SEE MORE: Looking to ETF Dividend Growers During Uncertain Times
“Companies that consistently grow their dividends tend to be high-quality companies with the potential to withstand market turmoil and can still deliver strong risk-adjusted total returns over time,” according to ProShares. “Companies that cut or suspend a dividend may have cash flow problems or too much debt on the books. Target the companies that have consistently grown dividends over time has historically been an effective way to outperform the market.”
EMDV currently includes a large 22.1% tilt toward China, along with 17.2% India, 16.1% South Africa, 8.5% Taiwan, 5.6% Colombia, 5.1% Korea, 4.8% Indonesia, 3.8% Turkey, 3.5% Thailand, 3.4% Mexico, 3.3% Russia, 1.8% Brazil, 1.7% Malaysia, 1.6% Qatar and 1.5% UAE.
Financial services, typically the largest dividend payers in many emerging markets, are EMDV’s largest sector weight at 29.7%. Technology, consumer staples and consumer discretionary names combine for over 39% of the ETF’s weight.
For more information on the developing economies, visit our emerging markets category.
ProShares MSCI Emerging Markets Dividend Growers ETF