The iShares International Select Dividend ETF (NYSEArca: IDV) tries to reflect the performance of the Dow Jones EPAC Select Dividend Index, which follows 100 of the highest yielding developed market stocks. IDV has a 0.50% expense ratio.
The underlying index also screens for stocks that maintained or raised dividends over the past three years, with a five-year payout that is 50% higher than the average ratio of the company’s domestic market. Stocks with the most cash dividends from the highest-yielding countries are given a larger weighting.
The ETF has 101 components, and the top holdings include Neopost 4.3%, Commonwealth Bank of Australia 3.9% and British American Tobacco 2.9%. Top sectors include financials 19.4%, oil & gas 14.8% and industrials 13.3%.
The fund’s top country allocations include Australia 18.6%, U.K. 16.1%, France 13.8%, Sweden 4.6% and Greece 5.2%.
IDV has a 4.75% 12-month yield and has increased 15.7% year-to-date.
The WisdomTree DEFA Fund (NYSEArca: DWM) tries to reflect the performance of the WisdomTree Dividend Index of Europe, Far East Asia and Australasia Index, which follows a fundamentally weighted methodology based on the performance of dividend-paying companies in developed EFEA and weights components based on annual cash dividends paid. DWM has a 0.48% expense ratio. [Bank on Europe Bank Dividends With These ETFs]
The ETF has 748 components, and the top holdings include Banco Santander 1.9%, Vodafone Group 1.9% and China Mobile 1.8%. Top sectors include financials 25.5%, industrials 11.8% and telecom services 10.4%.
The fund’s top country allocations include U.K. 20.1%, Australia 12.2%, Japan 11.6%, France 11.4% and Germany 8.2%.
DWM has a 3.49% 12-month yield and is up 16.5% year-to-date.
For more information on dividend stocks, visit our dividend ETFs category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own IDV.