 |
Vanguard ETF: |  |
7.4%* |
|
Diversified Core: | |
8.1%* |
|
Six Core Asset ETFs: | |
7.3%* |
Articles on DGS
- WisdomTree Emerging Market Small Cap ETF Enables Diversification
06/16/2011
Emerging market stocks have been recognized as an important asset class for diversification purpose for a long term retirement investing portfolio. Small company stocks in emerging economies offer even higher growth in this asset class. The small cap shares are usually those which have relatively small market capitalization usually ranging between $ 300 million to $ 2 billion.
It is thus important to study these ETFs more carefully before investing. In this article, we present more detailed study on WisdomTree Emerging Market ETF (DGS).The following table lists three most liquid small cap ETFs in this asset class.
Emerging Market Small Cap
06/10/2011
Description Symbol 1 Yr 3 Yr 5 Yr Avg. Volume(K) 1 Yr Sharpe SPDR S&P Emerging Markets Small EWX 18.27% 3.74% NA 119 104.22% Wisdomtree Emerging Mkts Small DGS 33.94% 11.31% NA 129 166.6% Guggenheim Frontier Markets FRN 19.43% NA NA 72 108.31%
For information on more ETF performance, please refer to here.From the above table clearly DGS is leading the other in terms of longevity and in terms of returns of one year. Compared with broad base emerging market index ETF (DGS), its three year annualized return 11.31% is way above the EEM's annualized return (about 0%). The inception date of the fund is 8/1/2007. 64% of the fund iin small cap shares.
DGS has also a unique diversification in the emerging market. Please see the following table for its holding percentages among countries as of 6/06/2011.
1. Taiwan
20.97%
2. South Korea
11.24%
3. South Africa
9.65%
4. Thailand
9.61%
5. Brazil
8.95%
6. Israel
7.21%
7. Turkey
6.88%
8. Malaysia
5.31%
9. China
5.00%
10. Chile
4.17%
11. Philippines
3.18%
12. Indonesia
2.34%
13. Mexico
2.25%
14. India
1.25%
15. Poland
0.52%
16. Argentina
0.33%
17. United States
0.15%
Please also find below the sector wise diversification of DGS as on 06-06-2011.
Sector
Weight
1. Industrials
21.40%
2. Financials
18.47%
3. Consumer Discretionary
16.38%
4. Information Technology
11.54%
5. Materials
10.19%
6. Consumer Staples
7.71%
7. Utilities
6.67%
8. Health Care
2.95%
9. Energy
2.38%
10. Other
2.08%
One of the biggest advantages of investing in small-cap stocks is to exploit market inefficiency: the opportunity to beat institutional investors.Many small cap companies are not well researched. This is more true for emerging market small companies. Since DGS offers a systematic way to invest in a broad basket of small compaines in these regions, it is an effective to gain exposure in this important asset class and derive higher returns.
Disclaimer: MyPlanIQ does not have any business relationship with the company or companies mentioned in this article. It does not set up their retirement plans. The performance data of portfolios mentioned above are obtained through historical simulation and are hypothetical
Symbols: EEM, DGS, FRN, EWX, VWO, ETFs, Asset Allocation
Exchange Tickers: (EEM), (DGS), (FRN), (EWX), (VWO)
- Emerging Market Small Cap: An investment with High Risk But Rapid Returns
05/05/2011
Emerging markets operate new environments, with new challenges and unique models for investment. Despite the risk and the toughness, emerging markets have an interesting potential to grow rapidly. Small Cap emerging market funds are going to be the some of the fastest growing but potentially most volatile of the emerging market alternatives.
Emerging Market Small Cap
04/29/2011
Description
Symbol
1 Yr
3 Yr
5 Yr
Avg. Volume(K)
1 Yr Sharpe
Wisdomtree Emerging Mkts Small
27.65%
11.91%
NA
179
121.55%
Guggenheim Frontier Markets
15.44%
NA
NA
139
77.14%
SPDR S&P Emerging Markets Small
11.76%
NA
NA
141
57.65%
Wisdomtree Emerging Mkts Small (DGS) has this time a strong returns, investing the major part of the fund in the Industrial, Financial, and Consumer Discretionary Sector (22%, 28% and 17.5%, respectively). This fund invest mostly in Taiwan, Korea, South Africa and Thailand.
Following, the Guggenheim Frontier Markets ETF (FRN), which 80% of the assets of the fund is invested in American depositary receipts ("ADRs") and global depositary receipts ("GDRs"). The investments are made in what is called “Frontier Markets”, with the participation of developing markets such as Chile, Colombia and Egypt.
Finally, SPDR S&P Emerging Markets Small Cap (EWX) has the lowest figures among the three showed. This fund invest in Emerging Markets included in the S&P Global BMI Index, tracking all the stocks in developed and emerging markets with float-adjusted market capitalization of at least $100 million.
