Slide 1: Emerging Market Opportunities
Q2-2026 Emerging Market Opportunities
Slide 2: WisdomTree Company Overview
WisdomTree Company Overview + Who We Are WisdomTree is a global financial innovator, empowering investors to shape their future and supporting financial professionals to better serve their clients and grow their businesses. + WisdomTree Solutions WisdomTree manages $160.9 billion* in exchange-traded
Slide 3: Our Philosophy
Our Philosophy Pricing Errors & Return Premiums Exist Fundamentals Matter The Concept of Relative Value is Important Emerging Market Opportunities 3
Slide 4: WisdomTree Modern Alpha
WisdomTree Modern Alpha® Modern Alpha combines the outperformance potential of active with the benefits of passive— to offer investors strategies that are built to perform. Modern Alpha Low Cost* Legacy Alpha Legacy Beta Transparent Investment Higher Cost Low Cost Process Black Box Transparent Inves
Slide 5: 2026 Market Outlook
2026 Market Outlook Global Equity Positioning + Overweight Quality in the U.S. + U.S. stock market valuations are elevated. We are keen to overweight mid and small caps, which have seen improved earnings growth and stand to disproportionately benefit from cheaper short-term financing conditions. + I
Slide 6: Why Emerging Markets in 2026
Why Emerging Markets in 2026 WisdomTree Outlook + Many years of underperformance have opened up valuation gaps between emerging markets and the U.S. + Economically: + China’s property bubble has been a known quantity for four years, so its force in the popular psyche may no longer affect stock marke
Slide 7: Why Emerging Markets?
Why Emerging Markets? Emerging Market Opportunities 7
Slide 8: Hedging the Bearish USD Outlook
Hedging the Bearish USD Outlook + Emerging market equities and commodities performed well when USD is weak + Emerging markets outperformed at an average return of 26.3% when the USD dropped 5% or more + Broad commodities outperformed with a hit rate of 80%, meaning its returns were positive 80% of t
Slide 9: EM Valuation Gap vs. S&P 500
EM Valuation Gap vs. S&P 500 MSCI EM Index P/E Ratio Discount to S&P 500 30.00% 20.00% + MSCI EM Index is currently at a 34% discount to the S&P 10.00% 500 0.00% -10.00% -20.00% + From 2003 to 2007, the MSCI EM Index returned a -30.00% cumulative 383%, while the S&P 500 returned 83% -40.00% -50.00%
Slide 10: Ex-State-Owned Enterprises Research
Ex-State-Owned Enterprises Research Emerging Market Opportunities 10
Slide 11: Ex-State-Owned Screening Explicitly Focuses on Governance
Ex-State-Owned Screening Explicitly Focuses on Governance How does excluding state-owned companies focus on governance? + State-ownership can exacerbate the Principal-Agent Problem inherent with the governance of public companies Government interests can conflict with general shareholder Principal-A
Slide 12: State-Owned Governance Issues: Case Studies
State-Owned Governance Issues: Case Studies Example: Over-employment – PetroChina vs. Exxon Mobil + A common criticism of SOEs is that political influences force them to employ too many people and pay them higher than market wages + An example of this can be seen by comparing the number of employees
Slide 13: Performance of SOEs vs. Non-SOEs
Performance of SOEs vs. Non-SOEs Cumulative Growth of $100: SOEs vs Non-SOEs 250% Average Annual Returns 200% 1 Year 3 Year 5 Year 10 Year Since 2007 Cummulative Returns Non-SOE 150% 50.32% 25.57% 7.92% 11.36% 5.91% SOE 13.19% 13.39% 7.36% 7.66% 2.01% 100% $289.45 50% 0% $144.67 Standard Deviation -
Slide 14: Characteristics of SOEs
Characteristics of SOEs + WisdomTree identified approximately 546 companies out of the initial 1858 companies as state-owned enterprises (SOE) with the government owning more than 20% of the shares + SOE’s market cap of nearly $3.5 trillion, about 26% of the original universe’s market cap of approxi
Slide 15: China SOEs
China SOEs Close to half of domestically listed Chinese companies are classified as SOEs, with a third of them being in the Financials sector SOEs Non-SOEs Communication Services 0.1% 0.9% Consumer Discretionary 1.0% 4.9% Consumer Staples 5.1% 2.4% Energy 1.4% 0.2% Financials 14.2% 4.2% Health Care
