3 International Dividend Options to Focus on Quality

Investors willing to venture abroad can extract more yield from the international debt markets. Nevertheless, a focus on quality with FlexShares ETFs can help give yield-seekers more peace of mind.

While international debt markets offer a chance at more yield, fixed income investors without prior experience shouldn’t make the dive without first doing their due diligence. This is where the FlexShares ETFs come into play.

“Dividend-paying international stocks have often contributed to some investors’ total returns and served as a source of potential income from and diversification within an investment portfolio,” a FlexShares Fund Focus article said. “We believe successful international dividend investing requires a careful approach: one that pursues attractive yields while avoiding the risks associated with international dividend investing.”

3 Options to Consider

  1. FlexShares International Quality Dividend Dynamic Index Fund (IQDY): Seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust International Quality Dividend Dynamic Index. The index is designed to reflect the performance of a selection of companies that, in aggregate, possess greater financial strength and stability characteristics relative to the Northern Trust International Large Cap Index. The fund will invest at least 80% of its total assets in the securities of the index and in ADRs and GDRs based on the securities in the index.
  2. FlexShares International Quality Dividend Index Fund (IQDF): Seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust International Quality Dividend Index. The index reflects the performance of a selection of companies that, in aggregate, possess greater financial strength and stability characteristics relative to the Northern Trust International Large Cap Index, a float-adjusted market-capitalization weighted index of non-U.S. domiciled large- and mid-capitalization companies. The fund will invest at least 80% of its total assets in the securities of the index and in ADRs and GDRs based on the securities in the index.
  3. FlexShares International Quality Dividend Defensive Index Fund (IQDE): Seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust International Quality Dividend Defensive Index. The underlying index is designed to reflect the performance of a selection of companies that, in aggregate, possess greater financial strength and stability characteristics relative to the Northern Trust International Large Cap Index. The fund will invest at least 80% of its total assets in the securities of the underlying index and in ADRs and GDRs based on the securities in the underlying index.

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