“In today’s low-yielding interest rate environment, investors searching for additional sources of income may consider a high-dividend yield approach,” according to Deutsche. “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.”
At the geographic level, HDAW allocates over 36% of its combined weight to British and Canadian stocks. France and Germany, the Eurozone’s two biggest economies, combine for nearly 19% of the ETF’s weight.
Low interest rates in the U.S. have sent investors flocking to dividend stocks and exchange traded funds in recent years. With central banks throughout the developed world paring rates and engaging in monetary easing, government bond yields are falling, giving investors good reason to consider international dividend ETFs.
While international investors have chased after yield-generating assets, foreign dividend yields are still higher than payouts from U.S. companies. For example, the U.K.’s FTSE 100 and Germany’s DAX are among the major international equity benchmarks with higher dividend yields than the S&P 500.
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