iShares International Select Dividend ETF (BATS: IDV)

iShares International Select Dividend ETF (BATS:IDV), Trade Ideas

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An ETF For High Quality International Income

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Europe ETFs Show Convincing Strength

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INTERNATIONAL ENDEAVORS by International Endeavors Corp

International Endeavors Corp

Several exchange-traded funds (ETFs) that hold gold have surged by a quarter in recent memory. The reason for the rise in gold prices? Central banks &mdash; at least according to a report by <A href="http://www.bloomberg.com/news/articles/2016-05-16/the-25-jump-in-gold-holdings-that-shows-angst-on-central-banks">Bloomberg</a>.
Bloomberg noted that gold has been 2016's best performing major metal after silver due to rising concerns over negative interest rates in Europe and Japan, and ongoing uncertainty surrounding a U.S. Federal Reserve tightening of its rates.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/markets/futures/16/05/7988184/gold-pops-and-drops">Gold Pops And Drops</a></bzrelatedlink>
"Firstly, the negative interest rate environment and quantitative-easing policies are reducing the pool of suitable investment options, and making gold less costly to hold," Bernard Aw, a strategist at IG Asia Pte told Bloomberg. "Second, lingering fears of competitive currency devaluations and potentially fresh bouts of market volatility encourage safe-haven demand."
Aw also noted that even if the Fed raises its interest rates, the prevailing rates will still remain "very low."
Meanwhile, billionaire investor Paul Singer suggested that the rally in gold has just begun. The manager of Elliott Management told his clients last month that if investors' confidence in central banks across the world "continues to weaken," then the "effect on gold could be very powerful."
Finally, central banks and governments across the world are large buyers of gold. Bloomberg cited a report from the World Gold Council, which suggests that nations could buy up to 600 tones of gold this year, compared with 566.3 tons last year.

The primary draw to international dividend stocks and exchange-traded funds is that these securities usually sport higher dividend yields than their the U.S. counterparts. That is true of the iShares Dow Jones EPAC Sel Div Ind (ETF) (NYSE: <a class="ticker" href="/stock/idv#NYSE">IDV</a>).
IDV, which debuted nearly nine years ago, has a trailing 12-month dividend yield of almost 5.4 percent. That is well above what investors will find on the vast majority of U.S.-focused dividend ETFs. Due its dividend emphasis, IDV is somewhat of a narrowly focused ETF as it is home to just 100 stocks with Australia and the U.K. combining for over 47 percent of the fund&#39;s geographic weight.
&ldquo;Australian companies tend to pay out high dividends, whereas Japanese companies tend to pay out low dividends, relative to the global average. As a result, this fund has generally had a large allocation in Australia (20 percent to 30 percent, versus around 6 percent for the MSCI World ex USA Index) and a very low weighting in Japan (currently less than 1 percent, versus 20 percent for the benchmark). At times, these differences can drive this ETF&#39;s out- or underperformance relative to category peers,&rdquo; said Morningstar <a href="http://news.morningstar.com/articlenet/article.aspx?id=741746">in a recent note</a>.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/02/6661430/the-quest-for-quality-dividends">The Quest For Quality Dividends</a></bzrelatedlink>
<h3>Weight And Allocations</h3>
On the surface, it would appear that IDV&#39;s large combined weight to Australian and British stocks is risky because falling commodities have prompted dividend cuts<a href="http://www.benzinga.com/analyst-ratings/analyst-color/16/02/6254383/brexit-prep-with-etfs"> among energy and materials</a> firms in those countries with more negative dividend action in both regions expected. However, the energy and materials sectors represent just 20.5 percent of IDV&#39;s overall weight and not all of those names hail from Australia or the U.K.
Conversely, about a third of IDV&#39;s combined weight is allocated to the financial services, consumer staples and healthcare sector, which have been dependable dividend growers at the international level. As IDV is not a currency hedged ETF, investors benefit if currencies such as the Australian dollar and British pound rise against the greenback. Importantly, IDV&#39;s payout has been on a steady upswing in recent years.
&ldquo;During the past few years, this fund&#39;s annual dividends per share have been on a steady upward trend, starting at $1.06 in 2009 and rising to $1.93 in 2014. However, the recent 10 percent decline in the Australian dollar to the U.S. dollar in 2015 may have a negative impact on the total dividends paid in 2015, as dividends are distributed in local currency to the ETF and converted into U.S. dollars before being paid out to shareholders,&rdquo; according to Morningstar.
The ETF, which has a three-year standard deviation of 14.6 percent, could see the trajectory of its payouts challenged if the dollar rises in earnest.
Image Credit: <a href="https://pixabay.com/en/quality-hand-leave-pen-signature-500958/">Public Domain</a>

With so much hoopla surrounding U.S. stocks and individual sectors, not everyone has noticed that many developed foreign markets have been quietly inching higher this year.
 The European reflation trade has continued to gain steam amid improving economic data and attractive corporate valuations.

	The Vanguard European ETF (NYSE: <a class="ticker" href="/stock/vgk#NYSE">VGK</a>) hit new highs this past week as Euro-zone factory data came in better than expected.  VGK tracks 518 stocks in developed foreign markets.
The United Kingdom, France, and Germany are the primary country weightings in this fund.

 Related: <a href="http://www.benzinga.com/etfs/sector-etfs/14/05/4519407/silver-etfs-face-critical-test-of-support">Silver ETFs Face Critical Test Of Support</a>

	So far this year, VGK has gained 4.19 percent versus 2.40 percent for the SPDR S&amp;P 500 ETF (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>).  The chart below shows just how strong the trend has been for Europe over the last 12 months.
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	<div id="file-preview">
		<a href="https://www.benzinga.com/imce?app=nomatter%7Cimceload@imceInline.load#"><img alt="vgk.png" height="284" src="https://www.benzinga.com/files/u79448/vgk.png" width="460" /></a></div>
</div>

	With investors seemingly focused on value opportunities, overseas dividend paying stocks have also been quite desirable.  The iShares International Select Dividend ETF (NYSE: <a class="ticker" href="/stock/idv#NYSE">IDV</a>) holds a portfolio of 100 high-quality developed market stocks with high dividend yields over time.

	This ETF is primarily made up of European companies with some Australian stocks thrown into the mix.  The current yield of IDV is 4.28 percent and the fund has over $3.7 billion in total assets. 

	Many of these international companies are known for much higher dividend yields than their domestic peers, which may make them more <a href="http://www.benzinga.com/etfs/sector-etfs/14/04/4503957/new-ishares-bond-etf-seeks-optimal-income-mix">attractive for income </a>seekers.  As with most dividend equity ETFs, income from IDV is paid on a quarterly basis.

