Short interest for SPDR S&P Emerging Markets Dividend ETF gives investors a sense of the degree to which investors are betting on the decline of SPDR S&P Emerging Markets Dividend ETF's stock. Short interest data is updated every two weeks.

SPDR S&P Emerging Markets Dividend ETF (ARCA:EDIV), Short Interest Report

SPDR S&P Emerging Markets Dividend ETF

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Global X Adds New REIT And Emerging Market Dividend ETFs

Emerging Market Dividend ETFs Face Uphill Battle

Emerging markets equities and exchange-traded funds are looking better this year than they have for awhile. That much is confirmed by a more than 6 percent year-to-date gain for the widely followed MSCI Emerging Markets Index.
While traditional, diversified emerging markets ETFs are on the mend, there is even better news: So are their dividend counterparts. That includes the SPDR S&amp;P Emerging Markets Dividend ETF (SPDR Index Shares Fund (NYSE: <a class="ticker" href="/stock/ediv#NYSE">EDIV</a>)), which <a href="http://trymsatoday.com/">S&amp;P Capital IQ</a> named as its focus ETF for April.
When emerging markets ETFs were faltering over the past several years, the comparable <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/02/6371199/some-good-news-for-emerging-markets-dividend-etfs">dividend ETFs</a> were just as bad, if not worse. Funds like EDIV betrayed the notion that dividends are supposed to provide shelter from market storms. Over the past two years, EDIV is down more than 30 percent, but to be fair, the ETF eating away at those losses with a year-to-date gain of almost 13 percent. That easily tops the MSCI Emerging Markets Index.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/03/7767165/an-etf-idea-for-a-steady-emerging-market">An ETF Idea For A Steady Emerging Market</a></bzrelatedlink>
<h3>A Closer Look AT EDIV</h3>
&ldquo;Meanwhile, EDIV&rsquo;s 12-month yield of 5.4 percent was more than double that of both EEM (2.7 percent) and SPY (2.2 percent), though in many cases S&amp;P Global Market Intelligence thinks the constituents have a consistently strong record of dividends and earnings,&rdquo; said S&amp;P Capital IQ in a new research note. &ldquo;For example, MTN Group, the South African telecom services provider, is a top-10 holding. The stock has a 10 percent yield. However, the company has an above average Quality Ranking of A- according to S&amp;P Global Market Intelligence.&rdquo;
EDIV allocates a combined 43.5 percent of its geographic weight to Taiwan and South Africa, two countries that are staples among emerging markets dividend ETFs. Brazil and China, the largest emerging markets dividend payer in dollar terms, combine for almost a quarter of EDIV&#39;s weight. EDIV sports a trailing 12-month yield of 4.4 percent and its 122 holdings give the ETF a <a href="https://www.spdrs.com/product/fund.seam?ticker=EDIV"> price-to-earnings ratio of 10.6</a>, indicating that although EDIV is a dividend fund, it is not exceptionally expensive relative to traditional emerging markets funds.
&ldquo;Another such low-risk consideration top-10 holding is Industrial &amp; Commercial Bank of China. While the stock has a 6.3 prcent dividend yield, the company has an A- Quality Ranking. Meanwhile, S&amp;P Global Market Intelligence equity analyst Siti Rudziah Salikin thinks China&rsquo;s largest commercial bank&rsquo;s fundamentals are strong. Management is focusing on driving quality earnings expansion through a more measured and controllable pace of loan growth, greater diversity of income, and a high emphasis on asset quality management,&rdquo; added S&amp;P Capital IQ.
A potential risk for EDIV going forward would be investors&#39; resuming their distaste for state-run emerging markets firms. The ETF devotes nearly two-thirds of its combined weight to financial services, telecom and utilities names, which in the developing world are often controlled by the government.
Image Credit: <a href="https://pixabay.com/en/hands-world-map-global-earth-600497/">Public Domain</a>

Global X Funds has expanded its suite of income-oriented ETFs to include two new high yield funds with an international twist.&nbsp;

	The Global X SuperDividend Emerging Markets ETF (NYSE: SDEM) and Global X SuperDividend REIT ETF (NYSE: SRET) began trading on Monday and offer investors unique ways to diversify their portfolios.

	SDEM follows an index of 50 equally weighted high yield emerging market stocks that have consistently paid dividends over at least the last two years.&nbsp;

	The top country allocations in this index include Brazil, China, Russia, and South Africa.&nbsp;

	This new offering will go head to head with the well-established WisdomTree Emerging Markets Equity Income Fund (NYSE: <a class="ticker" href="/stock/dem#NYSE">DEM</a>) and SPDR S&amp;P Emerging Markets Dividend ETF (NYSE: <a class="ticker" href="/stock/ediv#NYSE">EDIV</a>).&nbsp;

	Both ETFs offer 30-day SEC yields in excess of 5 percent and have different exposure to both underlying country and sector allocations.

	One of the distinctive features of SDEM will be its monthly dividend, which is a departure from the traditional quarterly schedule.&nbsp;

	This may be an attractive feature for investors that prefer smaller and more regular income from overseas holdings.&nbsp; SDEM will debut with an expense ratio of 0.65 percent as well.&nbsp;

	The second notable unveiling, SRET, will focus on an index of 30 real estate investment trusts that rank among the highest yielding globally.&nbsp;

	Real estate ETFs are traditionally segregated by traditional diversified REITs and high yielding mortgage REITs.&nbsp;

	<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/etfs/sector-etfs/15/03/5322275/3-financial-etfs-exploding-higher-on-stress-test-news">3 Financial ETFs Exploding Higher On Stress Test News</a></bzrelatedlink>

	However, SRET will feature a combination of the two industry classes, which should result in a higher aggregate dividend stream than a diversified global fund such as theSPDR Dow Jones Global Real Estate ETF (NYSE: <a class="ticker" href="/stock/rwo#NYSE">RWO</a>).&nbsp;

	SRET will also feature a monthly dividend payment, which is another differentiating factor from conventional real estate ETFs.&nbsp; This new fund will feature an expense ratio of 0.58 percent as well.&nbsp;

	Global X has a history of combining multiple asset classes within its dividend funds, which has resulted in successful adoption by yield hungry investors.

	The Global X SuperDividend ETF (NYSE: <a class="ticker" href="/stock/sdiv#NYSE">SDIV</a>) has over $1 billion in assets dedicated to common stocks, REITs, and other alternative income securities.&nbsp; &nbsp;

Investors have become enamored with dividend <a href="http://www.benzinga.com/topic/etf">ETFs</a> for their strong capital appreciation and income stream over the last several years. However, one area of the dividend spectrum that failed to produce strong returns in 2014 was emerging market dividend funds.

	In fact, many of these financial-heavy indices have underperformed broad-based and low volatility emerging market ETFs despite their much more attractive yields than U.S.-based alternatives.

	<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/news/14/12/5109407/russias-main-etf-just-erased-12-instantly">Russia&#39;s Main ETF Just Erased 5% Instantly</a></bzrelatedlink>
<h3>
	Wisdom Tree</h3>

	The WisdomTree Emerging Markets Eqty Incm Fd (NYSE: <a class="ticker" href="/stock/dem#NYSE">DEM</a>) is the largest ETF in this space, with over $2.2 billion in total assets. This ETF tracks over 300 high yield stocks from countries such as China, Russia and Taiwan.

	The companies within the DEM index are ranked and weighted according to dividend payout, which combines to generate a 30-day SEC yield of 5.26 percent. This contrasts sharply with the majority of U.S.-listed high dividend ETFs, which sport yields closer to 3 percent.
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	Last year, DEM had a total return of -13.34 percent with dividends included. This performance came in well below even a broad index such as the Vanguard Emerging Markets Stock Index Fd (NYSE: <a class="ticker" href="/stock/vwo#NYSE">VWO</a>), which was flat in 2014.

	<a href="http://www.benzinga.com/topic/russia">Russia</a> makes up 15 percent of the total exposure in DEM, which weighed on the index as one of the worst-performing emerging market countries last year.
<h3>
	SPDR</h3>

	The SPDR Index Shares Fund (NYSE: <a class="ticker" href="/stock/ediv#NYSE">EDIV</a>) is another high yielding equity option for international investors. This fund focuses on a narrower range of 120 stocks with strong dividend characteristics. In addition to liquidity and market cap requirements, companies in EDIV must have positive three-year earnings growth and profitability.

	EDIV fell 8.87 percent last year, which bested DEM but still fell short of expectations. This ETF currently has over $425 million in total assets and a 30-day SEC yield of 5.34 percent.

	These emerging market dividend ETFs have an uphill battle to climb in the New Year, but may find themselves as a value-oriented opportunity for investors looking to diversify overseas.

