I know what you’re thinking from last Tuesday. “Frank, why is it that you invest primarily in stodgy dividend paying companies, don’t you want to be aggressive because you’re young?” To which I say maybe, but I’m not about to head into the market and speculate all my money away. Instead maybe we should take a look at some small cap exposure.
After all small caps have had quite a run in recent years, no? But I’m not about to invest in any old small cap fund, we are going to need some income tacked onto that. Impossible? No! Wisdomtree has just the thing for us. It just so happens that they offer the Wisdom Tree Small Cap Dividend Fund.
The fund has recently battered because of a heavy amount of exposure to the Financial Sector (As are most dividend-focused mutual funds, here is your warning!), but has returned 12.16% since inception. Not bad eh? Expenses clock in pretty low as well, around a 0.38% expense ratio.
So if you’d like to add some spring in your portfolios step, maybe some small-cap exposure is just the ticket. Be sure to read my investment advice disclaimer though, I obviously can’t even begin to gauge suitability for all of you guys!
-Xias