Related: A Multi-Factor, Smart Beta ETF for Long-Term Investors
IDV allocates over 38% of its combined weight to the U.K. and Australia, two of the best ex-US dividend growth markets. Additionally, Australia is one of the highest-yielding developed markets. France and Italy, two of the three largest Eurozone economies, combine for almost 18% of IDV’s roster.
IDV is top-heavy at the sector level with over 31% of its weight allocated to financial services stocks, but some ex-US bank stocks have been performing well this year as highlighted by a year-to-date gain of 13.4% for IDV.
The ETF allocates over of its weight to the utilities, energy and telecom sectors. Outside the U.S., those sectors typically sport higher dividend yields than their U.S. counterparts, in part explaining, IDV’s dividend yield of about 3.9%. That is double the dividend yield on the S&P 500.
For more on Smart Beta ETFs, visit the Smart Beta Channel home page.