International dividend ETFs can provide decent yields and remove the need to do research on foreign stocks. Instead of trying to pick foreign holdings on limited information, there are funds that have pulled together some high-quality, dividend-paying companies that you can hold in a basket, thus spreading out the risk. (See why dividends have outperformed growth this year.)

Todd Shcriber for Investopedia reports that ETFs that hold high-quality stocks with reliable dividend histories that focused on sectors that are typically viewed as safe dividend bets. (Why dividend ETFs are good for tough times).

For more stories about dividends, visit our dividend category.

Among the many available are:

• WisdomTree International Utilities (NYSEArca: DBU): yield 9.89%; Utility funds can be a good bet no matter where you are, because there is always a need for the services utilities provide. These companies tend to pay out steady dividends that are predictable.



• WisdomTree International Large Cap Dividend (NYSEArca: DOL): yield 8.04%; This ETF does not focus on one sector, rather it tends toward large, high-quality dividend stocks. It is a thinly traded fund, but has nice performance. Countries ranging from China to Brazil are featured in this ETF, both hot spots.



• iShares S&P Global Telecommunications (NYSEArca: IXP): yield 5%; Telecom stocks are another sure play as they are indispensible and growing. This is not as international a play as the other two funds, as AT&T and Verizon are in the top 10 holdings. Nevertheless, the ETF contains quality names across the world.

Apple’s (NasdaqGS: AAPL) iPhone may be threatened by Motorola’s (NYSE: MOT) Droid, a smartphone serviced on Verizon’s (NYSE: VZ) network and powered by Google’s (NasdaqGS: GOOG) Android 2.0 operating system, according to The Week. (The smartphone push in China).

John Herman of Gizmodo believes that the iPhone is already so entrenched in the consumer world that it will still have a dominating presence. David Coursey of PC World argues that the Droid’s practical features are a good lure for consumers looking for something not already on the market.

MG Seigler at TechCrunch sees that Google isn’t trying to undermine iPhones, but rather sell its operating system, which works on a range of different devices. (Four reasons to watch global telecom).

Many are arguing that the Droid is the most sophisticated mobile device from a hardware standpoint to hit the market, reports Michael Arrington for The Washington Post. The Droid smartphone may be as thin or thinner than the iPhone 3GS, with a slide out physical keyboard and removable battery.

For more information on the technology sector, visit our technology category.

• Vanguard Telecom Services (NYSEArca: VOX): up 13.2% year-to-date; Verizon is 20.3%

• iShares Dow Jones U.S. Technology (NYSEArca: IYW): up 46.4% year-to-date; Apple is 9%, Google is 6.5%

• iShares S&P Global Telecommunications (NYSEArca: IXP): up 5.7% year-to-date; AT&T is 15.3%; Verizon is 8.2%

• Technology Select Sector SPDR (NYSEArca: XLK): up 35.5% year-to-date; Apple is 7.7%; AT&T is 8.9%; Google is 4.8%; Verizon is 4.5%

For full disclosure, Tom Lydon’s clients own shares of XLK.

Max Chen contributed to this article.

The Economist states that cell phones have a different role in developing countries than they do in industrialized nations. Cell phones are giving many of the world’s poor their first exposure to telecommunications. In the developed world, cell phones generally are just extensions to existing land lines.

What has the expansion of cell phones in emerging markets meant for the industry and these countries?

• A recent study showed that adding 10 cell phones per 100 people in a typical developing country will boost GDP growth by 0.8% per person.
• The spread of mobile phones in developing countries has been accompanied by the rise of home-grown mobile operators in China, India, Africa and the Middle East. These providers rival the providers in the West. (What’s next for global telecom?)
• The emergence of China’s two leading telecom equipment-makers, Huawei and ZTE, have entered the global stage in the past five years and now have a growing reputation for quality and innovation, prompting a shakeout among the incumbent Western equipment-makers (How to play China’s telecom boost ).
• The development of new phone-based services, beyond voice calls and basic text messages, are now becoming feasible.. The services tend to center around agricultural advice, health care and money transfer – things that could deliver enormous benefits to residents of poor nations.

For more stories on the telecommunications industry, visit our telecommunications category.

• iShares S&P Global Telecommunications (NYSEArca: IXP): up 6.9% year-to-date

• SPDR S&P International Telecom (NYSE: IST) is up 11% year-to-date

Kevin Grewal contributed to this article.

