NEW YORK, Nov. 12, 2015 (GLOBE NEWSWIRE) -- WisdomTree (NASDAQ:WETF), an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset manager, today announced the launch of the WisdomTree Global SmallCap Dividend Fund (GSD) on the BATS Exchange. GSD seeks to provide exposure to dividend-paying, small-capitalization companies in the U.S., developed and emerging markets. GSD has an expense ratio of 0.43%.
Small-Caps Tend to Outperform Over the Long Term
Global small-cap companies are leading the way across the globe. Global small caps have outperformed global large caps in major time periods for the past 20 years, providing excess returns that range from 1.41% to 4.82%, depending on the timeframe.1
“Small-caps are a compelling asset class because they are typically the most sensitive to incremental changes in economic growth expectations—particularly in the region or country, in which they’re located. GSD offers investors the opportunity to access a broad cross-section of global small-cap, dividend-paying companies with the potential to capture a higher level of income,” said Jeremy Schwartz, WisdomTree Director of Research.
Global Small-Caps for Income Potential
Dividend-paying equities have become an attractive alternative source of income not only because of the current dividends they provide, but also because of their potential for growth. However, very few dividend funds focus on global small-cap companies.
Schwartz added, “When investors think of dividends, they tend to think of mature, large-cap companies, and as a result, they may wrongly overlook small-cap equities as a potential for income. However, many small-cap companies have proven business models with relatively stable earnings, and have the ability to pay out dividends to shareholders and grow them over time.”
WisdomTree: a Pioneer in International Small-Cap ETFs
WisdomTree was an early pioneer in international small-cap equities launching the first international small-cap ETF in 2006. In addition, WisdomTree was the first to launch Europe, Japan, and emerging markets small-cap ETFs.
To learn more about global small-caps, listen to our podcast, Is It Time for Small Caps?
1 Source: WisdomTree, Bloomberg, 1/31/95-9/30/15. Referencing the return difference between the MSCI ACWI Small Cap Index and the MSCI ACWI Large Cap Index.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund before investing. To obtain a prospectus containing this and other important information, please call 866.909.WISE (9473), or visit wisdomtree.com to view or download a prospectus. Read the prospectus carefully before you invest.
There are risks associated with investing, including possible loss of principal. Foreign investing involves special risks, such as risk of loss from currency fluctuation or political or economic uncertainty. Investments in emerging, offshore or frontier markets are generally less liquid and less efficient than investments in developed markets and are subject to additional risks, such as risks of adverse governmental regulation and intervention or political developments. Funds focusing their investments on certain sectors, regions and/or smaller companies increase their vulnerability to any single economic or regulatory development. The Fund invests in the securities included in, or representative of, its Index regardless of their investment merit and the Fund does not attempt to outperform its Index or take defensive positions in declining markets. A Fund that has exposure to one or more sectors may increase the Fund’s vulnerability to any single economic or regulatory development. Please read the Fund’s prospectus for specific details regarding the Fund’s risk profile.
Dividends are not guaranteed and a company currently paying dividends may cease paying dividends at any time.
You cannot invest directly in an index. Index performance does not represent actual fund or portfolio performance. A fund or portfolio may differ significantly from the securities included in the index. Index performance assumes reinvestment of dividends but does not reflect any management fees, transaction costs or other expenses that would be incurred by a portfolio or fund, or brokerage commissions on transactions in fund shares. Such fees, expenses and commissions could reduce returns. WisdomTree, its affiliates and their independent providers are not liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.
Additional Index information is available at www.wisdomtree.com.
Jeremy Schwartz is a registered representative of Foreside Fund Services, LLC.
WisdomTree Funds are distributed by Foreside Fund Services, LLC.
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About WisdomTree
WisdomTree Investments, Inc., through its subsidiaries in the U.S. and Europe (collectively, “WisdomTree”), is an exchange-traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor and asset manager headquartered in New York. WisdomTree offers products covering equities, fixed income, currencies, commodities and alternative strategies. WisdomTree currently has approximately $59.4 billion in assets under management globally. For more information, please visit www.wisdomtree.com or follow us on Twitter @WisdomTreeETFs.
WisdomTree® is the marketing name for WisdomTree Investments, Inc. and its subsidiaries worldwide.