International small cap

=Introduction=

Since domestic large-cap stocks and international large-cap stocks have high correlation, some investors look for international small-cap mutual funds and ETFs to further diversify their portfolios. This page is intended to present a summary of international small-cap mutual funds and ETFs.

=Selection=

[1,3] According to Morningstar, except for the EWX market cap, which is from its own website.

[2] According to [http://finance.yahoo.com/ Yahoo! Finance].

[4] Vanguard International Explorer is closed to new investors, but the fund may be available in 401(k) and 403(b) plans directly administered by Vanguard. While all the other tabulated products are ETFs, VINEX is an actively managed open-end fund.

=Caution=

Tax Efficiency
With the exception of Vanguard International Explorer, the ETFs above have not been around for a long time. As such, there is little information on their tax efficiency, and what there is may not be reliable in the long run. However, the WisdomTree ETFs, because they choose stocks which pay high dividends, are likely to be tax-inefficient even if they do not realize gains, and GWX had an 0.87% tax cost in its first year because it distributed a large capital gain. Vanguard International Explorer has been very tax inefficient at least for the past 10 years. You should strongly consider holding it in a tax-advantaged account.

Volume
Many of the ETFs above are thinly traded. You should expect larger-than-average bid-ask spreads.

=Resources=


 * Altruist FA: Foreign Developed Markets Small Cap Funds
 * Altruist FA: Emerging Markets Small Cap Funds