Slide 1: WisdomTree CIO Market Update
October 2026 WisdomTree CIO Market Update
Slide 2: Table of contents
1. U.S. Economy (slides 4 to 20) 2. U.S. Equities (slides 21 to 41) Table of 3. Global Equities (slides 42 to 46) contents 4. Investment Themes (slides 47 to 59) 2
Slide 3: WisdomTree Research Team
Professor Jeremy Siegel, PhD Jeremy Schwartz, CFA Christopher Gannatti, CFA WisdomTree Senior Economist to WisdomTree Global CIO Global Head of Research and Emeritus Professor of Finance, The Wharton School of the Research University of Pennsylvania Kevin Flanagan Jeff Weniger, CFA Rick Harper Team
Slide 4: The Market Suggests More Hikes Are Coming
Economy The Market Suggests More Hikes Are Coming 2-Year Treasury Yield (as of 10/7/26) 8% 7% 6% 5% 4.87% 4% 3% 2% 1% 0% 1996 1998 1999 2001 2007 2008 2009 2010 2015 2016 2017 2018 2024 2026 1994 1995 1997 2000 2002 2003 2004 2005 2006 2011 2012 2013 2014 2019 2020 2021 2022 2023 2025 Source: Wisdom
Slide 5: Return to Normal Yield Curve Suggests Healthy Economy
Economy Return to Normal Yield Curve Suggests Healthy Economy Current and Historical Median 10-Year Treasury Yield vs. Fed Funds Effective Rate - 1/2/62 - 10/7/26 6% 4% 2% 1.40% 0% 1.11% -2% -4% -6% 10y Minus Fed Funds -8% Historical Median -10% -12% 1962 1971 1974 1980 1983 1992 2004 2013 2025 1965
Slide 6: Real Rates Rising
Economy Real Rates Rising 10-Year Nominal vs. Real Yields - 1/2/03 - 10/7/26 6% 5.28% 5% 4% 3% 2.92% 2% 1% 0% -1% 10 Year Nominal Yield 10 Year TIPs Yield -2% Jan-04 Jan-05 Jan-06 Jan-10 Jan-11 Jan-13 Jan-15 Jan-16 Jan-17 Jan-18 Jan-20 Jan-22 Jan-23 Jan-25 Jan-03 Jan-07 Jan-08 Jan-09 Jan-12 Jan-14 J
Slide 7: Warsh Rightly Renews Fed Focus on the Money Supply as Driver of Inflation
Economy Warsh Rightly Renews Fed Focus on the Money Supply as Driver of Inflation M2 Money Supply (Billions of Dollars, Seasonally Adjusted) - 12/31/09 - 8/31/26 $25,000 $23,343 $20,000 $15,000 $10,000 $5,000 2010 2014 2018 2020 2021 2024 2025 2011 2012 2013 2015 2016 2017 2019 2022 2023 2026 Source
Slide 8: Recent Money Supply Data Brings Inflationary Impulse
Economy Recent Money Supply Data Brings Inflationary Impulse M2 Money Supply (Year-over-Year Change) - 1/31/1960 - 8/31/26 30% 25% 20% 15% 10% 5% 5.6% 0% -5% -10% 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 Source: WisdomTree, FRED. 8
Slide 9: Forward Inflation Expectations Reasonably Well Anchored
Economy Forward Inflation Expectations Reasonably Well Anchored 5-Year, 5-Year Forward Inflation Expectation Rate – as of 10/8/26 3.0% Current Min Max 2.67% 2.5% 2.33% 2.0% 1.92% 1.5% 1.0% Apr-22 Apr-23 Apr-24 Apr-25 Apr-26 Jan-25 Jan-26 Jan-22 Jan-23 Jan-24 Jul-22 Jul-23 Jul-24 Jul-25 Jul-26 Oct-22
Slide 10: Job Picture: Job Growth and Jobless Claims
Economy Job Picture: Job Growth and Jobless Claims Non Farm Payrolls (thousands) - 10/31/23 - 9/30/26 Initial Jobless Claims (thousands) - 10/14/23 - 10/3/26 Initial Claims Non Farm Payroll Gains 280,000 300 Rolling 4wk Average 250 Rolling 3mo Average 200 240,000 150 Healthy 100 Range 200,000 50 0 -
Slide 11: AI Should be Embraced, Not Feared
Economy AI Should be Embraced, Not Feared + Before the industrial revolution, humankind had to work 12 hours a day, seven days a week to produce the goods for bare-bones survival: food and basic shelter. + Today, in the modern world, survival can be achieved by working less than a day. 11
Slide 12: Productivity Boom Everywhere but Official Statistics: Age of Abundance Incoming?
