Today's low interest rate environment has sent investors
scurrying for yield across myriad asset classes. Whether it is
with traditional dividend stocks, multi-asset products or
bank loan and junk bond ETFs
, investors have an increasing array of choices with which to
International equities, both
developed and emerging markets
, also represent an integral part of the dividend equation.
Select developed market companies in sectors such as energy
and telecommunications often feature higher dividend yields than
their U.S. counterparts while many emerging markets firms have
been upping their status as dividend-payers
With that in mind, here are a few surprising sources of
international dividend yield that ETF investors may not currently
db X-trackers MSCI EAFE Hedged Equity Fund (NYSE:
) Due in large part to the success of the two hedged yen
currency hedged ETFs have spent some time
in the spotlight this year. The db X-trackers MSCI EAFE Hedged
Equity Fund is another name that is worthy of a place in that
DBEF, which has surged almost 14 percent in the past 90 days,
is essentially the hedged currency version of the iShares MSCI
EAFE Index Fund (NYSE:
). DBEF tracks the MSCI EAFE US Dollar Hedged Index, which
features exposure to stocks from Australia, Austria, Belgium,
Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland,
Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal,
Singapore, Spain, Sweden, Switzerland and the United Kingdom.
Multiple online sources list DBEF's dividend yield anywhere
from about 5.6 percent to almost 6.4 percent, which in either
case would give the ETF more than double EFA's yield. Issuer data
show DBEF's index yield
was 3.25 percent at the end of March
. That still is not too shabby in the current environment.
WisdomTree Middle East Dividend ETF (NASDAQ:
) Frontier markets and the Middle East are not the first
destinations income investors stop at in their search for yield.
Additionally, GULF's diminutive stature (the ETF has just $17.8
million in assets), probably scares some investors away.
That is a shame because GULF features a 37.4 percent weight to
the United Arab Emirates and that is quite the feather in the
ETF's cap when
Dubai stocks are among the world's best
GULF has a 30-day SEC yield of 4.12 percent and is worth
watching in the next few weeks because index provider MSCI's
annual reclassification is coming up. If UAE and/or Qatar,
another 27.6 percent of the ETF's weight, are upgraded to
emerging markets status, GULF could surge.
iShares S&P Developed ex-U.S. Property Index Fund (NYSE:
) Many income investors already know that U.S. real estate
investment trusts are fertile ground for solid dividends and
robust yields. The same can be said of a few international
markets, which WPS proves with a trailing 12-month yield of 4.9
according to iShares data
About half of the ETF's weight is allocated to property
developers and the other half goes to pure-play REITs. The
country allocations are heavily developed market in nature with
Hong Kong and Australia combining for 31 percent of the funds
weight. More importantly, investors can use WPS to get some Japan
exposure. The world's third-largest economy is the ETF's largest
country weight at 29 percent.
For more on ETFs, click .
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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