iShares International Developed Small Cap Value Factor ETF

ISVL

Market cap $316M

The Dimensional International Small Cap Value ETF (NYSEARCA:DISV) sits in an unusual corner of the market: small foreign companies that trade cheaply and still send cash back to shareholders.

International small-cap value has become an interesting income corner of global equities, with two ETFs dominating: Avantis International Small Cap Value ETF (NYSEARCA:DISV) and the iShares International Developed Small Cap Value Factor ETF (NASDAQ:ISVL).

Though investors do not universally agree on the existence of the January Effect, there is at least in theory a phenomenon in which small-cap stocks may rise at the start of the year after investors have sold off losing stocks late in the prior year to offset capital gains. When they then repurchase shares in January, the theory holds, these stocks may see a boost.

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

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