	Disclosure: The author has a position in VWO at the time this article was published.

As U.S. stocks have been leaders this year, it is not surprising that ETF issuers have rolled out a steady stream of new dividend funds. The strategy makes sense as data indicates investors love income-oriented ETFs. As of the end of May, year-to-date inflows to dividend, preferred stock and REIT ETFs were near $25 billion.

	Slumping currencies, spiking sovereign bond yields and a spate of anti-government protests are among the reasons emerging markets ETFs have been less than rewarding this year, but there are dividend opportunities in the emerging world, too. The WisdomTree Emerging Markets Equity Income Fund (NYSE: <a class="ticker" href="/stock/dem#NYSE">DEM</a>) and the WisdomTree Emerging Markets SmallCap Dividend Fund (NYSE: <a class="ticker" href="/stock/dgs#NYSE">DGS</a>) have $6.33 billion in combined assets. The SPDR S&amp;P Emerging Markets Dividend ETF (NYSE: <a class="ticker" href="/stock/ediv#NYSE">EDIV</a>) and the iShares Emerging Markets Dividend ETF (NYSE: <a class="ticker" href="/stock/dvye#NYSE">DVYE</a>) have almost $700 million in combine assets.

	Those are not even all of the emerging markets dividend ETFs available to investors today. In fact, a pair of new funds attempt to deliver one of the most important concepts in income investing: Dividend growth.

	Related: <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/06/3648147/time-to-shift-to-these-dividend-etfs">Time to Shift to These Dividend ETFs</a>.

	The two ETFs are the newly minted EGShares Emerging Markets Dividend Growth ETF (NYSE: <a class="ticker" href="/stock/emdg#NYSE">EMDG</a>) and the even newer WisdomTree Emerging Markets Dividend Growth Fund (NYSE: <a class="ticker" href="/stock/dgre#NYSE">DGRE</a>). DGRE is <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/08/3805816/new-etf-brings-dividend-growth-concept-to-emerging-markets">just a week old</a>. The EGShares offering debuted in early July. There are significant differences between the two funds that dividend growth investors should consider before jumping in.

	EM Dividends Do Grow 
	Emerging markets do not yet have dividend growth track records that are on par with the U.S. Then again, few developed markets do, either. Still, dividends, as they are with U.S. equities, an integral part of the total return equation with developing world stocks. Over the past three years, DEM has outperformed rival diversified emerging markets ETFs, proving the fund's status as a dedicated dividend play <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/07/3746992/an-unheralded-international-dividend-etf-destination">has rewarded investors</a>.

	Vital to the emerging markets dividend ETF selection process is country allocation. Put simply, some developing markets, such as a Taiwan, have decent dividend reputations. Some, such as South Korea, are dividend disappointments. While most of the ETFs tracking China and Russia have not generated positive returns this year, it should be noted the two <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/07/3757195/patience-required-with-emerging-markets-etfs">are asserting some dominance</a> when it comes to developing world dividends.

	Parsing through the WisdomTree Emerging Markets Dividend Index, DEM's underlying index, investors will find China is now the largest dividend payer in dollar terms at almost $27 billion while Russia offered the most robust dividend growth, <a href="http://www.wisdomtree.com/resource-library/documents/schwartzcommentary/WT-Research-Commentary-07-10-13-58.pdf">according to WisdomTree data</a>.

	Of the new guard of emerging markets dividend funds, the EGShares Emerging Markets Dividend Growth features a 19.5 percent weight to China and a 7.3 percent weight to Russia. The WisdomTree Emerging Markets Dividend Growth Fund has combined weight of about 18 percent to both countries.

	EMDG does have a combined 37.2 percent weight to financials and energy names, weightings that are par with the MSCI Emerging Markets Index, but the new ETFs trims some beta with a combined 35.5 weight to consumer stocks, utilities and telecom names. As for the WisdomTree Emerging Markets Dividend Growth Index (WTEMDG), DGRE's underlying index, that index ensures DGRE is noticeably than its cousin DEM and that the new ETF has ample exposure to defensive sectors.

	"The common constituents represent only 17% of the weight of WTEMHY, which means that most of WTEMDG's stocks are additive and new compared to 83% of WTEMHY," said <a href="http://www.wisdomtree.com/blog/index.php/dividend-growth-versus-dividend-yield-in-the-emerging-markets/">WisdomTree Research Director Jeremy Schwartz in a note</a>. "The common holdings represent 33% of WTEMDG, meaning two-thirds of its weight is not in WTEMHY and would be completely additive exposure."

	WTEMHY is the ticker for DEM's underlying index. Financial services and energy names combine for 21 percent of DGRE's weight, but staples and telecom combine for over 38 percent.

	A point in DGRE's favor is that the ETF "gives more weight to Mexico, Indonesia and Thailand (“MIT”) than it does to Brazil, Russia, India and China (BRIC). By contrast, the MSCI Emerging Markets Index gives almost four times more weight to BRIC countries than to MIT," said Schwartz.

	The EGShares offering features a combined 23.3 percent weight to Indonesia, Mexico and Thailand and a 46.6 percent weight to BRIC.

	One Issue to Consider 
	If there is one country that is an obvious source of concern for both DGRE and EMDG it is Brazil. Earlier this week, <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/08/3812625/brazils-dividend-problem">it was reported that Markit Economics expects</a> Brazilian dividends in local currency terms to slide eight percent this year. The research firm cited Petrobras (NYSE: <a class="ticker" href="/stock/pbr#NYSE">PBR</a>) and Vale (NYSE: <a class="ticker" href="/stock/vale#NYSE">VALE</a>) as primary culprits along with Brazilian utilities.

	DGRE and EMDG have weights to Brazil of 14.4 and 15.8 percent, respectively. Markit was more enthusiastic about the outlook for Brazilian bank dividends and that is good news for EMDG, which derives most of its Brazil weight from banks. Petrobras and Vale are also excluded from DGRE's lineup. DGRE charges 0.63 percent per year and EMDG charges 0.85 percent.

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Short Ideas

Specialty ETFs

DGRE

Wisdomtree Emerging Markets Smallcap Dividend Fund

DVYE

EMDG

VALE

ETFs For Emerging Markets Dividend Growth

Typically prized for high GDP growth rates and diversification away from developed markets equities, emerging markets stocks and ETFs are making their presence felt on the income front as well. In 2012, the 300 largest non-financial firms in the MSCI Emerging Markets Index were expected to have paid $52.2 billion in dividends <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/09/2878500/has-a-new-era-dawned-for-em-dividend-etfs">Barron's reported</a>.

The added good news for investors is that stock-picking is not needed to tap into developing markets dividend growth because the number of ETFs devoted to this theme <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/06/2664497/the-definitive-guide-to-emerging-markets-dividend-etfs">has surged over the past two years</a>. 

One of those ETFs is the SPDR S&amp;P Emerging Markets Dividend ETF (NYSE: <a class="ticker" href="/stock/ediv#NYSE">EDIV</a>), which is now just a few weeks shy of its second birthday. Since its February 2011 debut, the SPDR S&amp;P Emerging Markets Dividend ETF has hauled in almost $396.5 in assets, serving as further proof that investors are eager to put capital to work in the developing world, particularly if a decent yield is part of the proposition.

Indeed, EDIV obliges when it comes to yield. EDIV's 30-day SEC yield is a stout 6.22 percent and the ETF's trailing 12-month yield is 5.32 percent, <a href="https://www.spdrs.com/product/fund.seam?ticker=EDIV">according to State Street data</a>.

Home to 123 stocks, EDIV is diverse at the sector level as five sectors – materials, financials, telecommunications, utilities and technology – receive double-digit allocations in the fund. EDIV offers exposure to 16 countries, but Taiwan and Brazil combine for over 39 percent of the ETF's country weight. At 11 percent, South Africa is the only other country that has a double-digit weight in EDIV. Turkey and China round the ETF's top-five country weights.

EDIV's index weights its constituents by <a href="https://www.spdrs.com/library-content/public/ETF-EDIV_20121231_102722.pdf">annual dividend yield and caps individual stock weights at three percent</a>. Weighting by dividend yield presents a double-edged sword investors need to be aware of. That methodology is clearly different than weighting by market capitalization, so it ensures that EDIV will not always be dominated by the stocks with the largest values. On the other hand, the yield bias could affect the quality of EDIV's top holdings.

Another concern is liquidity. EDIV's average daily volume is nearly 100,000 shares, but the fund's overall liquidity is not as robust as what is seen with the rival WisdomTree Emerging Markets Equity Income Fund (NYSE: <a class="ticker" href="/stock/dem#NYSE">DEM</a>). As such, EDIV traded anywhere from 0.5 percent discount to a 0.5 percent premium to its net asset value on nearly 40 trading days during the fourth quarter of 2012, <a href="https://www.spdrs.com/product/fund.seam?ticker=EDIV">according to State Street data</a>. 

