(DGS) Emerging Markets SmallCap - Overview

The WisdomTree Emerging Markets Small-Cap Dividend Fund (NYSE ARCA:DGS) commits at least 95 % of its net assets-excluding securities-lending collateral-to securities that mirror the economic profile of the WisdomTree Emerging Markets Dividend Index. The index is fundamentally weighted, meaning holdings are sized by dividend-adjusted earnings rather than market capitalization, and it draws exclusively from small-cap companies that pay dividends in emerging markets. Because the fund is classified as “non-diversified,” it may hold fewer than 20 % of its assets in any single issuer, but concentration risk remains higher than in broad-based ETFs.

Key quantitative attributes (as of the latest filing) include an expense ratio of roughly 0.55 %, an average dividend yield near 5.2 % (significantly above the global equity average of ~2 %), and total assets under management of about $250 million. The portfolio is heavily weighted toward financials and consumer staples, with the top country exposures in Brazil, India, and South Africa-regions where GDP growth is projected to average 4-5 % YoY in 2024-2025, bolstering earnings for dividend-paying firms. However, the fund’s performance is sensitive to commodity price swings (especially metals and oil) and currency volatility, which can erode dividend-adjusted returns.

For a deeper dive into the fund’s risk-adjusted performance and sector-level exposure, you might explore ValueRay’s analytical tools, which can help you benchmark DGS against peers and assess its suitability for a high-yield emerging-market tilt.