(EES) WisdomTree U.S. SmallCap - Ratings and Ratios

The WisdomTree U.S. SmallCap Earnings Fund (NYSE ARCA:EES) is designed to track the performance of small-capitalization companies in the U.S. that generate earnings. Under normal market conditions, the fund allocates at least 95% of its total assets to securities included in its underlying index or to investments that mirror the economic characteristics of those securities. This approach allows the fund to closely align with the indexs performance while maintaining flexibility in its investment strategy.

The funds underlying index is a fundamentally weighted index, focusing on small-cap companies that produce earnings. This differentiation is key, as it targets profitable businesses within the small-cap universe, potentially offering exposure to companies with strong financial health. The fund is classified as non-diversified, meaning it can invest a larger portion of its assets in a smaller number of securities, which may increase its risk profile compared to diversified funds.

From a technical standpoint, the fund has shown recent price trends that may indicate near-term opportunities. With a last price of $51.86 and a 20-day average volume of 42,295 shares, the fund exhibits moderate trading activity. The short-term moving averages (SMA 20 and SMA 50) are currently above the longer-term SMA 200, suggesting potential bullish momentum in the near term. However, the ATR of 0.80 indicates relatively low volatility, which could appeal to investors seeking stability in small-cap exposure.

Looking ahead over the next three months, the funds performance will likely be influenced by broader market trends in the small-cap sector. If the U.S. economy continues to show signs of growth, small-cap earnings-generating companies could benefit, potentially driving the funds value higher. Additionally, the funds AUM of $647.73 million suggests a well-established vehicle for small-cap exposure, which may attract inflows if investor sentiment toward smaller companies improves.