The ETF traded at premiums ranging from half a percent to one percent on 22 days, indicating that there were plenty of occasions in which investors arguably paid up for this fund.

While the yield weighting methodology may indicate investors are taking on added risk with EDIV compared to more familiar diversified emerging markets ETFs, EDIV does have some factors in its favor that should not be glossed over. For starters, the ETF's beta is just 0.87 compared to 1.51 for the iShares MSCI Emerging Markets Index Fund. 

Additionally, EDIV's correlation to the SPDR S&amp;P 500 over the past <a href="http://www.sectorspdr.com/correlation/">six months is just 0.73</a>. Said another way, only two Select Sector SPDRs, the technology and utilities funds, have shown lower correlations to SPY over the past six months. 

EDIV also makes a credible valuation argument with a P/E ratio of 9.63 and a price-to-book ratio of 1.35. EEM's P/E ratio is 17.34 and its price-to-book ratio is 3.01, <a href="http://us.ishares.com/product_info/fund/overview/EEM.htm?fundSearch=true&amp;qt=EEM">according to iShares data</a>.

With superior GDP and dividend growth rates compared to the developed world, a sturdy case can be made for adding emerging markets dividend payers to investors' portfolios. Those factors bolster the case for EDIV, but the ETF's ability to challenge larger rivals potentially hinges on perception. Going forward, will investors view EDIV as a low-beta yield play or as a risk because of the yield-weighting methodology and its tendency to trade at premiums to NAV?

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Barron's

Global

Pre-Market Outlook

Intraday Update

Under The Hood: More EM Dividends

When it comes to diversified, or multi-country, emerging markets ETFs, two funds reign supreme. Those being the Vanguard MSCI Emerging Markets (NYSE: <a class="ticker" href="/stock/vwo#NYSE">VWO</a>), <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/10/2960202/vanguard-dropping-vwos-msci-index">which will soon drop MSCI as its index provider</a>, and the iShares MSCI Emerging Markets Index Fund (NYSE: <a class="ticker" href="/stock/eem#NYSE">EEM</a>).

VWO and EEM are the two largest emerging markets ETFs by assets. Both have superior brand recognition and both have delivered impressive performances over long-term time frames. Those factors might imply that VWO and EEM do not have worthy rivals in diversified emerging markets ETF realm.

Actually, the opposite is true. There are several diversified emerging markets ETFs that represent credible alternatives to the aforementioned juggernauts. Remember that in this case, "diversified" means the ETF offers decent exposure to a variety of countries and regions and holds a large number of stocks. For the purposes of this list, multi-country funds tracking just four or five countries with just 30 or 40 holdings were excluded. 

With that in mind, here are some of the top diversified EM ETF ideas for 2013. In no particular order, of course.

FlexShares Morningstar Emerging Market Factor Tilt Index ETF (NYSE: <a class="ticker" href="/stock/tlte#NYSE">TLTE</a>)
In less than three months of trading, albeit somewhat quietly, TLTE has proven itself to be one of the better new ETFs to debut in 2012. TLTE has already attracted almost $37 million in assets and has outperformed VWO since early October.

South Korea, Taiwan, Brazil and China are TLTE's largest country weights and the ETF's 1,521 holdings familiar large-cap emerging markets names such as Samsung, Taiwan Semiconductor (NYSE: <a class="ticker" href="/stock/tsm#NYSE">TSM</a>) and Petrobras (NYSE: <a class="ticker" href="/stock/pbr#NYSE">PBR</a>). 

Before investors go thinking they have seen this movie before, it is worth noting that TLTE really does "tilt" in a different direction. Meaning, the ETF's index is screened for value names and small-caps. As such, small-caps represent almost 30 percent of TLTE's weight, a high percentage for a fund of this type.

iShares Core MSCI Emerging Markets ETF (NYSE: <a class="ticker" href="/stock/iemg#NYSE">IEMG</a>)
It is fare to say that every ETF investor and his sister is aware of the fee war that has taken place among issuers in 2012. Perhaps it is too trite to say that investors are the beneficiaries of rampant fee cuts, but IEMG indicates that might be the case.

At its core, not pun intended, IEMG is the iShares vehicle for undercutting VWO on price. Rather than lower EEM's expense ratio, iShares simply created a new ETF, IEMG. IEMG charges 0.18 percent per year compared to 0.2 percent for VWO.

The iShares product is another China-South Korea-Brazil-Taiwan (in that order) heavy diversified EM ETF <a href="http://us.ishares.com/product_info/fund/holdings/IEMG.htm">full of a familiar roster</a> of holdings. In terms of what 2013 may have in store, as is the case with all the ETFs mentioned to this point, IEMG will benefit from continued bullishness in Chinese equities and a rebound for moribund Brazil.

SPDR S&amp;P Emerging Markets Dividend ETF (NYSE: <a class="ticker" href="/stock/ediv#NYSE">EDIV</a>)
Emerging markets firms are upping their dividend game this year with the expect payouts from the 300 largest non-bank stocks in the MSCI Emerging Markets Index <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/11/3096834/international-dividend-etfs-a-fiscal-cliff-survival-tool">expected to rise to $52.2 billion</a> from $48.9 billion last year.

Better still is the fact that from China to India to Russia and other developing nations as well, governments are forcing companies to pay higher dividends. Some state-owned firms are already decent dividend payers, but since their largest shareholders (the home government) often want more money, there is the potential for dividend growth and that buoys the case for EDIV in 2013. 

Brazil and Taiwan, already two of the better emerging markets destinations for income investors, combine for nearly a third or EDIV's weight. Remember this: EDIV has a 5.7 to Russia where <a href="http://www.cnbc.com/id/100330405">state-run firms are now required to pay a quarter of their profits in dividends</a>. 

Suitable alternatives to EDIV include the WisdomTree Emerging Markets Equity Income Fund (NYSE: <a class="ticker" href="/stock/dem#NYSE">DEM</a>) and the iShares Emerging Markets Dividend Index Fund (NYSE: <a class="ticker" href="/stock/dvye#NYSE">DVYE</a>).

WisdomTree Emerging Markets SmallCap Dividend Fund (NYSE: <a class="ticker" href="/stock/dgs#NYSE">DGS</a>)
The WisdomTree Emerging Markets SmallCap Dividend Fund is the dominant name among emerging markets dividend ETF focusing on small-caps and with a distribution yield of six percent, it is easy to see why. Year-to-date, DGS has risen 20.6 percent, including dividends paid. Noteworthy is the fact that the ETF's volatility of 15.7 percent makes it below that of large-cap focused rivals such as EEM and VWO. 

Looking to 2013, DGS needs a couple of things to go right in order to repeat 2012's strong run. With Taiwanese equities dominating the fund at 23.1 percent of its weight, Taiwan either needs to keep the upside coming or multiple markets with DGS's fold need to rise to the occasion and step in the event Taiwan lags.

Second, DGS devotes 10.4 percent of its weight to Thailand, one of the best performing Asian markets in 2012. As the premier ETF for gaining exposure to Thai small-caps, DGS will benefit if that market continues to flourish. The primary risk to this thesis is that some experts are saying Thailand is overbought at the moment.

iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSE: <a class="ticker" href="/stock/eemv#NYSE">EEMV</a>)
The popularity of low volatility ETFs found its way to the emerging markets genre where it has proven wildly successful as well. As was <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/11/3076528/low-vol-em-etf-continues-to-impress-with-aum-gains">previously noted</a>, it is almost a foregone conclusion that EEMV crosses the $1 billion in AUM mark in 2013.

It was just a few months ago that EEMV had about $600 million in assets. Today, that total is over $817 million. Investors will have to take on a richer valuation for the privilege of EEMV's low volatility. The fund has a price-to-earnings ratio of 20.51 and a price-to-book ratio of 3.91, <a href="http://us.ishares.com/product_info/fund/overview/EEMV.htm?fundSearch=true&amp;qt=EEMV">according to iShares data</a>. 

Those numbers are well ahead of what is found with EEM, implying investors are paying up to reduce beta. EEMV does that. The ETF's beta against the S&amp;P 500 is 1.16 compared to 1.52 <a href="http://us.ishares.com/product_info/fund/overview/EEM.htm?fundSearch=true&amp;qt=EEM">for EEM</a>.

Alternative idea: PowerShares S&amp;P Emerging Markets Low Volatility Portfolio (NYSE: <a class="ticker" href="/stock/eelv#NYSE">EELV</a>). EELV's country weights differ significantly from EEMV's, so while both are "low vol" plays, they are by no means close to being the same ETF.

