It is important to note that the same ETFs or areas of the market rarely outperform for a couple of years back-to-back. However, a glimpse at what took shape at the end of 2012 is a good starting point for investors that are ready to get off the sidelines, and into the market, in the new year. [Death of Dividend ETFs Greatly Exaggerated]
Big banks have pushed deposit rates toward zero and other safe-haven fixed-income investments have lowered any yield generated, leaving investors to find alternatives to generate the income they seek. Dividend ETFs should continue to produce desirable results in 2013, especially due to their favorable tax implications and low costs.
WisdomTree Europe Small Cap Dividend Fund
Tisha Guerrero contributed to this article.