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Asset Class: International ex-U.S. Small Cap Market
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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: 10.05% CAGR
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Back test timeframe: January 1995 – April 2023
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Oldest ETF back tested: WisdomTree International SmallCap Dividend Fund (DLS)
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Long-Term Performance: 4.55% 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 – April 2023
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Number of ETFs available in this asset class: 22
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Number of ETFs in this asset class that are 10-years old or older: 8
International ex-US Small Cap vs U.S. Large Cap Blend (aka S&P 500): January 1995 – April 2023
DLS vs SPY: July 2006 – April 2023
DLS vs SPY: June 16, 2006 – May 5, 2023
The Deep Value ETF Accumulator rankings for the 8 oldest Foreign Small / Mid Cap ETFs:
The 5 top ranked Foreign Small / Mid Cap ETFs head-to-head comparisons:
PDN vs SCZ vs DLS vs GWX vs SCHC: February 2010 – April 2023
PDN vs SCZ vs DLS vs GWX vs SCHC: January 14, 2010 – May 5, 2005
Stated objectives of 5 top ranked Foreign Small / Mid Cap ETFs:
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.
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.
GWX – The SPDR® S&P® International Small Cap ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P® Developed Ex-U.S. Under USD2 Billion Index (the “Index”). Seeks to provide transparent access to developed small cap global markets outside the United States. To be included in the Index, a publicly listed company must have a total market capitalization between $100 million and $2 billion, and be located in a country that meets the BMI Developed World Series criteria. The S&P® Developed Ex-U.S. Under USD2 Billion Index is a market capitalization weighted index designed to define and measure the investable universe of publicly traded small-cap companies, as defined by the Index, domiciled in developed countries outside the United States. The Index component securities are a subset, based on market capitalization and region, of component securities included in the S&P Global BMI (Broad Market Index). The S&P Global BMI is a rules-based index that measures global stock market performance. A country will be eligible for inclusion in the S&P Global BMI if it is classified as either a developed or emerging market by the S&P Global Equity Index Committee. The Index is “float-adjusted,” meaning that only those shares publicly available to investors are included in the Index calculation.
SCHC – Schwab International Small-Cap Equity ETF. The fund’s goal is to track as closely as possible, before fees and expenses, the total return of the FTSE Developed Small Cap ex US Liquid Index. A straightforward, low-cost fund offering potential tax-efficiency. The Fund can serve as part of the core of a diversified portfolio. Simple access to small-cap developed international equities. Provides developed international markets exposure with investments in South Korea and Canada.
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:
4 Best Foreign Small / Mid Cap ETFs to Own Long-Term 1.5.2
Disclosure: We currently own shares of PDN and we intend to accumulate more shares in the future. 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 M1 Finance and Google AdSense.