Small-cap stocks and the exchange traded funds (ETF) that hold them don’t have the same repetitive monotony that large-caps possess. The good thing about the small-cap sector is two funds that seem to have the same thing can be quite different. Roger Nusbaum for TheStreet.com says for diversification’s sake, sometimes the best choice isn’t one or the other, but both.
An overlooked area for investments seems to be foreign small-cap stocks, which are usually difficult to access. The first ETF to fill this space is WisdomTree International Small-Cap Dividend (DLS). Last week State Street followed up with SPDR S&P International Small-Cap (GWX). DLS tilts more toward value and the two funds also differ in sector and country make up If you are looking for exposure in foreign small caps, it is worth while to research both fully.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.