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 (NYSE: 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



Oct. 2007 

Total Assets

$1.5 billion

Investment Approach

Seeks to track the price and yield performance of the WisdomTree Emerging Markets SmallCap Dividend Index. The Index is a fundamentally weighted index that measures the performance of primarily small-cap stocks selected from the WisdomTree Emerging Markets Dividend Index.

Expense Ratio


Dividend Yield


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

9.5% / 9.6% / 7.5%


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

WisdomTree Emerging Markets Equity Income (NYSE: DEM)

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

Sources: Morningstar and Motley Fool CAPS.

On CAPS, 99% of the 200 members who have rated WisdomTree Emerging Markets SmallCap Dividend Fund believe the ETF will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star SH2F088, succinctly summed up the bull case for our community:

DGS is a small-cap emerging market ETF. I believe the BRIC emerging markets will outperform developed markets through the end of this secular bear and the following bull run, as they do relatively better job of exploiting the emerging global middle class.

The small cap dividend weighting should keep the fund focused on serious companies poised to benefit from higher long term growth of the emerging markets while limiting the downside risk of bankruptcy.

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