ETF Trends
ETF Trends

BlackRock’s iShares has introduced a new emerging markets exchange traded fund targeting dividend stocks that will compete head-to-head with a large ETF managed by WisdomTree Investments (NasdaqGM: WETF).

BlackRock also launched a dividend fund that focuses on the Asia/Pacific region.

The new ETFs are :

  • iShares Emerging Market Dividend Fund (NYSEArca: DVYE): Top sectors are telecom, industrials and basic materials; the index is weighted by annual dividend yield.
  • iShares Asia/Pacific Dividend 30 Index Fund (NYSEArca: DVYA): Largest sectors are financials, consumer services and telecom. The top countries represented are Australia, Hong Kong, Japan, New Zealand and Singapore.

Both funds have an expense ratio of 0.49%.

“The new iShares funds are well-positioned to marry international growth potential with the value characteristics of dividend solutions in an ETF, ” Darek Wojnar, head of U.S. product development at iShares, said. “The funds also offer investors the added benefit of a liquid investment approach, representing flexibility in establishing and adjusting allocations. A basket of high-dividend paying equities can often provide investors a cost-effective, transparent way to diversify their global equity income stream.” [Can Dividend ETFs Sustain Their Performance?]

The new emerging market ETF “clearly is designed to go after the sweet spot carved out by the very popular WisdomTree Emerging Markets Equity Income (NYSEArca: DEM), which charges 0.63%,” says Morningstar analyst Robert Goldsborough. The WisdomTree ETF has $3.3 billion in assets.

“In today’s market environment, traditional sources of income are offering historically low yields,” said Wojnar. “Emerging markets and the developed markets in the Asia/Pacific region are expected to lead global economic growth and offer an attractive opportunity for investment income in the near term. Income-seeking investors can use our dividend–paying funds to efficiently take advantage of potential economic growth in these regions, and possibly reduce portfolio volatility compared with growth-oriented stocks.” [Total Return: Why Dividends  Matter for ETFs]

iShares launched a dividend focused ETF back in 2003, the iShares Dow Jones Select Dividend Index Fund (NYSEArca: DVY), which has about $10.1 billion in assets under management. [Best Dividend ETFs]

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