Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the WisdomTree SmallCap Dividend Fund (NYSE: DES ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at WisdomTree SmallCap Dividend and see what CAPS investors are saying about the ETF right now.
WisdomTree SmallCap Dividend facts
|Total Assets||$231.8 million|
|Investment Approach||Seeks to replicate the WisdomTree SmallCap Dividend index, which measures the performance of the small-capitalization segment of the U.S. dividend-paying market.|
|1-Year / 3-Year / 5-Year Annualized Return||0.3% / 15.1% / (0.6%)|
|Top Holdings with High CAPS Rating (4 or 5 Stars) and Portfolio Weight||Prospect Capital (Nasdaq: PSEC ) (1.1%)
Olin (NYSE: OLN ) (0.7%)
Fifth Street Finance (NYSE: FSC ) (0.7%)
|Alternatives||Vanguard Small Cap Value (NYSE: VBR )
iShares Russell 2000 Value (NYSE: IWN )
Sources: Morningstar and Motley Fool CAPS.
Earlier this year, acegdl007 tapped the ETF as a particularly potent income opportunity: "Strong outperforming small caps coupled with good dividends ... sounds like a recipe for success."
WisdomTree SmallCap Dividend even sports an average turnover ratio of just 11%. That's lower than that of other small-cap value ETFs like Vanguard Small Cap Value (25%) and iShares Russell 2000 Value (32%).
CAPS member djudah expands on the outperform argument:
Small caps outperform over the long run compared with large and mega cap stocks. Couple this with dividends from these stocks and you add to your return over the long run. It may be several months to years before the economy turns around, but positioning yourself now for that turnaround is a good plan.
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