PowerShares DWA Emerging Markets Technical Leaders Portfolio (NYSE: <a class="ticker" href="/stock/pie#NYSE">PIE</a>)
Country exposure can make all the difference with diversified EM ETFs and PIE's 14.1 percent year-to-date gain may be just as attributable to what countries are not prominently displayed in the ETF as it would be to those that are. That is to say PIE has benefited from Brazil not being a large part of its lineup this year at a time when Brazil has been the worst performer among the BRIC nations.

In fact, PIE can be used as an alternative to or paired with BRIC-heavy funds because PIE's largest allocation to a BRIC nation is a 4.1 percent weight to China. Primarily, PIE is a play on Asia's secondary and tertiary markets as South Korea, Indonesia, Thailand and Malaysia represent over 48 percent of the ETF's weight.

What that means for 2013 is that it would be constructive if <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/12/3181199/three-of-2012s-most-disappointing-em-etfs#">Indonesia sheds its laggard status</a>. Next, PIE can keep climbing if Thailand and Mexico (9.8 percent weight) deliver anything close to the returns they have provided in 2012.

For more on emerging markets ETFs, click <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/12/3181199/three-of-2012s-most-disappointing-em-etfs#">here</a>.

EELV

EEMV

IEMG

PowerShares DWA Emerging Markets Technical Leaders

TLTE

The Top Diversified EM ETFs for 2013

Despite being one of the largest country weights in the iShares MSCI Emerging Markets Index Fund (NYSE: <a class="ticker" href="/stock/eem#NYSE">EEM</a>), the Vanguard MSCI Emerging Markets ETF (NYSE: <a class="ticker" href="/stock/vwo#NYSE">VWO</a>) and scores of other multi-country ETFs, it sure feels like Taiwan has been flying under the radar as of late.

Even as Chinese stocks have <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/11/3050066/four-reasons-to-prefer-this-china-etf-over-fxi">rebounded over the past several months</a>, Taiwanese issues have been stagnant. Over that time, the iShares FTSE China 25 Index Fund (NYSE: <a class="ticker" href="/stock/fxi#NYSE">FXI</a>) is up five percent while the iShares MSCI Taiwan Index Fund (NYSE: <a class="ticker" href="/stock/ewt#NYSE">EWT</a>) is up just 1.2 percent.

Part of the reason for the lethargy of EWT and the names it tracks is weakness in the technology sector, which accounts for nearly 56 percent of EWT's weight. 

"In the semiconductor business, for example, inventory levels have surged recently, resulting in lower capacity utilization rates, which are generally associated with less pricing power for companies, and posing near-term headwinds," iShares Global Chief Investment Strategist Russ Koesterich said in a note. "Meanwhile, weak global capital expenditures and sagging consumer demand adds pressure on the personal computer market."

Weakness in the semiconductor sub-sector is bad news for EWT because the ETF is home to several chip names. Taiwan Semiconductor (NYSE: <a class="ticker" href="/stock/tsm#NYSE">TSM</a>) is the fund's largest holding with a weight of over 20 percent. Inflation has also been a problem.

"For the past three months, headline inflation measures have been persistently above the 2% inflation target set by the central bank, a result of higher fuel, electricity and food prices," <a href="http://isharesblog.com/blog/2012/11/17/4-reasons-not-to-taiwan-on/">Koesterich said</a> in reducing his rating on Taiwan to Neutral from Overweight.

Bolstering the bear case for Taiwan is a premium market valuation. EWT has a price-to-earnings ratio of 20.5 and a price-to-book ratio of 2.32. That implies Taiwan is far pricier than China and the broader emerging markets universe <a href="http://us.ishares.com/product_info/fund/overview/EEM.htm?fundSearch=true&amp;qt=EEM">as measured by EEM</a>.

With the global economy still tepid at best, Taiwan's dependence on exports has been exposed. However, there is another side to the story. The country was recently 16th-best country for business <a href="http://focustaiwan.tw/ShowNews/WebNews_Detail.aspx?Type=aALL&amp;ID=201211150011">by Forbes</a>. The International Monetary Fund is projecting Taiwanese GDP growth of 3.9 percent next year, a stark improvement from the 1.05 percent growth the government expects this year.

Investors looking for Taiwan exposure without making a full commitment as required by EWT should consider the falling ETFs.

iShares Emerging Markets Dividend Index Fund (NYSE: <a class="ticker" href="/stock/dvye#NYSE">DVYE</a>)
Based purely on the fact that emerging markets firms are <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/09/2878500/has-a-new-era-dawned-for-em-dividend-etfs">are becoming better dividend payers</a>, the iShares Emerging Markets Dividend Index Fund is alluring. 

On that note, Taiwan has long been one of the preferred destinations in the developing world for income investors so it is not surprising to see the country dominate DVYE with a weight of over 22 percent. The fund debuted in February and has thus far accumulated almost $49 million in assets under management. DVYE's 30-day SEC yield is 5.11 percent. 

Income investors seeking Taiwan exposure should also consider the WisdomTree Emerging Markets Equity Income Fund (NYSE: <a class="ticker" href="/stock/dem#NYSE">DEM</a>) and the SPDR S&amp;P Emerging Markets Dividend ETF (NYSE: <a class="ticker" href="/stock/ediv#NYSE">EDIV</a>).

WisdomTree Emerging Markets SmallCap Dividend Fund (NYSE: <a class="ticker" href="/stock/dgs#NYSE">DGS</a>)
The WisdomTree Emerging Markets SmallCap Dividend Fund's name might imply a level of risk that some investors do not want to take because it combines emerging markets and small-caps. What is important to note, however, is that DGS devotes over a third of its weight to Taiwan and South Korea. Those are two of the least volatile emerging markets and that assertion is borne out in the statistics.

For example, the aforementioned iShares MSCI Taiwan Index Fund has been <a href="http://www.etfreplay.com/charts.aspx">less volatile this year than VWO, FXI and the Market Vectors Indonesia ETF (NYSE: </a><a class="ticker" href="/stock/idx#NYSE">IDX</a>), just to name a few. DGS itself is also less volatile than all those funds, including EWT. The fund has 30-day SEC yield of 3.4 percent. 

IndexIQ Emerging Markets Mid Cap ETF (NYSE: <a class="ticker" href="/stock/emer#NYSE">EMER</a>)
Unknown to many investors, the IndexIQ Emerging Markets Mid Cap ETF has been a solid performer this year with a gain of over 11 percent. EMER is something of a dichotomy. At the sector level, financials and consumer discretionary names combine for over 42 percent of the fund's weight. That gives EMER a high-beta flair. 

On the other hand, EMER is by no means ultra-risky because Taiwan and South Korea combine for nearly 41 percent of the ETF's country weight. Taiwan alone represents over a quarter of the fund's weight. Year-to-date and over the past 90 days, EMER has been a better bet than EWT.

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Analyst Color

Upgrades

Econ #s

Analyst Ratings

Tech

EMER

Time to Taiwan? Maybe, Maybe Not

It is simple economics. The Federal Reserve's low interest rate policy and plans to keep rates low through 2015 have chased yield-hungry investors out of cash investments and into higher-yielding products. ETF sponsors have met investors' yield demands with aplomb, rolling out new <a href="http://www.benzinga.com/news/12/10/2994697/powershares-to-introduce-low-vol-high-dividend-etf">dividend-based products on a regular basis this year</a>.

The impact of investors' dividend desires is obvious. Dividend ETFs, new and old, have seen assets under management totals surge. Thirty-two dividend ETFs tracked by Dorsey Wright &amp; Associates collectively grew assets by 40 percent through the end of the third quarter compared to asset growth of 23 percent for all ETFs, <a href="http://alletf.com/content/new-dividend-etfs-being-created-just-not-equally">according to data provided by the firm</a>.

There are more than 32 dividend ETFs on the market today and the Dorsey Wright data does not include funds such as the First Trust Nasdaq Technology Dividend Index Fund (NYSE: <a class="ticker" href="/stock/tdiv#NYSE">TDIV</a>), <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/10/3015362/some-niche-etfs-seeing-decent-inflows">which debuted just two months ago</a> and already has $30.4 million in AUM.

It is also worth noting that inflows to dividend ETFs have not been reserved for U.S.-focused funds. International payout funds tracking developed <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/09/2878500/has-a-new-era-dawned-for-em-dividend-etfs">and emerging markets</a> have seen AUM totals surge as well.

