Ex-US equity markets are trailing domestic stocks this year, but investors looking to position for a rebound in international stocks may want to consider the advantages of a dividend strategy.
The Xtrackers MSCI All World ex-U.S. High Dividend Yield Equity ETF (NYSEArca: HDAW) is an exchange traded fund that can help reduce volatility and boost income profiles while keeping investors with international equities.
“In today’s low-yielding interest rate environment, investors searching for additional sources of income may consider a high-dividend yield approach. High-dividend yielding strategies seek exposure to companies with higher-than-average dividend yields relative to their market-cap-weighted counterparts with the goal of capital preservation and potential long-term capital appreciation,” according to DWS. “Xtrackers MSCI All World ex-U.S. High Dividend Yield Equity ETF seeks to give investors exposure to high-quality international equities across developed and emerging markets countries, and provide an alternative, potentially reliable income stream.”
HDAW targets companies with higher-than-average dividend yields relative to their market-cap-weighted counterparts across both developed and emerging countries, excluding the U.S.
Dividend Growth Considerations
HDAW targets companies with higher-than-average dividend yields relative to their market-cap-weighted counterparts across both developed and emerging countries, excluding the U.S. HDAW yields 3.14%, putting it well ahead of the S&P 500, but the fund also offers some opportunity for dividend growth because some major ex-US markets are home to rising dividends.
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