ETF Spotlight: SPDR S&P Emerging Markets Dividend
March 1st at 7:00am by Tom Lydon
ETF spotlight on SPDR S&P Emerging Markets Dividend ETF (NYSEArca: EDIV), part of an ongoing series.
Assets: $304.4 million.
Objective: The SPDR S&P Emerging Markets Dividend ETF tries to reflect the performance of the S&P Emerging Markets Dividend Opportunities Index, which includes emerging market companies that offer high dividend yields. Each component stock must also show 3-year earnings growth and profitability.
Holdings: Top holdings include: Shimao Property 3.7%, Surgutneftegaz 3.4%, Kghm Polska Miedz 3.4%, Htc Corp. 3.3% and Komercni Banka 3.1%.
What You Should Know:
- States Street Global Advisors sponsors the fund.
- EDIV has an expense ratio of 0.59%.
- The fund holds 122 securities.
- Sector allocations include: financials 25.6%, information technology 20.9%, materials 14.8%, telecommunication services 12.4%, utilities 8.8%, industrials 6.9%, consumer discretionary 4.7%, energy 3.4% and consumer staples 0.5%.
- Top country allocations include: Taiwan 25.2%, Brazil 14.3%, China 12.5%, Czech Republic 8.2%, Turkey 7.2%, Korea 4.8%, South Africa 4.7%, Malaysia 4.2%, Thailand 3.7% and Russia 3.4%.
- The ETF is up 5.0% over the past month, up 20.8% over the last three months and up 13.2% year-to-date.
- The fund is 6.1% above its 200-day exponential moving average.
- EDIV offers a dividend yield of 4.3%.
- “Emerging-markets equities provide diversification benefits for a U.S. investor, as their performance is not very correlated to that of U.S. markets,” according to Morningstar analyst Patricia Oey. “This fund could also be attractive for those concerned about a falling U.S. dollar, as EDIV is exposed to non-U.S.-dollar assets.”
The Latest News:
- “International dividend stocks are an interesting place for a yield investor to be,” Alec Young, global equity strategist at S&P Capital IQ, said in a Bloomberg article.
- Young notes that the extended low interest rates in the U.S., coupled with strong growth in international markets, especially in developing economies, makes foreign dividend stocks an attractive opportunity. [Emerging Market Dividend ETFs]
- On Tuesday, the MSCI Emerging Markets Index rose to 1,069, its highest level since August on speculation the European Central Bank will provide additional liquidity, Bloomberg reports.
- “The idea that the Europeans seem to be getting on with the job, so to speak, seems to be buoying investors,” David Rees, an emerging-markets economist at Capital Economics Ltd. said in the article. “We’ve seen a general improvement in the economic data everywhere, and that’s bolstered risk appetite and does really push capital out to the emerging markets.”
SPDR S&P Emerging Markets Dividend ETF
For past stories in this series, visit our ETF Spotlight category.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.