However, SMEZ is not even close to being a “me too” ETF to DFE. The new State Street offering is entirely focused on Eurozone countries with France, Germany and Italy combining for almost 60% of the new ETF’s weight. DFE takes a different approach, allocating almost half its weight to the U.K., Sweden and Switzerland, none of which are Eurozone nations.
The EURO STOXX Small Index, the underlying index for SMEZ, features 96 components with a dividend yield of 2.3% and weighted average market cap of $3.3 billion, which is at the lower end of the mid-cap spectrum, according to State Street data.
Over a third of the index’s weight goes to financial services names with the consumer discretionary and industrial sectors capturing another 34%. The index is up 7.3% year-to-date.
ETF Trends editorial team contributed to this post.