SPDR S&P Emerging Markets Dividend ETF: Fat Yield, Short Life

SPDR S&P Emerging Markets Dividend ETF: Fat Yield, Short Life

A Seeking Alpha Contribution

Summary

  • EDIV has a 5.35% yield.
  • EDIV currently falls in the value section of Morningstar’s Style Box, but has less exposure to the cheapest sectors and markets than DEM.
  • EDIV has trailed both EEM and DEM in the past three years during a sideways market.

Emerging market dividend ETFs are very competitive at providing income, but the WisdomTree Emerging Markets Equity Income ETF(NYSEARCA:DEM) is the king of the category with more than $3 billion in assets. One of the smaller funds investors may have overlooked is the SPDR S&P Emerging Markets Dividend ETF (NYSEARCA:EDIV).

Index & Strategy

EDIV tracks the S&P Emerging Markets Dividend Opportunities Index. Yield is the primary selection factor for holdings, but diversification across sectors, countries and individual holdings is a goal of the index….To Continue Reading, Please Click Here.

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Emerging Market Dividends: DEM Does Value

Emerging Market Dividends: DEM Does Value

A Seeking Alpha Contribution

Summary

  • DEM is the largest emerging market dividend ETF.
  • Top holdings at the moment include Russia, China and energy.
  • DEM has a solid yield of 4.5%, but the fund has a relatively low yield versus other EM dividend ETFs.

Emerging market dividend ETFs are attractive options for investors in search of dividends and growth, but these funds can be quite different in their sector and country exposure. The largest emerging markets dividend ETF, the WisdomTree Emerging Markets Equity Income (NYSEARCA:DEM),currently has large exposure to Russia, China and energy.

Index & Strategy

DEM tracks the WisdomTree Emerging Market Equity Income Index. The index selects the highest yielding stocks from the WisdomTree Emerging Markets Dividend Index. The top 30% are kept in the portfolio and then weighted byannual cash dividends. This skews the portfolio towards large caps since they make larger dividend payments… To Continue Reading, Please Click Here.

*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.