WisdomTree, Inc. · NYSE:WT
WisdomTree — cio market outlook
58 slides from WisdomTree's investor presentation, February 2026
Slide 1: WisdomTree CIO Market Update
February 2026 WisdomTree CIO Market Update
Slide 2: Table of contents
1. U.S. Economy (slides 4 to 18) 2. U.S. Equities (slides 19 to 37) Table of 3. Global Equities (slides 38 to 41) contents 4. Investment Themes (slides 42 to 55) 2
Slide 3: WisdomTree Research Team
WisdomTree Professor Jeremy Siegel, PhD Jeremy Schwartz, CFA Christopher Gannatti, CFA Research Senior Economist to WisdomTree Global CIO Global Head of Research and Emeritus Professor of Finance, The Wharton School of the Team University of Pennsylvania Kevin Flanagan Jeff Weniger, CFA Rick Harper
Slide 4: The Fed Was Too Slow in Cutting But Getting Close to Neutral
Economy The Fed Was Too Slow in Cutting But Getting Close to Neutral Source: WisdomTree, FRED. FOMC = Federal Open Market Committee. 4
Slide 5: Yield Curve Shape: 10-Year UST vs. Fed Funds
Economy Yield Curve Shape: 10-Year UST vs. Fed Funds Current and Historical Median 10-Year Treasury Yield vs. Fed Funds Effective Rate - 1/2/62 - 2/23/26 6% 4% 2% 1.12% 0% 0.39% -2% -4% -6% 10y Minus Fed Funds -8% Historical Median -10% -12% 1986 1989 2004 2022 2025 1962 1965 1968 1971 1974 1977 198
Slide 6: 10-Year Treasuries: Nominal vs. Real Yields
Economy 10-Year Treasuries 10-Year Nominal vs. Real Yields - 1/2/03 - 2/23/26 6% 5% 4.03% 4% 3% 2% 1.77% 1% 0% -1% 10 Year Nominal Yield 10 Year TIPs Yield -2% Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22
Slide 7: WisdomTree Real Time CPI
Economy WisdomTree Real Time CPI Trailing 12mo Headline Inflation with Alternative Shelter Metrics - 2/28/18 - 1/31/26 14% Headline CPI with BLS Shelter 12.5% 12% Headline CPI with Real Time Shelter 10% 8% 8.6% 6% 4% 2.4% 2% 1.6% 0% Jun-21 Aug-20 Jan-21 Sep-22 Aug-25 Jan-26 Dec-18 Dec-23 Jul-18 Jul-
Slide 8: Tracking U.S. Liquidity: M2 Money Supply Over Time
Economy Tracking U.S. Liquidity: M2 Money Supply Over Time M2 Money Supply (Billions of Dollars, Seasonally Adjusted) - 12/31/09 - 1/31/26 $25,000 $22,442 $20,000 $15,000 $10,000 $5,000 2014 2016 2020 2010 2011 2012 2013 2015 2017 2018 2019 2021 2022 2023 2024 2025 2026 Source: WisdomTree, FRED. 8
Slide 9: M2: Money Supply Annual Change
Economy M2: Money Supply Annual Change M2 Money Supply (Year-over-Year Change) - 1/31/1960 - 1/31/26 30% 25% 20% 15% 10% 5% 4.3% 0% -5% -10% 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 Source: WisdomTree, FRED. 9
Slide 10: Forward Inflation Expectations
Economy Forward Inflation Expectations 5-Year, 5-Year Forward Inflation Expectation Rate – as of 2/24/26 3.0% Current Min Max 2.67% 2.67% 2.5% 2.12% 2.0% 1.91% 1.91% 1.5% 1.0% Aug-21 Aug-22 Aug-23 Aug-24 Aug-25 May-21 May-25 Feb-24 May-22 May-23 May-24 Nov-22 Feb-21 Feb-22 Feb-23 Feb-25 Nov-21 Nov-2
Slide 11: Job Picture: Job Growth and Jobless Claims
Economy Job Picture: Job Growth and Jobless Claims Non Farm Payrolls (thousands) - 2/28/23 - 1/31/26 Initial Jobless Claims (thousands) - 2/25/23 - 2/14/26 Initial Claims Non Farm Payroll Gains 280,000 350 Rolling 4wk Average 300 Rolling 3mo Average 250 240,000 200 Healthy 150 Range 100 200,000 50 0
Slide 12: Job Picture: Unemployment and Wages
Economy Job Picture: Unemployment and Wages Unemployment and Wage Growth - 3/31/07 - 1/31/26 16% Unemployment Rate 14% Wage Growth 12% 10% 8% 6% 4% 4.3% 3.6% 2% 0% Mar-08 Mar-19 Mar-22 Mar-24 Mar-07 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-20 Mar-21 Mar-23 Mar-25 Sou
Slide 13: In 1920, there were 25 Million Horses in the U.S.
