ETF Evaluator: WisdomTree U.S. Small Cap Quality Gr () Follow This ETF

WisdomTree U.S. Small Cap Quality Gr Overview

WisdomTree U.S. Small Cap Quality Gr (QSML) is a passively managed U.S. Equity Small Blend exchange-traded fund (ETF). WisdomTree launched the ETF in 2024.

The investment seeks to track the price and yield performance, before fees and expenses, of the WisdomTree U.S. SmallCap Quality Growth Index. Under normal circumstances, the fund invests at least 80% of its net assets in the constituent securities of the index, each of which is a security issued by a small-cap company, identified in accordance with the index provider’s market-capitalization selection parameters, that is incorporated and headquartered in the United States.

About WisdomTree U.S. Small Cap Quality Gr (QSML)

There are 5 members of the management team with an average tenure of 2.52 years: Marlene Walker-Smith (2024), David France (2024), Todd Frysinger (2024), Vlasta Sheremeta (2024) and Michael Stoll (2024). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 1 primary benchmark: WisdomTree US Sml Qual Grt TR USD index with a weighting of 100%. WisdomTree U.S. Small Cap Quality Gr has 379 securities in its portfolio. The top 10 holdings constitute 6.2% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

WisdomTree U.S. Small Cap Quality Gr is part of the Equity global asset class and is within the U.S. Equity ETF group. WisdomTree U.S. Small Cap Quality Gr has 0.8% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 99.2% There is 0.8% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). WisdomTree U.S. Small Cap Quality Gr has 0.1% of the portfolio in cash.

Assets Under Management

The fund has $11 million in total assets, which is below the $4 billion average for the Small Blend category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

QSML Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The WisdomTree U.S. Small Cap Quality Gr expense ratio is below average compared to funds in the Small Blend category. WisdomTree U.S. Small Cap Quality Gr has an expense ratio of 0.38%, which is 10% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. WisdomTree U.S. Small Cap Quality Gr has a portfolio turnover rate of 85%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 50% for the Small Blend category.

Recently, in the month of July 2026, WisdomTree U.S. Small Cap Quality Gr returned 1.4%, which earned it a grade of A, as the Small Blend category had an average return of -2.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

WisdomTree U.S. Small Cap Quality Gr has a trailing yield of 0.53%, which is below the 1.17% category average. The fund normally distributes its income annually and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

WisdomTree U.S. Small Cap Quality Gr Grades

Year to date, the ETF has returned 17.1%, 0.8 percentage points worse than the category, which translates into a grade of C. The fund has returned 26.8% over the past year (grade of D).

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