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DiversityIn fact, being unique is part of our DNAThe WisdomTree fundamentally weighted ETFs are designed to track our proprietary stock indexes in whichthe initial “weights” of the securities in each index are based on cash dividends. Our distinct weightingmethodology provides investors with a viable alternative to market-cap weighted indexes.

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WisdomTreeJapan SmallCapDividend Fund(DFJ)

WisdomTreeJapan Total Dividend Fund(DXJ)

WisdomTreeJapan High-Yielding Equity Fund(DNL)

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WisdomTreeInternational SmallCap Dividend Fund(DLS)

WisdomTreeInternational MidCapDividend Fund(DIM)

WisdomTreeInternational LargeCap Dividend Fund(DOL)

WisdomTreeHigh-Yielding Equity Fund(DHS)

WisdomTreeLargeCap Dividend Fund(DLN)

WisdomTreeTotal Dividend Fund(DTD)

WisdomTreeDIEFA Fund(DWM)

WisdomTreePacific ex-Japan High-Yielding Equity Fund (DNH)

WisdomTreeEurope SmallCapDividend Fund(DFE)

WisdomTreeEurope TotalDividend Fund(DEB)

WisdomTreeEurope High-Yielding Equity Fund(DEW)

WisdomTreeInternational DividendTop 100 Fund(DOO)

WisdomTreeSmallCap Dividend Fund(DES)

WisdomTreeMidCap Dividend Fund(DON)

WisdomTreeDividend Top 100 Fund(DTN)

WisdomTreeDIEFA High-Yielding Dividend Fund(DTH)

Investing involves risk including loss of principal. Past performance does not guarantee future results. Foreign investing involves special risks suchas currency fluctuation and political uncertainty. Funds that emphasize investments in smaller companies may experience greater price volatility.

Investors should consider the investment objectives, risks, charges and expenses of the Funds carefully before investing. To obtain a prospectuscontaining this and other information call 1-866-909-WISE (9473) or visit www.wisdomtree.com. Read the prospectus carefully before you invest.WisdomTree Funds are distributed by ALPS Distributors, Inc.

WIS000128 08/07

November 13, 2006 B A R R O N ' S 9

Scoreboard: November Notch-upszU.S. diversified stock funds gained an average 1.22%, slightly more than the broad market’sgain of 0.86% in the week ended Thursday, according to Lipper. Small-cap growth, small-capcore and small-cap value rose 1.84%, 1.73% and 1.61% respectively. Gold funds climbed4.41% and China-region funds advanced 2.25%. Large funds with strong relative performancesincluded Fidelity Contrafund, up 1.62%, and American Funds Growth, which rose 1.24%. —Jack Willoughby

One Week Year-to-Date

U.S. STOCK FUNDS 1.22% 8.99%U.S. BOND FUNDS 0.11 4.22TOP SECTOR / Natural Resources Funds 4.55 14.01BOTTOM SECTOR / Japanese Funds – 2.95 – 7.62

THE WEEK'S TOP 10Fund Investment Objective One Week Year-to-Date

ProFunds OE S&D US Inv Natural Resources 8.27% NAProFunds Oil & Gas Inv Natural Resources 7.52 24.83ProFunds Mobile Tel Inv Telecommunication 6.54 1.43US Glbl World Prec Min Gold Oriented 6.25 50.64US Glbl Gold Shares Gold Oriented 6.21 51.87Oil Service HOLDRS Tr Natural Resources 6.20 8.57Rydex Energy Svcs Inv Natural Resources 6.04 11.96ProFunds UltraEM Inv Emerging Markets 5.90 NAUnited States Oil Fund Natural Resources 5.86 NAOCM Gold Gold Oriented 5.82 33.06

THE WEEK'S BOTTOM 10Fund Investment Objective One Week Year-to-Date

ProFunds UltraSht EM Inv DSB – 5.73% NAIShares Dow US Hme Cns Specialty & Misc – 5.49 NADirexion EM Br 2x Inv Emerging Markets – 5.43 – 41.11ProFunds Sht Oil&Gas Inv DSB – 4.68 – 15.47Matthews Asian Japan Japanese – 4.45 – 10.55ProFunds Pharmaceut Inv Health/Biotech – 4.41 12.85Direxion NAS Br 2.5x Inv DSB – 4.22 NADirexion SC Br 2.5x Inv DSB – 3.88 – 25.79Pharmaceutical HOLDRS Health/Biotech – 3.75 7.77JP Morgan Japan Sel Japanese – 3.68 NA

