While slightly more volatile, a high yield emerging market exchange traded fund option could boost an investor’s income portfolio.
For example, the EGShares EM Dividend High Income ETF (NYSEArca: EMHD) tries to reflect the performance of the FTSE Equal Weighted Emerging All Cap ex Taiwan Diversified Dividend Yield 50 Index, which equally weights the 50 highest yielding emerging market stocks from the FTSE Emerging All Cap ex Taiwan Universe. The stock portfolio shows a dividend yield of 8.57%, according to Morningstar data.
Top sector allocations include basic materials 19.1%, consumer cyclical 21.2% and telecom services 12.8%. EMHD’s top country weights include Brazil 21.4%, South Africa 19.5%, China 16.2%, Turkey 13.1% and Pakistan 8.1%.
Due to one of the more favorable dividend policies in the developing world, Brazil occupies premier spots in select emerging markets dividend ETFs, proving that investors can grab some compensation while gaining access to now-rebounding Brazilian equities. [To Brazil With Dividends]
Additionally, the SPDR S&P Emerging Markets Dividend ETF (NYSEArca: EDIV), which includes 100 stocks from emerging market countries with high dividend yields, also includes a 12.1% allocation toward Brazil, along with a hefty 14.8% in China and an 18.2% weight in Taiwan, one of the least volatile emerging markets. EDIV’s stock portfolio shows a 7.37% dividend yield, according to Morningstar data. [Emerging Markets Dividends Matter]