Another disappointing ETF to start December has been the iShares MSCI Germany ETF (NYSEArca: EWG), the largest ETF tracking the Eurozone’s largest economy. EWG is off almost 2.7% this month and that is concerning because EWG is another ETF that often thrives in December. [Germany ETF a Compelling Seasonal Play]
Rising Treasury yields have weighed on dividend ETFs. Over the past five sessions, yields on 10-year Treasuries are up almost 3.6%. Over the same period, the Vanguard Dividend Appreciation ETF(NYSEArca: VIG) and the iShares Select Dividend ETF (NYSEArca: DVY), each with their own allocations to rate-sensitive sectors, are down an average of 1.7%.
Chart Courtesy: Bespoke Investment Group. Tom Lydon’s clients own shares of DVY.