Embracing International Small-Cap ETFs

“Many experts agree that while index funds are a good low-cost choice for most individual investors, international stocks are one area where active management has a greater chance of paying off,” according to the Journal.

That does not diminish the success and asset-gathering prowess of ETFs like SCZ, DWX and the $1.4 billion WisdomTree Emerging Markets SmallCap Dividend Fund (NYSEArca: DGS).

DGS, which turns eight later this year, is one of the largest dedicated emerging markets small-cap ETFs. The fund tries to mitigate some of the volatility expected with emerging markets small-caps by allocating about half its weight to Taiwan, China and South Korea. Taiwan and South Korea are two of the least volatile emerging markets.

DGS is up 8.6% this year and has an index dividend yield of 3.93%.

SPDR S&P International Dividend ETF