Economy Productivity Boom Everywhere but Official Statistics: Age of Abundance Incoming? ELON MUSK “An expansion of the global economy that is truly beyond all precedent.” World Economic Forum, January 2026 SAM ALTMAN “In the 2030s, intelligence and energy ... are going to become wildly abundant.” T
Slide 13: 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 14: Companies that spend more on AI increase number of workers
Economy Companies that spend more on AI increase number of workers 14
Slide 15: The Capital Commitment Is Structural, Not Cyclical
Economy The Capital Commitment Is Structural, Not Cyclical Combined 2026 capex: $695 to $725bn — the largest single-year infrastructure investment in corporate history $190bn $180-$190bn $200bn $125-$145bn Microsoft Alphabet Amazon Meta WHOSE EARNINGS DOES THIS CAPEX BECOME? Chip Designers Memory &
Slide 16: Tale of Two Markets: Spenders vs Beneficiaries of Spending
Economy Tale of Two Markets: Spenders vs Beneficiaries of Spending + Magnificent 7 down mid year on additional spending pressures while AI bottleneck trades leading market higher Year-to-Date Group Returns (as of October 8, 2026) 80% 70.6% 70% 60% 51.2% 50% 40% 30% 22.3% 17.4% 19.1% 20% 12.7% 14.4%
Slide 17: The Pace of Change Is Accelerating
THE PACE OF CHANGE IS ACCELERATING “Al is not going to take your job. Someone who knows how to use Al will take your job.” 1760s) =i 1886 Steam engine j The first invented - practical car = 1900s Widespread car adoption 4 Don’t be the horse. Learn to drive. Early chess programs THE TIME TO ADAPT IS
Slide 18: AI is getting cheaper faster than any technology in history
Economy AI is getting cheaper faster than any technology in history AI became 1,000x cheaper in under 3 years. Compute, the classic benchmark for exponential progress, took more than a decade. Estimated annual AI price 12.7x decline (~47% per quarter), per year 2021–26 Compute price decline, 1940– ~
Slide 19: The AI-Bio Frontier
Eco THE AI-BIO FRONTIER... 2" Pn. ‘ 5 TUNGENE ‘ . Four developments reshaping biology research "crc » " Updated September 25, 2026 TOMORROW RECENT DEVELOPMENTS = = SEP 1 SEP 8 SEP 11 ST. JUDE e GOOGLE DEEPMIND e— OPENAI e ANTHROPIC AdaptiveFlow AlphaGenome Atlas GPT-Rosalind New enzyme system ML-gui
Slide 20: Robotics and drones developments
Economy Sources: WisdomTree; Tesla, “Optimus – Gen 2” (Dec. 2023), for walking-speed improvement and redesigned hands; BMW Group, “Humanoid Robots for BMW Group Plant Spartanburg” (Sept. 2024), for Figure 02 height, weight, hand dexterity and manufacturing trials; Figure, “Helix” (Feb. 2025), for vi
Slide 21: NVIDIA: Still the AI Infrastructure King
U.S. Equities NVIDIA: Still the AI Infrastructure King Growth and margins are unmatched, but custom chips are where the share fight is THE FUNDAMENTALS Revenue ($B) WHY IT WINS More than a chip company 108.0 • Full stack: GPUs, CPUs, networking and CUDA, sold as • Fast cadence: Vera Rubin now in ful
Slide 22: META's Comeback
U.S. Equities META’s Comeback It’s aMUSEing: AI is paying off in ads, and Muse is a breakout consumer hit THE ENGINE AI-driven ad gains are funding the push THE NEW FRONT Muse, Meta’s personal AI agent Launched Sep 8. Shops, books travel and fills out forms for users. US/Canada iOS downloads, first
Slide 23: META's Comeback: Muse splits the market
U.S. Equities META’s Comeback Muse splits the market: who wins and who loses when AI agents do the shopping What changes when an AI agent sits in the middle ▲ WINNERS Distribution owners and “agent-ready” partners TODAY • Meta: owns both the agent and the audience of 3.6B daily users • Commerce rail
