WisdomTree CBOE Russell 2000 PutWrite Strategy Fund (RPUT)

Overview

The investment seeks to replicate the price and yield performance, before fees and expenses, of the Cboe Russell 2000 PutWrite Index (the "index"). A significant portion of the fund's assets, at least 80% excluding the collateral from securities lending, is allocated towards the components of the index or investments closely mirroring the economic characteristics of these components. This index primarily reflects the returns from a strategy of selling cash-secured put options on the Russell 2000 Index, with the proceeds invested in one-month Treasury bills. It’s important to note that the fund is categorised as non-diversified.

Products and Services

• Index Tracking

The core service offered involves tracking the Cboe Russell 2000 PutWrite Index. This index represents a strategy focused on selling put options on the Russell 2000 Index, an approach that aims to generate returns through the sale of these options with the security of cash reserves backing the puts.

• Investment in Short-Term Treasury Bills

A portion of the proceeds obtained from put option sales is systematically invested in one-month Treasury bills. This not only provides a safeguard for the cash-secured put strategy but also contributes to the fund’s return, leveraging the relatively stable yields of short-term Treasury securities.

• Non-Diversified Fund Structure

As a non-diversified fund, the investment focuses considerably on a narrow range of securities, specifically those involved in its defined put option sales strategy. This concentration allows for a focused approach, potentially leading to higher returns, albeit with a corresponding increase in risk.