	Investors seeking small cap exposure may want to also consider the WisdomTree European Small Cap Dividend Fund (NYSE: <a class="ticker" href="/stock/dfe#NYSE">DFE</a>) as well.  Small cap stocks tend to be more economically sensitive to changes in fundamental data. That may translate into greater earnings growth if the recovery continues. 

	Moving forward, the pace of European equities will likely be governed by any additional accommodative action by the <a href="http://www.benzinga.com/topic/european-central-bank">European Central Bank</a>, along with further positive signs of economic activity.  The most notable and immediate threat to this strength is the Ukraine situation, which has yet to be resolved in a peaceful manner. 

	ETF investors have a plethora of options at their disposal to take advantage of the European continent and any further upside it may provide.

	Disclosure:  The author currently holds IDV and DFE in his portfolio.

As the stock market continues to hit unprecedented heights, dividend paying equities have remained a favorite holding for income and capital appreciation.  In fact, many investors that have an allocation to equity-income ETFs just received a healthy quarterly dividend to boost their total return this year.


	ETFs that are focused on dividend paying stocks are seen as a smart way to diversify an income portfolio in an environment where future returns in fixed-income assets are less certain.  In addition, these stocks are often seen as a defensive play when investors begin to shift from growth to value sectors of the economy. 

	Through the first quarter of the year, the iShares Select Dividend ETF (NYSE: <a class="ticker" href="/stock/dvy#NYSE">DVY</a>) has posted a gain of 3.62 percent and also boasts a 30-day SEC yield of 3.18 percent.  This ETF has $13 billion in assets spread among 100 holdings of some of the highest dividend paying U.S. common equities.   DVY just hit a new all-time high this week and is showing no signs of slowing down. 

	For comparison sake, the SPDR S&amp;P 500 ETF (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>) gained just 1.70 percent over that same time frame and yields a meager 1.84 percent.  One of the reasons that DVY has been able to outperform SPY so far this year is the overweight exposure to the utilities sector.  Utilities stocks accounts for 33% of the underlying holdings in DVY and were the <a href="http://www.benzinga.com/etfs/sector-etfs/14/03/4433413/utilities-stocks-lead-market-higher-signal-defensive-shift">best performing major sector</a> in the first quarter.

	Another income-paying powerhouse is the Vanguard High Dividend ETF (NYSE: <a class="ticker" href="/stock/vym#NYSE">VYM</a>) which has a similar approach of investing in companies with above-average dividend histories.  This ETF is more diversified than DVY with 378 underlying companies and pays a comparable yield of 3.06 percent.  In addition, VYM stands out for its rock bottom expense ratio of 0.10 percent which is a quarter of the 0.40 percent fee charged by DVY. 

	For overseas exposure, investors may want to look at the iShares International Select Dividend ETF (NYSE: <a class="ticker" href="/stock/idv#NYSE">IDV</a>) which invests in 100 stocks of foreign developed markets.  One attractive quality of IDV is the 4.64 percent dividend yield which is over 50% higher than either DVY or VYM.

	Despite the height of the market and challenges for future growth, dividend-paying ETFs are continuing to provide a dependable income stream along with solid price trends. 

	Disclosure: David Fabian owns DVY and IDV in his own portfolio.

Sector ETFs

Broad U.S. Equity ETFs

iShares Dow Jones Select Dividend Index Fund

Dividend ETFs Continue Their Winning Ways

The yield on the 10-year Treasury bond currently stands at 2.68 percent, which is well off the lows of the year.

	Historically speaking the yield remains below the average and has a long way to go to get back to where many income investors would like to see it. As the baby boomers move into retirement mode the search for regular income becomes a priority.

	Unfortunately for many, the yields on bonds are not enough to generate the income need for the golden years.

	Investors have turned to equity ETFs that offer a basket of stocks that produce above-average income to combat the low bond yields. The world of equity ETFs that focus on dividends stocks has been growing as demand from investors has increased.

	There are two ETFs in the group that are offering yields well above that of the 10-year Treasury and give investors the potential of capital gains via the stock market.

	Global X SuperDividend ETF (NYSE: <a class="ticker" href="/stock/sdiv#NYSE">SDIV</a>)

	The ETF tracks the performance of 100 equally weighted companies that rank among the highest dividend yielding equities in the world. The basket of stocks cover several continents with the U.S. the largest with an allocation of 27 percent. Australia makes up 19 percent, followed by the U.K. at 12 percent. The sector breakdown is also diverse with the financials at 18 percent, utilities at 13 percent, and telecom at 12 percent.

	 In 2013 the ETF has lagged the major indices with a gain of only 5 percent, but a recent rally has pushed it close to a 4-month high. What makes the ETF attractive to income-seeking investors is the 30-day SEC yield of 6.5 percent. The beat, which measures the volatility versus the S&amp;P 500 is 1.08, which is impressive considering the yield it is offering. The expense ratio is 0.58 percent.

	iShares International Select Dividend ETF (NYSE: <a class="ticker" href="/stock/idv#NYSE">IDV</a>)

	When the U.S. is removed from the equation the end result is IDV. The ETF focuses on 100 high dividend-yielding stocks from around the globe sans the U.S. The top countries represented include Australia at 18 percent, the U.K. at 16 percent, and France at 14 percent. A total of six sectors represent at least 10 percent of the portfolio giving investors instant diversification.

	Year-to-date the ETF has been able to move higher by 10 percent and is closing in on a 10-year high. The current 30-day SEC yield of 4.8 percent is nearly double that of the 10-year Treasury. The expense ratio is 0.50 percent.

	Both ETFs offer investors the ability to generate income greater than the bond market, however there is added risk with the exposure to the global equity markets. Investors should not consider the ETFs as replacements for bond ETFs, but they can be utilized as income-producing vehicles.

SDIV

Big Income From Equity ETFs (IDV, SDIV)

Here is the ETF Professor's ETF Watch List for Tuesday, September 17, 2013.

Keep an eye on the SPDR S&amp;P Regional Bank ETF (NYSE: <a class="ticker" href="/stock/kre#NYSE">KRE</a>).

Give the Consumer Staples Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlp#NYSE">XLP</a>) a look.

The iShares U.S. Utilities ETF (NYSE: <a class="ticker" href="/stock/idu#NYSE">IDU</a>) saw unusual volume Monday.

Check in with the iShares International Select Dividend ETF (NYSE: <a class="ticker" href="/stock/idv#NYSE">IDV</a>).

