The Case for Emerging Market Dividend ETFs | Page 2 of 2 | ETF Trends

Secondly, the high yield that comes with this index is around 6%, compared to 2.5% for the S&P 500, and about 1.8% or less for a 10-year Treasury note. The low beta is also a result of the stability of the high-dividend companies that are included in the index. They are established, stable companies. [Special Report: Surveying the Dividend ETF Landscape]

Furthermore, high dividend payers in emerging markets usually trade at a significant discount to most global equity benchmarks. Some of the stocks in DVYE are trading at a 20% discount compared to broad emerging market equity indices.

Investors will be eying the ECB policy meeting this Thursday for any indication that Europe or the U.S. are planning further stimulus proposals. The fate of the Eurozone is ultimately overshadowing any rapid growth in emerging economies regardless of the healthy fundamentals these countries possess. [ETF Spotlight: Emerging Market Dividends]

WisdomTree Emerging Markets Equity Income


Tisha Guerrero contributed to this article.