: | ||||||||
Investments in Securities | ||||||||
U.S. Government Agencies | $— | $ 1,578,170 | $— | $ 1,578,170 | ||||
U.S. Government Obligations | — | 4,343,477 | — | 4,343,477 | ||||
Total Investments in Securities | $— | $ 5,921,647 | $— | $ 5,921,647 |
See Notes to Financial Statements.
20 WisdomTree Digital Trust
Statements of Assets and Liabilities WisdomTree Digital Trust June 30, 2024
|
WisdomTree | WisdomTree | WisdomTree | WisdomTree | WisdomTree | |||||||||||
ASSETS: |
|
|
|
|
| ||||||||||
Investments, at cost | $ | — | $ | 136,201 | $ | 48,942 | $ | 38,066 | $ | 2,512,448 | |||||
Investment in affiliates, at cost (Note 3) |
| 1,010,016 |
| 229,901 |
| 113,214 |
| 100,344 |
| — | |||||
Investments in securities, at value |
| — |
| 146,188 |
| 52,053 |
| 40,455 |
| 3,555,282 | |||||
Investment in affiliates, at value (Note 3) |
| 1,010,438 |
| 243,565 |
| 118,378 |
| 103,920 |
| — | |||||
Cash |
| 621 |
| 295 |
| 236 |
| 195 |
| 3,864 | |||||
Receivables: |
|
|
|
|
| ||||||||||
Investment securities sold |
| — |
| 70,988 |
| 19,027 |
| 17,577 |
| — | |||||
Capital shares sold |
| — |
| 100 |
| 1,074 |
| 749 |
| 166 | |||||
Dividends |
| — |
| — |
| — |
| — |
| 1,545 | |||||
Total Assets |
| 1,011,059 |
| 461,136 |
| 190,768 |
| 162,896 |
| 3,560,857 | |||||
LIABILITIES: |
|
|
|
|
| ||||||||||
Payables: |
|
|
|
|
| ||||||||||
Investment securities purchased |
| — |
| 70,413 |
| 19,008 |
| 17,571 |
| — | |||||
Capital shares redeemed |
| 25 |
| 323 |
| — |
| — |
| — | |||||
Advisory fees (Note 3) |
| 125 |
| 49 |
| 21 |
| 17 |
| 144 | |||||
Total Liabilities |
| 150 |
| 70,785 |
| 19,029 |
| 17,588 |
| 144 | |||||
NET ASSETS | $ | 1,010,909 | $ | 390,351 | $ | 171,739 | $ | 145,308 | $ | 3,560,713 | |||||
NET ASSETS: |
|
|
|
|
| ||||||||||
Paid-in capital | $ | 1,006,723 | $ | 363,338 | $ | 161,950 | $ | 137,884 | $ | 2,521,350 | |||||
Total distributable earnings (loss) |
| 4,186 |
| 27,013 |
| 9,789 |
| 7,424 |
| 1,039,363 | |||||
NET ASSETS | $ | 1,010,909 | $ | 390,351 | $ | 171,739 | $ | 145,308 | $ | 3,560,713 | |||||
Outstanding beneficial interest shares of $0.001 par value (unlimited number of shares authorized) |
| 100,668 |
| 34,783 |
| 15,780 |
| 13,558 |
| 251,781 | |||||
Net asset value per share | $ | 10.04 | $ | 11.22 | $ | 10.88 | $ | 10.72 | $ | 14.14 | |||||
See Notes to Financial Statements.
WisdomTree Digital Trust 21
Statements of Assets and Liabilities (continued) WisdomTree Digital Trust June 30, 2024
|
WisdomTree Technology | WisdomTree | WisdomTree | WisdomTree | WisdomTree | ||||||||||||||
ASSETS: |
|
|
|
|
|
|
|
| ||||||||||
Investments, at cost | $ | 2,112,020 | $ | 976,242 |
| $ | 957,934 |
| $ | 1,542,411 | $ | 982,101 |
| |||||
Investments in securities, at value |
| 3,658,458 |
| 952,771 |
|
| 924,258 |
|
| 1,543,024 |
| 834,060 |
| |||||
Cash |
| 1,749 |
| 33,599 |
|
| 770 |
|
| 5,788 |
| 6,659 |
| |||||
Receivables: |
|
|
|
|
|
|
|
| ||||||||||
Capital shares sold |
| 150 |
| 350 |
|
| — |
|
| — |
| — |
| |||||
Dividends |
| 431 |
| — |
|
| — |
|
| — |
| — |
| |||||
Interest |
| — |
| 6,522 |
|
| 7,339 |
|
| 14,542 |
| 4,182 |
| |||||
Total Assets |
| 3,660,788 |
| 993,242 |
|
| 932,367 |
|
| 1,563,354 |
| 844,901 |
| |||||
LIABILITIES: |
|
|
|
|
|
|
|
| ||||||||||
Payables: |
|
|
|
|
|
|
|
| ||||||||||
Investment securities purchased |
| — |
| 26,912 |
|
| — |
|
| — |
| — |
| |||||
Capital shares redeemed |
| 50 |
| — |
|
| — |
|
| — |
| — |
| |||||
Advisory fees (Note 3) |
| 294 |
| 41 |
|
| 39 |
|
| 65 |
| 35 |
| |||||
Total Liabilities |
| 344 |
| 26,953 |
|
| 39 |
|
| 65 |
| 35 |
| |||||
NET ASSETS | $ | 3,660,444 | $ | 966,289 |
| $ | 932,328 |
| $ | 1,563,289 | $ | 844,866 |
| |||||
NET ASSETS: |
|
|
|
|
|
|
|
| ||||||||||
Paid-in capital | $ | 2,094,537 | $ | 1,001,034 |
| $ | 1,000,957 |
| $ | 1,561,564 | $ | 1,000,620 |
| |||||
Total distributable earnings (loss) |
| 1,565,907 |
| (34,745 | ) |
| (68,629 | ) |
| 1,725 |
| (155,754 | ) | |||||
NET ASSETS | $ | 3,660,444 | $ | 966,289 |
| $ | 932,328 |
| $ | 1,563,289 | $ | 844,866 |
| |||||
Outstanding beneficial interest shares of $0.001 par value (unlimited number of shares authorized) |
| 206,166 |
| 100,112 |
|
| 100,088 |
|
| 1,556,839 |
| 100,065 |
| |||||
Net asset value per share | $ | 17.75 | $ | 9.65 |
| $ | 9.32 |
| $ | 1.00 | $ | 8.44 |
| |||||
See Notes to Financial Statements.
22 WisdomTree Digital Trust
Statements of Assets and Liabilities (concluded) WisdomTree Digital Trust June 30, 2024
|
WisdomTree | WisdomTree | WisdomTree | |||||||||
ASSETS: |
|
|
|
|
| ||||||
Investments, at cost | $ | 978,199 |
| $ | 940,682 |
| $ | 5,921,647 | |||
Investments in securities, at value |
| 968,408 |
|
| 890,778 |
|
| 5,921,647 | |||
Cash |
| 46,403 |
|
| 54,628 |
|
| 2,351 | |||
Receivables: |
|
|
|
|
| ||||||
Interest |
| 2,994 |
|
| 3,427 |
|
| 22,949 | |||
Total Assets |
| 1,017,805 |
|
| 948,833 |
|
| 5,946,947 | |||
LIABILITIES: |
|
|
|
|
| ||||||
Payables: |
|
|
|
|
| ||||||
Investment securities purchased |
| 26,953 |
|
| — |
|
| 245,686 | |||
Advisory fees (Note 3) |
| 40 |
|
| 40 |
|
| 1,153 | |||
Income distribution |
| — |
|
| — |
|
| 23,717 | |||
Total Liabilities |
| 26,993 |
|
| 40 |
|
| 270,556 | |||
NET ASSETS | $ | 990,812 |
| $ | 948,793 |
| $ | 5,676,391 | |||
NET ASSETS: |
|
|
|
|
| ||||||
Paid-in capital | $ | 1,003,447 |
| $ | 1,000,386 |
| $ | 5,674,545 | |||
Total distributable earnings (loss) |
| (12,635 | ) |
| (51,593 | ) |
| 1,846 | |||
NET ASSETS | $ | 990,812 |
| $ | 948,793 |
| $ | 5,676,391 | |||
Outstanding beneficial interest shares of $0.001 par value (unlimited number of shares authorized) |
| 1,003,914 |
|
| 100,038 |
|
| 5,674,545 | |||
Net asset value per share | $ | 0.99 |
| $ | 9.48 |
| $ | 1.00 | |||
See Notes to Financial Statements.
WisdomTree Digital Trust 23
Statements of Operations WisdomTree Digital Trust For the Year or Period Ended June 30, 2024
|
WisdomTree | WisdomTree | WisdomTree | WisdomTree | WisdomTree | ||||||||||||
INVESTMENT INCOME: |
|
|
|
|
|
| ||||||||||
Dividends | $ | — | $ | 2,005 | $ | 911 | $ | 685 | $ | 45,031 |
| |||||
Dividends from affiliates (Note 3) |
| 44,035 |
| 3,598 |
| 1,951 |
| 1,898 |
| — |
| |||||
Interest |
| 15 |
| 50 |
| 21 |
| 26 |
| 57 |
| |||||
Total investment income |
| 44,050 |
| 5,653 |
| 2,883 |
| 2,609 |
| 45,088 |
| |||||
EXPENSES: |
|
|
|
|
|
| ||||||||||
Advisory fees (Note 3) |
| 1,505 |
| 264 |
| 117 |
| 101 |
| 1,550 |
| |||||
Total expenses |
| 1,505 |
| 264 |
| 117 |
| 101 |
| 1,550 |
| |||||
Net investment income |
| 42,545 |
| 5,389 |
| 2,766 |
| 2,508 |
| 43,538 |
| |||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: |
|
|
|
|
|
| ||||||||||
Net realized gain (loss) from: |
|
|
|
|
|
| ||||||||||
Investment transactions |
| — |
| 551 |
| 330 |
| 322 |
| (4,001 | ) | |||||
Investment transactions in affiliates (Note 3) |
| (68) |
| 1,107 |
| 520 |
| 562 |
| — |
| |||||
Net realized gain (loss) |
| (68) |
| 1,658 |
| 850 |
| 884 |
| (4,001 | ) | |||||
Net increase (decrease) in unrealized appreciation/depreciation: |
|
|
|
|
|
| ||||||||||
Investment transactions |
| — |
| 9,987 |
| 3,111 |
| 2,389 |
| 694,031 |
| |||||
Investment transactions in affiliates (Note 3) |
| 12,979 |
| 13,664 |
| 5,164 |
| 3,576 |
| — |
| |||||
Net increase in unrealized appreciation/depreciation |
| 12,979 |
| 23,651 |
| 8,275 |
| 5,965 |
| 694,031 |
| |||||
Net realized and unrealized gain on investments |
| 12,911 |
| 25,309 |
| 9,125 |
| 6,849 |
| 690,030 |
| |||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 55,456 | $ | 30,698 | $ | 11,891 | $ | 9,357 | $ | 733,568 |
| |||||
1 For the period December 6, 2023 (commencement of operations) through June 30, 2024.
See Notes to Financial Statements.
24 WisdomTree Digital Trust
Statements of Operations (continued) WisdomTree Digital Trust For the Year Ended June 30, 2024
|
WisdomTree | WisdomTree | WisdomTree | WisdomTree | WisdomTree | |||||||||||||||
INVESTMENT INCOME: |
|
|
|
|
|
|
|
|
| ||||||||||
Dividends | $ | 22,327 | $ | — |
| $ | — |
| $ | — |
| $ | — |
| |||||
Interest |
| 88 |
| 35,752 |
|
| 34,659 |
|
| 70,773 |
|
| 36,259 |
| |||||
Total investment income |
| 22,415 |
| 35,752 |
|
| 34,659 |
|
| 70,773 |
|
| 36,259 |
| |||||
EXPENSES: |
|
|
|
|
|
|
|
|
| ||||||||||
Advisory fees (Note 3) |
| 3,004 |
| 485 |
|
| 470 |
|
| 648 |
|
| 431 |
| |||||
Total expenses |
| 3,004 |
| 485 |
|
| 470 |
|
| 648 |
|
| 431 |
| |||||
Net investment income |
| 19,411 |
| 35,267 |
|
| 34,189 |
|
| 70,125 |
|
| 35,828 |
| |||||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: |
|
|
|
|
|
|
|
|
| ||||||||||
Net realized gain (loss) from: |
|
|
|
|
|
|
|
|
| ||||||||||
Investment transactions |
| 116,780 |
| (10,022 | ) |
| (30,392 | ) |
| (300 | ) |
| (5,200 | ) | |||||
Net realized gain (loss) |
| 116,780 |
| (10,022 | ) |
| (30,392 | ) |
| (300 | ) |
| (5,200 | ) | |||||
Net increase (decrease) in unrealized appreciation/depreciation |
| 890,427 |
| 3,253 |
|
| (2,233 | ) |
| 302 |
|
| (97,752 | ) | |||||
Net realized and unrealized gain (loss) on investments |
| 1,007,207 |
| (6,769 | ) |
| (32,625 | ) |
| 2 |
|
| (102,952 | ) | |||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 1,026,618 | $ | 28,498 |
| $ | 1,564 |
| $ | 70,127 |
| $ | (67,124 | ) | |||||
See Notes to Financial Statements.
