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.
Next page: The latest news
The Latest News:
- With some major elections over, notably in India and South Africa, uncertainty in the emerging markets is beginning to wane.
- Elections in the so-called Fragile Five countries – Brazil, India, Indonesia, Turkey and South Africa – were among the greatest uncertainties heading into 2014, reports Carolyn Cohn for Reuters.
- “So far, elections have not delivered what was feared – political uncertainty,” Jorge de Mariscal, chief investment officer for emerging markets at UBS Wealth Management, said in the Reuters article. So far, elections have resulted in better outcomes for (financial) markets.”
- Emerging market equities have strengthened for the fourth straight week, supported by a rebound in Russian stocks and a surge in India markets after the elections.
SPDR S&P Emerging Markets Dividend ETF
For past stories in this series, visit our ETF Spotlight category.
Max Chen contributed to this article.