Emerging markets plays of the day: Market Vectors Egypt ETF (NYSE: <a class="ticker" href="/stock/egpt#NYSE">EGPT</a>), WisdomTree Emerging Markets Equity Income Fund (NYSE: <a class="ticker" href="/stock/dem#NYSE">DEM</a>) and the Market Vectors Brazil Small-Cap ETF (NYSE: <a class="ticker" href="/stock/brf#NYSE">BRF</a>).

Forex play of the day: CurrencyShares Australian Dollar Trust (NYSE: <a class="ticker" href="/stock/fxa#NYSE">FXA</a>).

Bond play of the iShares MBS ETF (NYSE: <a class="ticker" href="/stock/mbb#NYSE">MBB</a>).

Short Ideas

New ETFs

Emerging Market ETFs

Currency ETFs

Pre-Market Outlook

EGPT

iShares Trust Dow Jones US Utilities Sector Index Fund

ETFs to Watch September 17, 2013 (IDV, MBB, XLP)

The persistent climb of the stock market over the last six months has confounded both individual investors and professional money managers. The relentless onslaught of bullish optimism has pushed the major averages to hit new all-time highs nearly every day. For those of us that enjoy buying on a pullback, we have been out of luck for quite some time. Remember 1,565 on the S&amp;P 500? We we are already 5% above that level and it is becoming rapidly apparent that the sky is the limit for stocks in 2013.

	So what should you do when your portfolio is mostly cash and that nagging feeling of performance anxiety starts to creep into the back of your mind?

	The easiest thing to do is give in and capitulate by throwing your capital into the most aggressive investments you can find to try and make-up for lost time. You will get instant relief and gratification by putting money to work and feeling like you are part of the crowd. However, that relief can quickly turn into gut wrenching agony if you get caught up in a swift correction that wipes out 5-10% of your portfolio in a matter of weeks. Remember that you don&rsquo;t want to be <a href="http://fabiancm.com/whos-going-to-be-the-last-bear-standing/" rel="nofollow" target="_blank">the last investor that throws in the towel</a>, only to see your hard earned rapidly money evaporate. Instead you need to have a game plan in place to make investment decisions with as little emotion as possible.

	Plan Your Trade, Trade Your Plan

	If you have cash on the sidelines that you want to put to work, I would recommend that you bide your time by creating a watch list and planning your next moves with precision. In my experience, trades are far more successful when you are able to put money to work on your terms rather than out of a feeling of desperation. You can start by selecting 10-20 stocks or ETFs that you are considering adding to your portfolio and monitoring them on a regular basis. You should be looking at their charts and preparing your entry points based on historical points of support, resistance, or trend lines. This will allow you to clearly filter out all of the daily noise and have a plan for when the trend of the market changes. You can even set limit orders for these trades to execute automatically when your targets are hit.

	A few of the ETFs that are on my watch list right now include:

	iShares High Dividend ETF (NYSE: <a class="ticker" href="/stock/hdv#NYSE">HDV</a>)

	iShares International Select Dividend (NYSE: <a class="ticker" href="/stock/idv#NYSE">IDV</a>)

	PowerShares S&amp;P 500 Low Volatility Index (NYSE: <a class="ticker" href="/stock/splv#NYSE">SPLV</a>)

	iShares Emerging Market Minimum Volatility Index (NYSE: <a class="ticker" href="/stock/eemv#NYSE">EEMV</a>)

	First Trust Multi-Asset Diversified Income Fund (NYSE: <a class="ticker" href="/stock/mdiv#NYSE">MDIV</a>)

	<img alt="" hspace="6" src="http://static.cdn-seekingalpha.com/uploads/2013/5/14/10139881-13685504325475783-David-Fabian.png" vspace="6" />

	I am evaluating each of these positions on their own technical and fundamental merits. Not all of them will make it into my portfolio at the same time or in the same allocation, but they are designed to give me exposure to specific areas of the market that I believe will outperform. In addition, I will be constantly updating my watch list to include new positions based on changes in the market and areas of value that I can exploit.

	Despite all of the bulls calling for Dow 20,000 or S&amp;P 1,900, I am more inclined to believe that we are due for at least a modest correction which will setup an excellent buying opportunity. Be patient. Be prepared. Be smart.

EEMV

MDIV

PowerShares S&P 500 Low Volatility Portfolio

SPLV

Don't Let Performance Anxiety Push You Over The Edge

This week has been kind to income investors looking for new ETFs to consider as Northern Trust's (NASDAQ: <a class="ticker" href="/stock/ntrs#NASDAQ">NTRS</a>) FlexShares unit has <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/04/3502125/a-new-international-dividend-etf-comes-to-town">rolled out three new global dividend funds</a>.

	The FlexShares International Quality Dividend Dynamic Index Fund (NYSE: <a class="ticker" href="/stock/iqdy#NYSE">IQDY</a>) is part of that trio and represents the one of the three new ETFs that seeks a beta that is higher than its underlying index, in this case the Northern Trust International Large Cap Index.

	As is the case with its newly minted brethren, the FlexShares International Quality Dividend Index Fund (NYSE: <a class="ticker" href="/stock/iqdf#NYSE">IQDF</a>) and the FlexShares International Quality Dividend Defensive Index Fund (NYSE: <a class="ticker" href="/stock/iqde#NYSE">IQDE</a>), IQDY eschews the typical cap-weighting methodology that is prevalent with so many ETFs. The new ETFs also pass on <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/04/3505338/this-new-etf-gets-defensive-with-global-dividends#ixzz2QqJSTwGN">using length of dividend increase streaks</a> as a primary screening tool.

	Rather, IQDY uses "an optimization process designed to: maximize this factor, target a beta higher than the Parent 
	Index and improve on the Parent Index's dividend yield, <a href="http://www.flexshares.com/exchange-traded-funds/international-quality-dividend-dynamic-index-fund">according to FlexShares</a>.

	With an expense ratio of 0.47 percent per year, IQDY holds 220 stocks and joins its new peers in being heavily focused on the U.K. and Japan. Those two countries combine for 32.7 percent of IQDY's weight. Australia, Germany and China round out the top five country allocations.

	IQDY also shares something in common with its new FlexShares peers at the sector, that being a sizable allocation to financial services stocks. That sector accounts for 27.7 percent of the fund's weight. Perhaps in efforts to generate beta in excess of its underlying index, IQDY's also features double-digit allocations to industrial, energy and materials names.

	On the other hand, the new ETF is relatively light on so-called dividend sectors. Consumer staples, health care, telecommunications and utilities combine for less than a quarter of IQDY's sector weight.