WisdomTree Digital Trust 25
Statements of Operations (concluded) WisdomTree Digital Trust For the Year or Period Ended June 30, 2024
|
WisdomTree | WisdomTree | WisdomTree | |||||||||
INVESTMENT INCOME: |
|
|
|
|
| ||||||
Interest | $ | 41,656 |
| $ | 50,151 |
| $ | 159,256 | |||
Total investment income |
| 41,656 |
|
| 50,151 |
|
| 159,256 | |||
EXPENSES: |
|
|
|
|
| ||||||
Advisory fees (Note 3) |
| 513 |
|
| 479 |
|
| 7,473 | |||
Total expenses |
| 513 |
|
| 479 |
|
| 7,473 | |||
Net investment income |
| 41,143 |
|
| 49,672 |
|
| 151,783 | |||
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: |
|
|
|
|
| ||||||
Net realized gain (loss) from: |
|
|
|
|
| ||||||
Investment transactions |
| (3,013 | ) |
| (2,791 | ) |
| 1,846 | |||
Net realized gain (loss) |
| (3,013 | ) |
| (2,791 | ) |
| 1,846 | |||
Net increase (decrease) in unrealized appreciation/depreciation |
| 4,466 |
|
| (24,914 | ) |
| — | |||
Net realized and unrealized gain (loss) on investments |
| 1,453 |
|
| (27,705 | ) |
| 1,846 | |||
Net increase from payment by sub-adviser (Note 3) |
| — |
|
| — |
|
| 1,775 | |||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 42,596 |
| $ | 21,967 |
| $ | 155,404 | |||
1 For the period November 7, 2023 (commencement of operations) through June 30, 2024.
See Notes to Financial Statements.
26 WisdomTree Digital Trust
Statements of Changes in Net Assets WisdomTree Digital Trust
|
WisdomTree | WisdomTree | WisdomTree | ||||||||||||||
For the | For the Period | For the Period | For the Period | |||||||||||||
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS: |
|
|
|
|
| |||||||||||
Net investment income | $ | 42,545 |
| $ | 17,759 |
| $ | 5,389 |
| $ | 2,766 |
| ||||
Net realized gain (loss) on investments |
| (68 | ) |
| (232 | ) |
| 1,658 |
|
| 850 |
| ||||
Net increase (decrease) in unrealized appreciation/depreciation on investments |
| 12,979 |
|
| (12,557 | ) |
| 23,651 |
|
| 8,275 |
| ||||
Net increase in net assets resulting from operations |
| 55,456 |
|
| 4,970 |
|
| 30,698 |
|
| 11,891 |
| ||||
DISTRIBUTIONS TO SHAREHOLDERS: |
|
|
|
|
|
|
|
| ||||||||
Distributable earnings |
| (41,785 | ) |
| (14,455 | ) |
| (3,685 | ) |
| (2,102 | ) | ||||
CAPITAL SHARE TRANSACTIONS: |
|
|
|
|
|
|
|
| ||||||||
Net proceeds from sale of shares |
| 9,641 |
|
| 1,001,269 |
|
| 364,986 |
|
| 165,677 |
| ||||
Cost of shares redeemed |
| (3,471 | ) |
| (716 | ) |
| (1,648 | ) |
| (3,727 | ) | ||||
Net increase in net assets resulting from capital share transactions |
| 6,170 |
|
| 1,000,553 |
|
| 363,338 |
|
| 161,950 |
| ||||
Net Increase in Net Assets |
| 19,841 |
|
| 991,068 |
|
| 390,351 |
|
| 171,739 |
| ||||
NET ASSETS: |
|
|
|
|
|
|
|
| ||||||||
Beginning of period | $ | 991,068 |
| $ | — |
| $ | — |
| $ | — |
| ||||
End of period | $ | 1,010,909 |
| $ | 991,068 |
| $ | 390,351 |
| $ | 171,739 |
| ||||
SHARES SOLD AND REDEEMED: |
|
|
|
|
|
|
|
| ||||||||
Shares outstanding, beginning of period |
| 100,055 |
|
| — |
|
| — |
|
| — |
| ||||
Shares sold |
| 961 |
|
| 100,128 |
|
| 34,932 |
|
| 16,123 |
| ||||
Shares redeemed |
| (348 | ) |
| (73 | ) |
| (149 | ) |
| (343 | ) | ||||
Shares outstanding, end of period |
| 100,668 |
|
| 100,055 |
|
| 34,783 |
|
| 15,780 |
| ||||
* Commencement of operations.
See Notes to Financial Statements.
WisdomTree Digital Trust 27
Statements of Changes in Net Assets (continued) WisdomTree Digital Trust
|
WisdomTree | WisdomTree | WisdomTree | ||||||||||||||||||
For the Period | For the | For the Period | For the | For the Period | ||||||||||||||||
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS: |
|
|
|
|
|
|
|
|
|
| ||||||||||
Net investment income | $ | 2,508 |
| $ | 43,538 |
| $ | 19,794 |
| $ | 19,411 |
| $ | 6,566 |
| |||||
Net realized gain (loss) on investments |
| 884 |
|
| (4,001 | ) |
| (2,206 | ) |
| 116,780 |
|
| 11,118 |
| |||||
Net increase in unrealized appreciation/depreciation on investments |
| 5,965 |
|
| 694,031 |
|
| 348,803 |
|
| 890,427 |
|
| 656,011 |
| |||||
Net increase in net assets resulting from operations |
| 9,357 |
|
| 733,568 |
|
| 366,391 |
|
| 1,026,618 |
|
| 673,695 |
| |||||
DISTRIBUTIONS TO SHAREHOLDERS: |
|
|
|
|
|
|
|
|
|
| ||||||||||
Distributable earnings |
| (1,933 | ) |
| (41,292 | ) |
| (19,304 | ) |
| (134,406 | ) |
| — |
| |||||
Tax return of capital |
| — |
|
| — |
|
| (253 | ) |
| — |
|
| — |
| |||||
Total distributions to shareholders |
| (1,933 | ) |
| (41,292 | ) |
| (19,557 | ) |
| (134,406 | ) |
| — |
| |||||
CAPITAL SHARE TRANSACTIONS: |
|
|
|
|
|
|
|
|
|
| ||||||||||
Net proceeds from sale of shares |
| 138,984 |
|
| 27,606 |
|
| 2,501,136 |
|
| 100,184 |
|
| 2,001,357 |
| |||||
Cost of shares redeemed |
| (1,100 | ) |
| (6,257 | ) |
| (882 | ) |
| (5,655 | ) |
| (1,349 | ) | |||||
Net increase in net assets resulting from capital share transactions |
| 137,884 |
|
| 21,349 |
|
| 2,500,254 |
|
| 94,529 |
|
| 2,000,008 |
| |||||
Net Increase in Net Assets |
| 145,308 |
|
| 713,625 |
|
| 2,847,088 |
|
| 986,741 |
|
| 2,673,703 |
| |||||
NET ASSETS: |
|
|
|
|
|
|
|
|
|
| ||||||||||
Beginning of period | $ | — |
| $ | 2,847,088 |
| $ | — |
| $ | 2,673,703 |
| $ | — |
| |||||
End of period | $ | 145,308 |
| $ | 3,560,713 |
| $ | 2,847,088 |
| $ | 3,660,444 |
| $ | 2,673,703 |
| |||||
SHARES SOLD AND REDEEMED: |
|
|
|
|
|
|
|
|
|
| ||||||||||
Shares outstanding, beginning of period |
| — |
|
| 250,024 |
|
| — |
|
| 200,004 |
|
| — |
| |||||
Shares sold |
| 13,662 |
|
| 2,253 |
|
| 250,106 |
|
| 6,544 |
|
| 200,122 |
| |||||
Shares redeemed |
| (104 | ) |
| (496 | ) |
| (82 | ) |
| (382 | ) |
| (118 | ) | |||||
Shares outstanding, end of period |
| 13,558 |
|
| 251,781 |
|
| 250,024 |
|
| 206,166 |
|
| 200,004 |
| |||||
* Commencement of operations.
See Notes to Financial Statements.
28 WisdomTree Digital Trust
Statements of Changes in Net Assets (continued) WisdomTree Digital Trust
|
WisdomTree | WisdomTree | WisdomTree | ||||||||||||||||||||||
For the | For the Period | For the | For the Period | For the | For the Period | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Net investment income | $ | 35,267 |
| $ | 15,665 |
| $ | 34,189 |
| $ | 14,968 |
| $ | 70,125 |
| $ | 22,018 |
| ||||||
Net realized loss on investments |
| (10,022 | ) |
| (1,863 | ) |
| (30,392 | ) |
| (5,172 | ) |
| (300 | ) |
| — |
| ||||||
Net increase (decrease) in unrealized appreciation/depreciation on investments |
| 3,253 |
|
| (26,724 | ) |
| (2,233 | ) |
| (31,443 | ) |
| 302 |
|
| 311 |
| ||||||
Net increase (decrease) in net assets resulting from operations |
| 28,498 |
|
| (12,922 | ) |
| 1,564 |
|
| (21,647 | ) |
| 70,127 |
|
| 22,329 |
| ||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Distributable earnings |
| (35,321 | ) |
| (15,000 | ) |
| (34,214 | ) |
| (14,332 | ) |
| (69,699 | ) |
| (21,032 | ) | ||||||
CAPITAL SHARE TRANSACTIONS: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Net proceeds from sale of shares |
| 1,717 |
|
| 1,000,525 |
|
| 4,445 |
|
| 1,002,666 |
|
| 687,109 |
|
| 1,001,476 |
| ||||||
Cost of shares redeemed |
| (637 | ) |
| (571 | ) |
| (3,518 | ) |
| (2,636 | ) |
| (126,429 | ) |
| (592 | ) | ||||||
Net increase in net assets resulting from capital share transactions |
| 1,080 |
|
| 999,954 |
|
| 927 |
|
| 1,000,030 |
|
| 560,680 |
|
| 1,000,884 |
| ||||||
Net Increase (Decrease) in Net Assets |
| (5,743 | ) |
| 972,032 |
|
| (31,723 | ) |
| 964,051 |
|
| 561,108 |
|
| 1,002,181 |
| ||||||
NET ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Beginning of period | $ | 972,032 |
| $ | — |
| $ | 964,051 |
| $ | — |
| $ | 1,002,181 |
| $ | — |
| ||||||
End of period | $ | 966,289 |
| $ | 972,032 |
| $ | 932,328 |
| $ | 964,051 |
| $ | 1,563,289 |
| $ | 1,002,181 |
| ||||||
SHARES SOLD AND REDEEMED: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Shares outstanding, beginning of period |
| 100,000 |
|
| — |
|
| 100,003 |
|
| — |
|
| 1,000,883 |
|
| — |
| ||||||
Shares sold |
| 177 |
|
| 100,058 |
|
| 468 |
|
| 100,273 |
|
| 681,419 |
|
| 1,001,471 |
| ||||||
Shares redeemed |
| (65 | ) |
| (58 | ) |
| (383 | ) |
| (270 | ) |
| (125,463 | ) |
| (588 | ) | ||||||
Shares outstanding, end of period |
| 100,112 |
|
| 100,000 |
|
| 100,088 |
|
| 100,003 |
|
| 1,556,839 |
|
| 1,000,883 |
| ||||||
* Commencement of operations.
See Notes to Financial Statements.
WisdomTree Digital Trust 29
Statements of Changes in Net Assets (continued) WisdomTree Digital Trust
|
WisdomTree | WisdomTree | WisdomTree | ||||||||||||||||||||||
For the | For the Period | For the | For the Period | For the | For the Period | |||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Net investment income | $ | 35,828 |
| $ | 16,083 |
| $ | 41,143 |
| $ | 22,592 |
| $ | 49,672 |
| $ | 25,319 |
| ||||||
Net realized gain (loss) on investments |
| (5,200 | ) |
| (3,115 | ) |
| (3,013 | ) |
| (552 | ) |
| (2,791 | ) |
| 40 |
| ||||||
Net increase (decrease) in unrealized appreciation/depreciation on investments |
| (97,752 | ) |
| (50,289 | ) |
| 4,466 |
|
| (14,257 | ) |
| (24,914 | ) |
| (24,990 | ) | ||||||
Net increase (decrease) in net assets resulting from operations |
| (67,124 | ) |
| (37,321 | ) |
| 42,596 |
|
| 7,783 |
|
| 21,967 |
|
| 369 |
| ||||||
DISTRIBUTIONS TO SHAREHOLDERS: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Distributable earnings |
| (35,901 | ) |
| (15,408 | ) |
| (41,193 | ) |
| (21,821 | ) |
| (50,091 | ) |
| (23,838 | ) | ||||||
CAPITAL SHARE TRANSACTIONS: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Net proceeds from sale of shares |
| 1,429 |
|
| 1,000,548 |
|
| 99,012 |
|
| 901,336 |
|
| 1,825 |
|
| 1,000,971 |
| ||||||
Cost of shares redeemed |
| (861 | ) |
| (496 | ) |
| (95,672 | ) |
| (1,229 | ) |
| (1,469 | ) |
| (941 | ) | ||||||
Net increase in net assets resulting from capital share transactions |
| 568 |
|
| 1,000,052 |
|
| 3,340 |
|
| 900,107 |
|
| 356 |
|
| 1,000,030 |
| ||||||
Net Increase (Decrease) in Net Assets |
| (102,457 | ) |
| 947,323 |
|
| 4,743 |
|
| 886,069 |
|
| (27,768 | ) |
| 976,561 |
| ||||||
NET ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Beginning of period | $ | 947,323 |
| $ | — |
| $ | 986,069 |
| $ | 100,0001 |
| $ | 976,561 |
| $ | — |
| ||||||
End of period | $ | 844,866 |
| $ | 947,323 |
| $ | 990,812 |
| $ | 986,069 |
| $ | 948,793 |
| $ | 976,561 |
| ||||||
SHARES SOLD AND REDEEMED: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Shares outstanding, beginning of period |
| 100,005 |
|
| — |
|
| 1,000,102 |
|
| 100,0001 |
|
| 100,003 |
|
| — |
| ||||||
Shares sold |
| 159 |
|
| 100,057 |
|
| 100,137 |
|
| 901,334 |
|
| 188 |
|
| 100,098 |
| ||||||
Shares redeemed |
| (99 | ) |
| (52 | ) |
| (96,325 | ) |
| (1,232 | ) |
| (153 | ) |
| (95 | ) | ||||||
Shares outstanding, end of period |
| 100,065 |
|
| 100,005 |
|
| 1,003,914 |
|
| 1,000,102 |
|
| 100,038 |
|
| 100,003 |
| ||||||
* Commencement of operations.