Economy In 1920, there were 25 Million Horses in the U.S…. Then 93% of those Horses Disappeared Source: Andy Jones, Anthropic, 12/8/2025 via X. 13
Slide 14: Computerized Chess and Human Win Rates
Economy Computerized Chess and Human Win Rates Computer chess improved by 50 Elo per year from 1985. In 2000, a human grandmaster won 90% of their games against the computer. By 2010, same human grandmaster would lose 90% of games against the computer. Source: Andy Jones, Anthropic, 12/8/2025 via X.
Slide 15: AI Jobs Competition – Reshaping the Future of Work
Economy AI Jobs Competition – Reshaping the Future of Work + Horses took decades to be overcome.... And chess masters years + Anthropic AI researcher surpassed by a system that costs 1000x less in months. Source: Andy Jones, Anthropic, 12/8/2025 via X. 15
Slide 16: Agricultural Workers as % of Employment in the US
Economy Agricultural Workers as % of Employment in the US + In 1900, over 30% of the U.S. workforce was in agriculture; today it’s <2%, yet output has more than doubled. + Technology innovations allowed one farmer to do the work of dozens + But displaced workers found new jobs in manufacturing and s
Slide 17: AI Capex is Already Working: Meta Example
Economy AI Capex is Already Working: Meta Example (Meta Results Follow Up Call, 10/29/2025) and (Meta Results Follow Up Call, 10/29/2025) More time spent on Facebook = more Ads served = more revenue Better Ads served during the more time spent = higher Ad pricing = more revenue AI is already working
Slide 18: AI as a Tool to Expand Profit Margins and Support Valuations
Economy AI as a Tool to Expand Profit Margins and Support Valuations 18
Slide 19: Midterm Election Year Uncertainties
U.S. Equities Midterm Election Year Uncertainties + Midterm years typically produce historically low returns (average 4.6%) and more downside (average 17.5%) + In midterm years where neither a Fed tightening or recession occur, returns are 10.6% on average + During those midterm election years where
Slide 20: S&P 500 Historical P/E: Fed Rate cuts Supportive
U.S. Equities S&P 500 Historical P/E: Fed Rate cuts Supportive and Not a Headwind S&P 500 Index Forward P/E Ratio – as of 2/24/26 35x 30x 25x 21.5x 22.3x 20x 17.5x 15x 13.5x 10x 5x S&P 500 Index Median Median + 1σ Median - 1σ Source: WisdomTree, FactSet, S&P. You cannot invest directly in an index.
Slide 21: S&P 500 Tech Historical P/E
U.S. Equities S&P 500 Tech Historical P/E S&P 500 Expanded Tech Forward P/E Ratio – as of 2/24/26 65x 55x 45x 35x 31.1x 26.1x 25x 22.0x 15x 12.8x 5x S&P 500 Index Median Median + 1σ Median - 1σ Source: WisdomTree, FactSet, S&P. You cannot invest directly in an index. Historical forward P/E measured
Slide 22: S&P 500 Ex-Tech Historical P/E
U.S. Equities S&P 500 Ex-Tech Historical P/E S&P 500 Ex-Tech Forward P/E Ratio – as of 2/24/26 30x 25x 19.9x 20x 19.7x 16.8x 15x 13.6x 10x 5x S&P 500 Index Median Median + 1σ Median - 1σ Source: WisdomTree, FactSet, S&P. You cannot invest directly in an index. Historical forward P/E measured since 1
Slide 23: S&P Equity Risk Premium and Rule of 72
U.S. Equities S&P 500 Equity Risk Premium and Rule of 72 S&P 500 Index S&PEquity Risk Premium 500 Earnings – as ofTIPS Yield minus 2/23/26 Yield Rule of 72 – as of 2/23/26 10% Equity Risk Premium 50 Historical Median 41 8% 40 6% 30 Years 5.15% 4% 20 16 14 2% 2.66% 10 0% 0 Jan-03 Jan-05 Jan-07 Jan-09
Slide 24: Earnings Environment Remains Constructive for Stocks
U.S. Equities Earnings Environment Remains Constructive for Stocks Source: 3Fourteen Research. 24