THE LARGEST 10Net Assets 3-Year* 1-Week YTD

Fund (billions) Investment Objective Return Return Return

American Funds Gro A $79.410 Multi Cap Growth 13.29% 1.24% 8.68%American Funds ICA A 71.345 Large Cap Value 12.35 0.69 13.23Vanguard 500 Index Inv 69.490 S&P 500 Funds 11.04 0.86 12.07American Funds Wsh A 65.132 Large Cap Value 11.76 0.87 14.75Fidelity Contrafund 65.030 Multi Cap Growth 15.03 1.62 9.51Dodge & Cox Stock 60.969 Large Cap Value 16.90 0.60 14.52PIMCO Tot Rtn Inst 58.769 Intmd Inv Grade 4.53 – 0.09 3.70SPDR Trust 1 57.581 S&P 500 Funds 11.06 0.86 12.12American Funds CIB A 55.937 MTAG 15.53 0.98 17.41American Funds Inc A 55.812 MTAG 13.21 0.47 16.19

*Annualized. Through Thursday. Source: Lipper

Fund Scope: It’s Hard to Beat a Healthy S&P

zHealth and biotech funds are up 4.85%, on average, in the past year, according to Lipper, the

fund-tracking arm of Reuters. That’s well below the S&P 500’s nearly 12% gain. These funds

have a three-year annual return of 9.32%. Top performers have included Fidelity Select Pharma-

ceuticals, up 13.80%. Among the laggards: Fidelity Select Medical Equipment, up just 1.64%.

—Lawrence C. StraussAssets 1 Year 3 Year

Fund Name/Manager Phone Number Load (millions) Return Return*

Vanguard HlthCare Inv 800-662-7447 None $16,740.8 12.19% 14.29%Edward P. OwensVanguard HlthCare Adm 800-662-7447 None 10,431.4 12.29 14.38Edward P. OwensFidelity Sel Health 800-544-8544 None 2,203.4 4.88 12.01Matthew SabelSel Sector H Care SPDR 800-843-2639 None 1,948.7 N/A N/AJohn TuckerPutnam Hlth Sciences A 800-225-1581 5.25 1,781.2 3.24 10.05Alexander/ChenT Rowe Price Hlth Scienc 800-638-5660 None 1,638.6 10.65 14.46Kris H. JenneriShares Nasdaq Biotech 800-474-2737 None 1,496.6 3.82 3.73O'Connor/LeungFidelity Sel Bio Tech 800-544-8544 None 1,443.3 9.31 10.51Rajiv KauliShares Dow US Hlthcr 800-474-2737 None 1,281.2 6.03 7.77O'COnnor/LeungEaton Vance Ww H&S A 800-225-6265 5.75 1,259.3 2.06 6.53Team Managed

*Annualized. All data through Thursday. Source: Lipper

in the mutual-fund business. One possi-bility: borrowing some of Wall Street’stools toget “a littlebit of leverage” togen-erate better returns for mutual-fund in-vestors, he says.

In an industry where many are tooyoung to remember the bear market ofthe mid-1970s or even the real-estaterecession of the early 1990s, Casey of-fers clients ideas and perspective.

“It is so refreshing to have an adultin the room who has seen the wars andunderstands,” says John M. Angelo,chief executive of Angelo, Gordon & Co.,which utilized Casey’s expertise when itwas launched in 1988. Today, Angelo,Gordon invests about $12 billion in a va-riety of alternative assets.

Casey doesn’t have an undergrad de-gree in, say, economics, followed by anMBA—the typical route to asset manage-ment: He went to now-defunct MiltonCollege in Wisconsin, where he playedfootball and studied speech and English.(College football is one of his passions.)

With scant finance background, Caseyentered the retail-brokerage training pro-gram at Harris Upham & Co., now partof Smith Barney and Citigroup, in Mil-waukee in 1967. The program included athree-month stay in New York, where heand his fellow brokers-to-be heard sev-eral speeches at the New York Instituteof Finance about “how big retirementfunds were going to be,” he recalls.

Casey returned to Milwaukee as abroker and took advantage of opportuni-ties to meet with visiting fund man-agers. And he never lost sight of a basicidea, which essentially went like this: Ifpension plans selected better moneymanagers, they “would have to put lessmoney in their programs.”