1 Includes activity from July 13, 2022 in connection with the organization of the Fund, in which WisdomTree Inc. (formerly, WisdomTree Investments, Inc.), the ultimate parent company of the Fund’s Adviser, WisdomTree Digital Management, Inc., contributed $100,000 in exchange for 100,000 shares of the Fund.
See Notes to Financial Statements.
30 WisdomTree Digital Trust
Statements of Changes in Net Assets (concluded) WisdomTree Digital Trust
|
WisdomTree | ||||
For the Period | ||||
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS: |
|
| ||
Net investment income | $ | 151,783 |
| |
Net realized gain on investments |
| 1,846 |
| |
Net increase from payment by sub-adviser |
| 1,775 |
| |
Net increase in net assets resulting from operations |
| 155,404 |
| |
DISTRIBUTIONS TO SHAREHOLDERS: |
|
| ||
Distributable earnings |
| (153,558 | ) | |
CAPITAL SHARE TRANSACTIONS: |
|
| ||
Net proceeds from sale of shares |
| 5,676,473 |
| |
Distributions reinvested |
| 129,826 |
| |
Cost of shares redeemed |
| (131,754 | ) | |
Net increase in net assets resulting from capital share transactions |
| 5,674,545 |
| |
Net Increase in Net Assets |
| 5,676,391 |
| |
NET ASSETS: |
|
| ||
Beginning of period | $ | — |
| |
End of period | $ | 5,676,391 |
| |
SHARES SOLD AND REDEEMED: |
|
| ||
Shares outstanding, beginning of period |
| — |
| |
Shares sold |
| 5,676,473 |
| |
Shares reinvested |
| 129,826 |
| |
Shares redeemed |
| (131,754 | ) | |
Shares outstanding, end of period |
| 5,674,545 |
| |
* Commencement of operations.
See Notes to Financial Statements.
WisdomTree Digital Trust 31
Financial Highlights WisdomTree Digital Trust
Selected data for a share of beneficial interest outstanding throughout the period is presented below: |
WisdomTree Short-Duration Income Digital Fund | For the | For the Period | ||||||
Net asset value, beginning of period | $ | 9.91 |
| $ | 10.00 |
| ||
Investment operations: |
|
|
|
| ||||
Net investment income1 |
| 0.42 |
|
| 0.18 |
| ||
Net realized and unrealized gain (loss) |
| 0.13 |
|
| (0.13 | ) | ||
Total from investment operations |
| 0.55 |
|
| 0.05 |
| ||
Dividends to shareholders: |
|
|
|
| ||||
Net investment income |
| (0.42 | ) |
| (0.14 | ) | ||
Net asset value, end of period | $ | 10.04 |
| $ | 9.91 |
| ||
TOTAL RETURN2 |
| 5.60 | % |
| 0.56 | % | ||
RATIOS/SUPPLEMENTAL DATA: |
|
|
|
| ||||
Net assets, end of period (000’s omitted) | $ | 1,011 |
| $ | 991 |
| ||
Ratios to average net assets of: |
|
|
|
| ||||
Expenses3 |
| 0.15 | % |
| 0.15 | %4 | ||
Net investment income |
| 4.24 | % |
| 4.00 | %4 | ||
Portfolio turnover rate5 |
| 14 | % |
| 3 | % | ||
WisdomTree Siegel Global Equity Digital Fund | For the Period | |||
Net asset value, beginning of period | $ | 10.00 |
| |
Investment operations: |
|
| ||
Net investment income1 |
| 0.19 |
| |
Net realized and unrealized gain |
| 1.16 |
| |
Total from investment operations |
| 1.35 |
| |
Dividends to shareholders: |
|
| ||
Net investment income |
| (0.13 | ) | |
Net asset value, end of period | $ | 11.22 |
| |
TOTAL RETURN2 |
| 13.54 | % | |
RATIOS/SUPPLEMENTAL DATA: |
|
| ||
Net assets, end of period (000’s omitted) | $ | 390 |
| |
Ratios to average net assets of: |
|
| ||
Expenses3 |
| 0.15 | %4 | |
Net investment income |
| 3.06 | %4 | |
Portfolio turnover rate5 |
| 26 | % | |
* Commencement of operations.
1 Based on average shares outstanding.
2 Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period (excluding sales loads and/or account fees, if any), reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period. Total return calculated for a period of less than one year is not annualized.
3 Does not include expenses of the underlying investment companies in which the Fund invests.
4 Annualized.
5 Portfolio turnover rate is not annualized for fiscal periods less than one year. Short-term securities with maturities less than or equal to 365 days are excluded from the portfolio turnover calculation.
See Notes to Financial Statements.
32 WisdomTree Digital Trust
Financial Highlights (continued) WisdomTree Digital Trust
Selected data for a share of beneficial interest outstanding throughout the period is presented below: |
WisdomTree Siegel Longevity Digital Fund | For the Period | |||
Net asset value, beginning of period | $ | 10.00 |
| |
Investment operations: |
|
| ||
Net investment income1 |
| 0.22 |
| |
Net realized and unrealized gain |
| 0.82 |
| |
Total from investment operations |
| 1.04 |
| |
Dividends to shareholders: |
|
| ||
Net investment income |
| (0.16 | ) | |
Net asset value, end of period | $ | 10.88 |
| |
TOTAL RETURN2 |
| 10.40 | % | |
RATIOS/SUPPLEMENTAL DATA: |
|
| ||
Net assets, end of period (000’s omitted) | $ | 172 |
| |
Ratios to average net assets of: |
|
| ||
Expenses3 |
| 0.15 | %4 | |
Net investment income |
| 3.56 | %4 | |
Portfolio turnover rate5 |
| 23 | % | |
WisdomTree Siegel Moderate Digital Fund | For the Period | |||
Net asset value, beginning of period | $ | 10.00 |
| |
Investment operations: |
|
| ||
Net investment income1 |
| 0.22 |
| |
Net realized and unrealized gain |
| 0.66 |
| |
Total from investment operations |
| 0.88 |
| |
Dividends to shareholders: |
|
| ||
Net investment income |
| (0.16 | ) | |
Net asset value, end of period | $ | 10.72 |
| |
TOTAL RETURN2 |
| 8.85 | % | |
RATIOS/SUPPLEMENTAL DATA: |
|
| ||
Net assets, end of period (000’s omitted) | $ | 145 |
| |
Ratios to average net assets of: |
|
| ||
Expenses3 |
| 0.15 | %4 | |
Net investment income |
| 3.74 | %4 | |
Portfolio turnover rate5 |
| 66 | % | |
* Commencement of operations.
1 Based on average shares outstanding.
2 Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period (excluding sales loads and/or account fees, if any), reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period. Total return calculated for a period of less than one year is not annualized.
3 Does not include expenses of the underlying investment companies in which the Fund invests.
4 Annualized.
5 Portfolio turnover rate is not annualized for fiscal periods less than one year. Short-term securities with maturities less than or equal to 365 days are excluded from the portfolio turnover calculation.
See Notes to Financial Statements.
WisdomTree Digital Trust 33
Financial Highlights (continued) WisdomTree Digital Trust
Selected data for a share of beneficial interest outstanding throughout the period is presented below: |
WisdomTree 500 Digital Fund | For the | For the Period | ||||||
Net asset value, beginning of period | $ | 11.39 |
| $ | 10.00 |
| ||
Investment operations: |
|
|
|
| ||||
Net investment income1 |
| 0.17 |
|
| 0.08 |
| ||
Net realized and unrealized gain |
| 2.74 |
|
| 1.39 |
| ||
Total from investment operations |
| 2.91 |
|
| 1.47 |
| ||
Dividends and distributions to shareholders: |
|
|
|
| ||||
Net investment income |
| (0.16 | ) |
| (0.08 | ) | ||
Tax return of capital |
| — |
|
| (0.00 | )2 | ||
Total dividends and distributions to shareholders |
| (0.16 | ) |
| (0.08 | ) | ||
Net asset value, end of period | $ | 14.14 |
| $ | 11.39 |
| ||
TOTAL RETURN3 |
| 25.77 | % |
| 14.74 | % | ||
RATIOS/SUPPLEMENTAL DATA: |
|
|
|
| ||||
Net assets, end of period (000’s omitted) | $ | 3,561 |
| $ | 2,847 |
| ||
Ratios to average net assets of: |
|
|
|
| ||||
Expenses |
| 0.05 | % |
| 0.01 | %4,5 | ||
Net investment income |
| 1.40 | % |
| 1.68 | %4 | ||
Portfolio turnover rate6 |
| 3 | % |
| 1 | % | ||
WisdomTree Technology and Innovation 100 Digital Fund | For the | For the Period | ||||||
Net asset value, beginning of period | $ | 13.37 |
| $ | 10.00 |
| ||
Investment operations: |
|
|
|
| ||||
Net investment income1 |
| 0.10 |
|
| 0.03 |
| ||
Net realized and unrealized gain |
| 4.95 |
|
| 3.34 |
| ||
Total from investment operations |
| 5.05 |
|
| 3.37 |
| ||
Dividends and distributions to shareholders: |
|
|
|
| ||||
Net investment income |
| (0.08 | ) |
| — |
| ||
Capital gains |
| (0.59 | ) |
| — |
| ||
Total dividends and distributions to shareholders |
| (0.67 | ) |
| — |
| ||
Net asset value, end of period | $ | 17.75 |
| $ | 13.37 |
| ||
TOTAL RETURN3 |
| 39.21 | % |
| 33.70 | % | ||
RATIOS/SUPPLEMENTAL DATA: |
|
|
|
| ||||
Net assets, end of period (000’s omitted) | $ | 3,660 |
| $ | 2,674 |
| ||
Ratios to average net assets of: |
|
|
|
| ||||
Expenses |
| 0.10 | % |
| 0.10 | %4 | ||
Net investment income |
| 0.65 | % |
| 0.64 | %4 | ||
Portfolio turnover rate6 |
| 17 | % |
| 1 | % | ||
* Commencement of operations.
1 Based on average shares outstanding.
2 Amount represents less than $0.005.
3 Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period (excluding sales loads and/or account fees, if any), reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period. Total return calculated for a period of less than one year is not annualized.
4 Annualized.
5 Prior to June 6, 2023, the Fund’s annual advisory fee rate was 0.00% and, thereafter, was increased to 0.05% per annum.
6 Portfolio turnover rate is not annualized for fiscal periods less than one year. Short-term securities with maturities less than or equal to 365 days are excluded from the portfolio turnover calculation.
See Notes to Financial Statements.
34 WisdomTree Digital Trust
Financial Highlights (continued) WisdomTree Digital Trust
Selected data for a share of beneficial interest outstanding throughout the period is presented below: |
WisdomTree 3-7 Year Treasury Digital Fund | For the | For the Period | ||||||
Net asset value, beginning of period | $ | 9.72 |
| $ | 10.00 |
| ||
Investment operations: |
|
|
|
| ||||
Net investment income1 |
| 0.35 |
|
| 0.16 |
| ||
Net realized and unrealized loss |
| (0.07) |
|
| (0.29 | ) | ||
Total from investment operations |
| 0.28 |
|
| (0.13 | ) | ||
Dividends to shareholders: |
|
|
|
| ||||
Net investment income |
| (0.35 | ) |
| (0.15 | ) | ||
Net asset value, end of period | $ | 9.65 |
| $ | 9.72 |
| ||
TOTAL RETURN2 |
| 2.95 | % |
| (1.31 | )% | ||
RATIOS/SUPPLEMENTAL DATA: |
|
|
|
| ||||
Net assets, end of period (000’s omitted) | $ | 966 |
| $ | 972 |
| ||
Ratios to average net assets of: |
|
|
|
| ||||
Expenses |
| 0.05 | % |
| 0.01 | %3,4 | ||
Net investment income |
| 3.64 | % |
| 3.54 | %3 | ||
Portfolio turnover rate5 |
| 101 | % |
| 13 | % | ||
WisdomTree 7-10 Year Treasury Digital Fund | For the | For the Period June 30, 2023 | ||||||
Net asset value, beginning of period | $ | 9.64 |
| $ | 10.00 |
| ||
Investment operations: |
|
|
|
| ||||
Net investment income1 |
| 0.34 |
|
| 0.15 |
| ||
Net realized and unrealized loss |
| (0.32 | ) |
| (0.37 | ) | ||
Total from investment operations |
| 0.02 |
|
| (0.22 | ) | ||
Dividends to shareholders: |
|
|
|
| ||||
Net investment income |
| (0.34 | ) |
| (0.14 | ) | ||
Net asset value, end of period | $ | 9.32 |
| $ | 9.64 |
| ||
TOTAL RETURN2 |
| 0.24 | % |
| (2.18 | )% | ||
RATIOS/SUPPLEMENTAL DATA: |
|
|
|
| ||||
Net assets, end of period (000’s omitted) | $ | 932 |
| $ | 964 |
| ||
Ratios to average net assets of: |
|
|
|
| ||||
Expenses |
| 0.05 | % |
| 0.01 | %3,4 | ||
Net investment income |
| 3.64 | % |
| 3.41 | %3 | ||
Portfolio turnover rate5 |
| 79 | % |
| 16 | % | ||
* Commencement of operations.
1Based on average shares outstanding.
2Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period (excluding sales loads and/or account fees, if any), reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period. Total return calculated for a period of less than one year is not annualized.
3Annualized.
4Prior to June 6, 2023, the Fund’s annual advisory fee rate was 0.00% and, thereafter, was increased to 0.05% per annum.
5Portfolio turnover rate is not annualized for fiscal periods less than one year. Short-term securities with maturities less than or equal to 365 days are excluded from the portfolio turnover calculation.
See Notes to Financial Statements.
