ETF Research and Analysis

by Patricia Oey
Suitability
WisdomTree Emerging Markets SmallCap Dividend DGS can be used to gain exposure to growth trends in the developing world. Generally speaking, small-cap firms tend to be more domestically oriented, as opposed to large caps,  Read more 

Bull Case

Emerging-markets stocks can provide diversification benefits, as they are exposed to different macro trends and foreign currencies.
Long-term growth drivers for many companies in this fund include infrastructure spending and a rising middle class.
Emerging-markets small caps usually provide better exposure to the local economy and consumer relative to large caps, which may be exporters or government-controlled entities. Read more 

Bear Case

Emerging-markets equities are volatile, especially during periods of high uncertainty in global markets.
This fundamentally weighted fund has a relatively short track record of six years.
Record low interest rates in the developed world have helped drive strong investment flows into emerging markets. A sudden outflow of funds may result in short-term volatility in emerging-markets currencies and asset prices. Read more 

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South Korea: Developed or Emerging? 
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