DFE ETF

US Small-Cap stocks, particularly the iShares Core S&P Small-Cap ETF, are a better long-term choice compared to the WisdomTree Europe SmallCap Dividend Fund (DFE). DFE also underperforms against the iShares Core MSCI Europe ETF, making it less attractive for investors seeking European small-cap exposure. The performance gap widens further when considering ETFs that hedge currency risk, reinforcing the Sell rating for DFE.

Helped by the Federal Reserve's September interest rate cut of 50 basis points, domestic small-cap stocks and the related exchange traded funds caught a bid. For example, the Russell 2000 Index is higher by 1.47% over the past month.

The WisdomTree Europe SmallCap Dividend ETF (DFE) made its debut on 06/16/2006, and is a smart beta exchange traded fund that provides broad exposure to the European Equity ETFs category of the market.