Over the long-term, mid-cap stocks historically outperform large-caps while being less volatile than small-caps.
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PDN features exposure to 10 countries, all of which are developed markets. Japan is by far the ETF’s largest geographic allocation at 33.5%. The U.K., Canada and South Korea combine for about 24% of the fund’s roster.
As is the case with many ex-US developed market strategies, PDN is heavy on industrial and consumer discretionary stocks. Those sectors combine for almost 43% of the ETF’s weight. PDN, which turned 10 years old last month, has outperformed the MSCI EAFE Small Cap Index since coming to market.
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