Slide 25: Weaker Dollar = Higher S&P 500 Earnings
U.S. Equities Weaker Dollar = Higher S&P 500 Earnings Sources: WisdomTree, FactSet, S&P, as of 12/31/25. USD Rising/Falling periods based on rolling 6-months. Change in Earnings based on subsequent 6-months change in earnings. You cannot invest directly in an index. Past performance is not indicativ
Slide 26: Valuations of Mag 7
U.S. Equities Valuations of Mag 7 Price-to-Earnings of Magnificent 7 (as of February 24, 2026) Price-to-Earnings Trailing 5-Year Estimated Long-Term Name (S&P 500 Rank) Market Value ($Bn) (Fwd. 12m)* Earnings Growth** Earnings Growth*** NVIDIA (1) $4,686 26.9x 92.4% 45.4% Apple (2) $3,995 30.9x 16.4
Slide 27: Superior profitability of U.S. companies may support higher multiple
U.S. Equities The improved and superior profitability of U.S. companies may support a higher earnings multiple The quality (leverage, earnings volatility, and profitability) While U.S. equities trade at a valuation premium to international has steadily improved, complicating comparisons to markets,
Slide 28: Growth Rates: Historical and Forward
U.S. Equities Growth Rates: Historical and Forward Trailing 5yr Earnings Growth - as of 1/30/26 30% 23.7% 20% 15.9% 12.8% 9.5% 10% 0% QGRW S&P 500 Growth Nasdaq 100 S&P 500 Forward 3yr Earnings Growth - as of 1/30/26 20% 17.5% 14.1% 14.0% 15% 10.8% 10% 5% 0% QGRW Nasdaq 100 S&P 500 Growth S&P 500 So
Slide 29: Forward 3-Year Analyst Growth Estimates
U.S. Equities Forward 3-Year Analyst Growth Estimates Forward 3yr Earnings Growth - as of 1/30/26 20% 17.7% 17.5% 17.0% 15% 14.1% 11.0% 10% 5% 0% Stocks in QGRW Stocks in QGRW Stocks in QGRW Stocks in the Stocks in the that are NOT in the AND the Nasdaq 100 Nasdaq 100 Nasdaq 100 that Nasdaq 100 are
Slide 30: High Dividends Outperformed Low Dividends Over 95 Years
U.S. Equities High Dividends Outperformed Low Dividends by 1.7% Annualized Over the Last 95 Years Rolling 3-Year High Div. Excess Return over Low Div. Summary Stats (6/30/1930-12/31/2025) Current (as of Count Average Median Max Min Observations % Beat 12/31/25) Outperform (17.7%) +1.5% +1.8% +20.6%
Slide 31: Signs of Market Frothiness in Speculative Stocks
U.S. Equities Signs of Market Frothiness in Outperformance of Speculative Stocks Calendar Year 2025 Group Returns 25% 23% 23% 19% 20% 20% 15% 13% 10% 8% 6% 6% 5% 0% Unprofitable Profitable Mag 7 Non-Mag 7 Non Dividend Dividend No Buybacks Buybacks Payers Payers Year-to-Date Group Returns (as of Febr
Slide 32: Sector and Factor Performance – 2026
U.S. Equities Sector and Factor Performance – 2026 Year-to-Date S&P 500 Sector Returns (as of February 24, 2026) 30% 23.4% 17.5% 15.6% 14.1% 20% 10.6% 9.0% 10% 2.0% 0.8% 0% -10% (1.3%) (3.4%) (3.9%) (6.9%) Energy Materials Cons Industrials Utilities Real Health S&P 500 Comm Info Tech Cons Disc Finan
Slide 33: Sector and Factor Performance – 2025
U.S. Equities Sector and Factor Performance – 2025 Source: WisdomTree, S&P, MSCI. Index returns based on total returns. Momentum = MSCI USA Momentum Index. Value = S&P 500 Value. Min Vol = MSCI USA Min Vol Index. Growth = S&P 500 Growth Index. High Div = MSCI USA High Dividend Yield Index. Quality =
Slide 34: Calendar Year Factor Returns
U.S. Equities Calendar Year Factor Returns Trailing 5yr Factor Returns (as of December 31, 2025) Annualized Full 2021 2022 2023 2024 2025 Period 32.0% - Growth -3.8% - High Dividend 31.1% - Quality 36.1% - Growth 22.2% - Growth 15.0% - Growth 28.7% - S&P 500 -5.2% - Value 30.0% - Growth 32.3% - Mome
Slide 35: Any signs of market rotation?
