Examining International Dividend ETFs

With interest rates at record lows and expected to remain depressed for the foreseeable future, investors have been forced to get creative in their hunt for current return. Some have shifted domestic fixed income holdings along the risk/return continuum, seeking out more attractive yields from junk bonds. Others have ventured beyond the US borders, embracing emerging market bonds as a higher-yielding alternative to Treasuries. Equities have also emerged as a potential source of current return, with the dividend yield on many stocks exceeding the yield on fixed income securities. Billions of dollars have flowed into exchange-traded products focusing on the MLP sector of the domestic energy market, thanks in part to yields in the neighborhood of 6% on these securities. For investors looking to access a broader representation of dividend-paying companies, there are several ETFs that focus on high-yielding domestic equities, tilted towards corners of the US economy that deliver value through dividend payments: telecoms, banks, and utilities. But there are also some attractive options in international equity markets, tools for adding some geographic diversification while still maintaining a focus on a value investing strategy. Below we profile several dividend ETFs offering investors exposure to markets outside the US.... Read more