Related: A Prudent Smart Beta Emerging Markets ETF Idea
HDEZ, which tracks the MSCI EMU High Dividend Yield US Dollar Hedged Index, does not disappoint when it comes to yield. The ETF’s trailing 12-month dividend is nearly 3.9%, or more than double what investors find on the S&P 500. HDEZ is up 7.5% year-to-date.
Home to just 32 stocks, HDEZ has a highly focused lineup. The financial services and utilities sectors combine for over 52% of the ETF’s weight with consumer discretionary and industrial stocks combining for another 32%. The average market capitalization of HDEZ’s holdings is $18.5 billion.
Three countries – Germany, Finland and France – combine for over two-thirds of the ETF’s geographic exposure. Germany and France are the Eurozone’s two largest economies.
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