ETF Research and Analysis

by Patricia Oey
Suitability
An emerging-markets small-cap fund like WisdomTree Emerging Markets SmallCap Dividend DGS can be used to tap into growth trends in the developing world, as the prospects of smaller firms tend to be more closely linked to   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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Stalled Financials Offer a Bit of Value 
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