Decent 2016 performances by some the largest emerging markets exchange traded funds has prompted some optimism about what the new year may have in store for this resurgent asset class.
Investors can get some compensation for betting on an emerging markets rebound in the form of dividend ETFs that are also dedicated plays on developing markets. Examining emerging markets dividend yields can prove to be an especially fruitful exercise following a year in which those yields are elevated.
The iShares Emerging Markets Dividend ETF (NYSEArca: DVYE) is one of the more notable options among emerging markets dividend ETFs. A dividend-oriented equity portfolio has helped investors generate higher total returns, and the same principal can be applied to a diversified international portfolio that includes emerging market exchange traded funds.
DVYE follows 100 top dividend paying emerging market stocks, weighted by dividend yield. Additionally, the fund includes screens such as a 12-month EPS, annual dividend yield, dividend history, float-adjusted market-cap, and three-month daily average trading volume.
DVYE “has been designed by its managers to offer investors exposure to a broad range of established dividend-paying companies from countries such as Taiwan, China, Brazil, Thailand, Malaysia, Turkey, and Poland. The fund had a 30-day SEC Yield of 5.68% as of November 2016, and it carries a reasonable expense ratio of 0.49%,” according to Investopedia.