	IQDY's top-10 holdings include Commonwealth Bank of Australia, AstraZeneca (NYSE: <a class="ticker" href="/stock/azn#NYSE">AZN</a>), Eni (NYSE: <a class="ticker" href="/stock/e#NYSE">E</a>), Royal Dutch Shell (NYSE: RDS-A) and Suncor (NYSE: <a class="ticker" href="/stock/su#NYSE">SU</a>). Yield information on IQDY is not yet available, but the average yield on AstraZeneca, Royal Dutch Shell, Suncro and Eni is 4.7 percent, indicating IQDY could be home to at, the very least, a decent yield. Additionally, the iShares Dow Jones International Select Dividend Index Fund (NYSE: <a class="ticker" href="/stock/idv#NYSE">IDV</a>), an ETF IQDY could be a potential rival, has a trailing 12-month dividend yield of 4.85 percent.

	Investors looking for a domestic equivalent of IQDY should look at the FlexShares Quality Dividend Dynamic Index Fund (NYSE: <a class="ticker" href="/stock/qdyn#NYSE">QDYN</a>). That ETF, along with two other domestically-focused FlexShares dividend funds, debuted in December.

	While QDYN is not yet large in terms of assets, it uses a similar screening methodology to what is seen with IQDY and that could mean good fortune for investors, particularly if European stocks turn around. QDYN has gained almost 11 percent since inception and has a weighted average dividend yield of 3.43 percent.

	As is usually the case with ETFs that are just a few days old, there is obviously not much of a track record with which to form an opinion on IQDY. The ETF's Europe exposure implies some level of risk, but if Japanese stocks continue soaring and Australian stocks hold steady, investors will be buffered somewhat from Europe-related shocks with this new fund. For the slightly adventurous dividend investor, IQDY is worth keeping an eye on over the medium-term.

	For more on dividend ETFs, click <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/04/3505338/this-new-etf-gets-defensive-with-global-dividends">here</a>.

Global

Intraday Update

IQDE

IQDF

IQDY

NTRS

QDYN

Under The Hood: An ETF For International Income

There is no shortage of dividend ETFs currently on the market, but the statistics indicate there may room for more. Investors poured <a href="http://www.benzinga.com/analyst-ratings/analyst-color/13/04/3482782/s-p-bullish-on-top-asset-gathering-etfs">$6.1 billion in new assets</a> into U.S. dividend-themed ETFs during the first quarter.

	At the end of the quarter, $68.5 billion in assets resided in dividend ETFs, according to S&amp;P Capital IQ.

	Numbers like those indicate investors love dividend ETFs and, in some cases, will quickly warm to new dividend funds. Income investors now have a few more dividend ETFs with global focuses to pick from, including the FlexShares International Quality Dividend Index Fund (NYSE: IQDF), which debuted Tuesday.

	The FlexShares International Quality Dividend Index Fund is part of a suite of three new dividend funds introduced by Northern Trust's (NASDAQ: <a class="ticker" href="/stock/ntrs#NASDAQ">NTRS</a>) on Tuesday. FlexShares has previously had success with <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/04/3479857/two-more-new-etfs-to-consider">other dividend offerings</a> including the FlexShares Quality Dividend Index Fund (NYSE: <a class="ticker" href="/stock/qdf#NYSE">QDF</a>).

	QDF, a U.S. focused equivalent of the new IQDF, debuted in mid-December and now has more than $53.4 million in assets under management.

	With a net expense ratio of 0.47 percent per year, IQDF tracks the Northern Trust International Large Cap Index. The new ETF's aims to match the index's beta will improving upon its dividend yield, <a href="http://www.flexshares.com/exchange-traded-funds/international-quality-dividend-index-fund">according to FlexShares</a>.

	Home to 216 holdings, IQDF allocates nearly 28 percent of its weight to the financial services sector. Energy, industrials and consumer staples also receive double-digit allocation. Familiar dividend sectors such as health care, telecommunications and utilities are not excessively weighted in the new ETF as that trio combines for about 20.5 percent of the fund's weight.

	IQDF is predominantly a large-cap fund though it does a decent job of spreading its weight across various market capitalizations. Large-caps account for almost 54.2 percent while mid-caps check in at 33.2 percent. Small and micro-caps combine for the remainder of IQDF's weight.

	At the country level, IQDF is dominated by the U.K. (16.5 percent) and Japan (11.7 percent). Australia, France and Canada round out the ETF's top-five country weights. There is some emerging markets exposure with China and Brazil combing for about 7.5 percent of the new ETF's weight. Nearly 27.7 percent of IQDF's country weight is defined as "others" though data is not yet available on what those other countries.

	Top holdings include Commonwealth Bank of Australia, which is also the top holding in the iShares Dow Jones International Select Dividend Index Fund (NYSE: <a class="ticker" href="/stock/idv#NYSE">IDV</a>), a potential rival for IQDF. Another possible rival for IQDF is the PowerShares International Dividend Achiever Portfolio (NYSE: <a class="ticker" href="/stock/pid#NYSE">PID</a>).

	Other familiar names in the new ETF's lineup include Total (NYSE: <a class="ticker" href="/stock/tot#NYSE">TOT</a>), GlaxoSmithKline (NYSE: <a class="ticker" href="/stock/gsk#NYSE">GSK</a>) and Royal Dutch Shell (NYSE: RDS-A).

	Important to investors is the fact that IQDF employs a screening process that focuses on "three main factors including management efficiency and dividend policy; profitability; and cash flow to sustain dividend payments," said the issuer. That means the ETF does not use length of dividend increase as its primary screening methodology, a strategy currently employed by some of the largest dividend ETFs on the market.

	FlexShares is no stranger to unique screening methodologies for its dividend ETFs. The FlexShares Quality Dividend Defensive Index Fund (NYSE: <a class="ticker" href="/stock/qdef#NYSE">QDEF</a>), which debuted in December, <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/12/3187941/under-the-hood-more-defense-more-dividends">uses its own proprietary scoring model and an optimization process</a>. That ETF has returned more than 11 percent since its introduction.

	After just one day, it is too early to pass judgment on IQDF, particularly because yield information is not yet available. However, it would be wise not to underestimate IQDF's potential for success. The ETF has come to market in favorable environment for dividend investors and it cannot be ignored that FlexShares only needed 10 ETFs, none of which are yet two years old to amass nearly $4.7 billion in assets under management.

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

After-Hours Center

PowerShares ETF Trust International Dividend Achievers Portfolio

QDEF

A New International Dividend ETF Comes to Town

Looking to capitalize on the success of its popular Global X SuperDividend ETF (NYSE: <a class="ticker" href="/stock/sdiv#NYSE">SDIV</a>), Global X introduced a U.S.-focused equivalent today in the form of the Global X SuperDividend U.S. ETF (NYSE: <a class="ticker" href="/stock/div#NYSE">DIV</a>).

