ETF Trends
ETF Trends

iShares, the exchange traded fund (ETF) branch of BlackRock, has launched new funds focusing on dividends and China.

The iShares High Dividend Equity Fund (NYSEArca: HDV) joins two other focused funds from the same provider, the iShares Dow Jones International Select Dividend Index Fund (NYSEArca: IDV) and iShares Dow Jones Select Dividend Index Fund (NYSEArca: DVY), reports Oliver Ludwig for Index Universe.

Although HDV joins an already crowded line up of dividend-oriented ETFs, the income-producing aspect of these funds are in high demand, as they are cost-effective, diversified and flexible, says Noel Archard at BlackRock.

HDV will separate itself from the rest by following a special index created by Morningstar, representing companies with consistent dividend performance, says Murray Coleman for Barrons.  HDV will incorporate Morningstar’s so-called ‘economic moat’ criteria in the weeding-out process, where companies are judged by how much of a competitive advantage they hold. Factors like economies of scale and the amount of intangible assets such as brands or patents held are taken into account. [Dividend Surge Puts Specialized ETFs Into Focus.]

Another iShares fund that began trading recently focuses on China equities. Oliver Ludwig reports that China is revered to be the most hopeful of the emerging economies, as food and energy related inflation is plaguing many of the newer budding countries.

iShares MSCI China Index Fund (NYSEArca:MCHI) has an annual expense ratio of 0.61 %, beating out iShares FTSE/Xinhua China 25 Index (NYSEArca: FXI)‘s 0.72 % expense ratio. [Potential Opportunities In Emerging Markets.]

Tisha Guerrero contributed to this article.
For full disclosure, Tom Lydon’s clients own DVY.

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