WisdomTree Digital Trust 35
Financial Highlights (continued) WisdomTree Digital Trust
Selected data for a share of beneficial interest outstanding throughout the period is presented below: |
WisdomTree Floating Rate Treasury Digital Fund | For the | For the Period | ||||||
Net asset value, beginning of period | $ | 1.00 |
| $ | 1.00 |
| ||
Investment operations: |
|
|
|
| ||||
Net investment income1 |
| 0.05 |
|
| 0.02 |
| ||
Net realized and unrealized gain |
| 0.002 |
|
| 0.002 |
| ||
Total from investment operations |
| 0.05 |
|
| 0.02 |
| ||
Dividends to shareholders: |
|
|
|
| ||||
Net investment income |
| (0.05 | ) |
| (0.02 | ) | ||
Net asset value, end of period | $ | 1.00 |
| $ | 1.00 |
| ||
TOTAL RETURN3 |
| 5.52 | % |
| 2.25 | % | ||
RATIOS/SUPPLEMENTAL DATA: |
|
|
|
| ||||
Net assets, end of period (000’s omitted) | $ | 1,563 |
| $ | 1,002 |
| ||
Ratios to average net assets of: |
|
|
|
| ||||
Expenses |
| 0.05 | % |
| 0.01 | %4,5 | ||
Net investment income |
| 5.41 | % |
| 4.90 | %4 | ||
Portfolio turnover rate6 |
| 78 | % |
| 0 | % | ||
WisdomTree Long-Term Treasury Digital Fund | For the | For the Period | ||||||
Net asset value, beginning of period | $ | 9.47 |
| $ | 10.00 |
| ||
Investment operations: |
|
|
|
| ||||
Net investment income1 |
| 0.36 |
|
| 0.16 |
| ||
Net realized and unrealized loss |
| (1.03 | ) |
| (0.54 | ) | ||
Total from investment operations |
| (0.67) |
|
| (0.38) |
| ||
Dividends to shareholders: |
|
|
|
| ||||
Net investment income |
| (0.36 | ) |
| (0.15 | ) | ||
Net asset value, end of period | $ | 8.44 |
| $ | 9.47 |
| ||
TOTAL RETURN3 |
| (7.12 | )% |
| (3.77 | )% | ||
RATIOS/SUPPLEMENTAL DATA: |
|
|
|
| ||||
Net assets, end of period (000’s omitted) | $ | 845 |
| $ | 947 |
| ||
Ratios to average net assets of: |
|
|
|
| ||||
Expenses |
| 0.05 | % |
| 0.01 | %4,5 | ||
Net investment income |
| 4.15 | % |
| 3.74 | %4 | ||
Portfolio turnover rate6 |
| 6 | % |
| 8 | % | ||
* Commencement of operations.
1Based on average shares outstanding.
2Amount represents less than $0.005.
3Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period (excluding sales loads and/or account fees, if any), reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period. Total return calculated for a period of less than one year is not annualized.
4Annualized.
5Prior to June 6, 2023, the Fund’s annual advisory fee rate was 0.00% and, thereafter, was increased to 0.05% per annum.
6Portfolio turnover rate is not annualized for fiscal periods less than one year. Short-term securities with maturities less than or equal to 365 days are excluded from the portfolio turnover calculation.
See Notes to Financial Statements.
36 WisdomTree Digital Trust
Financial Highlights (continued) WisdomTree Digital Trust
Selected data for a share of beneficial interest outstanding throughout the period is presented below: |
WisdomTree Short-Term Treasury Digital Fund | For the | For the Period | ||||||
Net asset value, beginning of period | $ | 0.99 |
| $ | 1.00 |
| ||
Investment operations: |
|
|
|
| ||||
Net investment income1 |
| 0.04 |
|
| 0.02 |
| ||
Net realized and unrealized gain (loss) |
| 0.002 |
|
| (0.01 | ) | ||
Total from investment operations |
| 0.04 |
|
| 0.01 |
| ||
Dividends to shareholders: |
|
|
|
| ||||
Net investment income |
| (0.04 | ) |
| (0.02 | ) | ||
Net asset value, end of period | $ | 0.99 |
| $ | 0.99 |
| ||
TOTAL RETURN3 |
| 4.14 | % |
| 0.77 | % | ||
RATIOS/SUPPLEMENTAL DATA: |
|
|
|
| ||||
Net assets, end of period (000’s omitted) | $ | 991 |
| $ | 986 |
| ||
Ratios to average net assets of: |
|
|
|
| ||||
Expenses |
| 0.05 | % |
| 0.01 | %4,5 | ||
Net investment income |
| 4.01 | % |
| 4.14 | %4 | ||
Portfolio turnover rate6 |
| 256 | % |
| 30 | % | ||
WisdomTree TIPS Digital Fund | For the | For the Period | ||||||
Net asset value, beginning of period | $ | 9.77 |
| $ | 10.00 |
| ||
Investment operations: |
|
|
|
| ||||
Net investment income1 |
| 0.50 |
|
| 0.25 |
| ||
Net realized and unrealized loss |
| (0.29 | ) |
| (0.24 | ) | ||
Total from investment operations |
| 0.21 |
|
| 0.01 |
| ||
Dividends and distributions to shareholders: |
|
|
|
| ||||
Net investment income |
| (0.50 | ) |
| (0.24 | ) | ||
Capital gains |
| (0.00 | )2 |
| — |
| ||
Total dividends and distributions to shareholders |
| (0.50 | ) |
| (0.24 | ) | ||
Net asset value, end of period | $ | 9.48 |
| $ | 9.77 |
| ||
TOTAL RETURN3 |
| 2.22 | % |
| 0.08 | % | ||
RATIOS/SUPPLEMENTAL DATA: |
|
|
|
| ||||
Net assets, end of period (000’s omitted) | $ | 949 |
| $ | 977 |
| ||
Ratios to average net assets of: |
|
|
|
| ||||
Expenses |
| 0.05 | % |
| 0.01 | %4,5 | ||
Net investment income |
| 5.18 | % |
| 5.67 | %4 | ||
Portfolio turnover rate6 |
| 51 | % |
| 38 | % | ||
* Commencement of operations.
1 Based on average shares outstanding.
2 Amount represents less than $0.005.
3 Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period (excluding sales loads and/or account fees, if any), reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period. Total return calculated for a period of less than one year is not annualized.
4 Annualized.
5 Prior to June 6, 2023, the Fund’s annual advisory fee rate was 0.00% and, thereafter, was increased to 0.05% per annum.
6 Portfolio turnover rate is not annualized for fiscal periods less than one year. Short-term securities with maturities less than or equal to 365 days are excluded from the portfolio turnover calculation.
See Notes to Financial Statements.
WisdomTree Digital Trust 37
Financial Highlights (concluded) WisdomTree Digital Trust
Selected data for a share of beneficial interest outstanding throughout the period is presented below: |
WisdomTree Government Money Market Digital Fund | For the Period | |||
Net asset value, beginning of period | $ | 1.00 |
| |
Investment operations: |
|
| ||
Net investment income |
| 0.03 |
| |
Net realized gain |
| 0.001 |
| |
Net increase from payment by sub-adviser |
| 0.001 |
| |
Total from investment operations |
| 0.03 |
| |
Dividends to shareholders: |
|
| ||
Net investment income |
| (0.03 | ) | |
Net asset value, end of period | $ | 1.00 |
| |
TOTAL RETURN2 |
| 3.38 | %3 | |
RATIOS/SUPPLEMENTAL DATA: |
|
| ||
Net assets, end of period (000’s omitted) | $ | 5,676 |
| |
Ratios to average net assets of: |
|
| ||
Expenses |
| 0.25 | %4 | |
Net investment income |
| 5.08 | %4 | |
* Commencement of operations.
1 Amount represents less than $0.005.
2 Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period (excluding sales loads and/or account fees, if any), reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period. Total return calculated for a period of less than one year is not annualized.
3 Includes a reimbursement from the sub-advisor for an operational error. Excluding this reimbursement, total return would have been unchanged (Note 3).
4 Annualized.
See Notes to Financial Statements.
38 WisdomTree Digital Trust
Notes to Financial Statements
|
1. ORGANIZATION
WisdomTree Digital Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust was established as a Delaware statutory trust on April 19, 2021 and is authorized to have multiple series or portfolios (each a “Fund”, collectively, the “Funds”). These notes relate only to the Funds listed below. In accordance with Accounting Standards Codification Topic 946, Financial Services-Investment Companies, each Fund qualifies as an investment company and is applying the accounting and reporting guidance for investment companies.
Fund | Commencement |
WisdomTree Short-Duration Income Digital Fund (“Short-Duration Income Digital Fund”) | January 19, 2023 |
WisdomTree Siegel Global Equity Digital Fund (“Siegel Global Equity Digital Fund”) | December 6, 2023 |
WisdomTree Siegel Longevity Digital Fund (“Siegel Longevity Digital Fund”) | December 6, 2023 |
WisdomTree Siegel Moderate Digital Fund (“Siegel Moderate Digital Fund”) | December 6, 2023 |
WisdomTree 500 Digital Fund (“500 Digital Fund”) | January 19, 2023 |
WisdomTree Technology and Innovation 100 Digital Fund (“Technology and Innovation 100 Digital Fund”) | January 19, 2023 |
WisdomTree 3-7 Year Treasury Digital Fund (“3-7 Year Treasury Digital Fund”) | January 19, 2023 |
WisdomTree 7-10 Year Treasury Digital Fund (“7-10 Year Treasury Digital Fund”) | January 19, 2023 |
WisdomTree Floating Rate Treasury Digital Fund (“Floating Rate Treasury Digital Fund”) | January 19, 2023 |
WisdomTree Long-Term Treasury Digital Fund (“Long-Term Treasury Digital Fund”) | January 19, 2023 |
WisdomTree Short-Term Treasury Digital Fund (“Short-Term Treasury Digital Fund”) | December 14, 2022 |
WisdomTree TIPS Digital Fund (“TIPS Digital Fund”) | January 19, 2023 |
WisdomTree Government Money Market Digital Fund (“Government Money Market Digital Fund”) | November 7, 2023 |
Each Fund, except the Short-Duration Income Digital Fund, Siegel Global Equity Digital Fund, Siegel Longevity Digital Fund, Siegel Moderate Digital Fund and Government Money Market Digital Fund, seeks to track the price and yield performance, before fees and expenses, of a particular index (“Index”) developed by WisdomTree, Inc. (“WisdomTree”) or an Index developed by a third party. WisdomTree is the parent company of WisdomTree Digital Management, Inc. (“WTDM” or “Adviser”), the investment adviser to each Fund and the Trust. “WisdomTree” is a registered trademark of WisdomTree and has been licensed for use by the Trust. Each Fund described herein, except the Technology and Innovation 100 Digital Fund, is considered to be diversified as defined under the 1940 Act. The Technology and Innovation 100 Digital Fund is considered to be non-diversified as defined under the 1940 Act.
In the normal course of business, the Funds may enter into contracts that contain a variety of representations or that provide indemnification for certain liabilities. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and believe such exposure to be remote.
2. SIGNIFICANT ACCOUNTING POLICIES
The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (the “Codification”) is the exclusive reference of authoritative U.S. generally accepted accounting principles (“GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under authority of federal laws are also sources of authoritative GAAP for SEC registrants.
The following is a summary of significant accounting policies followed by the Funds:
Use of Estimates — The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in the net assets from operations during the reporting period. Actual results could differ from those estimates.
Investment Valuation — The net asset value (“NAV”) of each Fund’s shares is calculated each day a Fund is open for business as of the regularly scheduled close of regular trading on the New York Stock Exchange, normally 4:00 p.m. Eastern time (the “NAV Calculation Time”). NAV per share is calculated by dividing each Fund’s net assets by the number of Fund shares outstanding. In calculating each Fund’s NAV, investments are valued under policies approved by the Board of Trustees of the Trust (the “Board” or “Board of Trustees”). Fixed income securities (including short-term debt securities with remaining maturities of 60 days or less and to-be-announced (“TBA”) securities) generally are valued at current market quotations or mean prices obtained from broker-dealers or independent pricing service providers, except the Government Money Market Digital Fund. Broker-dealers or independent pricing service providers, in determining the value of securities, may consider such factors as recent transactions, indications from yields and quoted prices from broker-dealers on similar securities, and market sentiment for the type of security.
WisdomTree Digital Trust 39
Notes to Financial Statements (continued)
|
U.S. fixed income securities may be valued as of the announced closing time for such securities on any day that the Securities Industry and Financial Markets Association announces an early closing time. Equity securities (including preferred stock) traded on any recognized U.S. or non-U.S. exchange are valued at the last sale price or official closing price on the exchange on which they are principally traded. Unlisted equity securities (including preferred stock) are valued at the last sale price or, if no sale price is available, at the mean between the highest bid and lowest ask price. The Short-Duration Income Digital Fund, Siegel Global Equity Digital Fund, Siegel Longevity Digital Fund, and Siegel Moderate Digital Fund invest in exchange-traded funds (“ETFs” or “ETF”) which are valued at their last sale price or official closing price on the exchange on which they are principally traded or at their NAV per share in instances where the ETF has not traded on its principal exchange.
Pursuant to Board-approved valuation procedures established by the Trust and WTDM, the Board has appointed WTDM as the Funds’ valuation designee (the “Valuation Designee”) to perform all fair valuations of the Funds’ portfolio investments, subject to the Board’s oversight. As the Valuation Designee, WTDM has established procedures for its fair valuation of each Fund’s portfolio investments. These procedures address, among other things, determining when market quotations are not readily available or reliable and the methodologies to be used for determining the fair value of investments, as well as the use and oversight of third-party pricing services for fair valuation. The Valuation Designee is comprised of senior representatives of WTDM and reports to the Board of Trustees on a quarterly basis. In the event that a financial instrument cannot be valued based upon a price from the exchange or system on which it is principally traded, independent pricing service provider or broker-dealer quotation, or such prices are deemed to not reflect current market value, the Valuation Designee may value the financial instrument in good faith under the policies and procedures approved by the Board of Trustees based on current facts and circumstances. Securities that may be valued using “fair value” pricing may include, but are not limited to, securities for which there are no current market quotations, securities whose issuer is in default or bankruptcy, securities subject to corporate actions (such as mergers or reorganizations), securities subject to non-U.S. investment limits or currency controls, and securities affected by “significant events.” An example of a significant event is an event occurring after the close of the market in which a security trades but before each Fund’s next NAV Calculation Time that may materially affect the value of a Fund’s investment (e.g., government action, natural disaster, or significant market fluctuation). When fair value pricing is employed, the prices of securities used by a Fund to calculate its NAV may differ from quoted or published prices for the same securities.