Given its name, it is obvious the Global X SuperDividend U.S. ETF is a direct play on one prominent theme, that being investors' thirst for dividends and yield. However, the new ETF features an added source of allure for conservative. DIV tracks the INDXX SuperDividend U.S. Low Volatility Index, indicating the ETF is also play on <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/02/3378741/more-low-vol-etfs-your-broker-forgot-to-mention">the soaring popularity of low volatility products</a>.

With an annual expense ratio of 0.45 percent, DIV is home to 50 stocks and caps sector weights at 25 percent. DIV's largest sector weights are 24 percent each to real estate investment trusts and utilities with master limited partnerships and telecommunications receiving weights of 18 percent and 12 percent, respectively, <a href="http://www.globalxfunds.com/DIV/FS">according to Global X data</a>.

Like SDIV, DIV uses an equal-weight approach so no holding currently exceeds a weight of two percent. DIV's lineup includes Altria (NYSE: <a class="ticker" href="/stock/mo#NYSE">MO</a>), Ameren (NYSE: <a class="ticker" href="/stock/aee#NYSE">AEE</a>), AT&amp;T (NYSE: <a class="ticker" href="/stock/t#NYSE">T</a>) and Bristol-Myers Squibb (NYSE: <a class="ticker" href="/stock/bmy#NYSE">BMY</a>).

Arguably, part of the reason SDIV has seen its assets under management total soar to over $384 million as of March 11 from $100 million in the third quarter of 2012 is <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/02/3368316/the-monthly-dividend-etf-difference">because the ETF pays a monthly dividend</a>. Global X expects that DIV will do the same.

Additionally, DIV applies a filter to "exclude companies that are most likely to cut their dividends, as determined by the Index provider. Furthermore, all companies are reviewed on a quarterly basis and can be removed from the Index if they forecast a significant dividend cut," according to Global X.

To be eligible for inclusion in the new ETF's index, holdings must have paid dividends for at least the past two years, have a market value of at least $500 million and average daily trading volume in dollar terms of at least $1 million over the past six months at the time the fund rebalances.

"“In an environment where people are seeking monthly income, the SuperDividend U.S. ETF offers convenient access to 50 high yielding companies in the US through one security," said Bruno del Ama, chief executive officer of Global X Funds, in a statement. "Based on the research we have conducted, we believe very high-yielding dividend stocks are generally overlooked and may play an important role in a portfolio."

That research includes the fact that "dividend payers in the 6-10% range showed similar risk characteristics
to 0-2% and 2-6% dividend payers," according to Global X.

To that point, DIV could prove popular with investors if it follows a similar volatility as SDIV has. Over the past year, SDIV has been about 400 basis points less volatile than the iShares Dow Jones International Select Dividend Index Fund (NYSE: <a class="ticker" href="/stock/idv#NYSE">IDV</a>) and noticeably less volatile than other diversified developed market dividend and non-dividend ETFs.

For more on dividend ETFs, click <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/02/3368316/the-monthly-dividend-etf-difference">here</a>.

A Look at a New Super Dividend ETF

Finding ETFs that pay monthly dividends is not a difficult task. 

Well, it is not that difficult if an investor is looking at <a href="http://www.benzinga.com/markets/bonds/12/05/2573295/more-monthly-dividend-etfs-emlc-pey-eld">any number of bond ETFs or those funds that track preferred stocks</a>, among other asset classes. 

However, despite the rising number of equity-based dividend ETFs, the number of funds that hold stocks and deliver monthly payouts is paltry compared to ETFs tracking bonds, preferreds and other assets known for 12-times-a-year dividends.

The good news is there are some equity-based ETFs that pay monthly dividends. The better news is this number is rising as well. In November, WisdomTree (NASDAQ: <a class="ticker" href="/stock/wetf#NASDAQ">WETF</a>) announced it was moving four of its dividend funds to monthly payouts, bringing the number of ETFs issued by the firm <a href="http://www.benzinga.com/news/12/11/3061856/wisdomtree-moving-to-monthly-payouts-for-u-s-dividend-etfs">with monthly payouts to six</a>.

It is not a stretch to say that many income investors would prefer 12 payouts per year over once, twice or four times. Not surprisingly, investors will also want to know if there is an advantage to owning monthly dividend ETFs compared to traditional fare when it comes to overall returns. What follows are a few examples aimed at discovering if monthly dividend stock ETFs are truly advantageous. 

PowerShares High Yield Equity Dividend Achievers Portfolio (NYSE: <a class="ticker" href="/stock/pey#NYSE">PEY</a>)
Somewhat overlooked in the dividend ETF conversation, the PowerShares High Yield Equity Dividend Achievers Portfolio has been around for a while. PEY debuted in late 2004 and now has almost $293 million in assets under management. This ETF also shares something in common with some of its larger dividend ETF brethren. 

That trait is using a selection methodology that centers around length of a constituent's dividend increase streak. As is the case with the Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="/stock/vig#NYSE">VIG</a>), PEY's holdings must have dividend increase streaks <a href="http://www.indxis.com/NASDAQ.html">of at least a decade</a> to be eligible for inclusion.

Beyond the fact that PEY pays a monthly dividend and VIG pays quarterly, there are significant differences between the two. For example, PEY is home to 50 stocks, about a third of the size of VIG's roster. The PowerShares offering <a href="http://www.invescopowershares.com/products/overview.aspx?ticker=PEY">also allocates over 46 percent of its weight to small-caps</a>. Importantly, PEY has a trailing 12-month yield of almost 4.1 percent compared to 2.2 percent for VIG.

Over time, PEY has delivered the goods for investors. Including paid dividends, the ETF is up nearly 12 percent in the past year, 24.4 percent over the past two years and nearly 48 percent over the past three years.

Global X SuperDividend ETF (NYSE: <a class="ticker" href="/stock/sdiv#NYSE">SDIV</a>)
A mistake that has previously been made is the comparison of the Global X SuperDividend ETF to U.S.-focused dividend funds. Given that U.S. stocks only account for <a href="http://www.globalxfunds.com/SDIV/FS">27.4 percent of SDIV's weight, those comparisons are off-base</a>. 

Using an equal-weight approach that tracks 100 stocks that rank among the world's highest dividend payers, SDIV has become one of the fastest-growing dividend ETFs on the market today. In August, the ETF <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/08/2855549/global-x-superdividend-etf-reaches-100m-in-aum">passed the $100 million in AUM mark</a>. Today, the fund has over $355.2 million in assets.

