That is an important consideration because for all of the valid criticisms of Russia’s financial markets, the country’s dividend policies are overtly aimed at capturing the attention of foreign investors. [Russia’s Dividend Ascent]
Brazil, which is expected to post the largest dividend growth rate among emerging markets this year, is HILO’s largest country weight at 15.9%, followed by Thailand at 11.7%.
What makes HILO alluring as a possible satellite position for some investors is not just the yield, but the upside potential. That may seem like stating the obvious, but consider this about the ETF. Despite the 12% run since February, is still trading below where it resided a year ago and the ETF would need to gain 21% to reclaim its 2013 highs.
The ETF, which devotes over a quarter of its weight to the telecom sector, needs to add more than 23% to return to its all-time high set in the first quarter of 2012.
EGShares Low Volatility Emerging Markets Dividend ETF
