IPFF has a 30-day SEC yield of 3.42% and charges an expense ratio of 0.55%. Its dividend is paid on a monthly basis and has remained quite steady over the last year.
Related: More Investors May Be Looking Into International ETFs
Arrow Dow Jones Global Yield ETF (GYLD)
GYLD is an outlier on this list because it’s not a pure stock-only ETF like the three prior funds. It’s multi-asset style encapsulates equity, debt, and alternative characteristics to create a more diversified pool of global holdings.
This ETF tracks the Dow Jones Global Composite Yield Index, which allows for a 20% representation of high yield stocks, real estate, sovereign debt, corporate debt, and alternative investments. Each category contains 30 equally weighted components for a total holding count of 150.
The underlying positions in GYLD are heavily weighted towards high yield entities in foreign markets. Real estate investment trusts, master limited partnerships, and other esoteric securities combine to produce a current 30-day SEC yield of 8.04%. It also charges an expense ratio of 0.75% to administer the portfolio.
I would classify this type of fund as a tactical or special situation holding in the context of a globally diversified income portfolio. I primarily added it to the list because the universe of international funds sporting monthly dividends is so small and it may be of interest to those who are looking for an unconventional style.
The Bottom Line
It’s no secret that these ETFs target a more concentrated pool of stocks and sport appreciably higher fees than traditional passive international funds. Nevertheless, they may provide the opportunity to overweight a small portion of an income portfolio towards high yield stocks with the added benefit of the monthly income stream.
This article has been republished with permission from FMD Capital.