Major Asset Classes Trend
04/29/2011
Description
Symbol
1 Week
4 Weeks
13 Weeks
26 Weeks
52 Weeks
Trend Score
Gold
3.84%
9.46%
16.96%
14.89%
32.08%
15.45%
Commodities
0.6%
3.84%
13.56%
26.69%
30.52%
15.04%
US Equity REITs
3.07%
5.58%
10.39%
15.42%
22.62%
11.42%
International REITs
2.78%
5.26%
8.35%
10.35%
28.26%
11.0%
US Stocks
2.01%
2.4%
7.85%
18.72%
19.58%
10.11%
Emerging Market Stks
-0.22%
1.71%
9.98%
12.03%
24.84%
9.67%
International Developed Stks
2.24%
4.63%
7.69%
12.36%
17.73%
8.93%
International Treasury Bonds
2.13%
4.92%
7.23%
4.15%
15.65%
6.82%
US High Yield Bonds
0.47%
1.72%
3.59%
7.88%
14.77%
5.68%
Frontier Market Stks
1.76%
3.07%
4.61%
-2.58%
16.42%
4.66%
US Credit Bonds
0.82%
1.63%
2.31%
0.68%
6.89%
2.47%
Emerging Mkt Bonds
0.75%
1.2%
3.07%
-2.83%
8.87%
2.21%
Mortgage Back Bonds
0.71%
1.15%
1.49%
0.91%
4.89%
1.83%
Total US Bonds
0.65%
1.34%
1.47%
-0.02%
5.4%
1.77%
Intermediate Treasuries
1.08%
1.62%
1.07%
-2.91%
7.4%
1.65%
Municipal Bonds
0.98%
2.22%
3.32%
-1.75%
1.43%
1.24%
Treasury Bills
-0.01%
0.03%
0.08%
0.1%
0.17%
0.07%
Analyzing the major assets class trend, it can be seen that the stocks in the Emerging Markets (VWO)have an interesting trend score, taking a strong position in the middle top table, with figures closer to the US Stocks (VTI).
Emerging Markets Small Capitalization represent a good investment for those who do not have problems on risking some money in the short term, and are willing to produce high yields taking into account a smaller period of time.
Symbols: DGS, FRN, EWX, VTI, VWO
Exchange Tickers: (NYSE: DGS), (NYSE: FRN), (NYSE: EWX), (NYSE: VTI), (NYSE: VWO)
Disclaimer: MyPlanIQ does not have any business relationship with the company or companies mentioned in this article. It does not set up their retirement plans. The performance data of portfolios mentioned above are obtained through historical simulation and are hypothetical.
- Emerging Market Small Cap ETFs Show Promising Growth as Investors Look to Diversify
05/05/2011
As the international economy has become more intertwined, many investors have sought out exposure to a wider range of geographic markets. Emerging Market Small Cap ETFs provide investors access to growing companies in the world's growing economies. While emerging market investments come with inherent risks, they also come with more upside potential, as companies in these markets often have more room for growth than firms in more developed nations.
In recent periods, capital inflows to developing economies have increased as investors move away from established economies that have encountered economic difficulty or low growth levels. This reallocation of capital has resulted in strong growth for ETFs that track Emerging Market Small-Cap Equities. Among these ETFs, the Wisdomtree Emerging Markets Small Cap ETF (DGS) has lead the way, returning 27.65% in the past year. Other high level performers include the Guggenheim Frontier Markets (FRN) and the SPDR S&P Emerging Markets Small Cap ETF (EWX), offering investors returns of 15.44% and 11.76% respectively.
Emerging Market Small Cap
4/29/2011
Description Symbol 1 Year Average Volume (K) Wisdomtree Emerging Mkts Small DGS 27.65% 179 Guggenheim Frontier Markets FRN 15.44% 139 SPDR S&P Emerging Markets Small EWX 11.76% 141 As mentioned, the most successful ETF in the class in the past year has been Wisdomtree's Emerging Markets Small Cap ETF (DGS). This ETF seeks to track the price and yield performance of the Wisdomtree Emerging Markets Small Cap Dividend Index and attempts to invest all of its assets in the stocks that make up the index. DGS is well diversified across numerous sectors. Below are the sectors making up over 10% of the total weighting for the Wisdomtree's Emerging Markets Small Cap ETF (DGS):
- Industrials (19.94%)
- Consumer Cyclical (19.11%)
- Technology (14.36%)
- Financial Services (12.72%)
- Basic Materials (10.43%)
With the continued growth of many emerging economies, a strong argument can be made for investors to have a dedicated portion of their portfolios invested in Emerging Market Small Cap ETFs. While these investments certainly come with risks, the potential reward should be enough to keep most investors on board.
Disclosure: MyPlanIQ does not have any business relationship with the company or companies mentioned in this article. It does not set up their retirement plans. The performance data of portfolios mentioned above are obtained through historical simulation and are hypothetical.
