Related: What You Don’t Know About Beta Can Hurt You
Value stocks typically trade at cheaper prices relative to fundamental measures of value, such as earnings and the book value of assets. Small-cap value has been a winning strategy over the long-term and adding quality and low volatility, among other factors, to that mix as DESC does has the potential to reward investors.
DESC devotes over 26% of its weight to financial services stocks while the industrial and consumer discretionary sectors combine for over a third of the ETF’s weight. Technology and healthcare names combine for 21%. The ETF holds 1,451 stocks.
DESC charges 0.30% per year, or $30 on a $10,000 investment, a favorable fee among smart beta small-cap strategies.
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