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

The WisdomTree U.S. SmallCap Earnings Fund (EES) is an exchange-traded fund (ETF) that invests at least 95% of its assets in the component securities of its underlying index, which tracks the performance of small-cap U.S. companies with strong earnings. This index is fundamentally weighted, meaning that the companies with the highest earnings are given the most significant weighting in the index.

The funds underlying index focuses on the small-capitalization segment of the U.S. stock market, comprising companies that have demonstrated earnings generation. By concentrating on companies with robust earnings, the fund aims to provide investors with exposure to a segment of the market that may offer potential for long-term growth. As a non-diversified fund, EES may have a higher risk profile compared to diversified funds, as its performance can be more significantly impacted by the performance of individual holdings.

From a technical analysis perspective, the current price of EES is $47.59, indicating a recent upward trend as it is above its 20-day Simple Moving Average (SMA) of $45.99. However, it is below its 200-day SMA of $51.88, suggesting a longer-term downtrend. The Average True Range (ATR) of 1.38, or 2.89% of the current price, indicates moderate volatility. Given the current technical indicators, a potential trading strategy could involve waiting for the price to break above the 50-day SMA of $47.89 and then assessing whether it can sustain a move towards the 200-day SMA.

Fundamentally, the fund has $542.29 million in assets under management (AUM), indicating a moderate level of investor interest. Considering the earnings-weighted approach of the underlying index and the current AUM, the fund is positioned to potentially benefit from a rebound in small-cap stocks, especially if earnings continue to be a driving factor in their performance. A forecast based on both technical and fundamental data suggests that if EES can break through its 50-day SMA and sustain an upward trend, it may attract more investors, potentially driving the price up towards its 52-week high of $58.40. Conversely, failure to break through resistance levels could lead to a continued downtrend, potentially testing the lower end of its 52-week range at $42.54.