Exchange Traded Funds (ETFs)

Big International Fund Offers 6% Yield

Our series on international income funds brings us to iShares International Select Dividend (IDV). With more than 3 billion in total assets, this exchange-traded fund (ETF) is far more massive than any of the other overseas funds that we have covered in our recent series.

The fund has a current yield of almost 6%, making it one of the highest-yielding international equity funds. IDV’s investment objective is to track the investment results of the Dow Jones EPAC Select Dividend Index, which is composed of high-dividend-paying equities in non-U.S. developed markets.

IDV is up 4.75% year to date, which may seem a bit low when compared with the S&P 500’s 6.39%, but the fund has rebounded from a loss early this year and has since shown an upward movement that can be observed in the graph below. That return also does not include dividends. In just the last 50 days, the fund has risen by 3.16%, a relatively high increase for a short period of time. The fund has an expense ratio of 0.5%.

View the current price, volume, performance and top 10 holdings of SDY at ETFU.com.

With its large total assets, IDV is able to actively invest in many locations the globe, lowering its overall risk and allowing it to capitalize on opportunities in distant parts of the world. A quarter of its assets is invested in the Australasia region, 7.2% in developed Asian regions, 8.9% in Canada and the rest in various European countries. Its top five holdings are AstraZeneca PLC (AZNCF), 4%; Royal Dutch Shell PLC Class A (RYDAF), 3.42%; Commonwealth Bank of Australia (CBAUF), 3.31%; British American Tobacco PLC (BTAFF), 3.15%; and Macquarie Group Ltd (MCQEF), 2.80%.

As international dividend income funds go, it doesn’t get much bigger than IDV. If you seek a fund with investments in high-quality, high-dividend companies around the world, consider looking into iShares International Select Dividend (IDV) for a potential addition to your portfolio.

As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.

Doug Fabian

Doug Fabian is the Editor of Weekly ETF Report, a free weekly e-newsletter, and the newsletter Successful ETF Investing. He’s also the host of the syndicated radio show, “Doug Fabian’s Wealth Strategies.” Doug also edits the fast-paced trading service ETF Trader’s Edge, for investors who want to take their profits to the next level. Taking over the reins from his dad, Dick Fabian, back in 1992, Doug has continued to uphold the reputation of the newsletter as the #1 risk-adjusted market timer as ranked by Hulbert’s Investment Digest. Doug became a member of the “SmartMoney 30” in 1999 — a listing of the most influential individuals in the mutual fund industry. In the feature, SmartMoney magazine exclaims that Doug is the best-known “trend follower” among the $56 billion (and growing) group of financial advisors. In 2001, Doug wrote “Maverick Investing,” published by McGraw-Hill. He also regularly appears at seminars around the country, stands out on the pages of the largest newspapers (The Wall Street Journal, The Los Angeles Times, and The New York Times), and speaks on national television (CNBC, Fox News, and Bloomberg Forum). For more than 35 years, Successful ETF Investing (formerly the Telephone Switch Newsletter and Successful Investing) has produced double-digit percentage annual gains. Doug has become known for his expert knowledge and timely use of innovative tools, such as exchange-traded funds, bear funds, and enhanced-index funds to profit in any market climate. For more information about Doug’s services, go to http://www.fabian.com/