EMHD And EMDG: Promising Funds That Have Attached Little Attention, So Far

EMHD And EMDG: Promising Funds That Have Attached Little Attention, So Far

A Seeking Alpha Contribution

Summary

  • EGShares has two unique emerging market dividend ETFs, EMDG and EMHD, but both have very low volume.
  • EMDG takes a dividend growth approach, but the history is too short to determine whether the fund is delivering on growth.
  • EMHD is delivering a high yield of about 6% and it has been outperforming other emerging market dividend ETFs this year.

Emerging Global Advisors offers a trio of high yield emerging market dividend ETFs. Two of the funds offer some promise, but they have attracted very little investor interest and have extremely low trading volume.

One of these is the EGShares Emerging Markets Dividend Growth ETF (NYSEARCA:EMDG).

Index & Strategy

EMDG tracks the FTSE Emerging All Cap ex-Taiwan Diversified Capped Dividend Growth 50 Index. The 50 holdings in the fund are capped at 2.5 percent each quarter. Holdings are selected annually in March. The index criteria are summed up well by the index provider:

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The EGShares Low Volatility Emerging Markets Dividend ETF: High Yield, High Volume

The EGShares Low Volatility Emerging Markets Dividend ETF: High Yield, High Volume

A Seeking Alpha Contribution

Summary

  • HILO has a 4.54 percent 12-month yield, delivering on the dividends.
  • HILO has higher volatility than other emerging market dividend ETFs, though an index change in early 2014 may change the picture.
  • HILO has a unique country exposure, with Thailand, Malaysia and the Czech Republic in the top 5.

The EGShares Low Volatility Emerging Markets Dividend ETF (NYSEARCA:HILO) is a fund offering a hefty yield and a low volatility approach to emerging markets, but it hasn’t been able to deliver on the low volatility yet.

Index & Strategy

HILO tracks the FTSE Emerging All Cap ex Taiwan Low Volatility Dividend Index. Here’s the criteria for stock selection:   Click Here to continue reading.

*Please note, this article was written and published as a contribution for Seeking Alpha. To finish reading the article you will be redirected to their site.