While SDIV does hold some U.S. stocks, a fair comparison can be made against the iShares Dow Jones International Select Dividend Index Fund (NYSE: <a class="ticker" href="/stock/idv#NYSE">IDV</a>). Beyond SDIV's monthly dividend and IDV's quarterly payout, perhaps the comparison is not all that fair.

For example, SDIV has a 30-day SEC yield of about seven percent compared to 4.28 percent for IDV. Over the past year, SDIV has returned 10.4 percent compared to 9.9 percent for IDV. That difference may not sound large, and some investors might be apt to pick IDV because of its lower fees (0.5 percent per year compared to 0.58 percent for SDIV). However, IDV is far more volatile than SDIV. Over the past year, <a href="http://www.etfreplay.com/charts.aspx">SDIV's volatility is 400 basis less than IDV's</a>. 

WisdomTree Total Dividend Fund (NYSE: <a class="ticker" href="/stock/dtd#NYSE">DTD</a>)
The WisdomTree Total Dividend Fund migrated to the monthly dividend plan in late November, so the data set for how that is affecting the fund is still small. DTD, which is home to more than 900 stocks, is a departure from the dividend increase streak methodology. 

Rather, this ETF's index is weighted "to reflect the proportionate share of the aggregate cash dividends each component company is projected to pay in the coming year, based on the most recently declared dividend per share," <a href="http://www.wisdomtree.com/etfs/index-details.aspx?IndexID=1">according to the issuer</a>.

In other words, the largest U.S. dividend payers in dollar terms occupy the top spots in this ETF. Think AT&amp;T (NYSE: <a class="ticker" href="/stock/t#NYSE">T</a>), Exxon Mobil (NYSE: <a class="ticker" href="/stock/xom#NYSE">XOM</a>), and yes, even Apple (NASDAQ: <a class="ticker" href="/stock/aapl#NASDAQ">AAPL</a>). 

Arguably it is DTD's screening methodology more than its monthly payouts that impact the ETF's returns. That said, DTD has outperformed comparable rivals such as VIG and the iShares High Dividend Equity Fund (NYSE: <a class="ticker" href="/stock/hdv#NYSE">HDV</a>) over the past three months.

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

AAPL

WETF

The Monthly Dividend ETF Difference

An ominous tone set by the fiscal cliff that has grown louder since Election Day is the primary excuse behind the recent declines endured by dividend ETFs. Popular, multi-sector dividend ETFs focused on U.S. equities have been hammered in the past week. 

Since November 7, the Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="/stock/vig#NYSE">VIG</a>), the SPDR S&amp;P Dividend ETF (NYSE: <a class="ticker" href="/stock/sdy#NYSE">SDY</a>) and the iShares High Dividend Equity Fund (NYSE: <a class="ticker" href="/stock/hdv#NYSE">HDV</a>) have lost an average of 4.2 percent. Things are worse for some so-called <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/11/3095162/fiscal-cliff-fears-are-hammering-these-etfs">dividend sectors funds</a>, such as those tracking telecommunications and utilities names. As one example, the Utilities Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlu#NYSE">XLU</a>) is off six percent since November 7.

Despite the presentation of <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/11/3066996/despite-fiscal-cliff-dividend-outlook-not-all-bad">compelling evidence</a> that doomsday will not arrive if the dividend tax rate rises, investors have been punishing U.S. dividend-paying stocks, the aforementioned ETFs and related funds. Although payout ratios at U.S. firms are historically low and high-yielding stocks rose in the decade following last dividend tax increase in 1993, investors are no longer convinced that domestic dividend names are worth the risk.

International dividend stocks and ETFs might just be the elixir income investors are looking for to deal with the fiscal cliff. Because "international investors are not affected by changes in U.S. tax rates and dividend yields are still attractive in the current environment, we do not anticipate a broad-based flight from global dividend-paying companies stemming from the U.S. Fiscal Cliff," <a href="http://www.pimco.com/EN/Insights/Pages/Dividends-and-the-Fiscal-Cliff---Look-Out-Below.aspx">said PIMCO in a research note</a>.

Here is a sampling of some of the globally-focused dividend ETFs investors will want to have a look if the fiscal cliff morphs from bad dream to harsh reality.

iShares Dow Jones International Select Dividend Index Fund (NYSE: <a class="ticker" href="/stock/idv#NYSE">IDV</a>)
The iShares Dow Jones International Select Dividend Index Fund is not a perfect "avoid the fiscal cliff" play. A 22 percent allocation to the financial services sector and a beta of almost 1.5. However, IDV is sufficiently allocated to conservative sectors such as consumer staples, utilities and telecommunications. That trio represents over 38 percent of the fund's weight.

Remember, it is ETFs that are heavy on U.S.-based utilities, and to a slightly less extent telecom names, that are most vulnerable to the fiscal cliff. PIMCO paints the picture: "For example, a Latin American utility with shareholders from Europe, Asia and the Middle East unaffected by the possible U.S. tax change is unlikely to see less demand for its stock."

Translation: The fiscal cliff may prompt a U.S.-based utility to become suddenly stingy with its dividend. That does not mean a European or Latin American utility will do the same.

WisdomTree International Dividend ex-Financials Fund (NYSE: <a class="ticker" href="/stock/doo#NYSE">DOO</a>)
Not only is the the WisdomTree International Dividend ex-Financials Fund an ex-financials ETF, it is also an ex-U.S. ETF. DOO's 14.4 percent allocation to utilities names is not a red flag, because <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/10/3031596/etf-showdown-turning-the-lights-on">international utilities trade at much lower valuations</a> than their U.S. counterparts.

DOO's 30-day SEC yield of 4.77 percent is certainly alluring, but the primary risk to this ETF is its large weight (over 45 percent) to eurozone nations. Still, select European equities are attractively valued and many of DOO's Europe-based constituents derive sizable portions of their revenue from other parts of the globe.

WisdomTree Emerging Markets Equity Income Fund (NYSE: <a class="ticker" href="/stock/dem#NYSE">DEM</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/12/09/2878500/has-a-new-era-dawned-for-em-dividend-etfs">expected to rise to $52.2 billion</a> $48.9 billion last year. 

High profitability and low corporate debt bolster the case for emerging markets dividend payers and ETFs such as DEM. So does the fact U.S. dividend tax policy likely will not factor prominently in the decision of a Polish or Thai company's dividend decisions.

There is another reason DEM could work as a fiscal cliff play: State-owned enterprises. As in 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. 

