Dimensional International Small Cap Value ETF

DISV

Market cap $3.85B

The recent pullback for big techs in the U.S. underscores the need for investors to focus more on international stocks and bonds.

Dimensional International Small Cap Value ETF is an actively managed fund holding about 1,500 international small caps. DISV is diversified across sectors and holdings, with a focus on Japan. The fund has outperformed international benchmarks and the S&P 500 since its inception.

U.S. stocks are trading at high valuations relative to historical averages, pointing to a long period of weak performance.

It's true that it's been a challenging year for U.S. small-cap ETFs. Using the iShares Russell 2000 ETF (IWM) as a benchmark for the category, we immediately see that 2025 has been marked by red ink.

Dimensional International Small Cap Value ETF's market-cap weighted approach focuses on small, non-U.S. companies in developed markets, aiming for long-term capital appreciation but not ideal for income seekers. Here I compare DISV with other ETFs, both International and U.S.-only reveals sector allocation differences that can impact performance. I rate DISV a Hold; while it diversifies, U.S. equities remain the superior long-term choice for most investors due to better risk-return.

Little-known China AI startup DeepSeek sent fear rippling throughout the markets this week by announcing major strides in its large language model technology at just a fraction of the cost of what many experts thought possible. That sparked a mini-collapse among big-cap tech stocks like Microsoft, Google, and Nvidia, which tumbled 20% at its low.