ETF Spotlight: Quality Dividends from Emerging Markets | ETF Trends

ETF Spotlight on the Market Vectors MSCI Emerging Markets Quality Dividend ETF (NYSEArca: QDEM), part of an ongoing series.

Assets: $4.9 million

Objective: The Market Vectors MSCI Emerging Markets Quality fund tries to reflect the performance of the MSCI Emerging Markets High Dividend Yield Index, which is a rules-based index that tracks emerging market companies with above average dividend yields and deemed to be both sustainable and persistent.

Holdings: Top holdings include China Mobile 5.1%, Gazprom 5.1%, Industrial & Commercial Bank of China 5.0%, China Construction Bank Corp 5.0% and Bank of China 3.5%.

What You Should Know:

  • Van Eck Global’s Market Vector sponsors the fund.
  • QDEM has a 0.5% expense ratio.
  • The ETF was launched on January 21, 2014.
  • The fund has 175 components, and the top ten make up 38.9% of the overall portfolio.
  • Country allocations include China 32.5%, Russia 12.6%, South Africa 12.3%, Taiwan 10.3%, Brazil 8.8%, Malaysia 5.0%, Thailand 4.4%, Poland 3.3%, U.K. 1.6%, South Korea 1.5%, Spain 1.1%, India 1.0%, France 1.0%, Colombia 1.0%, Italy 0.9%, Indonesia 0.7%, Egypt 0.5%, Turkey 0.3%, Bahamas 0.3% and Chile 0.3%.
  • Sector allocations include financials 30.7%, energy 25.8%, telecom services 15.6%, materials 9.8%, information technology 6.5%, consumer staples 3.0%, consumer discretionary 3.0%, utilities 2.9% and industrials 2.7%.
  • QDEM is down 6.4% since its inception.
  • The underlying index has a dividend yield of 4.22%.
  • Market Vectors describes the “quality dividend” factor as investments that provide high current income with long-term capital appreciation.
  • The underlying components are screened for quality, stable dividend growth and dividend sustainability.

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