For example, MTN Group, the South African telecom services provider, is a top-10 holding. The stock has a 10% yield. However, the company has an above average Quality Ranking of A- according to S&P Global Market Intelligence.[related_stories]
Another such low-risk consideration top-10 holding is Industrial & Commercial Bank of China. While the stock has a 6.3% dividend yield, the company has an A- Quality Ranking. Meanwhile, my S&P Global Market Intelligence equity analyst colleague Siti Rudziah Salikin thinks China’s largest commercial bank’s fundamentals are strong. Management is focusing on driving quality earnings expansion through a more measured and controllable pace of loan growth, greater diversity of income, and a high emphasis on asset quality management.
According to our research, the ETF has positive overall cost factors as it trades with tight $0.01 bid/ask spread and a 0.49% expense ratio.
While investors returned to emerging markets in March, largely through EEM, we think EDIV is worthy of additional attention. EDIV earns a top Overweight ranking from S&P Global Market Intelligence, which operates independently from S&P Dow Jones Indices.
Todd Rosenbluth is Director of ETF Research S&P Global Market Intelligence. Follow him on Twitter: @ToddSPGlobal.