U.S. Equities Any signs of market rotation? YTD (as of February 24, 2026) 12-Month (as of February 24, 2026) Value Blend Growth Value Blend Growth Large Large 4.29% 0.83% -2.17% 14.56% 16.62% 18.49% Mid Mid 7.03% 8.37% 9.66% 14.46% 17.21% 19.93% Small Small 8.67% 8.31% 7.98% 19.47% 17.59% 15.84% Sou
Slide 36: A Preferred Metric and Strategy for Value: Shareholder Yields
U.S. Equities A Preferred Metric and Strategy for Value: Shareholder Yields Historical Shareholder Yield – as of 2/24/26 14% 12% Shareholder Yield 10% 8% 6% 6.9% 4% 3.5% 2% 2.5% 0% Jun-20 Jun-23 Dec-17 Jun-18 Jun-19 Jun-21 Jun-22 Jun-24 Jun-25 Dec-25 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24
Slide 37: Catalysts to Change Small Cap Discount
U.S. Equities Catalysts to Change Small Cap Discount: Fed Cutting Rates + Margin Improvement Current – as of 2/24/26 Historical Median Premium/Discount S&P 500 22.2x 16.8x 32.2% S&P 600 15.3x 16.6x -7.5% Large vs. Small Relative Valuations 1.4 Small Expensive, Large Cheap 1.2 1.0 Historical Median:
Slide 38: International vs US Valuations
Global Equities International vs US Valuations Looks like US Value/Growth Dynamics Forward P/E Ratio Valuations – as of 1/30/26 U.S. Current Ex-US Current U.S. Historical Median Ex-US Historical Median 23.1x 15.7x 17.2x 14.1x International Equities Valuation Discount to U.S. on Forward P/E Ratio – a
Slide 39: Japan Equity Risk Premium Higher Than US Equities
Global Equities Japan Equity Risk Premium 300-400 Basis Points Higher Than US Equities MSCI Japan Index Equity Risk Premium (as of 1/30/25) Source: WisdomTree, MSCI, Bloomberg, 10/31/2013-1/31/2026. OPPJ = WisdomTree Japan Opportunities Fund. DXJ = WisdomTree Japan Hedged Equity Fund. Japanese Equit
Slide 40: U.S. Exceptionalism: A Recent Change following 16 Year Run
Global Equities U.S. Exceptionalism: A Recent Change following 16 Year Run US vs. Ex-US Relative Performance – as of 2/24/26 (Positive is U.S. Outperformance) 12/29/00—12/31/09 12/31/09—2/24/26 Year-to-Date -54.32% 547.00% -8.82% US vs. Ex-US Relative Performance – as of 2/24/26 (Positive is U.S. Ou
Slide 41: US vs. Rest of the World (in USD)
Global Equities US vs. Rest of the World (in USD) Trailing 12mo Country Returns (as of February 24, 2026) 50% 43.2% 42.4% 36.6% 35.1% 33.8% 40% 31.3% 30.6% 30.4% 30.0% 30% 22.9% 22.5% 16.2% 20% 10% 0% EM Japan EAFE Japan EM Small EAFE Europe Europe ACWI USA Small ACWI USA Small Small Small Small YTD
Slide 42: Return of Fiscal Stimulus to Europe
Investment Themes Return of Fiscal Stimulus to Europe + Historic shift in defense spending across the European Continent and U.K. + “What gets spent by Germany does not necessarily stay in Germany.” Defense spending will be tailwind for many companies and countries. + Many technologies developed for
Slide 43: U.S. Exceptionalism Challenged
Investment Themes U.S. Exceptionalism Challenged Cumulative Total Returns (USD), 10/12/22—12/31/2025 Sources: WisdomTree, MSCI, S&P, FactSet. Europe and Japan returns based on net total returns. Time period selected to coincide with bull market in US equities starting in October 2022. S&P 500 return
Slide 44: “Whatever It Takes” 2.0
Investment Themes “Whatever It Takes” 2.0 + This is not rhetoric. It is real spending on real capabilities. + Rheinmetall is a beneficiary, but it is not the only one. + Rheinmetall’s backlog grew 44% in 2024. There is more demand than capacity for defense products and build out. Photo source: CDU.