The Government Money Market Digital Fund attempts to maintain a stable net asset value of $1.00 per share. There is no assurance, however, that the Fund will be able to maintain a stable net asset value of $1.00 per share. The Fund has adopted certain investment valuation and dividend/distribution policies in an attempt to enable it to do so. Under Rule 2a-7 under the 1940 Act, as amended (“Rule 2a-7”), the Government Money Market Digital Fund has adopted a policy to operate as a government money market fund. Under Rule 2a-7, a government money market fund invests substantially all of its total assets in cash, government securities, and/or repurchase agreements that are collateralized fully (i.e., collateralized by cash and/or government securities). As a government money market fund, the Government Money Market Digital Fund values its investments at amortized cost unless the Valuation Designee determines that this does not represent fair value. Periodic review and monitoring of the valuation of the securities held by the Fund is performed in an effort to ensure that amortized cost approximates market value.
Fair Value Measurement — In accordance with Codification Topic 820 (“ASC 820”), Fair Value Measurements and Disclosures, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Valuation Designee will perform other procedures (consistent with GAAP) to value an investment when a market quote is not available. ASC 820 established a three-tier hierarchy of inputs to be used when determining fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk — for example, the risk inherent in a particular valuation technique used to measure fair value (such as a pricing model) and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad levels listed below:
Level 1 – quoted prices in active markets for identical securities
Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 – significant unobservable inputs (including the Fund’s assumptions in determining the fair value of investments)
The inputs or methodology used for valuation are not necessarily an indication of the risk associated with investing in those investments.
Investments that use Level 2 or Level 3 inputs may include, but are not limited to: (i) an unlisted security related to corporate actions; (ii) a restricted security (e.g., one that may not be publicly sold without registration under the Securities Act of 1933, as amended); (iii) a security whose trading has been suspended (either due to events affecting the issuer of the security specifically
40 WisdomTree Digital Trust
Notes to Financial Statements (continued)
|
or events affecting the primary trading exchange more broadly) or which has been de-listed from its primary trading exchange; (iv) a security that is thinly traded; (v) a security in default or bankruptcy proceedings for which there is no current market quotation or market activity; (vi) a security affected by currency controls or restrictions; (vii) fixed income securities valued by a broker-dealer or independent pricing service provider; and (viii) a security affected by a significant event (e.g., an event that occurs after the close of the markets in which the security is traded but before the time as of which each Fund’s NAV is computed and that may materially affect the value of the Fund’s investments).
The valuation techniques and significant inputs used in determining the fair market value measurements for Level 2 and Level 3 positions are as follows:
Financial instruments are generally valued by independent pricing service providers that use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. Depending on the type of financial instrument, the independent pricing service providers’ internal pricing models may use inputs that are observable such as issuer details (e.g., credit rating, debt ranking, coupon date, maturity date, etc.), interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar assets. Financial instruments that use similar valuation techniques and observable inputs as described above and have an appropriate level of market activity are categorized as Level 2 of the fair value hierarchy, otherwise a Level 3 fair value classification is appropriate.
Determination of a fair value by the Valuation Designee may include significant unobservable inputs and therefore such financial instruments would be reflected as a Level 3 of the fair value hierarchy. The Valuation Designee may employ a market-based valuation approach which may use, among other potential considerations, related or comparable securities, recent transactions, market multiples, and other relevant information to determine fair value. The Valuation Designee may also use an income-based valuation approach in which anticipated future cash flows of the financial instrument are discounted to calculate fair value.
The summary of fair valuation according to the inputs used in valuing each Fund’s assets as of the measurement date is included in a “Fair Valuation Summary” supplementary table in each applicable Fund’s Schedule of Investments.
During the fiscal year or period ended June 30, 2024, there were no significant transfers into or out of Level 3 of the fair value hierarchy.
Investment Transactions and Investment Income — Investment transactions are recorded as of the date that the securities are purchased or sold (trade date). Realized gains and losses on sales of portfolio securities are calculated using the identified-cost method. Interest income (including amortization of premiums and accretion of discounts), less any foreign taxes withheld, is accrued daily. Generally, amortization of premiums and accretion of discounts are recognized daily using the effective interest method (also known as scientific amortization method). Dividend income (less foreign taxes withheld, if any) is recognized on the ex-dividend date. Upon notification from real estate investment trust (“REIT”) issuers or as estimated by management, all or a portion of the dividend income received from a REIT may be redesignated as a reduction of cost of the related investment and/or as a realized gain. On each measurement date, the Funds evaluate the collectability of receivable balances. Generally, the Funds will write off dividend receivable balances that are canceled by the issuer as of the date that the dividend receivable cancellation notification was publicly made available or when it becomes probable that dividends will not be collected and the amount of uncollectable dividends can be reasonably estimated. In addition, the Funds generally will write-off interest receivable balances in default by the issuer as of the date any applicable interest payment grace period or forbearance period expires or as of the date any interest payment cancellation notification was publicly made available or when it becomes probable that interest will not be collected and the amount of uncollectable interest can be reasonably estimated.
Tax Information and Dividends and Distributions to Shareholders — It is each Fund’s policy to comply with all requirements of the Internal Revenue Code of 1986, as amended (the “Code”). A portion of the Code, known as subchapter M (“Subchapter M”), addresses the ways by which investment companies and investment trusts may pass income through to shareholders in order to avoid double taxation. Each Fund intends to qualify for and to elect treatment as a separate Regulated Investment Company (“RIC”) under Subchapter M of the Code so that it will not be subject to federal income tax on income and gains that are timely distributed to Fund shareholders. Accordingly, no provision for U.S. federal income taxes is required. In order to qualify for the special tax treatment accorded to RICs and their shareholders, each Fund must, among other things, distribute with respect to each taxable year an amount equal to or greater than the sum of 90% of its investment company taxable income and 90% of its net tax-exempt interest income. There can be no guarantee that a Fund will pay dividends. Taxable net realized gains from investment transactions, reduced by capital loss carryforwards, if any, are declared and distributed to shareholders at least annually. The capital loss carryforward amount, if any, is available to offset future net capital gains. Each Fund may occasionally be required to make supplemental distributions at some other time during the year. The Trust reserves the right to declare special distributions if, in its reasonable discretion, such action is necessary or advisable to preserve the status of each Fund as a RIC or to avoid imposition of income or excise taxes on undistributed income. Dividends and distributions to shareholders are recorded on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains is determined in accordance with the requirements of the Code and the U.S. Treasury regulations (i.e., tax basis) which may differ to amounts determined under GAAP (i.e., book basis). These book/tax differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the components of net assets based on their Federal
WisdomTree Digital Trust 41
Notes to Financial Statements (continued)
|
tax basis treatment; temporary differences do not require reclassification. Dividends and distributions that exceed earnings and profit for tax purposes are reported for tax purposes as a return of capital. The Government Money Market Digital Fund declares dividends of net investment income daily and reinvests dividends monthly in full and fractional additional shares of the Fund.
3. ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The Adviser has overall responsibility for the general management and administration of the Trust. The Adviser provides an investment program for each Fund. The Adviser has arranged for Voya Investment Management Co., LLC (“Voya”) to provide sub-advisory services to the 3-7 Year Treasury Digital Fund, 7-10 Year Treasury Digital Fund, Floating Rate Treasury Digital Fund, Long-Term Treasury Digital Fund, Short-Term Treasury Digital Fund, TIPS Digital Fund, and Government Money Market Digital Fund. The Adviser has arranged for Mellon Investments Corporation (“Mellon”) to provide sub-advisory services to the Short-Duration Income Digital Fund, Siegel Global Equity Digital Fund, Siegel Longevity Digital Fund, Siegel Moderate Digital Fund, 500 Digital Fund, and Technology and Innovation 100 Digital Fund. Voya and Mellon are compensated by the Adviser at no additional cost to the Funds. The Adviser also arranges for transfer agency, custody, fund accounting, fund administration and all other related services necessary for the Funds to operate, which are generally under separate agreements entered into between the Trust, on behalf of the Funds, and the applicable service provider. WisdomTree Transfers (“WT Transfers”) is the Funds’ transfer agent and is an affiliate of the Adviser. Under the investment advisory agreement for the Funds, the Adviser has agreed to pay generally all expenses of the Funds, subject to certain exceptions described in Note 4.
The advisory agreement between the Funds and the Adviser provides for an annual fee equal to a percentage of each Fund’s average daily net assets as shown in the table below:
Fund | Advisory |
Short-Duration Income Digital Fund | 0.15% |
Siegel Global Equity Digital Fund | 0.15% |
Siegel Longevity Digital Fund | 0.15% |
Siegel Moderate Digital Fund | 0.15% |
500 Digital Fund | 0.05% |
Technology and Innovation 100 Digital Fund | 0.10% |
3-7 Year Treasury Digital Fund | 0.05% |
7-10 Year Treasury Digital Fund | 0.05% |
Floating Rate Treasury Digital Fund | 0.05% |
Long-Term Treasury Digital Fund | 0.05% |
Short-Term Treasury Digital Fund | 0.05% |
TIPS Digital Fund | 0.05% |
Government Money Market Digital Fund | 0.25% |
Affiliated holdings are investments in entities in which the Fund owns 5% or more of the outstanding voting securities or are investments in entities which are under common ownership or control. Transactions in shares of affiliated Funds for the fiscal year ended June 30, 2024, as applicable, are included in an “Investment in Affiliates” supplementary table in each applicable Fund’s Schedule of Investments.
During the fiscal period ended June 30, 2024, the Government Money Market Digital Fund received a voluntary reimbursement of $1,775 from Voya for investment losses due to an operational error. This voluntary reimbursement is shown in the Statements of Operations in “Net increase from payment by sub-adviser”.
During the fiscal period ended June 30, 2024, WisdomTree made Fund contributions in exchange for Fund shares as shown in the table below:
Fund | Contribution | Contribution | Fund | ||||
Siegel Global Equity Digital Fund | December 6, 2023 | $ | 100,000 | 10,000 | |||
Siegel Longevity Digital Fund | December 6, 2023 |
| 100,000 | 10,000 | |||
Siegel Moderate Digital Fund | December 6, 2023 |
| 100,000 | 10,000 | |||
Government Money Market Digital Fund | November 7, 2023 |
| 1,000,000 | 1,000,000 | |||
December 15, 2023 |
| 4,000,000 | 4,000,000 | ||||
42 WisdomTree Digital Trust
Notes to Financial Statements (continued)
|
WTDM and/or WisdomTree (collectively herein, “WT”) may from time to time own shares of a Fund. As of and for the fiscal year or period ended June 30, 2024, WT held shares of and received distributions from the following Funds:
Fund | At June 30, 2024 | For the Fiscal Year | ||||
Fund Shares | Market Value of | Dividends and | ||||
Short-Duration Income Digital Fund | 100,000 | $ 1,004,200 | $ 41,657 | |||
Siegel Global Equity Digital Fund | 10,000 | 112,226 | 1,300 | |||
Siegel Longevity Digital Fund | 10,000 | 108,832 | 1,568 | |||
Siegel Moderate Digital Fund | 10,000 | 107,173 | 1,623 | |||
500 Digital Fund | 250,000 | 3,535,525 | 41,093 | |||
Technology and Innovation 100 Digital Fund | 200,000 | 3,550,980 | 133,688 | |||
3–7 Year Treasury Digital Fund | 100,000 | 965,190 | 35,295 | |||
7–10 Year Treasury Digital Fund | 100,000 | 931,490 | 34,158 | |||
Floating Rate Treasury Digital Fund | 1,000,000 | 1,004,100 | 51,399 | |||
Long-Term Treasury Digital Fund | 100,000 | 844,310 | 35,873 | |||
Short-Term Treasury Digital Fund | 1,000,000 | 986,900 | 39,391 | |||
TIPS Digital Fund | 100,000 | 948,340 | 50,052 | |||
Government Money Market Digital Fund | 5,125,234 | 5,125,234 | 125,234 | |||
4. EXPENSES, ORGANIZATION AND OFFERING COSTS
Under the investment advisory agreement in accordance with the unitary fee structure, the Adviser has agreed to pay all of the Funds’ organization costs and all of the Funds’ offering costs. Additionally, the Adviser has agreed to pay all expenses of the Trust, except for: (i) brokerage expenses and other fees, charges, taxes, levies or expenses (such as stamp taxes) incurred in connection with the execution of portfolio transactions (including without limitation any fees, charges, taxes, levies or expenses related to the purchase or sale of an amount of any currency, or the patriation or repatriation of any security or other asset, related to the execution of portfolio transactions); (ii) legal fees or expenses in connection with any arbitration, litigation or pending or threatened arbitration or litigation, including any settlements in connection therewith; (iii) compensation and expenses of the trustees of the Trust who are not officers, directors/trustees, partners or employees of the Adviser or its affiliates (the “Independent Trustees”); (iv) compensation and expenses of counsel to the Independent Trustees, (v) compensation and expenses of the Trust’s chief compliance officer (“CCO”); (vi) extraordinary expenses (in each case as determined by a majority of the Independent Trustees); (vii) distribution fees and expenses paid by the Trust under any distribution plan adopted pursuant to Rule 12b-1 under the 1940 Act; (viii) interest and taxes of any kind or nature (including, but not limited to, income, excise, transfer and withholding taxes); (ix) fees and expenses related to the provision of securities lending services, if any; (x) fees and expenses under any separate fund services agreement entered into between the Adviser or its affiliates and the Trust or any Fund; and (xi) the advisory fee, if any, payable to the Adviser. The internal expenses of pooled investment vehicles in which a Fund may invest (acquired fund fees and expenses) are not expenses of the Trust and are not paid by the Adviser. The payment or assumption by the Adviser of any expense of the Trust that the Adviser is not required by the investment advisory agreement to pay or assume shall not obligate the Adviser to pay or assume the same or any similar expense of the Trust on any subsequent occasion.