The Conference Board’s index of leading economic indicators rose 1% in September. This follows a 0.4% gain in August and it’s the sixth straight gain for the index, reports the Associated Press. Economists predict that the economy grew about 3% in the third quarter, but there are questions about whether this is sustainable as unemployment continues to rise and consumers don’t spend.

Earnings continued to pour in, with mixed results:

• Merck (NYSE: MCK) posted a bigger third-quarter profit thanks to slight rise in sales and a gain after selling one of its divisions to clear a merger with Schering-Plough Corp. The sale brought in $2.8 billion.
• AT&T (NYSE: T) reported that its wireless business is thriving, thanks to phenomenal sales of the iPhone. The provider added 2 million subscribers in the third quarter, blasting predictions.

iShares S&P Global Telecommunications (NYSEArca: IXP) is up about 1% this morning; AT&T is 15.3%



• UPS (NYSE: UPS) reported a third-quarter earnings decline of 43% on declining revenue. The shipper’s CEO said there were signs of recovery, but they’re still holding off on calling a turnaround in demand.

iShares Dow Jones Transportation Average (NYSEArca: IYT) is down about 1.5% this morning; UPS is 8.2%

Oil prices took a step back from 2009 highs and dropped below $80 a barrel. A steadier U.S. dollar is having an impact on retreating prices, since oil is priced in greenbacks. (ETFs for when the dollar weakens).

For more stories on oil, visit our oil category.

Andre Lehman for The Sydney Morning Tribune reports that the cell phone have allowed many industries and sectors to thrive as a result of access to mobile technologies.

Research has found that every 10% growth in mobile phone penetration brings about an increase of 0.6% in economic growth, according to a World Bank analyst. You can read more about the impact that growing economies have on the telecommunications sector here.

Thanks to mobile telephones and instant messaging, fishermen, farmers, handicraft workers have been able to sell in a more efficient way or even find new clients, and can afford to stay in business even if they can not open up a shop.

The number of mobile telephone users is expected to reach 4.6 billion this year, a more than four-fold increase from one billion in 2003, says one United Nations Telecommunications Union statistic.

• iShares S&P Global Telecommunications Sector Index Fund (NYSEArca: IXP): up 7.5% year-to-date



• WisdomTree International Communications Fund (NYSEArca: DGG): up 9.6% year-to-date

For more stories about telecom, visit our telecom category.

China Unicom, the China’s second-largest carrier with 140 million subscribers, announced a three-year agreement to sell Apple’s (APPL) iPhone, which could make China’s markets account for 15% to 20% of global iPhone sales next year, writes Gregg Keizzer for ComputerWorld. Apple will face competition in China from other smartphone name brands such as Google’s (GOOG) Android operation system and BlackBerry devices from Research in Motion (RIMM).

The launch of the iPhone is slated for the fourth quarter of this year, but it is still unclear as to what model of the iPhone China Unicom will be offering, according to ComputerWorld. The device also does not list Wi-Fi as a feature, since China did not approve the use of Wi-Fi mobile phones until this year.

Right after China Unicom’s announcement with Apple, China Mobile exhibited its “Ophones” from Dell (DELL), HTC, and Lenovo, reports Martin Perez for InformationWeek. China Mobile, the largest carrier in China, has around 500 million subscribers.

The Ophones will have carrier-specific applications that deliver news, e-mail and other services and the increase sales of smartphones are expected to ease the transition of China’s adoption of a Mobile 3G service.

• WisdomTree International Communications (DGG): up 2.4% year-to-date; China Mobile Ltd. is 5.7%, China Unicom is 4.1%

• iShares S&P Global Telecommunications (IXP): up 3.5% year-to-date; China Mobile Ltd. is 4.9%

For more information on telecoms, visit our telecommunications category.

Max Chen contributed to this article.

Wall Street retreated in morning trading on concerns that the swine flu may hinder an economic recovery sending stocks and exchange traded funds (ETFs) in negative territory.

The virus is suspected to be responsible for more than 100 deaths in Mexico, minor occurrences in Canada and about 20 occurrences in the United States. What’s so alarming about this flu is that it is a combination of four different flus in one. This is stirring up concerns that tourism and industries related to tourism will be hit hurt and prevent any turnaround in the global economy.

