Last Friday, State Street Global Advisors rolled out the U.S. market's first capitalization-weighted, small-cap emerging markets exchange-traded fund. The SPDR S&P Emerging Markets Small Cap ETF (AMEX: EWX) tracks the S&P/Citigroup Emerging Market Small Cap Index.

WisdomTree manages the WisdomTree Emerging Markets SmallCap Dividend Fund (NYSE Arca: DGS), but it is dividend-weighted. It also only covers 14 countries-EWX covers 25. However, while EWX charges an expense ratio of 0.65%, DGS is slightly cheaper, at 0.63%.

The new SPDR fund's underlying index has roughly 1,660 holdings as of March 31. The index's top five holdings include Indonesia's Bakrie & Brothers (0.81%), Taiwan's HannStar Display Corp. (0.49%), Nigeria's Ecobank Transnational (0.48%), Egypt's Egypt Kuwait Holding Co. SAE (0.47%), and China's Chaoda Modern Agriculture Holdings Ltd. (0.40%).

Taiwan has by far the largest weighting among the 25 countries at 31.91%, while China is weighted at 7.83%, India at 6.51%, South Africa at 6.48% and Brazil at 5.97%. Notably, Taiwan is also the largest country in DGS.

Emerging markets have been correlating more closely with developed markets; however, it is more pronounced among large-cap stocks. For investors seeking added diversification, small-cap emerging market stocks can hold a great deal of appeal.

You can read the prospectus for EWX here.