As headwinds at home grow stiffer, investors are starting to turn to overseas markets to source income. On average, international high-dividend stocks have posted higher yields than U.S.-based ones every year since 1999.
In the upcoming webcast, Rates Rising? Time To Go Global With Your High Dividend Strategy, Sean Edkins, head of ETF strategic partnerships at DWS, Komson Silapachai, partner of research and portfolio strategy at Sage Advisory, and Paul Riccardella, executive director and head of wealth indexed investments coverage at MSCI Inc., will discuss one such international high dividend strategy that can potentially help financial advisors generate steady yields.
Investors who are interested in the high-yield segment have several options to choose from to diversify a fixed-income portfolio. For instance, DWS has come out with the Xtrackers High Beta High Yield Bond ETF (NYSEArca: HYUP) and the Xtrackers Low Beta High Yield Bond ETF (NYSEArca: HYDW) to help investors reduce or increase the risk they are comfortable with in the high-yield segment. HYUP offers investors access to speculative-grade higher beta bonds, while HYDW provides access to lower beta bonds. The two ETFs combined would mirror the portfolio of the broader Xtrackers USD High Yield Corporate Bond ETF (HYLB).
For those more concerned about interest rate risk, the Xtrackers Short Duration High Yield Bond ETF (NYSEArca: SHYL) goes down the yield curve to cover the speculative-grade debt with shorter durations or lower sensitivities to changes in interest rates.
The Deutsche X-trackers High Yield Corporate Bond – Interest Rate Hedged ETF (Cboe: HYIH) is explicitly designed to keep investors engage with high-yield corporate bonds while mitigating interest rate risk.
Something like the Deutsche X-trackers MSCI EAFE High Dividend Yield Hedged Equity ETF (NYSEArca: HDEF) and Xtrackers MSCI All World ex-U.S. High Dividend Yield Equity ETF (NYSEArca: HDAW) can help investors tap into dividend-paying stock opportunities around the world. Tactical high-yielding and growing dividend stock ETFs might be suitable alternatives to traditional fixed-income investments.
Additionally, Xtrackers Municipal Infrastructure Revenue Bond ETF (RVNU) may be another way to diversify a fixed-income portfolio with municipal bond exposure.
Financial advisors who are interested in learning more about high yield-generating strategies can register for the Tuesday, June 28 webcast here.