ETF Spotlight on the SPDR S&P Emerging Markets Dividend ETF (NYSEArca: EDIV), part of an ongoing series.

Assets: $498.6 million

Objective: The S&P Emerging Markets Dividend ETF tries to reflect the performance of the S&P Emerging Markets Dividend Opportunities Index, which includes emerging market stocks from countries that offer high dividend yields.

Holdings: Top holdings include TPK Holding 3.8%, Turkiye Petrol Refinerileri 3.0%, Companhia Energetica de Minas Gerais 2.9%, Grupo Financiero Santander Mexico 2.5% and KGHM Polska Miedz 2.4%.

What You Should Know:

  • State Street Global Advisors sponsors the fund.
  • EDIV has a 0.59% expense ratio.
  • The ETF has 122 holdings and the top ten components make up 25.0% of the overall portfolio.
  • Sector allocations include financials 22.6%, information technology 16.5%, telecom services 15.0%, materials 11.9%, utilities 11.9%, energy 8.7%, consumer discretionary 6.6%, industrials 5.9% and consumer staples 0.3%.
  • Country allocations include Taiwan 18.6%, China 14.3%, Brazil 11.8%, Poland 8.9%, Turkey 8.5%, South Africa 8.1%, Thailand 6.4%, Malaysia 4.0%, Russia 3.8%, Czech Republic 3.6%, Mexico 2.5%, South Korea 2.4%, Colombia 2.2%, Chile 1.4%, India 1.1%, U.K. 1.0% and Indonesia 0.8%.
  • EDIV is up 1.2% over the past month, up 8.4% over the past three months and up 2.4% year-to-date.
  • The ETF shows a 4.96% 12-month dividend yield.
  • The underlying index screens out lower-quality companies by focusing on stocks with positive trailing three-year earnings growth and profitability.
  • Components are weighted by annual dividend yield, and countries and sectors are capped at 25% of the portfolio.
  • The index rebalances every January and July.
  • Due to its weighting methodology, the ETF will have a smaller weight toward government-controlled entities and provide greater exposure to consumer-led growth in emerging countries, according to Morningstar analyst Patricia Oey.

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