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Dimensional International Small Cap Value ETF offers attractive valuations and broad diversification in developed international markets. DISV has underperformed Avantis International Small Cap Value ETF recently, with weaker risk-adjusted returns and a slightly higher expense ratio. I assign a 'Hold' rating to DISV, citing relative underperformance and less compelling risk-return versus peers despite its evidence-based investment approach.
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).
AVDV is an active ETF investing in international small-cap value stocks. It has outperformed most benchmarks, including the S&P 500, these past twelve months, and for several years. Although not an income ETF, it sports a growing 3.0% dividend yield, quite a bit higher than average for an equity fund.
The Avantis International Small Cap Value ETF (NYSEARCA:AVDV) has delivered exceptional performance, outpacing major benchmarks and popular investments. For a $14.6 billion fund charging just 0.36% annually and holding hundreds of obscure international small-cap stocks, that performance stands out. The question is whether conditions that powered this rally will persist. What Macro Forces Could Sustain... International Small Cap Value Fund Crushes S&P 500 Behind Energy and Mining Bets.
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.
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.
SEC filings for DISV aren't indexed yet — common for recently launched funds. Browse the issuer's filings on SEC EDGAR directly.