WisdomTree to start small-cap emerging markets ETF
NEW YORK, Oct 29 (Reuters) - WisdomTree Investments Inc (WSDT.PK) said on Monday its WisdomTree Trust unit will launch a small-cap emerging markets exchange-traded fund on the NYSE Arca.
Trading in the WisdomTree Emerging Markets SmallCap Fund (DGS.P) is set to begin on Tuesday.
The ETF will track the WisdomTree Emerging Markets SmallCap Dividend Index and will offer international exposure to small-cap stocks of companies located in 19 countries located in Europe, Asia and Latin America.
The index uses WisdomTree's dividend-weighted methodology. The WisdomTree Emerging Markets SmallCap Dividend Index yields approximately 4.5 percent.
"Our research shows that the small-cap segment (of emerging markets) has done better than the large-cap segment over the last 10 years," Bruce Lavine, president and chief operating officer of WisdomTree said in a telephone interview.
The expense ratio of the new ETF is 0.63 percent.
In July 2007 the company launched the WisdomTree Emerging Markets High-Yielding Fund DEM.N. About 80 percent of the index tracked by the Emerging Markets High Yielding Fund is large-cap.
Assets in the WisdomTree Trust as of October 2007 totaled $4.5 billion. The firm launched its first ETF in 2006. (Reporting by Cal Mankowski, editing by Gerald E. McCormick)
