(DES) WisdomTree U.S. SmallCap - Ratings and Ratios

The WisdomTree U.S. SmallCap Dividend Fund (NYSE ARCA:DES) is an exchange-traded fund that primarily invests in small-cap U.S. companies with a history of paying dividends. Under normal circumstances, the fund allocates at least 95% of its total assets to constituent securities of its underlying index and investments with similar economic characteristics.

The underlying index is a fundamentally weighted index that tracks the performance of small-cap U.S. companies that pay dividends. This means that the index constituents are weighted based on their dividend yield, rather than market capitalization. As a result, the fund is tilted towards companies with a strong dividend payout history, which can provide a relatively stable source of income.

Its worth noting that the fund is non-diversified, which means it may be more susceptible to market volatility and company-specific risks. However, this also allows the fund to focus on its core investment strategy and potentially capitalize on opportunities in the small-cap dividend space.

From a technical analysis perspective, the funds price action suggests a potential bullish trend. The short-term moving averages (SMA20: 31.41, SMA50: 30.58) are trending upwards, indicating a short-term uptrend. However, the long-term moving average (SMA200: 33.15) is still above the current price, suggesting that the fund is still in a long-term downtrend. The Average True Range (ATR: 0.47 = 1.48%) indicates moderate volatility.

Combining the technical analysis with fundamental data, we can forecast that the fund may continue to experience a short-term uptrend, driven by the momentum in the small-cap dividend space. However, the long-term downtrend may continue to exert pressure on the funds price. With an AUM of $1.814 billion, the fund has a sizable presence in the market, which can provide liquidity and support for the funds price. If the small-cap dividend space continues to attract investors, the fund may benefit from increased demand, potentially driving the price up towards the 52-week high of $37.31.

Based on the available data, a potential forecast for the funds price is a continued short-term uptrend, with a potential target of $32.50-$33.00 in the near term. However, investors should be cautious of the long-term downtrend and potential risks associated with the non-diversified nature of the fund.