The U.K. and Switzerland, two of Europe’s most dependable dividend markets, combine for 26.6% of LVHI’s weight. Spain, the Eurozone’s fourth-largest economy, is nearly 11% of the fund’s weight. Japan, a market where dividends and buybacks have been steadily climbing in recent years, represents 10% of LVHI’s portfolio.
The volatility measure will look for price volatility based on the past 12 months of daily returns earnings volatility, along with 3 years realized and 2 years projected. Historical data suggest that over the long term, lower volatility stocks offer better risk-adjusted returns than their more volatile counterparts.
In addition to an attractive dividend yield of 3.6%, LVHI’s price-to-earnings ratio of just over 13 implies significant discounts to not only the S&P 500, but the MSCI EAFE Index as well. LVHI charges 0.41% per year, or $41 on a $10,000 investment.
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