Acquired fund fees and expenses (which are fees and expenses incurred indirectly by a Fund through its investments in certain underlying investment companies) are not operating expenses of the Funds and are not paid by WTDM.
Pursuant to a separate contractual arrangement, WTDM arranges for the provision of CCO services with respect to each Fund, and is liable and responsible for, and administers, payments to the CCO, the Independent Trustees and counsel to the Independent Trustees. For the period ending June 30, 2024, WTDM did not charge the Funds a fee (“Service fee”) for providing such services. Such Service fee may be increased upon approval by a majority of the Board of Trustees and, if such approval is provided, only after at least sixty (60) days’ prior notice of such approved fee shall have been provided to the Funds’ shareholders. The Service fee, if any, is shown on the Statements of Operations in “Service fees”. WTDM provides CCO services to the Trust.
5. CAPITAL SHARE TRANSACTIONS
As of June 30, 2024, there were an unlimited number of $0.001 par value shares of beneficial interest authorized by the Trust. Transactions in shares for the Funds are disclosed in detail in the Statements of Changes in Net Assets. WT Transfers maintains the official record of share ownership in book-entry form.
WisdomTree Digital Trust 43
Notes to Financial Statements (continued)
|
6. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments (excluding purchases and sales from short-term investments) for the fiscal year or period ended June 30, 2024 are shown in the following table.
Fund | Non-U.S. Government Securities | U.S. Government Securities | ||
Purchases | Sales | Purchases | Sales | |
Short-Duration Income Digital Fund | $150,650 | $142,874 | $ — | $ — |
Siegel Global Equity Digital Fund1 | 449,988 | 85,544 | — | — |
Siegel Longevity Digital Fund1 | 193,792 | 32,486 | — | — |
Siegel Moderate Digital Fund1 | 217,379 | 79,853 | — | — |
500 Digital Fund | 131,178 | 106,259 | — | — |
Technology and Innovation 100 Digital Fund | 520,017 | 533,246 | — | — |
3-7 Year Treasury Digital Fund | — | — | 953,429 | 973,351 |
7-10 Year Treasury Digital Fund | — | — | 732,969 | 737,921 |
Floating Rate Treasury Digital Fund | — | — | 1,429,198 | 693,526 |
Long-Term Treasury Digital Fund | — | — | 51,271 | 54,263 |
Short-Term Treasury Digital Fund | — | — | 2,521,515 | 2,546,892 |
TIPS Digital Fund | — | — | 463,562 | 504,217 |
Government Money Market Digital Fund2 | — | — | — | — |
1 For the period December 6, 2023 (commencement of operations) through June 30, 2024. | ||||
2 For the period November 7, 2023 (commencement of operations) through June 30, 2024. | ||||
7. FEDERAL INCOME TAXES
At June 30, 2024, the cost of investments for Federal income tax purposes was as follows:
Fund | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation/ (Depreciation) |
Short-Duration Income Digital Fund | $1,010,485 | $ 6,104 | $ (6,151) | $ (47) |
Siegel Global Equity Digital Fund | 366,114 | 23,652 | (13) | 23,639 |
Siegel Longevity Digital Fund | 162,179 | 8,352 | (100) | 8,252 |
Siegel Moderate Digital Fund | 138,523 | 6,296 | (444) | 5,852 |
500 Digital Fund | 2,512,925 | 1,137,811 | (95,454) | 1,042,357 |
Technology and Innovation 100 Digital Fund | 2,112,915 | 1,574,456 | (28,913) | 1,545,543 |
3-7 Year Treasury Digital Fund | 976,242 | 241 | (23,712) | (23,471) |
7-10 Year Treasury Digital Fund | 958,421 | 1,591 | (35,754) | (34,163) |
Floating Rate Treasury Digital Fund | 1,542,457 | 655 | (88) | 567 |
Long-Term Treasury Digital Fund | 982,163 | 112 | (148,215) | (148,103) |
Short-Term Treasury Digital Fund | 978,213 | 318 | (10,123) | (9,805) |
TIPS Digital Fund | 940,682 | 558 | (50,462) | (49,904) |
Government Money Market Digital Fund | 5,921,647 | — | — | — |
44 WisdomTree Digital Trust
Notes to Financial Statements (continued)
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At June 30, 2024, the components of total distributable earnings (loss) on a tax-basis were as follows:
Fund | Undistributed | Undistributed | Net Unrealized Appreciation/ (Depreciation) | Other Temporary Differences1 | Total Distributable Earnings (Loss) |
Short-Duration Income Digital Fund | $ 4,233 | $ — | $ (47) | $ — | $ 4,186 |
Siegel Global Equity Digital Fund | 3,374 | — | 23,639 | — | 27,013 |
Siegel Longevity Digital Fund | 1,537 | — | 8,252 | — | 9,789 |
Siegel Moderate Digital Fund | 1,572 | — | 5,852 | — | 7,424 |
500 Digital Fund | 1,789 | (4,783) | 1,042,357 | — | 1,039,363 |
Technology and Innovation 100 Digital Fund | 20,364 | — | 1,545,543 | — | 1,565,907 |
3-7 Year Treasury Digital Fund | 611 | (11,885) | (23,471) | — | (34,745) |
7-10 Year Treasury Digital Fund | 611 | (35,077) | (34,163) | — | (68,629) |
Floating Rate Treasury Digital Fund | 1,412 | (254) | 567 | — | 1,725 |
Long-Term Treasury Digital Fund | 602 | (8,253) | (148,103) | — | (155,754) |
Short-Term Treasury Digital Fund | 721 | (3,551) | (9,805) | — | (12,635) |
TIPS Digital Fund | 1,102 | (2,791) | (49,904) | — | (51,593) |
Government Money Market Digital Fund | 25,563 | — | — | (23,717) | 1,846 |
1 The treatment of income distributions payable as of June 30, 2024 has been recognized for GAAP but disallowed for tax purposes. | |||||
The tax character of distributions paid during the fiscal years or periods ended June 30, 2024 and June 30, 2023, was as follows:
Fund | Year or Period Ended | Period Ended | |
Distributions Paid | Distributions Paid | Distributions | |
Short-Duration Income Digital Fund | $ 41,785 | $14,4551 | $ —1 |
Siegel Global Equity Digital Fund2 | 3,685 | — | — |
Siegel Longevity Digital Fund2 | 2,102 | — | — |
Siegel Moderate Digital Fund2 | 1,933 | — | — |
500 Digital Fund | 41,292 | 19,3041 | 2531 |
Technology and Innovation 100 Digital Fund | 134,406 | —1 | —1 |
3-7 Year Treasury Digital Fund | 35,321 | 15,0001 | —1 |
7-10 Year Treasury Digital Fund | 34,214 | 14,3321 | —1 |
Floating Rate Treasury Digital Fund | 69,699 | 21,0321 | —1 |
Long-Term Treasury Digital Fund | 35,901 | 15,4081 | —1 |
Short-Term Treasury Digital Fund | 41,193 | 21,8213 | —3 |
TIPS Digital Fund | 50,091 | 23,8381 | —1 |
Government Money Market Digital Fund4 | 153,558 | — | — |
* Includes short-term capital gains, if any. | |||
1 For the period January 19, 2023 (commencement of operations) through June 30, 2023. | |||
2 For the period December 6, 2023 (commencement of operations) through June 30, 2024. | |||
3 For the period December 14, 2022 (commencement of operations) through June 30, 2023. | |||
4 For the period November 7, 2023 (commencement of operations) through June 30, 2024. | |||
WisdomTree Digital Trust 45
Notes to Financial Statements (continued)
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At June 30, 2024, for Federal tax purposes, the Funds have capital loss carryforwards available to offset future capital gains as indicated in the table. The loss carryforward amounts do not have an expiration date and, therefore, can be carried forward indefinitely until utilized. To the extent that these loss carryforwards are utilized, capital gains so offset will not be distributed to shareholders.
Fund | Short-Term | Long-Term | Capital Loss |
Short-Duration Income Digital Fund | $ — | $ — | $ — |
Siegel Global Equity Digital Fund | — | — | — |
Siegel Longevity Digital Fund | — | — | — |
Siegel Moderate Digital Fund | — | — | — |
500 Digital Fund | 4,783 | — | 4,783 |
Technology and Innovation 100 Digital Fund | — | — | — |
3-7 Year Treasury Digital Fund | 7,130 | 4,755 | 11,885 |
7-10 Year Treasury Digital Fund | 15,908 | 19,169 | 35,077 |
Floating Rate Treasury Digital Fund | 254 | — | 254 |
Long-Term Treasury Digital Fund | 4,342 | 3,911 | 8,253 |
Short-Term Treasury Digital Fund | 1,602 | 1,949 | 3,551 |
TIPS Digital Fund | 2,791 | — | 2,791 |
Government Money Market Digital Fund | — | — | — |
Capital losses incurred after October 31 (“post-October capital losses”) and late year ordinary losses incurred after December 31 within the taxable year are deemed to arise on the first business day of each Fund’s next taxable year. At June 30, 2024, the Funds did not have any post-October capital losses or late year ordinary losses to defer.
During the fiscal year or period ended June 30, 2024, the amount of capital loss carryforwards used to offset realized gains are shown in the following table:
Fund | Utilized Capital |
Short-Duration Income Digital Fund | $ 22 |
Siegel Global Equity Digital Fund1 | — |
Siegel Longevity Digital Fund1 | — |
Siegel Moderate Digital Fund1 | — |
500 Digital Fund | — |
Technology and Innovation 100 Digital Fund | — |
3-7 Year Treasury Digital Fund | — |
7-10 Year Treasury Digital Fund | — |
Floating Rate Treasury Digital Fund | — |
Long-Term Treasury Digital Fund | — |
Short-Term Treasury Digital Fund | — |
TIPS Digital Fund | — |
Government Money Market Digital Fund2 | — |
1 For the period December 6, 2023 (commencement of operations) through June 30, 2024. | |
2 For the period November 7, 2023 (commencement of operations) through June 30, 2024. |
At June 30, 2024, there were no permanent “book/tax” reclassifications that resulted in increases (decreases) to the components of net assets of the Funds.
GAAP provides guidance on tax provisions that prescribe a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. As of and during the fiscal year or period ended June 30, 2024, the Funds did not have any liabilities for unrecognized tax benefits relating to uncertain income tax positions they have taken or expect to take in the future. If applicable, the Funds will recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in “Other” expenses on the Statements of Operations. The Funds file tax returns with the Internal Revenue Service, the State of New York, and various other states. All open tax years remain subject to examination by taxing authorities.
46 WisdomTree Digital Trust
Notes to Financial Statements (concluded)
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8. REGULATORY UPDATE
In July 2023, the SEC recently adopted changes to the rules that govern money market funds (the “Amendments”). Among other things, these Amendments will increase minimum liquidity requirements for taxable money market funds, remove the ability for money market funds to impose redemption gates and apply a liquidity fee framework in its place. Retail and government money market funds are not subject to the liquidity fee framework. The Amendments were effective on October 2, 2023 with tiered compliance dates. WTDM has evaluated the Amendments and determined that there is no significant impact on the Government Money Market Digital Fund’s financial statements.
9. SUBSEQUENT EVENTS
WTDM has evaluated all subsequent transactions and events through the date on which these financial statements were issued and has determined that no additional items require disclosure in these financial statements.
10. ADDITIONAL INFORMATION
Financial markets around the world may experience extreme volatility, depressed valuations, decreased liquidity and heightened uncertainty and turmoil resulting from major cybersecurity events, geopolitical events (including wars, such as Russia’s invasion of Ukraine, terror attacks, and disruptions to foreign economic and trade relationships), public health emergencies, such as the COVID-19 pandemic, measures to address budget deficits, downgrading of sovereign debt, and public sentiment, among other events. Resulting market volatility, dramatic changes to interest rates, and otherwise unfavorable economic conditions may negatively impact Fund performance or impair a Fund’s ability to achieve its investment objective.
In March 2023, the financial distress of certain financial institutions raised economic concerns over disruption in the U.S. banking system and regarding the solvency of certain financial services firms. There can be no certainty that the actions taken by the U.S. government to strengthen public confidence in the U.S. banking system will be effective in mitigating the effects of financial institution failures on the economy and restoring public confidence in the U.S. banking system.
In October 2023, Hamas terrorists infiltrated Israel’s southern border from the Gaza Strip and conducted a series of attacks on civilian and military targets. Hamas also launched extensive rocket attacks on the Israeli population and industrial centers located along Israel’s border with the Gaza Strip and in other areas within the State of Israel. Following the attack, Israel’s security cabinet declared war against Hamas, and a military campaign was initiated. These events may result in significant market disruptions and may adversely affect regional and global economies.
* * * * * *
Raising the ceiling on U.S. government debt has become increasingly politicized. Any failure to increase the total amount that the U.S. government is authorized to borrow could lead to default on U.S. government obligations, with unpredictable consequences for economies and markets in the U.S. and elsewhere. On August 1, 2023, Fitch Ratings, Inc. downgraded its U.S. debt rating from the highest AAA rating to AA+, citing “a high and growing general government debt burden, and the erosion of governance relative to ‘AA’ and ‘AAA’ rated peers over the last two decades that has manifested in repeated debt limit standoffs and last-minute resolutions. The downgrade has potential market impacts, including but not limited to, steep stock market declines and rising bond yields.
