Dividend stocks, on the other hand, do not issue a lot of shares since most of these companies will be large enough to give back to their shareholders. Emerging market dividend ETFs largely include Brazilian and Taiwanese stocks, telecom companies and minimal exposure to resource producers, according to the report.
- WisdomTree Emerging Markets Equity Income (NYSEArca: DEM). DEM has a 7% yield and a 0.63% expense ratio. On a year-to-year basis, the fund selects 30% of stocks from a pre-screened list of emerging-market stocks that provide dividends and then weights the stocks by their total dividends. It should be noted that the fund holds a hefty 27% weighting in financials.
- SPDR S&P Emerging Markets Dividend ETF (NYSEArca: EDIV). EDIV has a 8.33% yield and a 0.59% expense ratio. The fund excludes distressed firms and includes stocks with a positive cumulative three-year earnings growth, with positive per-share earnings over the last year. Morningstar analysts caution that the fund trades at noticeable discounts or premiums to net asset value.
- WisdomTree Emerging Markets SmallCap Dividend (NYSEArca: DGS). DGS is a small-cap version of the DEM fund. It has a 5.11% yield and a 0.64% expense ratio. The fund’s top three sectors include financials 27.13%, telecom services 20.79% and info tech 11.62%.
WisdomTree Emerging Markets Equity Income
For more information on the emerging markets, visit our emerging markets category.
Max Chen contributed to this article.