Emerging markets dividend exchange traded funds are rebounding alongside traditional emerging markets funds this year. For example, the SPDR S&P Emerging Markets Dividend ETF (NYSEArca: EDIV) is up more than 10% year-to-date.

Emerging markets dividend growth has outpaced developed world payout growth over the past decade and market observers expect that trend to continue, but some advisors and investors gloss over emerging markets dividend exchange traded funds. However, that growth came under pressure last year as commodities prices slumped.

When share prices tumbled for emerging markets energy and materials firms, some have slashed dividends due to weakening balance sheets. Additionally, some major emerging markets banks are under pressure, indicating that rising dividends from that group may be hard to come by. Those scenarios mean investors need to place a premium on locating reliable emerging markets dividend growth.

Over the past few months, foreign investment flows into emerging market stocks surged, despite any notable changes to the growth, dividends and corporate earnings in the developing economies.

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