An ETF Worth Watching In 2010 (VSS)

If 2009 taught ETF investors any lessons it was that U.S. equity saw notable outflows while international and small cap ETFs were among the leaders regarding ETFs that saw gained new investments. It is hard to bet against these trends in 2010 and that makes the Vanguard FTSE All-World Ex-U.S. Small-Cap Index ETF (NYSE: VSS) a compelling play for the news year. VSS is a relatively new entrant to the ETF world, making its debut in April, but in that time, VSS has gained an impressive $300 million in new inflows, according to etfdb.com. More than one in four VSS holdings are from the industrial materials sector and many of these are junior gold miners. Financial services is the next most-represented sector at more than 17% of VSS' holdings. Nearly half of VSS' geographic exposure is in Europe and the expense ratio is decent at 0.55%. VSS is up nearly 60% since its debut and the ETF Professor is betting on more of the same in 2010.