WisdomTree Digital Trust 47
Report of Independent Registered Public Accounting Firm
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To the Shareholders and the Board of Trustees of WisdomTree Digital Trust
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities of WisdomTree Digital Trust (the “Trust”) (comprising WisdomTree Short-Duration Income Digital Fund, WisdomTree Siegel Global Equity Digital Fund, WisdomTree Siegel Longevity Digital Fund, WisdomTree Siegel Moderate Digital Fund, WisdomTree 500 Digital Fund, WisdomTree Technology and Innovation 100 Digital Fund, WisdomTree 3-7 Year Treasury Digital Fund, WisdomTree 7-10 Year Treasury Digital Fund, WisdomTree Floating Rate Treasury Digital Fund, WisdomTree Long-Term Treasury Digital Fund, WisdomTree Short-Term Treasury Digital Fund, WisdomTree TIPS Digital Fund, and WisdomTree Government Money Market Digital Fund (collectively referred to as the “Funds”)), including the schedules of investments, as of June 30, 2024, and the related statements of operations and changes in net assets, and the financial highlights for each of the periods indicated in the table below and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds comprising WisdomTree Digital Trust at June 30, 2024, and the results of their operations, changes in net assets and financial highlights for each of the periods indicated in the table below, in conformity with U.S. generally accepted accounting principles.
Funds comprising the WisdomTree Digital Trust | Statement of | Statements of changes | Financial highlights |
WisdomTree Short-Term Treasury Digital Fund | For the year ended | For the year ended June 30, 2024 and for the period from December 14, 2022 (commencement of operations) through June 30, 2023 | |
WisdomTree Short-Duration Income Digital Fund WisdomTree 500 Digital Fund WisdomTree Technology and Innovation 100 Digital Fund WisdomTree 3-7 Year Treasury Digital Fund WisdomTree 7-10 Year Treasury Digital Fund WisdomTree Floating Rate Treasury Digital Fund WisdomTree Long-Term Treasury Digital Fund WisdomTree TIPS Digital Fund | For the year ended | For the year ended June 30, 2024 and for the period from January 19, 2023 (commencement of operations) through June 30, 2023 | |
WisdomTree Siegel Global Equity Digital Fund WisdomTree Siegel Longevity Digital Fund WisdomTree Siegel Moderate Digital Fund | For the period from December 6, 2023 (commencement of operations) through June 30, 2024 | ||
WisdomTree Government Money Market Digital Fund | For the period from November 7, 2023 (commencement of operations) through June 30, 2024 | ||
Basis for Opinion
These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on each of the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.
48 WisdomTree Digital Trust
Report of Independent Registered Public Accounting Firm (concluded)
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Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2024, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more WisdomTree investment companies since 2006.
New York, New York
August 29, 2024
WisdomTree Digital Trust 49
Supplemental Information (unaudited)
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Federal Income Tax Information
The following Federal tax information related to the Funds’ fiscal year or period ended June 30, 2024, is provided for information purposes only and should not be used for reporting to federal or state revenue agencies. Federal tax information for the calendar year will be reported to you on Form 1099-DIV in January 2025.
Certain dividends paid by the Funds may be subject to a maximum tax rate of 15%, as provided by the Jobs and Growth Tax Relief Reconciliation Act of 2003. Of the distributions paid during the fiscal year or period ended June 30, 2024, the following represents the maximum amount of ordinary income distributions that may be considered qualified dividend income:
Fund | Qualified |
Short-Duration Income Digital Fund | $ — |
Siegel Global Equity Digital Fund1 | 572 |
Siegel Longevity Digital Fund1 | 360 |
Siegel Moderate Digital Fund1 | 258 |
500 Digital Fund | 41,292 |
Technology and Innovation 100 Digital Fund | 22,315 |
3-7 Year Treasury Digital Fund | — |
7-10 Year Treasury Digital Fund | — |
Floating Rate Treasury Digital Fund | — |
Long-Term Treasury Digital Fund | — |
Short-Term Treasury Digital Fund | — |
TIPS Digital Fund | — |
Government Money Market Digital Fund2 | — |
1 For the period December 6, 2023 (commencement of operations) through June 30, 2024. | |
2 For the period November 7, 2023 (commencement of operations) through June 30, 2024. |
The Funds designate the following amount of ordinary income distributions paid during the the fiscal period ended June 30, 2024 from qualified short-term gains and qualified interest income:
Fund | Qualified Short- | Qualified |
Short-Duration Income Digital Fund | 0.00% | 0.00% |
Siegel Global Equity Digital Fund1 | 0.00% | 0.00% |
Siegel Longevity Digital Fund1 | 0.00% | 0.00% |
Siegel Moderate Digital Fund1 | 0.00% | 0.00% |
500 Digital Fund | 0.00% | 0.00% |
Technology and Innovation 100 Digital Fund | 0.00% | 0.00% |
3-7 Year Treasury Digital Fund | 0.00% | 100.00% |
7-10 Year Treasury Digital Fund | 0.00% | 100.00% |
Floating Rate Treasury Digital Fund | 0.00% | 99.61% |
Long-Term Treasury Digital Fund | 0.00% | 99.58% |
Short-Term Treasury Digital Fund | 0.00% | 97.95% |
TIPS Digital Fund | 0.00% | 100.00% |
Government Money Market Digital Fund2 | 0.00% | 100.00% |
1 For the period December 6, 2023 (commencement of operations) through June 30, 2024. | ||
2 For the period November 7, 2023 (commencement of operations) through June 30, 2024. |
50 WisdomTree Digital Trust
Supplemental Information (unaudited) (concluded)
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The following represents the percentage of dividends paid during the fiscal year or period ended June 30, 2024, that qualify for the 70% dividends received deduction for corporate shareholders:
Fund | Dividends-Received |
Short-Duration Income Digital Fund | — |
Siegel Global Equity Digital Fund1 | 3.87% |
Siegel Longevity Digital Fund1 | 4.31% |
Siegel Moderate Digital Fund1 | 3.13% |
500 Digital Fund | 98.21% |
Technology and Innovation 100 Digital Fund | 19.80% |
3-7 Year Treasury Digital Fund | — |
7-10 Year Treasury Digital Fund | — |
Floating Rate Treasury Digital Fund | — |
Long-Term Treasury Digital Fund | — |
Short-Term Treasury Digital Fund | — |
TIPS Digital Fund | — |
Government Money Market Digital Fund2 | — |
1 For the period December 6, 2023 (commencement of operations) through June 30, 2024. | |
2 For the period November 7, 2023 (commencement of operations) through June 30, 2024. |
WisdomTree Digital Trust 51
Additional Information (unaudited)
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Item 8 of Form N-CSR: Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
Not applicable.
Item 9 of Form N-CSR: Proxy Disclosures for Open-End Management Investment Companies.
Not applicable.
Item 10 of Form N-CSR: Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.
Not applicable.
Item 11 of Form N-CSR: Statement Regarding Basis for Approval of Investment Advisory Contracts.
At an in-person meeting held on June 7, 2024 (the “Meeting”), the Board of Trustees (the “Board” or the “Trustees”) of WisdomTree Digital Trust (the “Trust”), including the Trustees who are not “interested persons” as that term is defined in the Investment Company Act of 1940, as amended (the “Independent Trustees”), considered and approved the renewal of the Investment Advisory Agreement between the Trust, on behalf of the WisdomTree 3-7 Year Treasury Digital Fund, WisdomTree 7-10 Year Treasury Digital Fund, WisdomTree Floating Rate Treasury Digital Fund, WisdomTree Long-Term Treasury Digital Fund, WisdomTree Short-Term Treasury Digital Fund, WisdomTree TIPS Digital Fund, WisdomTree Government Money Market Digital Fund, WisdomTree Short-Duration Income Digital Fund, WisdomTree Siegel Global Equity Digital Fund, WisdomTree Siegel Longevity Digital Fund, WisdomTree Siegel Moderate Digital Fund, WisdomTree 500 Digital Fund, and WisdomTree Technology and Innovation 100 Digital Fund (each, a “Fund” and collectively, the “Funds”), and the WisdomTree Digital Management, Inc. (“WisdomTree” or the “Adviser”) (the “Advisory Agreement”) and the Investment Sub-advisory Agreements between WisdomTree and Voya Investment Management Co. LLC (“Voya”) with respect to WisdomTree 3-7 Year Treasury Digital Fund, WisdomTree 7-10 Year Treasury Digital Fund, WisdomTree Floating Rate Treasury Digital Fund, WisdomTree Long-Term Treasury Digital Fund, WisdomTree Short-Term Treasury Digital Fund, WisdomTree TIPS Digital Fund, WisdomTree Government Money Market Digital Fund; and between WisdomTree and Mellon Investments Corporation (“Mellon”) with respect to WisdomTree Short-Duration Income Digital Fund, WisdomTree Siegel Global Equity Digital Fund, WisdomTree Siegel Longevity Digital Fund, WisdomTree Siegel Moderate Digital Fund, WisdomTree 500 Digital Fund, and WisdomTree Technology and Innovation 100 Digital Fund (each, a “Sub-Advisory Agreement,” collectively the “Sub-advisory Agreements” and together with the Advisory Agreement, the “Agreements”) with respect to each applicable Fund.
In considering the renewal of the Advisory Agreement and the Sub-Advisory Agreements with respect to the Funds, the Board requested and received in advance of the meeting a variety of materials that the Board determined to be reasonably necessary to evaluate each of the Agreements, relating to the Funds, the Adviser and the Sub-Advisers. The Board reviewed and discussed the response materials provided by the Adviser and the Sub-Advisers in support of the consideration of each of the Agreements. The Independent Trustees separately met with independent legal counsel to review and discuss the response materials provided by the Adviser and Sub-Advisers in support of the consideration of the Advisory Agreement and Sub-Advisory Agreements, respectively, in advance of the Meeting.
At the Meeting, the Independent Trustees reported that they had previously met with independent legal counsel in executive session without the presence of any WisdomTree or Sub-Adviser personnel. The Board reported on WisdomTree’s, Voya’s and Mellon’s presentation at the Meeting highlighting that the WisdomTree, the Voya and the Mellon representatives, each had responded to relevant questions throughout. The Board noted the extensive discussions among the Board members, as well as the Independent Trustees having had met with independent counsel prior to the Meeting and in executive session at the Meeting, regarding their review of the response materials, and concluded that such discussions have left the Board satisfied that WisdomTree and the Sub-Advisers had provided detailed responses to the requests for information to allow for an informed decision regarding the renewal of each of the Advisory Agreement and Sub-Advisory Agreements. The Board reported their conclusion that the renewal of the Advisory Agreement and Sub-Advisory Agreements will continue to enable each applicable Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the interests of investors. The Board determined that prudent exercise of business judgment warranted the renewal of the Advisory Agreement and Sub-Advisory Agreements. The Trustees also noted that the Board’s decision to approve the Advisory Agreement and Sub-Advisory Agreements was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at the Meeting and at other meetings of the Board throughout the year. Upon consideration of these and other factors, the Board also determined:
Nature, extent, and quality of services.
With respect to the Advisory and Sub-Advisory Agreements, the Board reviewed the strength and commitment of the Adviser, each Sub-Adviser and the relevant key investment professionals of the Funds, the cost structure of the Adviser and each Sub-Adviser, and the financial, risk management and compliance controls employed by each of the Adviser and the Sub-Advisers. The Board
52 WisdomTree Digital Trust
Additional Information (unaudited) (continued)
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also took into consideration the ongoing contractual commitment of Adviser’s parent company, WisdomTree Investments, Inc., to financially support the Adviser and to cover the Adviser’s liabilities as necessary. The Board recognized that the Adviser has invested and continues to invest significant time and effort in structuring the Trust and the Funds. The Board evaluated the Adviser’s and each Sub-Adviser’s services, their focus on the investment process, and the steps the Adviser and the Sub-Advisers, each has taken to ensure that each applicable Fund will continue to be managed with the support of highly dedicated and experienced investment professionals. The Board also noted the experience, background, and reputation of each Fund’s portfolio management team. The Trustees discussed the ability of each Sub-Adviser to continue to manage the relevant Fund’s investments in accordance with the Fund’s stated investment objectives and policies, and the Adviser’s ability to effectively oversee such Sub-Advisers, as well as the other services provided by the Adviser and/or each Sub-Adviser to the applicable Fund that are necessary for the continued operation of that Fund. Additionally, the Trustees considered that the Adviser remained responsible for the management of the day-to-day operations of the Funds, including, but not limited to, general supervision and coordination of the services to be provided by the relevant Sub-Adviser, and also was responsible for monitoring and reviewing the activities of the Sub-Advisers and other third-party service providers. The Board further considered the Adviser’s knowledge, experience and ability to oversee service providers both generally and with respect to the Funds’ transfer agent that will utilize new blockchain technology in its operations. The Board concluded that the nature, extent and quality of the management and advisory service provided were necessary and appropriate and that the Adviser and Sub-Advisers may reasonably be expected to continue to provide a high quality of service under the Agreements.
Investment performance.
The Board noted that it considers the performance of each Fund versus each Fund’s performance benchmark, each Fund’s underlying index, if applicable, other investment companies to which the investment adviser or sub-adviser serves as investment adviser or sub-adviser, and any other accounts, including institutional accounts managed by either Voya or Mellon, if applicable. With respect to each individual fund, the Board observed the following:
WisdomTree 3-7 Year Treasury Digital Fund
The Board reviewed the Fund’s cumulative returns for the three-month, one-year, year-to-date, and since inception periods and noted the Fund’s performance was consistent with the Fund’s underlying index. The Board noted that the Fund was passively managed and tracked its benchmark within expected ranges over the course of the last year and since inception.
WisdomTree 7-10 Year Treasury Digital Fund
The Board reviewed the Fund’s cumulative returns for the three-month, one-year, year-to-date, and since inception periods and noted the Fund’s performance was consistent with the Fund’s underlying index. The Board noted that the Fund was passively managed and tracked its benchmark within expected ranges over the course of the last year and since inception.
WisdomTree Floating Rate Treasury Digital Fund
The Board reviewed the Fund’s cumulative returns for the three-month, one-year, year-to-date, and since inception periods and noted the Fund achieved positive returns during all of the comparison periods. The Board acknowledged the Fund’s performance was consistent with the Fund’s underlying index. The Board noted that the Fund was passively managed and tracked its benchmark within expected ranges over the course of the last year and since inception.
