HEDJ Gets a Small-Cap Cousin

“Euro-area small caps tend to have approximately twice the European revenue exposure as euro-area exporters, thereby offering significant complementarity and more direct exposure to any improvements or sensitivity to local economic conditions,” said Schwartz in a note out earlier today. [Taking the Euro out of Small Cap Europe]

If HEDJ is an accurate indication, EUSC could be the beneficiary of good timing. HEDJ has pulled in $5.3 billion in new assets this year, $2.1 billion more than the second-best asset gathering ETF, and will soon become the largest U.S.-listed Europe ETF. [An Important Honor Coming for This ETF]

WisdomTree has enjoyed success with small-cap Europe ETFs as highlighted by the $782.4 million in assets in the unhedged WisdomTree Europe SmallCap Dividend Fund (NYSEArca: DFE). The issuer has also enjoyed some success with small-cap currency hedged ETFs as the WisdomTree Japan Hedged Small Cap Fund (NasdaqGM: DXJS) is close to $100 million in assets less than two years after coming to market.

EUSC, HEDJ and DFE charge 0.58% per year.

EUSC Top 10 Holdings

Table Courtesy: WisdomTree