WisdomTree Asia Defense Fund(NASDAQ:WDAF)

WDAF is passively managed, maintaining a portfolio of 20-100 Asia-Pacific defense-related companies. The fund uses a representative sampling to mirror the risk/return profile of the index rather than buying every constituent. Eligible companies must be listed in Asia-Pacific companies, meet minimum size, and liquidity requirements, and generate at least 10% of revenue from defense-related activities. Selected securities are scored based on defense revenue percentage: score 1 has 10-25% exposure, score has 25-50%, and score 3 has over 50%. The index caps these groups: 7.5% for the highest exposure (3) and 4% for the lower exposure categories (1 and 2). Holdings are weighted primarily by free-float market capitalization, adjusted by their level of defense revenue exposure. Index rebalancing is done semi-annually in March and September.