In 1969, Casey took a step toward hisultimate profession: He went to workfor Paine Webber vetting funds, review-ing retirement programs and findingnew and promising managers.

A little early perhaps—but soon histiming proved excellent. The Dow JonesIndustrial Average lost about 40% of itsvalue in 1973 to 1974, making investorsmore receptive to alternatives. Also, theEmployee Retirement Income SecurityAct, which sought more protection foremployees invested in pension plans,was passed by Congress in 1974.

After a couple of more jobs, Caseylaunched Rogers, Casey & Barksdalewith Stephen Rogers and Ed Barksdalein 1976. At first, they worked for corpo-rate pension clients like Gannett andKodak. Rogers, Casey helped structureinvestment management programs, nota-bly which managers to assemble in a port-folio, and then monitored returns.

The pension-fund world, historicallydominated by 16 old-line banks and in-surers, was rapidly opening up to newplayers. “Those 16 firms were the defini-tion of quality, and they lost it all in twoyears,” says Casey.

Upstarts like Fidelity and Putnam,which didn’t have large institutionalbusinesses, aimed at the market. “Thedefinition of quality shifted from big andelegant and good cigars to nimble,smart people in smaller firms and bou-tiques,” Casey observes.

By the late 1970s, many pension fundswantednew investment talent, andCaseywent on the road to find it for them. From

early 1979 through September 1980, hevisited 184 firms in 76 U.S. cities in 34states, a tour he dubbedOperationGrandSweep. Among those he met was PeterLynch, then a relatively unknown man-ager of Fidelity Magellan Fund.

Eventually, Casey found himself spend-ing more time advising asset-manage-ment firms than corporate pension plans.In part, this was because the pension-con-sulting world got crowded with larger,well-financed competitors like Russell In-vestment Group. By 1994, Casey had setup a team dedicated to working with as-set managers. Barra, a firm that special-ized in analytical tools that helped fundmanagers with risk control and asset allo-cation, acquired Casey’s outfit in 1996 andthen spun it off in 2002. Today, Casey’sgroup provides asset managers with stra-tegic advice on everything from mergersto specific fund offerings.

Helped by a core group of partnersincluding Kevin Quirk, Jeb Doggett andDavid Bauer, Casey has put out variousinfluential white papers, including theone, co-written in 2000 with MerrillLynch, that correctly predicted the prolif-eration of open mutual-fund sales architec-ture, the popularity of hedge funds andthe relative unimportance of asset size.

Casey and his team have also offeredcountless pieces of sound advice. For ex-ample, Barclays Global Investors hasmade a big push into fixed-incomefunds. Blake Grossman, the firm’s glo-bal chief executive, says Casey “saw theopportunity to build up scale there earlyon,” and “he was a voice for us movingfaster in that area.”

Often, it’s Casey’s analysis of themany people he’s met that counts.

“I’m interested to hear what he has tosay about a business,” says Matthew R.Barger, senior adviser at private-equityfirm Hellman & Friedman, which hasdone a number of asset-managementdeals.And, addsBarger, “I’mmore inter-ested to hear what he has to say about agroup of people he’s evaluating.” Caseyintroduced Hellman to Andrew Zieglerwhen he was launching Artisan Funds in1995. Barger’s firm eventually helpedback the fledgling fund company, whichnow has nearly $50 billion in assets.

Much of today’s mutual-fund business“is in need of some innovation” on theinvestment side, says Casey, who thinkspeople want products that are very dif-ferent from what’s generally available.

Target retirement funds, which ad-just a portfolio’s asset mix as retirementapproaches, were a good advance, hesays. But the industry needs more freshideas. A fund that lends money to compa-nies and uses a bit of Wall Street-typeleverage to generate improved returnsis a concept he favors. And in light ofthe approaching wave of retirees, newways to produce guaranteed incomeshould be welcomed, Casey says.

Following recent fund scandals andthe popping of the high-tech bubble, mu-tual funds, Casey says, must get used toclose scrutiny, particularly when vyingfor coveted spots on distribution net-works at big securities firms and otherintermediaries. “There were a lot ofproducts that got into these intermedi-ary [channels] that, frankly, weren’t thatgood. This is a brand-new game.”

And he plans to keep playing. n

44 B A R R O N ' S November 13, 2006