With a strong U.S. market, many international investments have
fallen out of favor. This is especially true in the dividend space,
as the prospect of Fed tapering spooked investors earlier in the
year, sending share prices in this space crashing.
However, while the Fed still looks to taper, international dividend
picks have come back pretty strong as of late. These products have
all bounced off their summer lows, and in many respects, are
well-positioned to take advantage of current trends (
3 Red Hot Dividend ETFs
After all, even if the Fed starts to taper, the benchmark discount
rate look to remain exceptionally low for quite some time,
suggesting that income will still be at a premium. And with Europe
and other key international markets also back on track, now could
be a very interesting time to investigate the international
dividend space further.
Given this, investors may want to consider making a play on some
dividend ETFs with an international focus, assuming they have a
high risk tolerance and can stomach some volatility. If you fit
this bill, a look at any of these ETFs-all of which pay out at
least 6% in 30-Day SEC terms-could be a good idea:
Global X Super Dividend (
SDIV represents a compelling product to invest in international
markets for high yield. SDIV is an equally weighted basket of 100
high yield stocks from around the world. With 30% exposure in U.S.
equities, the fund also provides access to securities in Europe,
Australia, Asia, Canada and Latin America.
Among sector allocations, real estate, financial services,
utilities and telecommunication remain the top four choices for the
fund. The fund charges a fee of 58 basis points annually.
The fund's diversified focus has really worked well as these
securities represent an alluring blend of higher returns and
impressive yields. Furthermore, not only is the product well-mixed
from a sector look, but it is well-diversified from an individual
holding perspective as no single firm makes up more than 1.6% of
Real Estate ETFs--Real Winners in 2013?
The 30-Day SEC yield comes in at 7.0%, representing a good
opportunity for investors to generate some income by investing
overseas. The fund has been flat over the past month, beating out
the S&P 500 in the same time period.
SPDR S&P International Dividend ETF (
For global exposure in the ETF space, investors can invest in State
Street's DWX, which was launched in Feb 2008. The fund tracks the
price and performance of the S&P International Dividend
Opportunities Index, thereby giving investors an option to play
dividend paying stocks on a global basis.
With asset under management of $1.4 billion, this fund provides
exposure to the stocks globally that provide high dividend yields (
4 Excellent Dividend ETFs for Income and
The fund has an attractive dividend yield of 6.5% in 30 Day SEC
terms, thereby providing a good level of current income to
investors. DWX has an edge in expenses as it charges an expense
ratio of 45 basis points, the lowest on the list.
DWX provides exposure to 125 high dividend yield international
stocks while around 31.7% of which make up the top 10 holdings.
Among individual holdings, Ferrovial, Belgacom, and UPM-Kymmene Oyj
are the top three choices all of which have about 2% of the total
Among sector holdings, it has been noted that dividend focused ETFs
are generally inclined towards telecommunication, financials and
utilities and DWX is not an exception. It collectively assigns
50.9% of its asset base to the three preferred sectors.
DWX has more than 70% correlation with the developed countries and
15% with the emerging countries. The fund has added about 0.9% in
the past month, though it is still struggling on a YTD look.
Guggenheim S&P Global Dividend Opportunities Index ETF
For another global fund with a high yield, investors also have
Guggenheim's LVL to consider. The product tracks the S&P Global
Dividend Opportunities NR Index, a benchmark that consists of 100
stocks and ADRs that have at least $1 billion in market cap and are
also high yielders.
The fund manages an asset base of $69.9 million which it invests in
a holding of 103 securities. The fund has just 19.64% exposure in
U.S. equities while the rest is divided mainly among European and
For sectors, telecom accounts for nearly one-fourth of the total,
while financials and energy stocks round out the top three.
This product also charges 60 basis points a year in fees, but has
slightly lower volume of about 49,000 shares a day. However, the
yield on this product comes in at 6.5% in 30-Day SEC yield terms (
Guide to 10 Great ETFs Yielding 7% or More
fell out of favor with investors earlier in the year, as many
focused on the U.S. market, and low yield stocks. This trend pushed
share prices down across the board in many international markets,
leading an exodus away from international dividend payers.
However, recent trends in Europe and some better trading in the
dividend world have been encouraging to the space, producing decent
short-term gains. Given this, some might want to take a closer look
at this space for investment, especially if the positive trends
continue in this overlooked corner of the market.
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SPDR-SP INT DIV (DWX): ETF Research Reports
GUGG-SP GLBL DV (LVL): ETF Research Reports
GLBL-X SUPERDIV (SDIV): ETF Research Reports
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