Staying Home
With Europe's sovereign debt crisis and slowing emerging markets growth on the minds of investors, many have opted for U.S. equities over international equivalents. That has helped the S&amp;P 500 enjoy a double-digit year-to-date gain. It also means investors have pumped plenty of cash into ETFs tracking U.S. dividend payers.

And those inflows have not been going just to the most familiar products such as the Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="/stock/vig#NYSE">VIG</a>) and the SPDR S&amp;P Dividend ETF (NYSE: <a class="ticker" href="/stock/sdy#NYSE">SDY</a>), though those funds have grabbed their share of inflows. At the end of 2011, VIG had $8.9 billion in AUM, but that number had swelled to almost $11.9 billion at the end of the third quarter. SDY has seen its AUM haul jump 14.6 percent since the end of 2011.

On a percentage basis among U.S. equity dividend ETFs, no fund even comes close to the Schwab U.S. Dividend Equity ETF (NYSE: <a class="ticker" href="/stock/schd#NYSE">SCHD</a>), which has seen its AUM total nearly quadruple since the end of 2011. Give the ELEMENTS DJ High Yield Select 10 ETN (NYSE: <a class="ticker" href="/stock/dod#NYSE">DOD</a>) some credit for trying to compete with SCHD in terms of asset growth. The ETN has seen its assets more than triple this year, according to Dorsey Wright data.

Other impressive 2012 asset growers include the iShares High Dividend Equity Fund (NYSE: <a class="ticker" href="/stock/hdv#NYSE">HDV</a>), one of 2011's most successful ETF launches. HDV had less than $920 million in AUM when the ball last dropped in Times Square. As of the close of markets on Monday, the ETF had almost $2.3 billion in assets.

The Guggenheim Multi-Asset Income ETF (NYSE: <a class="ticker" href="/stock/cvy#NYSE">CVY</a>), the First Trust Morningstar Dividend Leaders Index Fund (NYSE: <a class="ticker" href="/stock/fdl#NYSE">FDL</a>) and the First Trust Value Line Dividend Index Fund (NYSE: <a class="ticker" href="/stock/fvd#NYSE">FVD</a>) also have seen stellar AUM growth.

Going Global
As was noted earlier, investors have plenty of choices when it comes to international dividend funds. The Global X Super Dividend ETF (NYSE: <a class="ticker" href="/stock/sdiv#NYSE">SDIV</a>) is not a pure play global ETF as the U.S. accounts for almost 36 percent of SDIV's weight, but the real sources of allure here are a 30-day SEC yield of 6.7 percent and a monthly dividend. 

Dorsey Wright data indicate SDIV had just $29 million in AUM at the end of 2011. That number is a now $154.5 million, meaning SDIV's assets have <a href="http://www.benzinga.com/markets/bonds/12/10/2995308/etfs-with-amazing-asset-growth">surged almost 55 percent in just two months</a>.

In terms of issuers, WisdomTree (NASDAQ: <a class="ticker" href="/stock/wetf#NASDAQ">WETF</a>) has seen an impressive, if under-appreciated burst of inflows into its global dividend products this year. The WisdomTree Emerging Markets Equity Income Fund's (NYSE: <a class="ticker" href="/stock/dem#NYSE">DEM</a>) AUM total has more than doubled this year, representing another feather in the cap of an ETF that <a href="http://www.benzinga.com/markets/bonds/12/09/2905122/5-etfs-with-surging-aum-totals">often outperforms rivals</a> such as the Vanguard MSCI Emerging Markets ETF (NYSE: <a class="ticker" href="/stock/vwo#NYSE">VWO</a>) and the iShares MSCI Emerging Markets Index Fund (NYSE: <a class="ticker" href="/stock/eem#NYSE">EEM</a>).

Four other WisdomTree global dividend ETFs have seen asset growth ranging from 20 percent to 31 percent this year, according to Dorsey Wright. Those funds are the WisdomTree Australia Dividend (NYSE: <a class="ticker" href="/stock/ause#NYSE">AUSE</a>), the WisdomTree DEFA Equity Income Fund (NYSE: <a class="ticker" href="/stock/dth#NYSE">DTH</a>), the WisdomTree Global Equity Income Fund (NYSE: <a class="ticker" href="/stock/dew#NYSE">DEW</a>) and the WisdomTree International Div ex-Financials ETF (NYSE: <a class="ticker" href="/stock/doo#NYSE">DOO</a>). 

Do not forget small caps. The WisdomTree Emerging Markets SmallCap Dividend Fund (NYSE: <a class="ticker" href="/stock/dgs#NYSE">DGS</a>) had $800 million in <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/05/2553741/under-the-hood-an-oldie-but-goodie-dgs-thd-vwo">AUM as of mid-February</a>. That number is now approaching $1.1 billion.

Despite Europe's woes, the First Trust STOXX European Select Dividend Index Fund (NYSE: <a class="ticker" href="/stock/fdd#NYSE">FDD</a>) has seen its AUM total surge almost 64 percent this year. FDD has a 30-day SEC yield of 6.53 percent. The Europe-heavy Guggenheim International Multi-Asset Income ETF (NYSE: <a class="ticker" href="/stock/hgi#NYSE">HGI</a>) is fast approaching $117 million in AUM after finishing 2011 with just $86 million.

Emerging markets dividend ETFs <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/09/2878500/has-a-new-era-dawned-for-em-dividend-etfs">are not taking a backseat</a> to developed market rivals. The iShares Emerging Markets Dividend Index Fund (NYSE: <a class="ticker" href="/stock/dvye#NYSE">DVYE</a>) debuted in late February and already has $44.7 million in AUM. That means DVYE has a long way to go to catch the SPDR S&amp;P Emerging Markets Dividend ETF (NYSE: <a class="ticker" href="/stock/ediv#NYSE">EDIV</a>). With $315.3 million in assets, EDIV's AUM total has almost doubled this year.

For more on dividend ETFs, click <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/09/2878500/has-a-new-era-dawned-for-em-dividend-etfs">here</a>.

Broad U.S. Equity ETFs

AUSE

Elements ETN-Dow Jones High Yield Select 10 Total Return Index

WisdomTree Trust International Dividend Top 100

First Trust STOXX European Select Dividend Income Fund

First Trust Morningstar Dividend Leaders Index Fund

First Trust Value Line Dividend Index Fund ETF

Guggenheim International Multi-Asset Income ETF

SCHD

TDIV

WETF

The Indomitable Rise of Dividend ETFs

The macroeconomic headwinds facing developed European nations are well-known. A sovereign debt crisis of epic proportions has seen to that. Not all of Europe has been affected with sovereign stench of the PIIGS as emerging European nations now sport tidier balance sheets than their developed counterparts.

In the eyes of many investors, only the former Soviet satellite states are considered emerging European nations. However, Mark Mobius, executive chairman of Templeton Emerging Markets Group, points out Turkey can be added into the emerging Europe equation. 

The addition of Turkey makes ETF investing in emerging Europe all the more attractive. Not only has the iShares MSCI Turkey Investable Market Index Fund (NYSE: <a class="ticker" href="/stock/tur#NYSE">TUR</a>) been a stellar performer this year, but the Turkish economy <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/04/2492814/five-reasons-this-turkey-isnt-cooked-tur-gur-dvye">is services-driven and home to shrinking deficits and a declining debt-to-GDP ratio</a>.

"Generally lower debt than many of their Western neighbors is one of those strengths," Mobius wrote in reference to emerging Europe. "In the key countries of Russia, Turkey, Poland and the Czech Republic, public debt does not exceed 60% of GDP. Private debt is also lower with loans-to-GDP at about 50% on average, compared with more than 100% in many developed markets."

In a <a href="http://mobius.blog.franklintempleton.com/2012/08/22/the-emerging-story-in-europe/?nicamp=other&amp;nichn=markmobius&amp;nismseg=twitter">new blog post</a>, Mobius notes the degree to which the eurozone's debt crisis has impacted emerging Europe differs on a country-by-country basis.

Emerging Europe did catch a cold by way of the Eurozone's flu, but there have been beacons of light. For example, Polish equities have proven sturdy this year. Poland is expected to show the <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/06/2654911/time-to-power-up-with-poland-epol-plnd">best GDP growth in the 27-nation European Union this year</a>.

"For example, to improve its fiscal position, the Polish government has established a privatization program which includes reducing the state ownership in some of the largest listed companies (financial and utility sectors mostly) as well as privatizing and listing several state-owned companies," Mobius wrote. "I believe this should lead to higher levels of efficiency and as a result, improve these companies' international competitiveness."

The Market Vectors Poland ETF (NYSE: <a class="ticker" href="/stock/plnd#NYSE">PLND</a>) allocates 46 percent of its weight to financial services and utilities names while the Shares MSCI Poland Investable Market Index Fund (NYSE: <a class="ticker" href="/stock/epol#NYSE">EPOL</a>) devotes 52 percent of its weight to those sectors.

