Checking In: Dividends, Emerging Markets Style

The evolution of ETF offerings has been kind to investors seeking emerging markets exposure and income investors hunting for yield and dividends. And yes, plenty of ETF issuers have married these two prominent investment themes into emerging markets

that offer dividends or are they dividend ETFs with emerging markets exposure? Don't worry about that chicken/egg debate because the bottom line is intenational dividend payers are definitely worth a look for U.S. investors for several reasons, not the least of which is that an investor can run through several sectors known for appealing dividends and find an international company that pays a better dividend than its U.S. counterpart. Hence the appeal of the SPDR S&P Emerging Markets Dividend ETF

, which made its debut in late February. Showing that both the dividend and emerging markets themes remain front and center on investors' radars, HDIV has attracted over $21 million in assets under management. Not a bad haul for just under two months of work. The ETF, which holds 110 stocks and features an expense ratio of 0.59%, does an admirable job of mixing its cap exposure around between large, mid and small. That's a good thing because HDIV needs to offer something to appeal investors as it has entered a space that is already chock full of competition. The WisdomTree Emerging Markets Equity Income Fund

is just one fund HDIV is going to knock heads with and there are several others to be sure. HDIV has the goods, at least in terms of diversification. No stock accounts for more than 3.7% of the ETF's weight and five sectors (utilities, telecom, financials, information technology and consumer discretionary) get weights of 11%-19%. At the country level, HDIV is less diverse as Brazil, Taiwan and South Africa account for 56% of the ETF's weight, but that's not the worst news because Brazil is one of the best, if not THE best emerging market for dividends. You'll have to scroll further down HDIV's roster to find names you're probably familiar with such as China Mobile

, CPFL Energia

and Companhia Siderurgica Nacional

, but the bottom line is HDIV does a good job of what it's supposed to do: Combine emerging markets and dividends and there's nothing wrong with more choice in this sub-sector of the ETF universe.