As loose central bank policies pushed up valuations on investment-grade government bonds, the low bond yield environment has upturned the traditional role of emerging stocks.
“EDIV only weights China at about 11% of the fund – still noteworthy, but it’s not even a top-three country. Instead, the overweight to pay attention to is Taiwan, which makes up almost 30% of the fund. South Africa (16%) and Brazil (15%) are the two other double-digit weights here,” according to InvestorPlace.
EDIV also offers some notable exposure to technology stocks, an area of growth in developing economies.
“Also, while financials (20%) and telecommunications (20%) are the two largest sector holdings – unsurprising for a dividend-focused fund – information technology is a solid 17% of the fund. While tech is very much a high-growth area for dividends, it’s still not exactly teeming with high yields yet. Nonetheless, holdings like 4% yielder Realtek Semiconductor, from Taiwan, pull their weight,” reports InvestorPlace.
For more information on dividend stocks, visit our dividend ETFs category.