Three international small-cap ETFs — GWX, PDN, and DLS — are giving investors a practical route into developed-market equities that have traded at some of their lowest valuations relative to U.S. large caps in decades, while also posting competitive returns over the past year.
| Ticker | 1-Year Return | YTD Return | Dividend Yield | Expense Ratio | AUM |
|---|---|---|---|---|---|
| GWX | ~25% | ~12% | 2.51% | 0.40% | ~$898M |
| PDN | ~20% | ~10% | 3.07% | 0.47% | $354M |
| DLS | ~17% | ~7% | 3.46% | 0.58% | $1.05B |
The MSCI EAFE Small Cap Index, which tracks developed-nation small caps outside the U.S. and Canada, has seen valuations compress to multi-decade lows against domestic large-cap benchmarks. Ex-U.S. developed market stocks have quietly outperformed the U.S. market in recent quarters, which makes the timing for these international small-cap ETFs worth paying attention to.
International Small-Cap ETFs: GWX, PDN, and DLS Compared
The SPDR S&P International Small Cap ETF (GWX) tracks the S&P Developed ex-U.S. Under $2 Billion Index, targeting companies with market caps between $100 million and $2 billion in developed countries. Japan, South Korea, Canada, and Australia lead on geography. Industrials make up roughly 22% of the portfolio, followed by information technology and materials.
The fund holds more than 2,000 stocks, with no single position exceeding about one-third of a percent. Per ETF.com, GWX’s AUM has grown to approximately $898 million. One structural detail that separates it: GWX’s annual portfolio turnover rate sits at just 14%, compared to a category average of 45.13%, which keeps transaction costs low and limits drag on returns.
The 1-year return of 25% and a 2.51% dividend yield make the 0.40% expense ratio defensible. Year-to-date returns of around 12% have been solid, if not the group’s standout.
The Invesco RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN) runs a fundamentally weighted approach, scoring stocks on four measures: book value plus intangibles, adjusted cash flow, adjusted sales, and dividends plus buybacks. The underlying index covers roughly 1,500 common stocks, skewing toward small and mid-sized developed-market companies outside the U.S.
Per the Invesco PDN fact sheet, the fund commits at least 90% of total assets to index securities and also holds American Depositary Receipts and global depositary receipts, which broadens liquidity access for U.S.-listed investors. The portfolio of around 1,600 positions leans on industrials, financials, and materials, with Japan, Canada, South Korea, and the U.K. at the top.
PDN’s expense ratio of 0.47% runs slightly above GWX’s, and trailing returns are a bit softer: roughly 20% over one year and 10% YTD. But its 3.07% dividend yield is a meaningful step up. For investors who believe the factor methodology adds value over a pure cap-weighted structure, the small extra cost is the real question to weigh.
DLS Offers the Highest Yield, With a Return Trade-Off
The WisdomTree International SmallCap Dividend Fund (DLS) takes a different angle: it screens specifically for dividend-paying small caps in developed markets outside the U.S. and Canada. The result is a portfolio of more than 1,000 holdings that combines geographic and size diversification with an income overlay.
DLS carries the highest stated yield of the three at 3.46%, but investors should read that alongside the fund’s 30-day SEC yield of 2.88% as of June 9, 2026, which is the standardized figure that reflects current portfolio income more precisely. Both numbers point to a meaningful income component, just not identical ones.
Returns are the weakest of the three: approximately 17% over one year and 7% YTD. The expense ratio of 0.58% is also the highest. The appeal is the income angle paired with holdings that rarely overlap with conventional dividend strategies, given the size and geography filters. For a dividend-focused portfolio seeking diversification beyond domestic names, DLS fills a niche the other two do not.
All three of these international small-cap ETFs share a core thesis: developed-market small caps outside the U.S. are cheap relative to history, and momentum has started to build. The divergence is in how each fund weights that exposure, and how much income an investor wants to extract from it. GWX is the lowest-cost, highest-turnover-efficiency option. PDN adds factor weighting and a better yield. DLS maximizes income with a return trade-off.
The real test comes if U.S. dollar weakness continues: a softer dollar historically amplifies returns on unhedged international funds, and none of these three hedge currency exposure.
