ETF Spotlight: International Quality Dividends | ETF Trends

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

Assets: $4.7 million

Objective: The Market Vectors MSCI International Quality Dividend ETF tries to reflect the performance of the MSCI ACWI ex USA High Dividend Yield Index, which is comprised of international company stocks that have demonstrated above-average dividend yields and deemed to be both sustainable and persistent.

Holdings: Top holdings include Novartis 4.6%, HSBC 4.2%, Royal Dutch Shell 3.0%, BP 2.9% and Total SA 2.8%.

What You Should Know:

  • Van Eck Global’s Market Vectors sponsors the fund.
  • QDXU has a 0.45% net expense ratio.
  • The ETF has 303 holdings, and the top ten components make up 29.0% of the overall portfolio.
  • Country weights include U.K. 22.%, Canada 11.3%, France 8.0%, China 9.5%, Germany 7.6%, Switzerland 6.5%, Australia 5.9%, Netherlands 5.9%, South Africa 2.4%, Russia 2.2%, Japan 2.2%, Singapore 1.7%, Norway 1.7%, Sweden 1.6%, Taiwan 1.6%, Spain 1.4% and Finland 1.2%.
  • Sector allocations include financials 30.2%, energy 19.4%, health care 12.4%, telecom services 10.8%, consumer staples 6.4%, utilities 5.7%, consumer discretionary 5.4%, materials 4.3%, industrials 3.0% and information tech 1.7%.
  • Market-cap weights include mega-caps 68.5%, large-caps 24.7% and mid-caps 5.8%.
  • QDXU has a 4.43% 30-day SEC yield.
  • The fund began trading on January 21, 2014.
  • The ETF is down 9.7% over the past month, down 11.7% over the last three months and down 5.6% since inception.
  • According to MSCI, the quality factor “captures excess returns to stocks that are characterized by low debt, stable earnings growth and other ‘quality’ metrics.”
  • Quality-driven international indices been less volatile than traditional equivalents, and the quality factor has also outperformed broad international and emerging markets.
  • The ETF is still relatively small, so potential investors should utilize limit orders to better control trades.

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