Poland's domestically-focused economy (just 42 percent of GDP comes by way of exports) helped the country skirt the global financial crisis and has helped insulate it somewhat from the sovereign debt crisis. Year-to-date, EPOL has gained 16.6 percent while PLND has added almost 12 percent.

"Poland, Hungary and the Czech Republic have relatively well-developed infrastructure and a well-educated, foreign-language speaking workforce," Mobius said.

Despite some economic advantages, Hungary has had its share of struggles. Earlier this year, the country sported <a href="http://www.benzinga.com/markets/bonds/12/04/2534148/etfs-for-a-hungary-bailout-hilo-ewo">Europe's highest debt-to-GDP ratio</a> and yields on Hungarian sovereigns blew out after Moody's Investors Service downgraded the country to junk status late last year.

There is no Hungary-specific ETF at the moment, but funds that do offer exposure to the country include the EGShares Health Care GEMS ETF (NYSE: <a class="ticker" href="/stock/hgem#NYSE">HGEM</a>), the EGShares Low Volatility Emerging Markets Dividend ETF (NYSE: <a class="ticker" href="/stock/hilo#NYSE">HILO</a>) and the SPDR S&amp;P Emerging Europe ETF (NYSE: <a class="ticker" href="/stock/gur#NYSE">GUR</a>).

There is also no ETF devoted to the Czech Republic, though Global X filed plans for one last year. GUR, HILO and the SPDR S&amp;P Emerging Markets Dividend ETF (NYSE: <a class="ticker" href="/stock/ediv#NYSE">EDIV</a>), among others, offer exposure to the country.

For more on Eastern Europe ETFs, click <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/05/2613036/the-definitive-guide-to-eastern-europe-etfs">here</a>.

Economics

iShares MSCI Poland Investable Market Index Fund ETF

EPOL

HGEM

HILO

PLND

iShares MSCI Turkey Investable Market Index Fund

ETF Opportunities in Emerging Europe

Actively managed ETFs still account for a percentage of overall exchange-traded products assets and the actively managed space is <a href="http://www.benzinga.com/markets/bonds/12/07/2762276/beating-bond-some-bond-funds-trumping-pimco-juggernaut">dominated by just a handful of funds</a>. However, the number of new entrants to the arena continues to expand, giving investors ample opportunity to consider the merits of active management.

Some actively managed ETFs are worth a look for income investors while others provide <a href="http://www.benzinga.com/markets/bonds/12/05/2628534/4-etf-fund-of-funds-to-consider">unique fund of funds exposure</a> allowing investors to gain access to multiple ETFs under one umbrella. Some new actively managed ETFs do both of those things.

One such example is the SPDR SSgA Income Allocation ETF (NYSE: <a class="ticker" href="/stock/inkm#NYSE">INKM</a>), which debuted in late April and has thus far accumulated almost $8.9 million in assets under management. 

INKM is home to just 18 holdings, 17 of which are other SPDR funds. That roster is dominated by some funds ETF investors are no doubt familiar with, including the SDPR S&amp;P Dividend ETF (NYSE: <a class="ticker" href="/stock/sdy#NYSE">SDY</a>), the PDR Barclays Capital Long Corporate Term Bond ETF (NYSE: <a class="ticker" href="/stock/lwc#NYSE">LWC</a>) and the and the SPDR Barclays Capital High Yield Bond ETF (NYSE: <a class="ticker" href="/stock/jnk#NYSE">JNK</a>). That trio constitutes for over 40 percent of INKM's weight.

Other familiar funds found in INKM's lineup include the SPDR S&amp;P International Dividend ETF (NYSE: <a class="ticker" href="/stock/dwx#NYSE">DWX</a>), the SPDR Wells Fargo Preferred Stock ETF (NYSE: <a class="ticker" href="/stock/psk#NYSE">PSK</a>) and the SPDR S&amp;P Emerging Markets Dividend ETF (NYSE: <a class="ticker" href="/stock/ediv#NYSE">EDIV</a>).

Overall, INKM provides exposure to five asset classes. Equities lead the charge at over 43 percent of the fund's weight while high-grade corporate bonds command an allocation of almost 32 percent. International real estate plays, high-yield bonds and hybrid securities such as preferred stocks account for the rest of INKM's lineup.

That composition speaks to INKM's income-generating potential and the ETF does not disappoint on that front with a 30-day SEC yield of 4.3 percent. Beyond that, most of INKM's holdings, particularly the ones at the top, are heavily traded. That gives the lightly traded ETF sufficient liquidity despite an average daily volume figure that might turn some investors off (just 4,800 shares).

Another advantage regarding INKM that highlights the advantages of active management is that the fund managers can shift to lower-risk securities during times of elevated market volatility. There is a downside, and it highlights an issue facing many actively managed ETFs: Cost.

INKM charges 0.7 percent per year. That is not terrible among actively managed ETFs, but that is a high expense ratio in the overall ETF universe. In fact, owning SDY, LWC and JNK individually would only cost a combined 90 basis points per year, which cements the notion that there is price to pay when dealing with actively managed ETFs.

Remember, some of INKM's fees will eat away at the fund's yield. On the other hand, with investors searching far and wide for yield, some might be willing to pay up for INKM, particularly if the fund can justify its high fees with even higher performance.

For more on income ETFs, click <a href="http://www.benzinga.com/markets/bonds/12/05/2628534/4-etf-fund-of-funds-to-consider">here</a>.

Bonds

INKM

Under The Hood: Dividends Beyond Stocks

In this era of artificially low interest rates and the resulting low yields on U.S. Treasuries, dividends have taken on elevated importance. The exchange-traded products industry has met investor demand for dividend products with aplomb, introducing new income-generating funds at a rapid-fire pace over the past several years.

Investors looking for some emerging markets exposure to go along with their dividends are in long. Not only can <a href="http://www.benzinga.com/markets/bonds/12/05/2565731/the-definitive-guide-to-non-usd-em-bond-etfs">investors grab high yields and hedge currency risk with a number of emerging markets bond ETFs</a>, there are plenty of noteworthy and anonymous equity-based emerging markets dividend funds that merit consideration.

One piece of advice: Read the fine print because not all emerging markets dividend ETFs are created equal.

WisdomTree Emerging Markets Equity Income Fund (NYSE: <a class="ticker" href="/stock/dem#NYSE">DEM</a>)
The WisdomTree Emerging Markets Equity Income Fund, which will turn five-years-old next month, is most often compared to the Vanguard MSCI Emerging Markets ETF (NYSE: <a class="ticker" href="/stock/vwo#NYSE">VWO</a>) and the iShares MSCI Emerging Markets Index Fund (NYSE: <a class="ticker" href="/stock/eem#NYSE">EEM</a>), the two largest emerging markets ETFs. DEM isn't as large as those two funds, but it <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/02/2362835/wisdomtree-emerging-markets-equity-income-etf-tops-3b-in-aum-">did top $3 billion in assets under management earlier this year</a>.

Measuring DEM against VWO is proof positive that dividends matter. In the past five years, DEM is down less than 1% while VWO is off more than 22%. Taiwan, Brazil and South Africa combine for over 52% of DEM's country weight and the fund gives double-digit allocations to four sectors – financials, telecommunications, technology and utilities. DEM charges 0.63% per year. 

WisdomTree Emerging Markets SmallCap Dividend Fund (NYSE: <a class="ticker" href="/stock/dgs#NYSE">DGS</a>)
The WisdomTree Emerging Markets SmallCap Dividend Fund is the proverbial king of small-cap emerging markets dividend ETFs with a first-to-market advantage that could prove daunting for rivals. Home to almost $883 million in AUM, DGS holds 542 stocks, none receiving a weight of more than 1.07%, and charges 0.63%. 

More importantly, the fund shares something in common with many of its large-cap focused brethren: A heavy weight to Taiwan. That country, whose emerging markets status is dubious at best, accounts for almost 26% of DGS' weight. Another 8.3% goes to South Korea, another country that many experts and traders are reluctant to call an emerging market. Israel checks in at 6% and that country lost its emerging markets status several years ago. 

DGS is another prime example of dividends making a difference. The fund is a direct rival to the SPDR S&amp;P Emerging Markets Small Cap ETF (NYSE: <a class="ticker" href="/stock/ewx#NYSE">EWX</a>), but in the past year, has offered more than 600 basis points in superior returns. Over the past five years, DGS has outperformed EWX by about 900 basis points.