WisdomTree Long-Term Treasury Digital Fund
The Board reviewed the Fund’s cumulative returns for the three-month, one-year, year-to-date, and since inception periods and noted the Fund’s performance was consistent with the Fund’s underlying index. The Board noted that the Fund was passively managed and tracked its benchmark within expected ranges over the course of the last year and since inception.
WisdomTree Short-Term Treasury Digital Fund
The Board reviewed the Fund’s cumulative returns for the three-month, one-year, year-to-date, and since inception periods and noted the Fund achieved positive returns during all of the comparison periods. The Board acknowledged the Fund’s performance was consistent with the Fund’s underlying index. The Board noted that the Fund was passively managed and tracked its benchmark within expected ranges over the course of the last year and since inception.
WisdomTree Digital Trust 53
Additional Information (unaudited) (continued)
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WisdomTree TIPS Digital Fund
The Board reviewed the Fund’s cumulative returns for the three-month, one-year, year-to-date, and since inception periods and noted the Fund achieved positive returns during all of the comparison periods. The Board acknowledged the Fund’s performance was consistent with the Fund’s underlying index. The Board noted that the Fund was passively managed and tracked its benchmark within expected ranges over the course of the last year and since inception.
WisdomTree Government Money Market Digital Fund
The Board noted that since the Fund’s inception in November 2023 that it outperformed both its benchmark and other comparable accounts managed by Voya.
WisdomTree Short-Duration Income Digital Fund
The Board reviewed the Fund’s cumulative returns for the one-month, three-month, year-to-date, and since inception periods and acknowledged the Fund outperformed its benchmark for all comparison periods.
WisdomTree Siegel Global Equity Digital Fund
The Board reviewed the Fund’s cumulative returns for the one-month, three-month, year-to-date, and since inception periods and acknowledged the Fund slightly underperformed its benchmark for the one-month period but outperformed its benchmark for the remaining comparison periods.
WisdomTree Siegel Longevity Digital Fund
The Board reviewed the Fund’s cumulative returns for the one-month, three-month, year-to-date, and since inception periods and acknowledged the Fund slightly underperformed its benchmark for the one-month period but outperformed its benchmark for the remaining comparison periods.
WisdomTree Siegel Moderate Digital Fund
The Board reviewed the Fund’s cumulative returns for the one-month, three-month, year-to-date, and since inception periods and acknowledged the Fund slightly underperformed its benchmark for the one-month period but outperformed its benchmark for the remaining comparison periods.
WisdomTree 500 Digital Fund
The Board reviewed the Fund’s cumulative returns for the one-month, three-month, year-to-date, and since inception periods and noted the Fund’s performance was consistent with the Fund’s underlying index. The Board noted that the Fund was passively managed and tracked its benchmark within expected ranges over the course of the last year and since inception.
WisdomTree Technology and Innovation 100 Digital Fund
The Board reviewed the Fund’s cumulative returns for the one-month, three-month, year-to-date, and since inception periods and noted the Fund’s outperformed its underlying index for the one-year and since inception periods. The Board further noted the Fund was passively managed and tracked its benchmark within expected ranges over the course of the last year and since inception.
In evaluating the performance of the Funds, the Board gave consideration to the short time period for which each Fund has been in existence and noted that it would continue to receive information from the Adviser and the Sub-Advisers regarding performance of each on a quarterly basis throughout the year. Further, the Board noted the Adviser’s experience as a manager-of-managers and its expertise and resources for monitoring the investment style, performance and risk-adjusted performance of each Sub-Advisers. Following its deliberations, the Board determined that each Fund has performed as expected during the relevant periods.
Fees and expenses.
The Board reviewed information provided by the Adviser and Sub-Advisers regarding each Fund’s advisory fee and sub-advisory fee, respectively. The Board considered that pursuant to the Advisory Agreement, the Adviser has entered into a unitary advisory fee arrangement for each Fund. Under the unitary fee arrangement, Adviser is responsible for paying most of the expenses incurred by a Fund, including those of the Fund’s principal service providers and Sub-Advisers. In this regard, the Board further noted the commitment of the Adviser’s parent company to stand behind the obligations of the Adviser. The Board also acknowledged that the
54 WisdomTree Digital Trust
Additional Information (unaudited) (continued)
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fee arrangements in the Advisory Agreement had standard carveouts for unitary fee arrangements noting that the Adviser would have a separate services agreement with the Trust that would cover non-advisory administrative services. The Board further noted that the Sub-Advisory Agreements include fee schedules that reduce the sub-advisory fees as assets increase. The Board acknowledged that any such reduction in sub-advisory fees rates would be to the benefit of the Adviser, however, due to the size of each Fund, the reductions were not yet applicable. The Board concluded that the advisory fees and sub-advisory fees paid by each Fund are reasonable in light of the nature, extent and quality of the services expected provided to each Fund under the Advisory Agreement and Sub-Advisory Agreements. They reviewed comparative information regarding fees for similar funds and observed the following:
WisdomTree 3-7 Year Treasury Digital Fund
The Board compared the Fund’s total expenses to similar funds included in a peer group provided by an independent third-party service provider and noted the Fund’s total expenses were below the average of the peer group.
WisdomTree 7-10 Year Treasury Digital Fund
The Board compared the Fund’s total expenses to similar funds included in a peer group provided by an independent third-party service provider and noted the Fund’s total expenses were below the average of the peer group.
WisdomTree Floating Rate Treasury Digital Fund
The Board compared the Fund’s total expenses to similar funds included in a peer group provided by an independent third-party service provider and noted the Fund’s total expenses were below the average of the peer group.
WisdomTree Long-Term Treasury Digital Fund
The Board compared the Fund’s total expenses to similar funds included in a peer group provided by an independent third-party service provider and noted the Fund’s total expenses were below the average of the peer group.
WisdomTree Short-Term Treasury Digital Fund
The Board compared the Fund’s total expenses to similar funds included in a peer group provided by an independent third-party service provider and noted the Fund’s total expenses were the lowest in the peer group.
WisdomTree TIPS Digital Fund
The Board compared the Fund’s total expenses to similar funds included in a peer group provided by an independent third-party service provider and noted the Fund’s total expenses were lower than the average of the peer group.
WisdomTree Government Money Market Digital Fund
The Board compared the Fund’s total expenses to similar funds included in a peer group provided by an independent third-party service provider and noted the Fund’s total expenses were below the average of the peer group and the median.
WisdomTree Short-Duration Income Digital Fund
The Board compared the Fund’s total expenses to similar funds included in a peer group provided by an independent third-party service provider and noted the Fund’s total expenses were below the average of the peer group and the median.
WisdomTree Siegel Global Equity Digital Fund
The Board compared the Fund’s total expenses to similar funds included in a peer group provided by an independent third-party service provider and noted the Fund’s total expenses were the lowest in the peer group.
WisdomTree Siegel Longevity Digital Fund
The Board compared the Fund’s total expenses to similar funds included in a peer group provided by an independent third-party service provider and noted the Fund’s total expenses were lower than peer group average and median.
WisdomTree Siegel Moderate Digital Fund
The Board compared the Fund’s total expenses to similar funds included in a peer group provided by an independent third-party service provider and noted the Fund’s total expenses were lower than the average of the peer group and the median.
WisdomTree Digital Trust 55
Additional Information (unaudited) (concluded)
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WisdomTree 500 Digital Fund
The Board compared the Fund’s total expenses to similar funds included in a peer group provided by an independent third-party service provider. The Board noted the Fund’s total expenses were below the peer group median and ranked in the top third of the peer group.
WisdomTree Technology and Innovation 100 Digital Fund
The Board compared the Fund’s total expenses to similar funds included in a peer group provided by an independent third-party service provider and noted the Fund’s total expenses were lower than the average of the peer group and the median.
Profitability/Fall out benefits.
The Board also considered information provided by the Adviser regarding the cost in providing services to the Funds, and the benefits to the Adviser from its relationship to the Funds. They reviewed and considered the Adviser’s representations regarding the assumptions and methods of allocating certain costs in the provision of advisory and other services. The Board also took into account the significant investment by and cost to the Adviser regarding investment management infrastructure to support the Funds and other support for investors. The Board noted the Adviser was not yet profitable from its relationship with the Funds. The Board considered the Adviser’s commitment to the success of the Funds and the use of a unitary fee structure under which the Adviser bears the risk if certain of the Funds’ expenses increase or if a Fund’s assets fail to increase to a level sufficient to cover such expenses. The Board considered the effect of each Fund’s assets under management on the potential profitability of such Fund under the unitary fee structure in light of the costs associated with the personnel, systems and equipment necessary to manage the Funds and to meet the regulatory and compliance requirements of the SEC and other regulatory bodies, as well as other expenses the Adviser pays in accordance with the Advisory Agreement.
The Board also considered potential “fall-out” or ancillary benefits to the Adviser and Sub-Advisers as a result of their relationship with the Funds. The Board observed that the Adviser’s affiliate, a registered broker-dealer, received transaction fees for acting as a mutual fund retailer with respect to the Funds. Additionally, the Trustees considered the Adviser’s and its affiliates focus on the launch “WisdomTree Prime” as a direct-to-consumer mobile phone distribution channel which may benefit from any positive promotional results or visibility of the Funds, among other benefits. The Board further noted that Adviser and Sub-Advisers may benefit from being associated with the Funds. The Board concluded that any potential benefits derived by the Advisers and Sub-Advisers from their relationship with the Funds, to the extent such benefits are identifiable or determinable, are reasonable and fair, result from the provision of appropriate services to the Funds and investors therein, and are consistent with industry practice and the best interests of each Fund and their shareholders.
Economies of scale.
The Board considered that each Fund is managed by Adviser pursuant to unitary fee advisory agreement, pursuant to which the Adviser bears all of each Fund’s expenses, other than certain enumerated and extraordinary expenses). The Board noted, among other factors, the significant entrepreneurial risk and financial losses incurred by the Adviser in maintaining such Funds until they achieve the asset growth necessary to achieve profitability. The Board further noted that the sub-advisory fees under the Sub-Advisory Agreements do include asset level breakpoints as a means by which the Adviser would share in the benefits of potential economies of scale as the Funds’ assets grow. The Board also noted that the vast majority of other funds in the Funds’ peer groups do include breakpoints in their fee structures, however, the Board also noted that breakpoints are not the exclusive means of sharing potential economies of scale and that generally the Funds compare favorably with respect to their peers from an expense standpoint. The Board further noted that it will continue to on an annual basis re-examine whether the Funds have achieved economies of scale and the appropriateness of the sub-advisory fees payable to each Sub-Adviser. The Board concluded that the Funds benefit from the investments made by the Adviser including the Adviser’s obligation to pay all expense of the Funds (except certain enumerated and extraordinary expenses).
The Board noted that they were satisfied with the completeness of the information presented at the Meeting, and concluded that they had been provided with appropriately sufficient information to consider the approval of the Agreements. Taking into account all of the information received by the Board, the evaluation of all factors that it deemed to be material, including those factors described above, and assisted by the advice of independent counsel, the Board, including the Independent Trustees, agreed that in consideration of all the information provided, in light of a weighing and balancing of all factors reviewed, and in the exercise of the Trustees’ business judgment, in their totality and without any one factor being dispositive, approving the renewal of the Agreements was in the best interest of each Fund and its Shareholders.
56 WisdomTree Digital Trust
The WisdomTree Digital Funds are registered with the United States Securities and Exchange Commission as separate series (“Funds”) of WisdomTree Digital Trust (“Trust”). WisdomTree Digital Management, Inc., a wholly owned subsidiary of WisdomTree, Inc., serves as the investment adviser to the Trust. None of the WisdomTree entities are affiliated with Foreside Fund Services, LLC, the Funds’ distributor. WisdomTree, Inc., its affiliates and their independent providers are not liable for any informational errors, incompleteness, delays, or for any actions taken in reliance on information contained herein.
There are risks associated with investing, including possible loss of principal. 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. A Fund focusing its investments on certain sectors increases its vulnerability to any single economic or regulatory development, which may result in greater share price volatility. U.S. Treasury obligations may provide relatively lower returns than those of other securities. Changes to the financial condition or credit rating of the U.S. government may cause the value to decline. Fixed income securities are subject interest rate, credit, inflation, and reinvestment risks. Generally, as interest rates rise, the value of fixed-income securities falls. Cybersecurity attacks affecting the Funds’ third-party service providers, App, blockchain network, or the issuers of securities in which the Funds invest may subject the Funds to many of the same risks associated with direct cybersecurity breaches. Please read each Fund’s prospectus for specific details regarding each Fund’s risk profile.
Indexes are unmanaged and you cannot invest directly in an index.
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.
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WisdomTree Digital Funds shares are distributed by Foreside Fund Services, LLC.
| Item 12. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable.
| Item 13. | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable.
| Item 14. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable.
| Item 15. | Submission of Matters to a Vote of Security Holders. |
There have been no material changes to the procedures by which the shareholders may recommend nominees to the Registrant’s Board, where those changes were implemented after the Registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.
| Item 16. | Controls and Procedures. |
| (a) | The Registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
| (b) | There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the period covered by the Shareholder Reports that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
| Item 17. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies. |
Not applicable.
| Item 18. | Recovery of Erroneously Awarded Compensation. |
Not applicable.
Item 19. Exhibits.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| (Registrant) | WisdomTree Digital Trust | ||
| By | (Signature and Title) | /s/ Stuart Bell | |
| Stuart Bell, President | |||
| (principal executive officer) | |||
| Date: | September 9, 2024 | ||
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
| By | (Signature and Title) | /s/ Stuart Bell | |
| Stuart Bell, President | |||
| (principal executive officer) | |||
| Date: | September 9, 2024 |
| By | (Signature and Title) | /s/ David Castano | |
| David Castano, Treasurer | |||
| (principal financial officer) | |||
| Date: | September 9, 2024 |
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