Investors looking for ETFs with rising momentum should begin to consider the WisdomTree International SmallCap Dividend (NYSE:DLS). This product just hit a new 52-week high of $62.29 today, and is now up 21.30% from its 52-week low price of $51.35 per share.
Will this ETF continue its string of recent wins? Let’s take a closer look at the fund, its recent gains, the category it resides in, and its ratings and outlook to get a sense of whether its momentum is sustainable or not.
Inside DLS’s Rise
As mentioned earlier, DLS has now gained 21.30% from its 52-week low, which was hit back on February 12, 2016. The fund has now returned 4.53% over the past month, 3.83% over the past three months, and 7.65% in the past six months. Those returns compare to the benchmark S&P 500 index’s 0.18%, 6.20%, and 5.58% returns in the same periods, respectively.
DLS currently sits above its 10-day, 20-day, 50-day, 100-day, and 200-day moving averages (MAs), which from a technical standpoint suggests a very strong possibility that the recent gains can continue. That’s because the shares have no short-term overhead resistance to bump up against.
A Look Under The Hood
WisdomTree International SmallCap Dividend Fund is a Equity-focused product issued by WisdomTree Investments. Its expense ratio of 0.58% makes it the #6 cheapest ETF among 11 total funds in the Foreign Small/Mid Cap Value Equities ETFs category.
DLS currently boasts $1.16B in assets under management (AUM), placing it #1 of 11 ETFs in its category, and #261 of 1922 total ETFs in the U.S. exchange traded universe.
The investment objective of the WisdomTree International SmallCap Fund ETF seeks to track the investment results of dividend-paying small-cap companies in the developed world ex the U.S. and Canada. Looking at the top ten holdings of DLS, we find several small cap international names with the following sector breakdown: 1. Industrials 24.62%, 2. Consumer Discretionary 19.14%, 3. Financials 14.97%, 4. Materials 10.52%, 5. Information Technology 8.63%, 6. Consumer Staples 5.33%, 7. Real Estate 5.13%, 8. Health Care 4.07%, 9. Energy 3.71%, 10. Utilities 2.47%.
The fund’s large industrials exposure is certainly a big help these days, with basic materials surging lately amid hopes for a big global infrastructure rebound.
DLS SMART Grade: More Gains Ahead?
DLS currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 11 funds in the Foreign Small/Mid Cap Value Equities ETFs category.
A SMART Grade of A suggests excellent future price growth potential, so it’s reasonable to expect even more gains ahead. DLS receives our highest approval right now.