One exchange-traded fund provides investors access to consumers in emerging market, WisdomTree Chief Investment Strategist Luciano Siracusano said Tuesday.
"We're in an environment this year, year to date, where the small caps in emerging markets are outperforming the large caps in emerging markets by about 700 basis points," he said, adding that the same wasn't true in the United States or internationally.
"But something is happening in emerging markets. It's a trend we've seen over the last three, five and 10 years, so I think it's definitely an asset class investors should be looking at."
On CNBC's "Fast Money," Siracusano pointed out how a small-cap ETF, such as the WisdomTree Emerging Market Small-Cap Dividend ETF, could provide outsize gains.
"The large caps are tied to the global economy, particularly what's happening in Europe and of course what's happening in China," he said. "I think the small caps have more exposure to what's going on on ground in their countries, and those countries are still growing."
Siracusano noted that global GDP estimates for 2013 were higher that actual GDP for 2012.
"Investors want to get closer to the emerging consumer, I think emerging small caps give them that option and make them less vulnerable to slowdowns in the global GDP," he said.
Trader disclosure: On May 28, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Joe Terranova is long VRTS; Joe Terranova is long SJM; Joe Terranova is long AAPL; Joe Terranova is long SPLK; Joe Terranova is long TBT; Joe Terranova is long SWN; Steve Weiss is long C; Steve Weiss is long BAC; Steve Weiss is long F; JJ Kinahan is long AAPL; JJ Kinahan is long BAC; JJ Kinahan is long C; JJ Kinahan is long CSCO; JJ Kinahan is short SBUX; JJ Kinahan is long FB; JJ Kinahan is long MSFT; JJ Kinahan is long F; JJ Kinahan is short SPY on OPTIONS; Simon Baker is long AAPL; Simon Baker is long C; Simon Baker is long CSCO; Simon Baker is long YHOO; Simon Baker is long MSFT; Simon Baker is long GOOG; Simon Baker is long F; Simon Baker is long MRK; Simon Baker is long EXC.
