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 (NYSEMKT:DGS) 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



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


Dividend Yield


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

23% / 7.6% / 5.4%


SPDR S&P Emerging Markets Small Cap (NYSEMKT:EWX)

WisdomTree Emerging Markets Equity Income (NYSEMKT:DEM)

iShares MSCI Emerging Markets Small Cap Index (NYSEMKT:EEMS)

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).

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

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