Core Insights - The WisdomTree U.S. SmallCap ETF (EES) is designed to provide broad exposure to the Small Cap Value category and was launched on February 23, 2007 [1] - The ETF industry has traditionally been dominated by market cap weighted indexes, but smart beta strategies have emerged as alternatives for investors seeking to outperform the market through superior stock selection [2][3] - EES is sponsored by WisdomTree and has assets exceeding $615.56 million, aiming to match the performance of the WisdomTree U.S. SmallCap Earnings Index [5] Fund Details - EES has an annual operating expense ratio of 0.38%, which is competitive within its category, and a 12-month trailing dividend yield of 1.33% [6] - The fund's top holdings include Valaris Ltd and Brighthouse Financial Inc, with the top 10 holdings accounting for approximately 106.07% of total assets [7][8] Performance Metrics - As of August 20, 2025, EES has gained about 0.87% year-to-date and approximately 7.27% over the past year, with a trading range between $42.54 and $58.78 in the last 52 weeks [9] - The ETF has a beta of 1.10 and a standard deviation of 22.13% over the trailing three-year period, indicating a medium risk profile [10] Alternatives - Other ETFs in the Small Cap Value space include iShares Russell 2000 Value ETF (IWN) and Vanguard Small-Cap Value ETF (VBR), with IWN having $11.31 billion in assets and VBR having $30.67 billion [12] - IWN has a lower expense ratio of 0.24%, while VBR has an even lower expense ratio of 0.07%, making them potentially more attractive options for cost-conscious investors [12]

Core Viewpoint - The WisdomTree U.S. SmallCap ETF (EES) provides broad exposure to the Small Cap Value segment of the US equity market, with assets exceeding $624.15 million, making it a mid-sized ETF in this category [1]. Group 1: Small Cap Value Characteristics - Small cap companies are defined as those with market capitalizations below $2 billion, typically presenting higher potential but also higher risk compared to larger companies [2]. - Value stocks are characterized by lower price-to-earnings and price-to-book ratios, but they also exhibit lower sales and earnings growth rates. Historically, value stocks have outperformed growth stocks in most markets, although growth stocks tend to perform better in strong bull markets [3]. Group 2: Costs and Performance - The ETF has an annual operating expense ratio of 0.38%, which is competitive within its peer group, and it offers a 12-month trailing dividend yield of 1.31% [4]. - EES aims to match the performance of the WisdomTree U.S. SmallCap Earnings Index, which focuses on earnings-generating companies in the small-cap segment [7]. - As of August 14, 2025, the ETF has gained approximately 2.5% year-to-date and 13.06% over the past year, with a trading range between $42.54 and $58.78 in the last 52 weeks. It has a beta of 1.10 and a standard deviation of 22.14% over the trailing three years, indicating medium risk [8]. Group 3: Sector Exposure and Holdings - The ETF has a significant allocation to the Energy sector, with the top three sectors being Energy, Industrials, and Materials [5]. - The top holdings include Valaris Ltd and Brighthouse Financial Inc, with the top 10 holdings accounting for approximately 106.07% of total assets under management [6]. Group 4: Alternatives and Market Position - The WisdomTree U.S. SmallCap ETF holds a Zacks ETF Rank of 3 (Hold), indicating a favorable option for investors seeking exposure to the Small Cap Value area [9]. - Alternative ETFs in this space include the iShares Russell 2000 Value ETF (IWN) with $11.46 billion in assets and the Vanguard Small-Cap Value ETF (VBR) with $31.09 billion in assets, both of which have lower expense ratios compared to EES [10]. Group 5: Investment Appeal - Passively managed ETFs like EES are popular among both institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [11].