Should WisdomTree U.S. SmallCap ETF (EES) Be on Your Investing Radar?

The WisdomTree U.S. SmallCap ETF (EES) was launched on 02/23/2007, and is a passively managed exchange traded fund designed to offer broad exposure to the Small Cap Value segment of the US equity market.The fund is sponsored by Wisdomtree. It has amassed assets over $521.23 million, making it one of the average sized ETFs attempting to match the Small Cap Value segment of the US equity market.Why Small Cap ValueSmall cap companies have market capitalization below $2 billion. They usually have higher potential than large and mid cap companies with stocks but higher risk.Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.CostsExpense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.Annual operating expenses for this ETF are 0.38%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 1.64%.Sector Exposure and Top HoldingsETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.This ETF has heaviest allocation to the Financials sector--about 27.30% of the portfolio. Industrials and Consumer Discretionary round out the top three.Looking at individual holdings, Brighthouse Financial Inc (BHF) accounts for about 0.88% of total assets, followed by Valaris Ltd (G9460G101) and Academy Sports & Outdoors Inc (ASO).The top 10 holdings account for about 6.02% of total assets under management.Performance and RiskEES seeks to match the performance of the WisdomTree U.S. SmallCap Earnings Index before fees and expenses. The WisdomTree U.S. SmallCap Index is a fundamentally weighted index that measures the performance of earnings-generating companies within the small-capitalization segment of the U.S. Stock Market.The ETF has lost about -17.76% so far this year and is down about -7.61% in the last one year (as of 04/07/2025). In the past 52-week period, it has traded between $44.23 and $58.78.The ETF has a beta of 1.12 and standard deviation of 22.17% for the trailing three-year period, making it a medium risk choice in the space. With about 923 holdings, it effectively diversifies company-specific risk.AlternativesWisdomTree U.S. SmallCap ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, EES is an excellent option for investors seeking exposure to the Style Box - Small Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.The Avantis U.S. Small Cap Value ETF (AVUV) and the Vanguard Small-Cap Value ETF (VBR) track a similar index. While Avantis U.S. Small Cap Value ETF has $13.10 billion in assets, Vanguard Small-Cap Value ETF has $25.91 billion. AVUV has an expense ratio of 0.25% and VBR charges 0.07%.Bottom-LinePassively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report WisdomTree U.S. SmallCap ETF (EES): ETF Research Reports Vanguard Small-Cap Value ETF (VBR): ETF Research Reports Brighthouse Financial, Inc. (BHF): Free Stock Analysis Report Avantis U.S. Small Cap Value ETF (AVUV): ETF Research Reports Academy Sports and Outdoors, Inc. (ASO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks