Still, some market observers see potential in European small-caps, including some of roughly 235 holdings, because the region’s small-caps were hit hardest the sovereign debt crisis and subsequent economic malaise. Valuations for European small-caps are currently inline with long-term averages, though not expensive.
Investors have shown their faith in European small-caps by pouring $257.5 million, or more than half the ETF’s current AUM total, into DFE since the start of the September. Since then, the ETF is up 13.3%, helping make it the third-best WisdomTree ETF on a year-to-date basis as of the end of the third quarter, according to the issuer. DFE has a 30-day SEC yield of almost 2.8%.
WisdomTree Europe SmallCap Dividend Fund
