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 Fund has earned a coveted five-star ranking.

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

DGS facts

Inception

October 2007

Total Assets

$1.3 billion

Investment Approach

Seeks to track the price and yield performance of the WisdomTree Emerging Markets SmallCap Dividend Index.

Expense Ratio

0.64%

Dividend Yield

3%

1-Year / 3-Year / 5-Year Annualized Returns

23% / 7.6% / 5.4%

Alternatives

SPDR S&P Emerging Markets Small Cap

WisdomTree Emerging Markets Equity Income

iShares MSCI Emerging Markets Small Cap Index


Sources: Morningstar and Motley Fool CAPS.

On CAPS, 98% of the 199 members who have rated DGS believe the ETF will outperform the S&P 500 going forward.

Just last week, one of those Fools, Seattleldg, succinctly summed up the DGS bull case for our community:

Emerging market stocks seem unloved these days and on sale. I have been burned on several emerging market small cap companies so buying an ETF with a broader exposure seems more prudent. I like the dividend focus of this ETF. In countries with less than stellar accounting practices, dividends offer some insurance that these companies are legitimately earning what they claim. I also like the fact that this ETF is dividend weighted rather than cap weighted. Dividend weighting ensures that the ETF will have a value bent. The current 3% dividend yield is nice while we wait for world markets to improve. The expense ratio is 0.64% (in line with other similar emerging market ETFs).

Owning exceptional ETFs is a sure-fire way to secure your financial future. Of course, despite a strong four-star rating, DGS may not be your top choice.

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The article 5-Star ETFs Poised to Pop: WisdomTree Emerging Markets SmallCap Dividend originally appeared on Fool.com.

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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