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  • Writer's pictureJay Coulter, CFP®, CIMA®

DES - WisdomTree U.S. SmallCap Dividend Fund

The investment world is vast and diverse, and investors have numerous choices when it comes to allocating their capital. Small-cap stocks are companies that have a market capitalization between $300 million and $2 billion. While these companies may be relatively unknown and may not be as widely followed as larger companies, they can offer significant growth potential and higher returns than their larger counterparts. This is where the DES ETF from WisdomTree comes into play.

The WisdomTree U.S. SmallCap Dividend Fund (DES) is a unique ETF that invests in small-cap dividend-paying companies. The fund's primary objective is to provide exposure to small-cap stocks that pay dividends, providing investors with both growth potential and income. The DES ETF is designed to track the performance of the WisdomTree U.S. SmallCap Dividend Index, which is made up of small-cap dividend-paying stocks in the U.S. market.

From their website:

Why DES?
Gain core U.S. small cap equity exposure to a broad range of dividend paying companies
Use to complement or replace small cap value or dividend oriented active and passive strategies
Use to satisfy demand for growth potential and income focus

One of the advantages of small-cap investing is the potential for higher returns. Small-cap companies tend to have more significant room for growth than their larger counterparts. They may be more nimble and able to respond quickly to changing market conditions. This potential for growth can translate into higher returns for investors.

Another advantage of small-cap investing is that small-cap stocks may be overlooked by larger institutional investors. These investors may not have the resources or the inclination to research small-cap stocks, leaving them underpriced and undervalued. Small-cap investing allows investors to take advantage of these opportunities.

Dividend-paying small-cap stocks offer an additional benefit. Dividend-paying stocks tend to be more stable and reliable than non-dividend-paying stocks. These companies have a proven track record of profitability and cash flow, which allows them to pay regular dividends to their shareholders. Dividends can provide a stable stream of income to investors, which can help offset market volatility and provide a source of income during retirement.

The DES ETF is a potentially excellent option for investors looking to gain exposure to small-cap dividend-paying stocks. The fund's holdings are diversified across various sectors and industries, reducing the risk of concentration in any one area. The ETF's expense ratio of 0.38% is relatively low compared to other ETFs, making it an affordable option for investors.

DES Website:


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