Tag - Asia

Last week, I began a column on small-cap funds, noting that while they are not immune to a market decline, they do offer the added safety of diversification and professional management.

This week we continue our look with a trio funds that add another element of “value” during a volatile market period. All three – from the WisdomTree family of exchange-traded funds – focus on dividend-paying stocks.

Jim Lowell looks abroad and rates WisdomTree International SmallCap Dividend Fund (NYSE: DLS) a “buy.”

The editor of Forbes ETF Advisor says, “Show me the money; or better yet, show me the jobs! Where jobs are being created, consumers are being minted. Where consumers are being minted, money is being spent. Where money is being spent revenue is being generated. Where revenue is being generated earnings can arise.”

This fund, notes Lowell, focuses on the “least well followed and most inefficiently traded” capitalization range in the established foreign markets of Europe and Japan –   small caps.

He explains, “And just as U.S. small cap stocks have been the best long-term investment over the past 30 years here, born on the burgeoning middle/consumer class that holds our economy’s fate in its spending hands, the re-emerging middle class in Europe, and the emerging middle class in Asia are doing likewise.”