Is WisdomTree U.S. SmallCap ETF (EES) Currently a Top Performing ETF?

Overview of WisdomTree U.S. SmallCap ETF (EES)

Launched on February 23, 2007, the WisdomTree U.S. SmallCap ETF (EES) offers investors comprehensive access to the Small Cap Value segment within the Style Box. This smart beta ETF is designed to provide broad market exposure for those interested in small-cap value stocks.

Understanding Smart Beta ETFs

Traditional market cap weighted indexes are structured to mirror the overall market or specific sectors, and have long been the foundation of the ETF industry. These indexes are ideal for investors who trust in market efficiency, as they offer a straightforward, cost-effective, and transparent way to track market performance.

However, for those aiming to outperform the market through strategic stock selection, smart beta ETFs present an alternative. These funds follow non-market cap weighted approaches, often focusing on certain fundamental factors or a blend of them, in an effort to identify stocks with stronger risk-return potential.

Smart beta strategies come in various forms, such as equal weighting, fundamental weighting, and volatility or momentum-based methodologies. While these approaches offer diversity, not all have consistently outperformed traditional benchmarks.

Fund Management and Benchmark

With assets totaling over $662 million, EES is considered a mid-sized ETF within its category. Managed by WisdomTree, EES seeks to replicate the performance of the WisdomTree U.S. SmallCap Earnings Index, before fees and expenses.

The underlying index is fundamentally weighted and tracks the performance of U.S. small-cap companies that generate earnings, focusing on the small-cap segment of the U.S. equity market.

Fees and Expenses

Expense ratios are a key consideration for ETF investors, as lower fees can enhance returns when all other factors are equal. EES charges an annual operating expense of 0.38%, which is comparable to similar funds in this space. The ETF also offers a 12-month trailing dividend yield of 1.22%.

Sector Allocation and Leading Holdings

Although ETFs typically provide diversified exposure, it's important to review the fund's specific holdings. Most ETFs, including EES, are transparent and disclose their portfolios daily.

Financials make up the largest portion of EES's assets at 23.3%, followed by Consumer Discretionary and Industrials sectors. The fund’s top individual holdings include Venture Global Inc-cl A (VG) at 1.16% of assets, Matson Inc (MATX), and Crescent Energy Inc-a (CRGY). The top ten holdings collectively account for roughly 6.42% of the fund’s total assets.

Performance and Risk Profile

As of February 25, 2026, EES has gained approximately 5.43% year-to-date and has risen about 15.13% over the past year. Over the last 52 weeks, its share price has ranged from $42.54 to $61.30.

With a beta of 1.06 and a three-year standard deviation of 21.15%, EES is considered a moderate risk option among its peers. The fund holds around 909 stocks, which helps spread out company-specific risks.

Other ETF Options

For investors seeking to outperform the Small Cap Value segment, EES is a solid choice. However, there are alternative ETFs worth considering. The iShares Russell 2000 Value ETF (IWN) tracks the Russell 2000 Value Index and manages $13.05 billion in assets, with an expense ratio of 0.24%. The Vanguard Small-Cap Value ETF (VBR) follows the CRSP U.S. Small Cap Value Index, has $34.38 billion in assets, and charges just 0.05% in fees.

Those prioritizing lower costs and reduced risk might prefer traditional market cap weighted ETFs that aim to match the returns of the Small Cap Value category.

Conclusion

To further explore EES and other ETF options, use screening tools to find products that align with your investment goals and stay updated with the latest ETF news and analysis.