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ETF Specialist

A Worthy Pick for Small-Cap Dividend Exposure

This small-cap dividend-oriented fund's thoughtful index construction sets it apart from its peers.

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Our team recently published an article evaluating WisdomTree from a Parent Pillar perspective. It is one of the faster-growing exchange-traded fund sponsors and specializes in fundamentally index-weighted funds. Notably its dividend-weighted strategies target yield while balancing risk. There aren’t many dividend-oriented small-cap funds, but  WisdomTree SmallCap Dividend ETF ETF (DES) is one of the better options available to investors.

WisdomTree SmallCap Dividend ETF is one of the few small-cap-focused dividend-weighted strategies. This well-crafted fund effectively diversifies risk and rebalances into stocks as they become cheaper relative to their dividends, which should give it an edge against its peers. It offers a large cost-advantage compared with actively managed peers, but there are cheaper index alternatives. These attributes support its Morningstar Analyst Rating of Bronze.

Adam McCullough has a position in the following securities mentioned above: VBR. Find out about Morningstar’s editorial policies.