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Asset Class: International ex-U.S. Small Cap Equities
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Long-Term Performance: 6.48% CAGR
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Correlation to U.S. Markets: 0.75
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U.S. Large Cap Blend Performance: 10.55% CAGR
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Back test timeframe: January 1995 – February 2024
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Oldest ETF back tested: WisdomTree International SmallCap Dividend Fund (DLS)
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Long-Term Performance: 4.61% CAGR
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Correlation to U.S. Markets: 0.86
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S&P 500 Performance: 9.39% CAGR
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Back test timeframe: July 2006 – February 2024
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Number of ETFs available in this asset class: 21
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Number of ETFs in this asset class that are 10-years old or older: 11
International ex-US Small Cap vs U.S. Large Cap Blend (aka S&P 500): January 1995 – February 2024
DLS vs SPY: July 2006 – February 2024
DLS vs SPY: June 16, 2006 – March 22, 2024
The Deep Value ETF Accumulator rankings for the 11 oldest Foreign Small / Mid Cap ETFs:
The 5 top ranked Foreign Small / Mid Cap ETFs head-to-head comparisons:
FYLD vs PDN vs SCZ vs FNDC vs DLS: January 2014 – February 2024
FYLD vs PDN vs SCZ vs FNDC vs DLS: December 3, 2013 – March 22, 2024
Stated objectives of 5 top ranked Foreign Small / Mid Cap ETFs:
FYLD – Cambria Foreign Shareholder Yield ETF focuses on high-cash distribution companies internationally that are returning their cash to investors through three attributes – dividends, buybacks and debt paydown – collectively known as shareholder yield. Systematic strategy targeting an equal-weight portfolio of ~100 high-cash distribution companies internationally. Historically, traded a valuation discount versus MSCI EAFE Index and Morningstar Foreign Small/Mid Value category average. Expense ratio below Morningstar Foreign Small/Mid Value category average.
PDN – The Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (Fund) is based on the FTSE RAFI Developed ex U.S. Mid-Small 1500 Index (Index). The Fund will generally invest at least 90% of its total assets in securities that comprise the Index as well as American depositary receipts (ADRs) and global depositary receipts (GDRs) that represent securities in the Index. The Index is designed to track the performance of small and mid-capitalization equities of companies in developed international markets (excluding the US), selected based on the following four fundamental measures of firm size: book value, cash flow, sales and dividends. The equities are based on their fundamental strength and are weighted according to their fundamental scores. The Index is computed using the net return, which withholds applicable taxes for non-resident investors. The Fund and the Index are reconstituted annually.
SCZ – The iShares MSCI EAFE Small-Cap ETF seeks to track the investment results of an index composed of small-capitalization developed market equities, excluding the U.S. and Canada. Exposure to small public companies in Europe, Australia, Asia and the Far East. Access to a specific segment of the developed international stock market. Use to diversify an international stock allocation and express a view on small-cap stocks.
FNDC – Schwab Fundamental International Small Company Index ETF. The fund’s goal is to track as closely as possible, before fees and expenses, the total return of the Russell RAFI™ Developed ex US Small Company Index. Simple access to small developed international companies based on fundamental measures. A straightforward, low-cost fund offering potential tax-efficiency. Offers contrarian investing and disciplined rebalancing through a systematic process based on an index with an established track record. Offers the potential for value and yield factor exposure. The Fund can serve as part of the core or complement to market-cap indexing and active management in a diversified portfolio.
DLS – WisdomTree International SmallCap Dividend Fund seeks to track the investment results of dividend-paying small-cap companies in the developed world ex the U.S. and Canada. Gain exposure to developed international world, ex-U.S. and Canada small cap equity from dividend paying companies. Use to complement or replace international developed small cap broad based active and passive strategies. Use to satisfy demand for income and growth potential.
Thank you for taking time to read this article. If you found it useful, please share it with a friend.
Respectfully yours, Micah McDonald, aka the Deep Value ETF Accumulator
Previous Deep Value ETF Accumulator article on Foreign Small / Mid Cap ETFs:
5 Best Foreign Small / Mid Cap ETFs to Own Long-Term: PDN vs SCV vs DLS vs GWX vs SCHC 1.6
Disclosure: We currently own shares of PDN and we intend to sell those shares within the next 72 hours. We intend to buy shares of FYLD within the next 72 hours. I am not a professional investment advisor. Please perform your own due diligence or seek the advice of a Registered Investment Advisor before investing in any security mentioned in this article. This website contains affiliate links to Google AdSense.