Slide 24: META's Comeback: Muse is built to act
U.S. Equities META’s Comeback Muse is built to act, and Meta can put it everywhere and take a cut THE PRODUCT An agent that does the work, not a chatbot Acts Persists Sends email, books travel, fills out forms and Keeps working after the app closes; checks in before it negotiates buys Built for trus
Slide 25: Oracle: The AI Spending Battleground
U.S. Equities Oracle: The AI Spending Battleground A $664B backlog vs. a stretched balance sheet: the market’s proxy for whether OpenAI can pay THE BULL CASE Backlog that converts THE BEAR CASE Price and credit disagree WHY IT’S THE BATTLEGROUND $246B ORCL month-end close ($), Aug 2025 – Sep 2026 •
Slide 26: U.S. Corporate Profitability
S. Equities U.S. CORPORATE PROFITABILITY / Q1 2006-AUG 2026 ae Profits are rising, but margins diverge by company size WeponTNe Corporate profits as a share of GDP alongside index Return on Sales === S&P 500 Return on Sales ——= Corporate profits / GDP === Russell 2000 Return on Sales LATEST AVAILABL
Slide 27: S&P 500 Historical P/E
U.S. Equities S&P 500 Historical P/E S&P 500 Index Forward P/E Ratio – as of 10/7/26 35x 30x 25x 21.6x 20x 20.4x 17.6x 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 12/31/1
Slide 28: 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 10/7/26 65x 55x 45x 35x 31.1x 25x 22.0x 24.0x 15x 13.0x 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 29: 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 10/7/26 30x 25x 20.0x 20x 16.9x 17.3x 15x 13.7x 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 30: 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 10/7/26 Yield Rule of 72 – as of 10/7/26 10% Equity Risk Premium 50 Historical Median 8% 40 6% 30 25 Years 5.13% 20 15 4% 12 1.98% 10 2% 0 0% S&P 500 S&P 500 ex TIPS Yie
Slide 31: Valuations of Mag 7
U.S. Equities Valuations of Mag 7 Price-to-Earnings of Magnificent 7 (as of October 8, 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 Corp (1) $5,555 19.9x 94.2% 52.6% Apple (2) $4,968 36.5x 1
Slide 32: Growth Rates: Historical and Forward
U.S. Equities Growth Rates: Historical and Forward Trailing 5yr Earnings Growth - as of 8/31/26 30% 20.1% 20% 13.7% 12.3% 10% 7.3% 0% QGRW S&P 500 Growth Nasdaq 100 S&P 500 Forward 3yr Earnings Growth - as of 8/31/26 20% 18.0% 14.2% 13.9% 15% 10.9% 10% 5% 0% QGRW Nasdaq 100 S&P 500 Growth S&P 500 So
Slide 33: Forward 3-Year Analyst Growth Estimates
U.S. Equities Forward 3-Year Analyst Growth Estimates Forward 3yr Earnings Growth - as of 8/31/26 20% 18.3% 18.0% 17.6% 15% 14.2% 10.8% 10% 5% 0% Stocks in QGRW Stocks in QGRW Stocks in QGRW Stocks in the Stocks in the AND the Nasdaq 100 that are NOT in the Nasdaq 100 Nasdaq 100 that Nasdaq 100 are
Slide 34: High Dividends Outperformed Low Dividends Over the Last 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 35: Signs of Market Frothiness in Outperformance of 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 Octo
Slide 36: Sector and Factor Performance – 2026
U.S. Equities Sector and Factor Performance – 2026 Year-to-Date S&P 500 Sector Returns (as of October 8, 2026) 60% 48.7% 40% 29.9% 14.4% 10.3% 10.0% 10.0% 9.5% 20% 5.4% 5.0% 0.3% 0% -20% (1.7%) (3.3%) Energy Info Tech S&P 500 Materials Health Cons Industrials Comm Real Financials Utilities Cons Disc
Slide 37: 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 38: 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 39: Any signs of market rotation?