Things are not looking much better for auto maker General Motors (GM). In a move of desperation, the company announced cost cutting measures including slashing an additional 21,000 factory jobs, a complete phase-out of its Pontiac brand and will ask the federal government to take more than half its stock in exchange for half of GM’s government debt as part of a major restructuring that would leave current shareholders with just 1% of the company, reports Tom Krisher and Kimberly S. Johnson of the Associated Press. Additionally, the auto maker is offering the UAW stock for at least 50% of the $20 billion that it must pay a union run trust that will take over retiree health care expenses starting next year.

Things are looking a bit sunnier for GM competitor Chrysler LLC. Chrysler bit the bullet and managed to jump over two hurdles by agreeing on a concession agreement with negotiators for the UAW and winning ratification of its cost cutting deal with the Canadian Auto Workers. Many though that these two hurdles were virtually impossible to get over. However, the auto maker is still not in the clear. They still have a partnership deal between Italian automaker Fiat and an agreement to swap equity for debt with banks and hedge funds that hold $6.9 billion in secured loans to deal with , states Tom Krisher of the Associated Press.  Much like GM, Chrysler is doing anything it can to stay afloat.

On a positive note, telecommunications giant Verizon (VZ) reported its earnings grew 5% fueled by demand for its wireless, Internet and TV services.  To add icing to the cake, Verizon reported earnings of $0.63/share beating analysts’ expectations by $0.04/share.  Despite this good news, the industry dipped a little bit in morning trading.  The iShares S&P Global Telecommunications (IXP), was down about 1% in intraday trading and is down about 12% for the year; VZ is 9.8%.

Despite starting the day off on a negative note, the markets have seemed to recover a bit.  The Dow Jones Industrial Average is up about 0.5%, the Nasdaq up about 0.2% and the S&P 500 is up about 0.1% in morning trading.

Kevin Grewal contributed to this article.

As the market continues to flounder, the meticulous and perceptive investor may have noticed that there are bargains to be had on broader based indexes, writes Gary Gordon for ETF Expert. It is noted that some ETF “themes” may catch on and garner more attention when the markets recoup.

Japan. It’s the world’s second largest economy, and it’s struggling with faltering exports and low domestic consumer confidence. But a looming shift in demographics could place Japanese consumers smack in the middle of their peak spending years: 2009-2018.

Once things begin looking up again, Japan-focused ETFs to watch are:

• iShares MSCI Japan Fund (EWJ) for its large companies.

• WisdomTree Small Cap Japan Fund (DFJ) for smaller corporations that may improve more quickly.

• NETS TOPIX Index Fund (TYI) for the purists.

Telecom. Stocks have lost 50% of their values in 2008 but now they collectively have the lowest price of any economic section. Shares Dow Jones Telecom Fund (IYZ) and iShares Global Telecom Fund (IXP) both are seen as having potential opportunities for long-term investment in the next decade or so.

Shipping. The sector may be considered risky with the ETF Claymore Delta Global Shipping Index Fund (SEA) plummeting more than 50% since its introduction in September, but the those who look at the big picture will recognize that worldwide trade still relies on the shipping industry. When the markets eventually turns around, shipping will once again gain strength as countries export and import goods.

When compiling a list of investments to potentially purchase, Gary Gordon for ETF Expert says he is considering the following: downside risk, cash flows and technical strength. In general, the lower the downside risk, the higher the relative safety; the higher the cash flows through reliable dividends, the easier it is to project future financial statements; the potential investment should climb above its trendline.

When using this criteria, the telecom industry appears to be appealing, Gordon says.  To take it a step further, in the this industry, the telecom ETFs that have international exposure tend to perform better and generate a lift in dividend yield then the ones that don’t.  Lastly, these types of indexes performed much better than the broader benchmarks, like the S&P 500 SPDR Trust (SPY), which is down 38% year-to-date and down 28.2% over the past three months.

President-elect Barack Obama could give the industry another lift, too, as he has stressed what a shame he thinks it is that the United States ranks a paltry 15th in broadband access, behind countries such as Iceland, Finland, Canada and Korea. If some of his infrastructure investment money goes to this area, the sector’s ETFs could benefit.

iShares S&P Global Telecom (IXP): down 34.2% year-to-date and down 12.7% in the last three months.

WisdomTree International Communications (DGG): down 34.9% year-to-date and down 11.7% over the last three months

Both ETFs have broken their 50-day moving averages, but are still working their way toward the 200-day moving average, a strategy that we use to determine when to be in or out of an ETF.