WisdomTree International SmallCap Dividend Fund (DLS)

ETF WisdomTree International SmallCap Dividend Fund (DLS) Summary:

Profile:

The WisdomTree International SmallCap Dividend Fund (DLS) is an exchange-traded fund that invests in small-cap stocks from developed markets outside the United States. The fund uses a dividend-weighting methodology to select its holdings, focusing on companies with a history of paying dividends and potential for future dividend growth.

Objective:

The primary investment goal of DLS is to provide investors with current income and long-term capital appreciation through exposure to international small-cap stocks with a focus on dividend-paying companies.

Issuer:

WisdomTree Investments, Inc.

• Reputation and Reliability: WisdomTree is a well-respected asset management firm with over $86 billion in assets under management. The firm has a strong track record of creating innovative and cost-effective investment products.
• Management: The DLS fund is managed by a team of experienced investment professionals with expertise in international markets and dividend investing.

Market Share:

DLS has a market share of approximately 0.3% in the international small-cap dividend ETF category.

Total Net Assets:

As of November 10, 2023, DLS has total net assets of approximately $1.2 billion.

Moat:

• Dividend Focus: DLS's focus on dividend-paying companies provides investors with a potential source of income and can help mitigate downside risk.
• International Exposure: The fund offers investors access to a diversified portfolio of small-cap stocks from developed markets outside the United States, providing exposure to potential growth opportunities in these markets.
• Cost-Effective: With an expense ratio of 0.42%, DLS is a relatively low-cost option for investors seeking international small-cap dividend exposure.

Financial Performance:

• Historical Returns: Since inception in 2006, DLS has generated an annualized total return of 9.9%.
• Benchmark Comparison: DLS has outperformed its benchmark, the MSCI EAFE Small Cap Index, over the past 3, 5, and 10 years.

Growth Trajectory:

The growth outlook for international small-cap stocks is positive, driven by factors such as economic growth in developed markets and increasing investor demand for yield.

Liquidity:

• Average Trading Volume: DLS has an average daily trading volume of approximately 200,000 shares.
• Bid-Ask Spread: The bid-ask spread for DLS is typically less than 0.1%.

Market Dynamics:

Factors such as global economic growth, interest rates, and investor sentiment can impact the performance of DLS.

Competitors:

• iShares International Select Dividend ETF (IDV) - 0.47% market share
• Vanguard International Dividend Appreciation ETF (VYMI) - 0.41% market share

Expense Ratio:

0.42%

Investment Approach and Strategy:

• Strategy: DLS tracks the WisdomTree International SmallCap Dividend Index, which selects companies based on factors such as dividend yield, dividend growth, and financial health.
• Composition: The fund invests primarily in small-cap stocks from developed markets outside the United States. The top sectors include financials, industrials, and consumer discretionary.

Key Points:

• Focus on dividend-paying international small-cap stocks
• Potential for income and capital appreciation
• Experienced management team
• Cost-effective
• Outperformed its benchmark

Risks:

• Volatility: International small-cap stocks can be more volatile than larger-cap stocks.
• Market Risk: The fund is subject to market risks, such as changes in interest rates and economic conditions.
• Dividend Risk: Dividends are not guaranteed and can be reduced or eliminated.
• Currency Risk: The fund is exposed to currency risk due to its investments in international securities.

Who Should Consider Investing:

DLS is suitable for investors seeking:

• Income and capital appreciation potential from international small-cap stocks
• Exposure to a diversified portfolio of dividend-paying companies
• A cost-effective investment option

Fundamental Rating Based on AI:

8.5/10

DLS has a strong fundamental rating based on its track record, competitive advantages, and growth potential. The fund benefits from its focus on dividend-paying international small-cap stocks, experienced management team, and cost-effective structure. However, investors should be aware of the risks associated with international investing and small-cap stocks.

Resources and Disclaimers:

Resources:

• WisdomTree DLS website: https://www.wisdomtree.com/us/etfs/equity/dls
• Morningstar DLS report: https://www.morningstar.com/etfs/dls
• Yahoo Finance DLS page: https://finance.yahoo.com/quote/DLS/

Disclaimers:

• This information is for educational purposes only and should not be considered investment advice.
• Past performance is not indicative of future results.
• All investments involve risk, including the potential loss of principal.
• Investors should carefully consider their investment objectives, risk tolerance, and financial circumstances before investing in any ETF.