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.