EGShares Low Volatility Emerging Markets Dividend ETF (NYSE: <a class="ticker" href="/stock/hilo#NYSE">HILO</a>)
HILO has <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/03/2408820/4-em-dividend-etfs-your-broker-forgot-to-mention-hilo-ediv-de">toiled in obscurity since coming to market in August 2011</a>. That means a lot of investors are missing out on an ETF that has a lot to like. 

Not only does HILO feature an almost 17% allocation to Thailand, one of the top-performing emerging markets in recent years, the ETF's index sports a yield of 6.44%. Beyond that, HILO lives up to its low volatility billing as telecommunications and utilities names combine for almost 45% of the fund's sector weight.

HILO charges 0.85%. Other top country weights include China at 16.7%, Brazil at 16.1% and South Africa at 14.7%.

SPDR S&amp;P Emerging Markets Dividend ETF (NYSE: <a class="ticker" href="/stock/ediv#NYSE">EDIV</a>)
Since coming to market in February 2011, EDIV has outperformed VWO by about 450 basis points. Today, EDIV is found sporting a yield of almost 5%. Home to 122 stocks and almost $287 million in AUM, EDIV charges 0.59% annually. With a price/earnings ratio of 8.1, EDIV trades at 1.22, according to data on the SPDRs Web site. That means EDIV is cheaper on a valuation than EEM and the broader emerging markets universe.

Financials and technology issues combine for about 48% of EDIV's weight. At the country level, Taiwan, China and Brazil combine for 48% as well. One interesting note: In the absence of a country-specific fund, EDIV offers one of the largest allocations of any ETF to the Czech Republic at 8.45%.

iShares Emerging Markets Dividend Index Fund (NYSE: <a class="ticker" href="/stock/dvye#NYSE">DVYE</a>)
The iShares Emerging Markets Dividend Index Fund is the iShares answer to EDIV. DVYE debuted in February, exactly one year to the day after EDIV. The iShares offering is cheaper at 0.49% and a tad more diverse at the sector level as six industry groups – industrials, telecommunications, consumer goods, financial, materials and utilities – receive double-digit allocations. 

Taiwan, Brazil and South Africa represent 48% of DVYE's weight. While the iShares offering may be cheaper in terms of fees, its valuation metrics are pricy compared to EDIV. DVYE trades 14.3 times earnings and 3.4 times book value, according to iShares data. The fund has a 30-day SEC yield of 6.08%.

For more on emerging markets dividend ETFs, please click <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/03/2408820/4-em-dividend-etfs-your-broker-forgot-to-mention-hilo-ediv-de">HERE</a>.

The Definitive Guide to Emerging Markets Dividend ETFs

The combination of emerging markets and dividends under the umbrella can be <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/03/2402481/four-budding-etf-rivalries-worth-watching-norw-sil-smin">an alluring one to be sure</a> but even as the number of emerging markets dividend funds proliferates, some are going relatively unnoticed by investors and the mainstream financial press alike.

Hey, it took a while for the WisdomTree Emerging Markets SmallCap Dividend Fund (NYSE: <a class="ticker" href="/stock/dgs#NYSE">DGS</a>), a high asset, strong volume fund, to <a href="http://www.benzinga.com/trading-ideas/long-ideas/11/12/2181848/twelve-for-12-dividend-etfs-to-watch-in-the-new-year">gain widespread acclaim</a> and DGS is one of the older emerging markets dividends ETFs on the market.

Don't worry if you haven't heard about all of the EM dividend ETFs on the market because we're going to attempt to solve that problem right now by exploring four that merit attention in this environment.

SPDR S&amp;P Emerging Markets Dividend ETF (NYSE: <a class="ticker" href="/stock/ediv#NYSE">EDIV</a>)
Just a couple of weeks removed from its first birthday, the SPDR S&amp;P Emerging Markets Dividend ETF has a couple of reasons to celebrate. Not only has the ETF gained over 11% year-to-date, but it has made quick work of ensuring its survival by raking in almost $300 million in assets under management. Average volume is fair at about 104,000 shares per day. But the number investors really care about is dividend yield and according to the SPDRs Web site, EDIV yields almost 4.4%. 

Taiwan, Brazil and China combine for over half of EDIV's country weight and the ETF has a rival in the form of the newly minted...

iShares Emerging Markets Dividend Index Fund (NYSE: <a class="ticker" href="/stock/dvye#NYSE">DVYE</a>)
As we noted earlier this week, DVYE and EDIV share the same birthday, though separated by a year. That's right, DVYE is just a couple of weeks old, but it's off to a great start with almost $11 million in AUM. There are differences between DVYE and EDIV. For example, the iShares offering is cheaper with an expense ratio of 0.49% compared to EDIV's fees of 0.59%. Second, Taiwan, Brazil and South Africa represent almost half of DVYE's weight. 

WisdomTree Emerging Markets Equity Income Fund (NYSE: <a class="ticker" href="/stock/dem#NYSE">DEM</a>)
To say the WisdomTree Emerging Markets Equity Income Fund goes ignored would <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/02/2362835/wisdomtree-emerging-markets-equity-income-etf-tops-3b-in-aum-">not be accurate</a>. It's hard to ignore a fund of this size, however, to say DEM doesn't garner the press that an ETF like the Vanguard MSCI Emerging Markets ETF (NYSE: <a class="ticker" href="/stock/vwo#NYSE">VWO</a>) does would also be a fair assessment.

There's a lot to like with DEM, including a yield approaching 4% and that the fund is up 12% year-to-date, just be advised Brazil and Taiwan account for over 43% of the fund's country allocation.

EGShares Low Volatility EM Dividend ETF (NYSE: <a class="ticker" href="/stock/hilo#NYSE">HILO</a>)
The EGShares Low Volatility EM Dividend ETF has attracted a decent amount of fanfare since its 2011 debut and that might be by virtue of the ETF's potential appeal to a broad swath of investors. Lots of folks like low volatility. Lots of folks like emerging markets and who doesn't like dividends? HILO offers them all. The ETF has offered double-digit returns year-to-date and its index yields almost 7%.

Brazil, China, South Africa and Thailand all get double-digit allocations in HILO. In the case of the Thailand exposure, that's <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/03/2405294/use-this-dip-to-consider-these-em-etfs-tur-scin-thd">very good news indeed</a>. HILO is one of a small amount of ETFs offering double-digit exposure to Thailand without focusing exclusively on that fast-growing economy.

4 EM Dividend ETFs Your Broker Forgot to Mention (HILO, EDIV, DEM)

The U.S. ETF industry is now home 1,440 products with over $1.2 trillion in combined assets under management according to the latest data from the ETF Industry Association and with the pace of new <a href="http://www.benzinga.com/news/12/03/2402411/ishares-to-roll-out-another-socially-responsible-etf-dsi-kld">ETF introductions racing higher</a> those numbers are sure to increase.

What's also likely to increase is the number of interesting rivalries in the ETF universe, the logical result of some ETF sponsors issuing new funds that <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/02/2310295/more-me-too-etfs-from-ishares-debut-today">look a lot like old ones</a>. 

As has been noted, the first to market advantage is an important one for ETFs, but it's no guarantee that ETF will always be <a href="http://www.benzinga.com/trading-ideas/long-ideas/11/10/1991207/five-etfs-that-lost-their-first-to-market-advantage">king of its respective hill</a>.

With that let's have a look at four potentially compelling ETF rivalries that, not surprisingly, all involve new iShares funds. In no particular order...

Hi Ho Silver
The battle for silver mining supremacy between the Global Silver Miners ETF (NYSE: <a class="ticker" href="/stock/sil#NYSE">SIL</a>), the first silver mining ETF, and the iShares MSCI Global Silver Miners Fund (NYSE: <a class="ticker" href="/stock/slvp#NYSE">SLVP</a>) could be really interesting if for no other reason than that SLVP's expense ratio of 0.39% is a lot cheaper than SIL's 0.65%. Still, SIL has a distinct first-to-market advantage here and as the last few days have proven, SLVP's timing has been pretty lousy.

Since silver is so volatile, it's reasonable to surmise an ETF like SIL is used by short-term traders. In other words, SIL is optionable and has good liquidity. The same cannot yet be said of SLVP.

India Small Cap Style
This one could be interesting because it involves three contenders: The EGShares India Small Cap ETF (NYSE: <a class="ticker" href="/stock/scin#NYSE">SCIN</a>), the Market Vectors India Small Cap ETF (NYSE: <a class="ticker" href="/stock/scif#NYSE">SCIF</a>) and the new iShares MSCI India Small Cap Index Fund (BATS: SMIN). Unfortunately for SMIN, it may also fall victim to <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/03/2401194/checking-in-a-third-wheel-scif-scin-smin">bad timing</a>.