U.S. Equities Any signs of market rotation? YTD (as of October 8, 2026) 12-Month (as of October 8, 2026) Value Blend Growth Value Blend Growth Large Large 10.92% 14.45% 17.39% 13.39% 16.32% 18.75% Mid Mid 8.00% 11.55% 15.01% 9.42% 12.49% 15.48% Small Small 15.17% 15.21% 15.22% 18.52% 16.72% 15.00% S
Slide 40: 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 10/7/26 14% 12% Shareholder Yield 10% 8% 6.9% 6% 4% 3.6% 2% 2.3% 0% Jun-20 Jun-21 Jun-24 Jun-25 Jun-26 Jun-18 Jun-19 Dec-19 Dec-20 Dec-21 Jun-22 Jun-23 Dec-24 Dec-25 Dec-17 Dec-18 Dec-22
Slide 41: Catalyst to Change Small Cap Discount
U.S. Equities Catalyst to Change Small Cap Discount: Follow Through from 2024 + 2025 Rate Cuts Current – as of 10/7/26 Historical Median Premium/Discount S&P 500 20.4x 16.9x 20.6% S&P 600 13.7x 16.5x -17.0% Large vs. Small Relative Valuations 1.4 Small Expensive, Large Cheap 1.2 1.0 Historical Media
Slide 42: 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 10/8/26 (Positive is U.S. Outperformance) 12/29/00—12/31/09 12/31/09—10/8/26 Year-to-Date -54.32% 651.91% 1.79% US vs. Ex-US Relative Performance – as of 10/8/26 (Positive is U.S. Out
Slide 43: US vs. Rest of the World (in USD)
Global Equities US vs. Rest of the World (in USD) Trailing 12mo Country Returns (as of October 8, 2026) 30% 26.3% 24.9% 24.1% 20% 16.0% 16.0% 15.7% 14.7% 13.9% 11.8% 11.2% 7.8% 10% 4.4% 0% EM Japan Japan ACWI USA USA Small EM Small ACWI EAFE EAFE Europe Europe Small Small Small Small YTD Country Ret
Slide 44: International vs US Valuations
Global Equities International vs US Valuations Looks like US Value/Growth Dynamics Forward P/E Ratio Valuations – as of 9/30/26 U.S. Current Ex-US Current U.S. Historical Median Ex-US Historical Median 20.4x 13.1x 17.3x 14.1x International Equities Valuation Discount to U.S. on Forward P/E Ratio – a
Slide 45: Higher International Risk Premiums Support Over-weights vs. U.S. Equities
Global Equities Higher International Risk Premiums Support Over-weights vs. U.S. Equities Historical Global Equity Risk Premiums MSCI ACWI Historical Regional Weights Source: WisdomTree, MSCI, Bloomberg, 3/31/2016-8/31/2026. Equity Risk Premium measured by the forward earnings yield (inverse of forw
Slide 46: Japan Equity Risk Premium 200-400 Basis Points Higher Than US Equities
Global Equities Japan Equity Risk Premium 200-400 Basis Points Higher Than US Equities MSCI Japan Index Equity Risk Premium (as of 8/31/26) Source: WisdomTree, MSCI, Bloomberg, 10/31/2013-8/31/2026. OPPJ = WisdomTree Japan Opportunities Fund. DXJ = WisdomTree Japan Hedged Equity Fund. Japanese Equit
Slide 47: 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 48: 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 49: "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 50: Necessity is the Mother of Invention
Investment Themes Necessity is the Mother of Invention 50
Slide 51: 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. 51
Slide 52: 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 53: 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 54: 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 October 8, 2026 1-Month 3-Month 6-Month 12-Month Year-to-Date -2.40% - GBP 2.79% - JPY 0.04% - JPY 2.05% - MXN -0.07% - MXN -2.65% - JPY -0.37%
Slide 55: Gold, US Dollar, and Real Rates
Investment Themes Gold, US Dollar, and Real Rates Gold and US Dollar - as of October 8, 2026 Gold and TIPS - as of October 7, 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% 300 12
Slide 56: 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 Q1 2026. Historical performance is not an indication of future performance and any investments may go down in value. 56
Slide 57: 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 58: 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 59: 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 60: 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 61: 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 62: 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