Slide 45: Necessity is the Mother of Invention
Investment Themes Necessity is the Mother of Invention 45
Slide 46: Earnings and Geopolitical Benefits
Investment Themes Earnings and Geopolitical Benefits Source: WisdomTree, MSCI, 12/31/12 - 12/31/25. U.S., Eurozone, Japan, and UK measured by respective MSCI indexes. Earnings measured in local currency. You cannot invest directly in an index. 46
Slide 47: Warren Buffett’s Investments in the Japanese Trading Houses
Investment Themes Warren Buffett’s Investments in the Japanese Trading Houses Source: WisdomTree, FactSet, S&P. Cumulative total returns from 8/30/2020 – 12/31/2025. Shareholder Yield from 7/31/2020-12/31/2025. You cannot invest directly in an index. Past performance is not indicative of future retu
Slide 48: Dividend Growth in Japan Continues to Outpace Developed Markets
Investment Themes Dividend Growth in Japan Continues to Outpace Developed Markets Sources: WisdomTree, MSCI, 12/31/12 through 12/31/2025. Dividends are trailing 12 months. Regions represented by respective MSCI country indexes. Dividends measured in local currency. Past performance is not indicative
Slide 49: Long-Term Case for India Remains Intact
Investment Themes Long-Term Case for India Remains Intact India’s once-stretched valuation premium versus broader Historical periods where India emerged from similar relative emerging markets has fully unwound and is now at levels lows - including late 2008, late 2011, and mid-2020 – were that have
Slide 50: It Pays (Carry) to Hedge Foreign Currency Movements
Investment Themes It Pays (Carry) to Hedge…. Foreign Currency Movements Major Foreign Currency Pairs vs USD (Positive is Foreign Currency Strength) - as of February 24, 2026 1-Month 3-Month 6-Month 12-Month Year-to-Date 1.40% - JPY 7.45% - MXN 7.85% - MXN 18.67% - MXN 4.31% - MXN 1.30% - MXN 3.19% -
Slide 51: Gold, US Dollar, and Real Rates
Investment Themes Gold, US Dollar, and Real Rates Gold and US Dollar - as of February 13, 2026 Gold and TIPS - as of February 23, 2026 600 -5% 500 1050 475 -4% 450 1100 500 -3% 425 Dollar Index, Inverted Axis 400 1150 -2% 400 Rate %, Inverted Axis 375 -1% 350 1200 Gold Index Gold Index 325 300 0% 30
Slide 52: Central Bank Demand for Gold has been Strong
Investment Themes Central Bank Demand for Gold has been Strong Source: WisdomTree, World Gold Council, Q1 2010 to Q4 2025. Historical performance is not an indication of future performance and any investments may go down in value. 52
Slide 53: Not Having Any Exposure to Gold or Crypto is an Active Underweight
Investment Themes Not Having Any Exposure to Gold or Crypto is an Active Underweight Market-cap weighted allocation (passive) would indicate roughly a 12.7% gold and 1.0% digital asset allocation within multi- asset portfolios The Liquid Market Portfolio Equity - 52.5% Developed markets large cap eq
Slide 54: Total Real Return Indexes
Investment Themes Total Real Return Indexes January 1802 – December 2025 $10,000,000. Stocks: 6.9% Real $2,975,594 $1,000,000. Bonds: 3.3% Real STOCKS Bills: 2.5% Real $100,000. Gold: 0.9% Real Dollar:-1.5%Real $10,000. $1,000. BONDS $1,387 $246 $100. BILLS $10. GOLD $8.28 $1. $0.1 DOLLAR $0.0371 $0
Slide 55: Real Returns Since 1971
Investment Themes Real Returns Since 1971 January 1971 – December 2025 $100. 1971 - 1981 - 2000 - 2025 2025 2025 Stocks 6.9% 8.8% 6.4% Stocks: 6.9% Real Gold 4.8% 2.6% 9.0% Bonds 2.8% 4.7% 1.6% $10. Gold: 4.8% Real Bonds: 2.8% Real Bills: 0.5% Real $1. Dollar:-3.8% Real $0.1 1971 1976 1981 1986 1991
Slide 56: Index Definitions
Index Definitions Bloomberg U.S. Dollar Spot Index: Tracks the value of the U.S. dollar against a basket of major global MSCI USA Sector Neutral Quality Index: Measures the performance of U.S. large and mid-cap stocks currencies, reflecting its international strength. exhibiting high quality charact
Slide 57: Index Definitions
Index Definitions S&P 500 Growth Index: A score-weighted index developed by Standard and Poor's (S&P). The index uses what it calls a "style-attractiveness-weighting scheme" and only consists of stocks within the S&P 500 Index that exhibit strong growth characteristics. S&P 400 Growth Index: A score
Slide 58: Important Information
Important Information Please see the WisdomTree Glossary for definitions of terms and indexes. Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund before investing. For a prospectus or, if available, the summary prospectus containing this and other