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Should WisdomTree U.S. SmallCap Dividend ETF (DES) Be on Your Investing Radar?
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If you're interested in broad exposure to the Small Cap Value segment of the US equity market, look no further than the WisdomTree U.S. SmallCap Dividend ETF (DES - Free Report) , a passively managed exchange traded fund launched on June 16, 2006.
The fund is sponsored by Wisdomtree. It has amassed assets over $1.84 billion, making it one of the larger ETFs attempting to match the Small Cap Value segment of the US equity market.
Why Small Cap Value
There's a lot of potential to investing in small cap companies, but with market capitalization below $2 billion, that high potential comes with even higher risk.
Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.38%, on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.95%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Energy sector -- about -999900.00% of the portfolio. Industrials and Materials round out the top three.
Looking at individual holdings, US DOLLAR accounts for about 100.00% of total assets, followed by Sabra Health Care REIT Inc (SBRA) and EPR Properties (EPR)
The top 10 holdings account for about 109% of total assets under management.
Performance and Risk
DES seeks to match the performance of the WisdomTree U.S. SmallCap Dividend Index before fees and expenses. The WisdomTree U.S. SmallCap Dividend Index is a fundamentally weighted index measuring the performance of the small-capitalization segment of the US dividend-paying market.
The ETF has lost about -6.19% so far this year and was up about 6.33% in the last one year (as of 06/30/2025).In the past 52-week period, it has traded between $28.02 and $37.69.
The ETF has a beta of .98 and standard deviation of 20.3% for the trailing three-year period, making it a medium risk choice in the space.With about 580 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. SmallCap Dividend ETF holds a Zacks ETF Rank of 2(Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, DES is an excellent option for investors seeking exposure to the Style Box - Small Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 2000 Value ETF (IWN) and the Vanguard Small-Cap Value ETF (VBR) track a similar index. While iShares Russell 2000 Value ETF has $10.96 billion in assets, Vanguard Small-Cap Value ETF has $29.56 billion. IWN has an expense ratio of 0.24% and VBR charges 0.07%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should WisdomTree U.S. SmallCap Dividend ETF (DES) Be on Your Investing Radar?
If you're interested in broad exposure to the Small Cap Value segment of the US equity market, look no further than the WisdomTree U.S. SmallCap Dividend ETF (DES - Free Report) , a passively managed exchange traded fund launched on June 16, 2006.
The fund is sponsored by Wisdomtree. It has amassed assets over $1.84 billion, making it one of the larger ETFs attempting to match the Small Cap Value segment of the US equity market.
Why Small Cap Value
There's a lot of potential to investing in small cap companies, but with market capitalization below $2 billion, that high potential comes with even higher risk.
Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.38%, on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.95%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Energy sector -- about -999900.00% of the portfolio. Industrials and Materials round out the top three.
Looking at individual holdings, US DOLLAR accounts for about 100.00% of total assets, followed by Sabra Health Care REIT Inc (SBRA) and EPR Properties (EPR)
The top 10 holdings account for about 109% of total assets under management.
Performance and Risk
DES seeks to match the performance of the WisdomTree U.S. SmallCap Dividend Index before fees and expenses. The WisdomTree U.S. SmallCap Dividend Index is a fundamentally weighted index measuring the performance of the small-capitalization segment of the US dividend-paying market.
The ETF has lost about -6.19% so far this year and was up about 6.33% in the last one year (as of 06/30/2025).In the past 52-week period, it has traded between $28.02 and $37.69.
The ETF has a beta of .98 and standard deviation of 20.3% for the trailing three-year period, making it a medium risk choice in the space.With about 580 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree U.S. SmallCap Dividend ETF holds a Zacks ETF Rank of 2(Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, DES is an excellent option for investors seeking exposure to the Style Box - Small Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 2000 Value ETF (IWN) and the Vanguard Small-Cap Value ETF (VBR) track a similar index. While iShares Russell 2000 Value ETF has $10.96 billion in assets, Vanguard Small-Cap Value ETF has $29.56 billion. IWN has an expense ratio of 0.24% and VBR charges 0.07%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.