Those that closely follow DFE probably are not surprised by the ETF’s ascent to the $1 billion in assets under management mark. Last year, the fund was the best-performing Europe ETF with a gain of 45.4%. [Value in European Small-Caps]
“DFE’s strong performance in 2013 was not a one-off. As we look back to its long-term performance, DFE has a compelling track record that includes its ranking as the number two fund out of 104 funds in the three-year ranking, and the fifth-ranked fund of 89 funds with a five-year history on a total return basis, beating at least 95% of its peer group over each of those periods,” said WisdomTree Research Director Jeremy Schwartz in a note out earlier this month. [WisdomTree: European Small-Caps Separate From The Pack]
Making DFE’s jump to $1 billion all the more impressive is the short order in which the ETF made the move. Of its $1.01 billion in assets, nearly $468 million has come into the fund since early December.
DFE has outpaced large-cap focused diversified Europe ETFs this year as well as the Russell 2000 on its way to bringing in nearly $355 million in fresh capital, cementing the fund’s status as destination for some of the cash that has flowed out of emerging markets ETFs. [Where Some of That Lost EM Cash is Flowing]
DFE, which debuted in June 2006, is heavily focused on more conservative European markets with the U.K. and Sweden combining for 39% of the fund’s weight. Ten Eurozone members are found among the 15 countries represented in DFE with Italy receiving the largest weight at 12.3%. Germany at 10.2% is the only other country in DFE to garner a double-digit allocation.
DFE tracks the WisdomTree Europe SmallCap Dividend Index (WTESC), which weighs companies based on annual cash dividends paid. The index had a dividend yield of 3.68% as of Feb. 7, according to WisdomTree data.
WisdomTree Europe SmallCap Dividend Fund
ETF Trends editorial team contributed to this post.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.