Slide 16: WisdomTree Approach to Emerging Markets
WisdomTree Approach to Emerging Markets Emerging Market Opportunities 16
Slide 17: WisdomTree Emerging Market ex-State-Owned Enterprises Strategy: A New Form of EM Beta
WisdomTree Emerging Market ex-State-Owned Enterprises Strategy: A New Form of EM Beta State-Owned Enterprises Eligibility Criteria Weighting Caps/Adjustments State-Owned + Companies with 20% ownership by government body are removed from inclusion Enterprises + Component companies must conduct their
Slide 18: Core + Country Specific EM Exposures
Core + Country Specific EM Exposures Broad based exposures for strategic mandates vs. country specific strategies for tactical allocations XSOE CXSE Core EM Exposure China ex-SOE Exchange: NYSE Exchange: NYSE Expense Ratio: 0.32% Expense Ratio: 0.32% Inception date: 12/10/14 Inception date: 9/19/12
Slide 19: Since Inception Performance of WisdomTree Emerging Markets ex-SOE Index
Since Inception Performance of WisdomTree Emerging Markets ex-SOE Index WisdomTree Emerging Markets ex-State-Owned Enterprises Index vs MSCI Emerging Markets Index (8/18/14-6/30/26) 160% WisdomTree Emerging Markets ex-State Owned Enterprises Index MSCI Emerging Markets + WisdomTree Emerging Markets
Slide 20: Chinese Market Since Inception Performance
Chinese Market Since Inception Performance WisdomTree China ex-State-Owned Enterprises Index vs. MSCI China Index (3/31/15 -6/30/26) 250% WisdomTree China ex-State-Owned Enterprises Index MSCI China Index + WisdomTree China ex-State-Owned Enterprises Index 200% had an active share of 52% against the
Slide 21: Ex-SOE Screens ≠ Higher Tracking or Higher Volatility
Ex-SOE Screens ≠ Higher Tracking or Higher Volatility WisdomTree EM ex- WisdomTree China ex- State-Owned MSCI EM Index State-Owned MSCI China Index + Ex State-Owned Enterprises Strategies have shown high Enterprises Index Enterprises Index correlation to broad indexes while having comparable Annual
Slide 22: State-Owned Screening = Higher Growth and Better Quality
State-Owned Screening = Higher Growth and Better Quality WisdomTree EM ex- WisdomTree China ex- Fundamentals S&P 500 Index State-Owned MSCI EM Index State-Owned MSCI China Index Enterprises Index Enterprises Index + Screening State-Owned Enterprises improves aggregate Implied Growth Rate (%) 13.88 9
Slide 23: Broad Emerging Market Sector Differences and Characteristics
Broad Emerging Market Sector Differences and Characteristics Forward P/E Return on Return on SOE Weight Dividend Yield P/E Ratio P/B Ratio P/S Ratio P/CF Ratio Ratio Equity Assets WisdomTree Emerging Markets ex-State-Owned Enterprises Index 0.0% 1.52% 22.3x 13.6x 13.66% 2.72% 3.2x 2.2x 14.4x MSCI Em
Slide 24: Align China Index Exposure with China's 'New Economy'
Align China Index Exposure with China’s ‘New Economy’- WisdomTree ex-State- Owned Approach Forward P/E Return on Return on SOE Weight Dividend Yield P/E Ratio P/B Ratio P/S Ratio P/CF Ratio Ratio Equity Assets WisdomTree China ex-State-Owned Enterprises Index 0.0% 1.49% 21.5x 16.2x 10.76% 2.05% 2.4x
Slide 25: Ex-State-Owned Screening Implicitly Tilts to Environmental Considerations
Ex-State-Owned Screening Implicitly Tilts to Environmental Considerations + State-owned enterprises tend to be clustered in Financials, Energy, Materials, and Utilities + By screening out SOEs, WisdomTree Ex-State-Owned Indexes implicitly screen on environmental considerations by reducing exposure t
Slide 26: Standardized Performance
Standardized Performance Cumulative Returns Average Annual Total Returns as of June 30, 2026 Name QTD YTD 1-Year 3-Year 5-Year 10-Year Since Inception WisdomTree China ex-State-Owned Enterprises Fund (NAV) 5.06% -3.69% 14.47% 9.92% -9.13% 6.85% 4.80% WisdomTree China ex-State-Owned Enterprises Fund
Slide 27: Important Information
Important Information Please see the WisdomTree Glossary for definitions of terms. 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 important in