Trading on BATS may prove to be a boon or a problem for the new iShares offering and while iShares doesn't have a penchant for closing ETFs, it will be interesting to see how short of a leash is given to SMIN.

EM Dividends
There's a longstanding rivalry between iShares and State Street Global Advisors because they're the two biggest ETF sponsors and that rivalry could potentially expand as the SPDR S&amp;P Emerging Markets Dividend ETF (NYSE: <a class="ticker" href="/stock/ediv#NYSE">EDIV</a>) and the iShares Emerging Markets Dividend Index Fund (NYSE: <a class="ticker" href="/stock/dvye#NYSE">DVYE</a>). 

EDIV just celebrated its first birthday and now holds almost $300 million in AUM, but DVYE, which oddly enough has the same inception date as EDIV, is off to a fine start with almost $11 million in AUM in less than two weeks of trading. The combination of emerging markets and dividends should be enough to ensure both of these ETFs stick around for a long time.

Nice In Norway
We figured <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/01/2294544/etf-showdown-nod-to-norway">this one had potential</a> That is the battle between the Global X Norway ETF (NYSE: <a class="ticker" href="/stock/norw#NYSE">NORW</a>) and the iShares MSCI Norway Capped Investable Market Index Fund (BATS: ENOR).

ENOR has done alright in terms of AUM since its late January debut and just over 9,200 shares per day in average volume is fair for a new ETF, but ENOR has lagged its Global X rival since its debut and that's a factor that cannot be overlooked in crowning a winner in any ETF showdown.

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NORW

SCIF

Emerging Global Shares INDXX India Small Cap Fund

SCIN

SLVP

Four Budding ETF Rivalries Worth Watching (NORW, SIL, SMIN)

As we've reported <a href="http://www.benzinga.com/news/11/12/2219925/global-x-to-shutter-8-new-etfs">this week</a> the pace of ETF closures is gaining steam in late in the year, particularly among smaller issuers that specialize in funds that serve very narrow investment segments. 

There has always been emphasis on the ability of an ETF sponsor to attract enough assets to a particular fun. After all, it is assets under management (AUM) even more than volume that validates an ETF's existence and extends its lifespan. 

Along those lines it could be that attracting and keeping AUM will be the new black for the ETF industry in 2012, not coming up with kitschy ideas for new funds. But let's not get too negative too fast. There are some under-the-radar emerging markets ETFs that have over $100 million in AUM, more than enough to survive, that could be worth looking at next year.

Here are five to put on your 2012 emerging markets ETF shopping list.

Global X China Consumer ETF (NYSE: <a class="ticker" href="/stock/chiq#NYSE">CHIQ</a>):
Yes, the emerging markets consumer story took a bit of breather in 2011. And yes, China-specific ETFs have been taken to the woodshed as well. The Global X China Consumer ETF is no exception to that, but the 40-stock ETF has actually outperformed the larger Guggenheim China Small-Cap ETF (NYSE: <a class="ticker" href="/stock/hao#NYSE">HAO</a>) and CHIQ has the asset base to keep it around for the long-term. AUM: $118.9 million.

EGShares Emerging Markets Consumer ETF (NYSE: <a class="ticker" href="/stock/econ#NYSE">ECON</a>):
We'll get away from the consumer ETFs in a minute, but in the meantime it's worth mentioning the EGShares Emerging Markets Consumer ETF, one of the first ETFs to address the EM consumer story, has outperformed plenty of other multi-country ETFs this year. To name a few, ECON has done better than the Vanguard MSCI Emerging Markets ETF (NYSE: <a class="ticker" href="/stock/vwo#NYSE">VWO</a>), the iShares MSCI Index Fund (NYSE: <a class="ticker" href="/stock/eem#NYSE">EEM</a>) and the iShares S&amp;P Latin America 40 Index Fund (NYSE: <a class="ticker" href="/stock/ilf#NYSE">ILF</a>). Get real-time trade ideas <a href="http://pro.benzinga.com/">here</a>. AUM: $254 million.

Global X FTSE Colombia 20 ETF (NYSE: <a class="ticker" href="/stock/gxg#NYSE">GXG</a>):
Though it may not be saying much, the Global X FTSE Colombia 20 ETF has been the best performer among the four major large-cap country-specific ETFs tracking South American economies, sharply outpacing comparable funds devoted to Brazil, Chile and Peru. GXG has been thrown out with Brazil's bathwater, but on the back of rising oil production and a cheap valuation, the ETF is poised for bigger things in 2012. Consider initiating positions with GXG above $19.50. AUM $126.7 million.

Schwab Emerging Markets Equity ETF (NYSE: <a class="ticker" href="/stock/sche#NYSE">SCHE</a>):
If ever there was a "me too" ETF, the Schwab Emerging Markets Equity ETF is it. The differences between this ETF and VWO and EEM are slight in terms of holdings and allocations, but the Schwab offering is far cheaper than EEM. SCHE has performed inline with VWO and EEM this year and with an expense ratio that is almost two-thirds less than EEM's, SCHE is at least a better option than the iShares fund. AUM: $385.4 million.

SPDR S&amp;P Emerging Markets Dividend ETF (NYSE: <a class="ticker" href="/stock/ediv#NYSE">EDIV</a>):
Home to 105 stocks and a yield of 7.2%, the SPDR S&amp;P Emerging Markets Dividend is hardly mentioned in the emerging markets dividend ETF conversation. Despite being down for the year, EDIV is the second-best performer on this list after ECON. The ETF offers double-digit allocations to five sectors and the top five country weights are Taiwan, Brazil, China, Korea and South Africa.

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CHIQ

Emerging Global Shares Dow Jones Emerging Marketsnsumer Titan Index Fund

ECON

iShares Trust S&P Latin America 40 Index Fund

SCHE

Five Unheralded Emerging Markets ETFs With Over $100M In AUM

It's no secret that strong dividends and juicy yields can be found in any number of global markets and often times, the international dividend stock is superior to the comparable U.S. firm in terms of payout in dollar terms, but investors might do well to go beyond developed markets in the search for international dividends.

Yes indeed, investors can tap into the growth stories offered by many emerging markets while getting compensated for the risk. Don't worry if stock-picking isn't your cup of tea because this trio of emerging markets dividend ETFs will do the legwork for you.

1) WisdomTree Emerging Markets Equity Income Fund (NYSE: <a class="ticker" href="/stock/dem#NYSE">DEM</a>):
We recently went “Under The Hood” with DEM (April 28), extolling the ETF's virtue due to the fact that it has outperformed comparable dividend ETFs tracking U.S. stocks while noting DEM has diverse exposure with 260 holdings, none of which gets an allocation of more than 4.4%. Taiwan and Brazil account for more than 37% of DEM's weight. That's not necessarily bad, though we're left longing for a bit more exposure to other high-flying emerging markets.

One thing worth noting is DEM's 22% allocation to telecom names. If you think AT&amp;T (NYSE: <a class="ticker" href="/stock/t#NYSE">T</a>) and Verizon (NYSE: <a class="ticker" href="/stock/vz#NYSE">VZ</a>) are great yield plays, find their equivalents in almost any emerging market and you'll find a better yield. Current yield: 3.22%.

2) WisdomTree Emerging Markets SmallCap Dividend ETF (NYSE: <a class="ticker" href="/stock/dgs#NYSE">DGS</a>):
DGS is another one we've highlighted multiple times in the past year even as it has largely flown under the radars of many so-called experts. For those that like the diversity and balance of DEM, you'll LOVE DGS. This ETF is home to 450 stocks and with the top holding receiving a weight of just 2.32%. Another similarity to DEM is that DGS is heavily weighted to Taiwan (20.3%) at the country level, but the South Korea/South Africa/Thailand exposure is worth embracing. 

If DGS can break through the $57 area, it could be residing in the mid-60s, assuming the broader market cooperates and investors continue cozying up to EM ETFs. Current yield: 2.54%.

3) SPDR S&amp;P Emerging Markets Dividend ETF (NYSE: <a class="ticker" href="/stock/ediv#NYSE">EDIV</a>):
EDIV was in the spotlight in a recent “Checking In” feature (April 19) and the new kid on the block among EM dividend ETFs is worth a brief look once again as it appears the SPDR folks are on to something here. EDIV has attracted almost $30 million in assets under management, an impressive haul considering the ETF isn't even three months old.

As is the case with DEM and DGS, EDIV is Taiwan-heavy (20%), but Brazil is the country allocation leader with 24.8%. Throw in some slight exposure to Chile and Mexico, and EDIV has almost 30% of its weight in Latin America, so it can be paired with either DEM and DGS to gain exposure to both Asian and LatAm emerging titans. Sector diversity is excellent here with five industry groups receiving double-digit weights.

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