From September through November, small-cap stocks and related ETFs notched impressive gains. But just as with the broader market, smaller stocks have fallen on hard times this month.
U.S. small-cap equities are outperforming large caps by more than 4% in Q4 2024, driven by pro-growth sentiment following Trump's election victory. The recent rebalance of the WisdomTree U.S. SmallCap Quality Dividend Growth Index boosted exposure to Consumer Discretionary and Financials while trimming lower-quality sectors like Health Care. WTSDG's valuation and quality metrics improved, offering nearly 14% expected earnings growth for 2025 at a forward price-to-earnings significantly lower than the S&P 500's.
The WisdomTree U.S. SmallCap Quality Dividend Growth ETF (DGRS) made its debut on 07/25/2013, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Small Cap Blend category of the market.
WisdomTree U.S. SmallCap Quality Dividend Growth Fund (DGRS) focuses on small-cap dividend stocks with expected earnings growth and quality characteristics. DGRS is well-diversified across sectors and holdings, and shows good valuation, growth and return compared to the Russell 2000. Despite its strengths, DGRS is behind competitor SDVY in return, dividend growth, and liquidity, though SDVY has a lower yield and higher fees.
Making its debut on 07/25/2013, smart beta exchange traded fund WisdomTree U.S. SmallCap Quality Dividend Growth ETF (DGRS) provides investors broad exposure to the Style Box - Small Cap Blend category of the market.
The WisdomTree U.S. SmallCap Quality Dividend Growth ETF (DGRS) made its debut on 07/25/2013, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Small Cap Blend category of the market.
Interest rate cut cycle expectations bring focus to smaller companies. WisdomTree U.S. SmallCap Quality Dividend Growth Fund offers an attractive dividend-weight constitution. DGRS provides higher yields, lower valuation multiples amid an improved small-cap stock environment.
Among the three primary market capitalization segments, if there's one that's been highly tethered to Federal Reserve policy, it's small-caps. Smaller stocks and related ETFs were drubbed when the central bank commenced its rate tightening cycle in 2022.
By Brian Manby, CFA, Associate, Investment Strategy Key Takeaways The current interest rate environment is negatively impacting U.S. small-cap equities, making it challenging for them to perform well compared to large caps.
The WisdomTree U.S. SmallCap Quality Dividend Growth ETF (DGRS) was launched on 07/25/2013, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Small Cap Blend category of the market.