Market Overview

Josh Brown's WisdomTree Europe SmallCap Div Fd (ETF) Trade


On CNBC's Fast Money, Josh Brown spoke about the effects that quantitative easing in Europe should have on the performance of equity markets.

Brown analyzed events in the U.S. after the Fed applied various programs to boost the economy and concluded that the small cap stocks performed the best in such environment.

Brown thinks that it would be a good idea to buy WisdomTree Europe SmallCap Div Fd (ETF) (NYSE: DFE) because it has an attractive dividend yield and a low price to earnings ratio relative to iShares Russell 2000 Index (ETF) (NYSE: IWM).

WisdomTree Europe SmallCap Div Fd (ETF) yields 4 percent and it trades at 16 times last year's earnings, while iShares Russell 2000 Index (ETF) offers a yield of less than 2 percent and trades at a multiple of 43 times.

Brown sees value in the European small cap stocks and he expects WisdomTree Europe SmallCap Div Fd (ETF) to trade significantly higher when the catalyst happens.

Posted-In: CNBC Josh BrownMedia


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