For investors seeking momentum, WisdomTree International Small-Cap Dividend ETF DLS is probably on radar now. The fund just hit a 52-week high and is up over 21% from its 52-week low price of $51.35/share.
But are more gains in store for this ETF? Let's take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
DLS in Focus
DLS focuses on the dividend paying equities segment of the international market (excluding the U.S. and Canada). The fund has a small-cap focus with industrials, consumer discretionary, financials and materials sectors getting a double-digit allocation each.
It charges investors 58 basis points a year in fees and is heavily concentrated on the top three holdings - Vedanta Resources, Uniqa Versicherungen and Aker ASA. Region-wise, Japan (27.44%), U.K. (15.21%) and Australia (12.66%) are the top three holdings (see: all Broad Developed World ETFs here).
Why the Move?
The U.S. economy has been on the path of monetary policy tightening while the Euro zone and Japan are still practicing super-easy monetary policies. An easy money era along with improving economies should create a favorable situation for those in the small-cap segment of the developed international market as this capitalization better reflects the domestic economy.
More Gains Ahead?
The fund seems to continue with its strength given a positive weighted alpha of 13.40 . Since a positive weighted alpha hints at more gains, there is definitely still some promise for investors who want to ride this surging ETF a little further.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.