5-Star ETFs Poised to Pop: WisdomTree Emerging Markets SmallCap Dividend

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the WisdomTree Emerging Markets SmallCap Dividend Index (NYS: DGS) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at WisdomTree Emerging Markets SmallCap Dividend and see what CAPS investors are saying about the ETF right now.

WisdomTree Emerging Markets SmallCap Dividendfacts

Inception

October 2007

Total Assets

$760 million

Investment Approach

Seeks to track the WisdomTree Emerging Markets SmallCap Dividend Index, which includes about 700 small-cap companies across 19 countries and weighs holdings based on annual cash dividends paid.

Expense Ratio

0.63%

3-Month / 1-Year / 3-Year Return

(6.3%) / (17.7%) / 25.9%

Top Holdings with High CAPS Rating (4 or 5 Stars) and Portfolio Weight

Partner Communications (NAS: PTNR) (1.2%)
WisdomTree India Earnings ETF (NYS: EPI) (0.8%)
Telecom Argentina (NYS: TEO) (0.7%)

Dividend Yield

4%

Alternatives

Vanguard Emerging Markets (NYS: VWO)
iShares MSCI Emerging Markets (NYS: EEM)

Sources: Morningstar and Motley Fool CAPS.

On CAPS, 98% of the 184 members who have rated WisdomTree Emerging Markets SmallCap Dividend believe the ETF will outperform the S&P 500 going forward. These bulls include spoonieluv and All-Star mrwizard001, who is ranked in the top 10% of our community.

Earlier this year, spoonieluv added it all up for Fools: "Small / mid caps + emerging markets (no PIGS) + solid dividend = yes please."

In fact, WisdomTree Emerging Markets SmallCap Dividend sports a juicy dividend yield of 4%. That's higher than that of alternatives like Vanguard Emerging Markets (2%) and iShares MSCI Emerging Markets (2.1%).

CAPS member mrwizrd001 elaborated on the bull case back in late 2008:

Small cap stocks beat large cap stocks in the long run. Value stocks beat growth stocks in the long run. Emerging market stocks beat developed nations in the long run. [WisdomTree Emerging Markets SmallCap Dividend] is the ONLY ETF that provides a small cap, value, emerging market investment.

What do you think about WisdomTree Emerging Markets SmallCap Dividend, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to trackWisdomTree Emerging Markets SmallCap Dividend?Add it to your watchlist.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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