
In the past month with the Russell 2000 index up roughly 7%, as compared to the S&P 500 index up nearly 4.8%, it is evident that small cap stocks are leading the charge in this bear market rally. The WisdomTree U.S. SmallCap Dividend Fund (NYSE:DES) has seen a nice rally in the past month surging by more than 9%.
Small cap dividend stocks are an interesting investment, since sharing their distributions with shareholders is less common during the younger stages of a firm. When a small cap does offer dividends, it can be a positive sign the firm is profitable and fundamentally sound.