At the country level, EFAD allocates nearly 45% of its weight to the U.K., more than double the MSCI EAFE Index’s U.K. weight. However, the large U.K. overweight makes sense for an international dividend growth ETF. In 2014, U.K. firms once again offered excellent dividend growth. Payouts there surged 31% to $135 billion, according to Henderson Global Investors.
Japan, 22.2% of the MSCI EAFE Index, is 8% of EFAD’s weight. Although Japan is historically, a low-yielding developed market, the weak yen is boosting corporate profits there, encouraging companies to increase shareholder rewards, including buybacks and dividends.
Switzerland, EFAD’s second-largest country weight at 10.4%, is one of the steadiest Europe ex-U.K. Dividend growth markets. Estimates indicate that in 2014, the 20 largest firms listed on Switzerland’s benchmark Swiss Market Index paid a record $37.2 billion in dividends.
ProShares MSCI EAFE Dividend Growers ETF
