The international investment theme is gaining traction as more turn to potential opportunities in overseas markets in light of lofty valuations at home. Investors who are hesitant of potential risks associated with foreign assets can also consider dividend growth-oriented exchange traded funds for more quality exposure.
For example, investors can diversify into international markets while tracking dividend growth strategies with the ProShares MSCI EAFE Dividend Growers ETF (BATS:EFAD), which tracks developed market Europe, Australasia and Far East companies that exhibit a minimum dividend increase streak of 10 years. EFAD has a 2.22% 12-month yield.
The ProShares MSCI Europe Dividend Growers ETF (BATS:EUDV) tracks the performance of the MSCI Europe Dividend Masters Index, which consists of at least 25 European companies that have consistently increased their dividends for at least 10 consecutive years. EUDV has a 2.19% 12-month yield.
The ProShares MSCI Emerging Markets Dividend Growers ETF (BATS:EMDV) follows the MSCI Emerging Markets Dividend Masters Index, which targets MSCI Emerging Market components that have increased dividend payments each year for at least seven consecutive years. EMDV has a 2.34% 12-month yield.
In its outlook for the third quarter, J.P. Morgan argued that European and emerging market assets are more attractive than U.S. investments based on valuations, reports Dimitra DeFotis for Barron’s.