Along those lines, investors should also evaluate the EGShares Low Volatility Emerging Markets Dividend ETF (NYSE: <a class="ticker" href="/stock/hilo#NYSE">HILO</a>). Both DEM and HILO offer ample exposure to various state-controlled firms. 

Global X SuperDividend ETF (NYSE: <a class="ticker" href="/stock/sdiv#NYSE">SDIV</a>)
The Global X SuperDividend ETF does devote about 29.3 percent of its weight to U.S. equities, but many of those are real estate investment trusts that are obligated by law to payout a certain percentage of their profits in the form of dividends. That might not be enough to assuage some investors that SDIV is immune from the fiscal cliff.

Still, SDIV features plenty of positive traits and those traits extend beyond a 7.72 30-day SEC yield and a monthly dividend. SDIV is <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/09/2889708/this-dividend-etf-isnt-the-same-old-song"> diverse and less volatile than other international dividend funds</a>. With a price-to-earnings ratio of less than 12 and a price-to-book ratio of 1.14, SDIV is not richly valued. 

And while SDIV offers exposure to both developed and developing markets, its eurozone exposure is not significant to be a major cause for concern. SDIV's recent pullback seems appears to be a case of too much too fast and below $21, the ETF is a steal.

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>.

Events

WisdomTree Trust International Dividend Top 100

HILO

International Dividend ETFs: A Fiscal Cliff Survival Tool?

Dividends and yields on developed market equities outside the U.S. have long been more impressive than comparable U.S. fare and it is no surprise to see developed Europe leading. Faltering equity prices amid the Eurozone's sovereign debt crisis have elevated yields, but European equities and select corresponding ETFs have bounced back in recent weeks.

In a research note published on Wednesday, S&amp;P Capital IQ encourages investors "to look inside an ETF to see what countries and sectors it is exposed to and the quality of the stocks in its holdings." S&amp;P Capital IQ rates two multi-country ETFs Market-weight in the note.

Wednesday's note follows research published earlier this week in which S&amp;P Capital IQ highlighted <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/09/2901663/s-p-highlights-country-etfs-for-income-investors">several ETFs tracking developed and emerging economies</a> as valid yield plays. In that note, S&amp;P rated well-known ETFs such as the iShares MSCI Germany Index Fund (NYSE: <a class="ticker" href="/stock/ewg#NYSE">EWG</a>), the iShares MSCI South Africa Index Fund (NYSE: <a class="ticker" href="/stock/eza#NYSE">EZA</a>), the iShares Switzerland Index Fund (NYSE: <a class="ticker" href="/stock/ewl#NYSE">EWL</a>) and the iShares MSCI Turkey Investable Market Index Fund (NYSE: <a class="ticker" href="/stock/tur#NYSE">TUR</a>) Market-weight.

In its Wednesday note, S&amp;P rates the SPDR S&amp;P International Dividend ETF (NYSE: <a class="ticker" href="/stock/dwx#NYSE">DWX</a>) Market-weight. The $980.1 million fund charges 0.45 percent per year and sports a dividend yield of 7.21 percent. At the sector level, telecommunications names dominate DWX with an allocation of 24.5 percent. Financials and utilities garner weights of 18.1 and 17.7 percent, respectively. 

DWX offers exposure to 26 developed and developing markets, but Spain and Australia combine for about 30 percent of the fund's weight. France, with an allocation of almost 10.8 percent, is the only other country to receive a double-digit weight. Turkey is DWX's largest emerging market weight at almost 3.4 percent.

Year-to-date, DWX is up 1.9 percent, but the fund has jumped 6.5 percent in the past month.

S&amp;P also rates the iShares Dow Jones International Select Dividend Index Fund (NYSE: <a class="ticker" href="/stock/idv#NYSE">IDV</a>) Marketweight. That ETF has $1.1 billion in AUM and charges 0.5 percent per year. There are other significant differences between IDV and DWX.

At the sector level, IDV is more diverse, offering double-digit weights to the following five sectors: Financials, consumer staples, utilities, oil and gas and telecommunications. IDV offers exposure to 25 countries, with Australia and the U.K. combining for over 38 percent. Aside from a scant 0.73 allocation to China, IDV's country weights are entirely developed markets.

IDV has a 30-day SEC yield of 4.98 percent and trailing 12-month yield of 5.15 percent, <a href="http://us.ishares.com/product_info/fund/overview/IDV.htm?fundSearch=true&amp;qt=IDV">according to iShares data</a>. The ETF is up almost 11 percent year-to-date and 4.6 percent in the past month.

For more on income options with international ETFs, click <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/09/2901663/s-p-highlights-country-etfs-for-income-investors">here</a>.

Analyst Color

Analyst Ratings

iShares MSCI Turkey Investable Market Index Fund

S&P Rates 2 Global Dividend ETFs Marketweight

After European Central Bank President Mario Draghi essentially said the ECB could purchase unlimited amounts of European bonds in an effort to stem the continent's sovereign debt crisis, U.S. equities predictably rallied. The S&amp;P 500 and the Nasdaq Composite each added about two percent while the Dow Jones Industrial Average fell just short with a pop of 1.9 percent. 

Combined with some positive U.S. economic data points, the European headlines were enough to send the S&amp;P 500 to its highest levels since January 2008. Thursday's performance certainly gives the bulls something to crow about, but one day of gains does not mean a new world order has been ushered in. In fact, there are several noteworthy things that have not changed and it is doubtful these things will change in the near-term no matter how many bonds the ECB buys.

Spain is Still Risky
The yield on Spanish 10-year sovereigns fell to 6.03 percent, the lowest since June. That is nice, but the country still has the highest unemployment rate in the Eurozone. No, that does not mean something on par with U.S. at eight percent. Spain's jobless rate <a href="http://www.boston.com/news/world/europe/2012/09/06/spanish-german-leaders-search-for-common-ground/SuozeJCExSh3OxNjNPZZ5H/story.html">stands at nearly 25 percent</a>.

The country is in a recession, period. A 5.7 percent gain on strong volume for the iShares MSCI Spain Index Fund (NYSE: <a class="ticker" href="/stock/ewp#NYSE">EWP</a>) adds to what has been an incredible one-month run for the ETF. EWP has gained 15.3 percent in the past 30 days, but with Spain's economic woes readily apparent, <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/07/2770493/dont-fall-for-these-etf-yield-traps">EWP still has a yield-trap way about it</a>.

Italy is Still a Mess
Yields on Italian 10-year sovereigns fell to a five-month low of 5.26 percent, but like Spain, this is a country with serious problems and that is bad for global investors because this is the world's eighth-largest economy. 

