July 25 WisdomTree Investments Inc, one
of the largest U.S. providers of exchange-traded funds, has
listed a new ETF it hopes will capture dividend growth through
U.S. small-cap stocks.
The New York-based asset manager said on Thursday its new
WisdomTree U.S. SmallCap Dividend Growth Fund was
designed to offer exposure to small-cap growth stocks that may
be better-positioned for a rising interest rate environment and
improving U.S. economy as opposed to large-cap stocks, which are
more globally sensitive.
"They're entering a fairly crowded market," said Dave Nadig,
president of San Francisco-based IndexUniverse LLC's ETF
Analytics. He noted that the new WisdomTree ETF slots "right
into the middle of other small-cap value funds" that have
performed well so far in 2013.
The Vanguard Small Cap Value ETF, for example, is up
22.7 percent year-to-date, while the iShares Morningstar
Small-Cap Value ETF is up 21.7 percent year-to-date.
ETFs track a basket of shares, bonds or commodities and can
be traded in real time on exchanges like stocks. They offer
access to indexes without having to buy the individual
Unlike the Vanguard and iShares ETFs, which are heavy in
financials, the new WisdomTree ETF is weighted mostly in
industrials and consumer discretionary sectors.