DES - ETF AI Analysis

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WisdomTree U.S. SmallCap Dividend Fund (DES)

Rating:67Neutral

Price Target:

$36.00

The WisdomTree U.S. SmallCap Dividend Fund (DES) has a balanced overall rating, reflecting both strengths and challenges among its top holdings. Strong contributors include Northwestern Energy (NWE), which benefits from robust technical momentum and an attractive dividend yield, and Sabra Healthcare REIT (SBRA), which demonstrates solid financial performance and profitability. However, weaker holdings like Macy's (M), which faces significant financial challenges and operational inefficiencies, and Western Union (WU), impacted by high leverage and declining revenue, may have tempered the fund's overall score. A key risk factor is the fund's exposure to companies with financial leverage concerns, which could affect stability during market downturns.

Positive Factors

Strong Top Holdings

Several top holdings, such as Spire and EPR Properties, have shown strong year-to-date performance, supporting the ETF's overall returns.

Sector Diversification

The ETF is spread across multiple sectors, including Financials, Industrials, and Consumer Cyclical, which helps reduce risk from sector-specific downturns.

Reasonable Expense Ratio

The fund has a relatively low expense ratio of 0.38%, making it cost-effective compared to many actively managed funds.

Negative Factors

High U.S. Concentration

The ETF is almost entirely focused on U.S. companies, limiting exposure to international markets and global diversification.

Weak Year-to-Date Performance

The fund has delivered negative year-to-date returns, which may concern investors looking for stronger near-term performance.

Small-Cap Risk

As a small-cap fund, it may be more sensitive to market volatility and economic downturns compared to large-cap investments.

DES vs. SPDR S&P 500 ETF (SPY)

AUM1.81B

RegionNorth America

Expense Ratio0.38%

Beta0.82

IssuerWisdomTree

Inception DateJun 16, 2006

Dividend Yield2.77%

Asset ClassEquity

Index TrackedWisdomTree U.S. Small Cap Dividend Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume125,181

30 Day Avg. Volume120,809

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

37.54

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering566

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

DES Summary

The WisdomTree U.S. SmallCap Dividend Fund (DES) is an ETF that focuses on small U.S. companies with a history of paying dividends. It follows the WisdomTree U.S. Small Cap Dividend Index and includes businesses across various sectors like financials, real estate, and consumer goods. Some of its top holdings are Spire and Macy's. This ETF is a good option for investors looking to diversify their portfolios with smaller companies while earning regular income from dividends. However, new investors should know that small-cap stocks can be more volatile, meaning their prices may rise and fall more sharply than larger companies.

How much will it cost me?The WisdomTree U.S. SmallCap Dividend Fund (DES) has an expense ratio of 0.38%, meaning you’ll pay $3.80 per year for every $1,000 invested. This is slightly higher than average for ETFs because it is actively managed to focus on dividend-paying small-cap stocks, which requires more research and oversight compared to passively managed funds.

What would affect this ETF?The WisdomTree U.S. SmallCap Dividend Fund (DES) could benefit from economic growth and innovation in the U.S., as small-cap companies often thrive in expanding markets and may see increased demand for their products and services. However, rising interest rates or economic slowdowns could negatively impact small-cap stocks and dividend-paying companies, particularly in sectors like financials and real estate, which are heavily represented in the ETF. Regulatory changes or shifts in consumer behavior could also affect specific holdings such as Macy's or Sabra Healthcare REIT.

DES Top 10 Holdings

The WisdomTree U.S. SmallCap Dividend Fund (DES) leans heavily into financials, which dominate its sector exposure and are bolstered by steady performers like TFS Financial. Real estate holdings, including Sabra Healthcare REIT and EPR Properties, are more of a mixed bag, with Sabra showing modest gains while EPR struggles with short-term weakness. Macy’s recent rally adds a spark from the consumer cyclical sector, though its underlying financial challenges remain a concern. With its focus on U.S. small-cap dividend payers, DES offers a blend of income and growth, but sector concentration could amplify volatility.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
SR	Spire	1.38%	$24.41M	$5.14B	24.39%	68 Neutral
SBRA	Sabra Healthcare REIT	1.31%	$23.06M	$4.65B	2.65%	74 Outperform
NWE	Northwestern	1.21%	$21.42M	$4.00B	17.32%	78 Outperform
EPR	EPR Properties	1.14%	$20.13M	$3.90B	13.34%	66 Neutral
TNL	Travel + Leisure Co	1.01%	$17.90M	$4.06B	14.46%	70 Outperform
AVA	Avista	0.99%	$17.41M	$3.35B	5.93%	68 Neutral
BNL	Broadstone Net Lease	0.97%	$17.19M	$3.47B	6.68%	72 Outperform
M	Macy's	0.97%	$17.07M	$5.37B	25.49%	58 Neutral
WU	Western Union	0.91%	$15.98M	$2.81B	-18.05%	65 Neutral
BKH	Black Hills	0.89%	$15.70M	$5.28B	10.45%	76 Outperform

DES Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

33.35

Negative

100DMA

33.00

Negative

200DMA

32.11

Negative

Market Momentum

MACD

-0.20

Positive

RSI

35.34

Neutral

STOCH

28.39

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For DES, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 33.01, equal to the 50-day MA of 33.35, and equal to the 200-day MA of 32.11, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 35.34 is Neutral, neither overbought nor oversold. The STOCH value of 28.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DES.

DES Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
DES	―	―	$1.81B	0.38%	67 Neutral
FNDA	―	―	$8.67B	0.25%	66 Neutral
CALF	―	―	$3.72B	0.59%	69 Neutral
VIOO	―	―	$2.98B	0.10%	65 Neutral
FESM	―	―	$2.92B	0.28%	65 Neutral
SMLF	―	―	$2.59B	0.15%	66 Neutral

Performance Comparison

DES

WisdomTree U.S. SmallCap Dividend Fund

32.02

-3.05

-8.70%

FNDA

Schwab Fundamental US Small Co. Index ETF

―

CALF

Pacer US Small Cap Cash Cows 100 ETF

―

VIOO

Vanguard S&P Small-Cap 600 ETF

―

FESM

Fidelity Enhanced Small Cap ETF

―

SMLF

iShares MSCI USA Small-Cap Multifactor ETF

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

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