A Smart ETF Approach to International Dividends

Investors considering exposure to international equities can add dividends to that equation. A slew of ETFs meet that objective with one of the more unique international dividend ETF offerings being the VictoryShares International High Div Volatility Wtd ETF (NASDAQ: CID).

CID “provides exposure to dividend-yielding, international stocks, without subjecting investors to the inherent limitations of traditional market-cap or yield weighting. It seeks to provide investment results that track the performance of the CEMP International High Dividend 100 Volatility Weighted Index,” according to VictoryShares.

Ex-U.S. developed market dividend payers often feature larger yields than their U.S. counterparts, an assertion proven by comparing large- and mega-cap dividend stocks from familiar dividend sectors such as consumer staples, energy, financial services and telecommunications.

CID is a departure from the MSCI EAFE Index, one of the most widely followed gauges of ex-US developed markets equities. For instance, at the geographic level, CID devotes a quarter of its combined weight to Australia and Hong Kong. Those countries combine for just 10% of the MSCI EAFE Index. However, Australia is one of the top ex-US dividend growth markets and one of the highest-yielding developed markets in the world.

The U.K. and Canada also combine for nearly a quarter of CID’s weight. Again, those are two of the top ex-US dividend destinations. Canada is not part of the MSCI EAFE Index.