On nearly double the average daily volume, the iShares MSCI Italy Index Fund (NYSE: <a class="ticker" href="/stock/ewi#NYSE">EWI</a>) gained 5.4 percent. That combined with the ECB news does nothing to change the fact the fact that <a href="http://etfdailynews.com/2012/09/06/the-8th-largest-economy-in-the-world-is-being-overwhelmed-by-a-tsunami-of-debt-ewi-ewp-ewg-vgk-euo/#more-64867">has a debt-to-GDP ratio of 123 percent and a jobless rate of almost 11 percent as of June</a>.

It may sound trite, but the ECB buying bonds does not mean more consumers are going to gobble up Italian exports as such as Ferraris and Prada clothing. Italy's GDP contracted by 0.7 percent in the second quarter.

Investors Still Want Yield
This is a good thing compared to the aforementioned commentary and facts on Italy and Spain. Glancing across the universe of popular equity-based dividend ETFs, Thursday was a good day. The Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="/stock/vig#NYSE">VIG</a>), the iShares High Dividend Equity Fund (NYSE: <a class="ticker" href="/stock/hdv#NYSE">HDV</a>) and the iShares Dow Jones International Select Dividend Index Fund (NYSE: <a class="ticker" href="/stock/idv#NYSE">IDV</a>) all closed higher.

What is interesting is that volume was below average in all three of those funds. What could be changing is where investors go to get their yield fix. Take the Global X SuperDividend ETF (NYSE: <a class="ticker" href="/stock/sdiv#NYSE">SDIV</a>) for example. SDIV added almost two percent on Thursday on volume that was better than double the daily average, <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/09/2889708/this-dividend-etf-isnt-the-same-old-song">indicating the super dividend ballgame is just getting started</a>.

Risk On: Not All The Way Back
One day does not make a trend, nor does it confirm the full return of the risk on trade. There were some faint signs that risk has not fully returned on Thursday. Not all emerging markets equities and ETFs got in on the fun and energy names wilted into the close. Just look at the charts of the Energy Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xle#NYSE">XLE</a>) and National Oilwell Varco (NYSE: <a class="ticker" href="/stock/nov#NYSE">NOV</a>) as two examples.

Bonds

Econ #s

4 Things Thursday's Rally Didn't Change

ETF sponsors have capitalized on the low interest rate environment by introducing an array of new products to income investors over the past several years. 2012 has been no different as a spate of new dividend ETFs have debuted <a href="http://www.benzinga.com/news/12/08/2845839/flexshares-files-plans-for-6-dividend-etfs">and there are more in the works</a>.

Ample choice is good for investors. However, as the dividend ETF sector grows more crowded, it becomes harder for fund sponsors to set products apart and more difficult for investors to parse through an array of funds, many of which look the same.

Many dividend ETFs are home to the usual blue-chip suspects such as Coca-Cola (NYSE: <a class="ticker" href="/stock/ko#NYSE">KO</a>), Johnson &amp; Johnson (NYSE: <a class="ticker" href="/stock/jnj#NYSE">JNJ</a>) and Procter &amp; Gamble (NYSE: <a class="ticker" href="/stock/pg#NYSE">PG</a>). Fine stocks for long-term investors certainly, but it is hard for a dividend ETF to stand out when names like these are among its top holdings.

The Global X SuperDividend ETF (NYSE: <a class="ticker" href="/stock/sdiv#NYSE">SDIV</a>), which just crossed <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/08/2855549/global-x-superdividend-etf-reaches-100m-in-aum">the all important $100 million in assets under management watermark</a>, is one dividend ETF that stands out in an environment where "high yield" can be considered three or four percent.

And it is in yield terms that SDIV sets itself apart. The ETF has a 30-day SEC yield of 7.7 percent and a trailing 12-month yield of almost 8.1 percent, <a href="http://www.globalxfunds.com/SDIV">according to Global X data</a>. Just 20 other ETFs yield seven percent or more.

Just because SDIV sports a robust dividend yield, does not mean the fund is inherently risky. 

"When you think about income products, there is fixed income where higher yield equals higher risk," Global X CEO Bruno del Ama said in an interview with Benzinga. "High yield is engrained in investors' minds as high risk with bonds. That is not the case with equities."

SDIV's secret when it comes to yields lies with its holdings. This ETF is not home to likes of Coca-Cola or Procter &amp; Gamble. Rather, SDIV takes an equal-weight to approach to 100 stocks ranging from CenturyLink (NYSE: <a class="ticker" href="/stock/ctl#NYSE">CTL</a>) to American Capital Agency (NASDAQ: <a class="ticker" href="/stock/agnc#NASDAQ">AGNC</a>) and Apollo Investment (NASDAQ: <a class="ticker" href="/stock/ainv#NASDAQ">AINV</a>). Those are just a few of the names investors might be familiar with.

SDIV is global in scope as less than 36 percent of the fund's weight is allocated to U.S. companies. The international bias leads to higher volatility relative to U.S.-focused dividend ETFs, but that is not the case when comparing SDIV against an international dividend ETF.

"When you look at SDIV compared to a U.S. dividend fund, the international weight accounts for the difference in volatility," del Ama said. "Apples-to-apples, when SDIV is compared to another international dividend ETF, the returns are better and the volatility is lower."

As one example, SDIV has outperformed the iShares Dow Jones International Select Dividend Index Fund (NYSE: <a class="ticker" href="/stock/idv#NYSE">IDV</a>) by 75 basis points. Add to that, SDIV's 30-day SEC yield is more than double that of IDV's. 

France, Italy, Germany and Greece combine for over 20 percent of IDV's weight. On the other hand, Eurozone nations represent just six percent of SDIV's weight. The equal-weight approach helps minimize risk in SDIV.

"SDIV's risk is minimized because each stock is just one percent of the ETF's weight," said former hedge fund manager Dennis Mykytyn in an interview with Benzinga. "There is risk in high yield stocks and that is why SDIV's diversification is a good thing. Comparing SDIV to a U.S. dividend ETF is meaningless."

He might be right. Year-to-date, SDIV has narrowly outpaced the SPDR S&amp;P Dividend ETF (NYSE: <a class="ticker" href="/stock/sdy#NYSE">SDY</a>), but has lagged the Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="/stock/vig#NYSE">VIG</a>) and the iShares High Dividend Equity Fund (NYSE: <a class="ticker" href="/stock/hdv#NYSE">HDV</a>) by decent margins.

Those numbers are based on performance, not total returns, which Mykytyn is adamant investors should focus on. 

"I almost never see charts including dividends," he said "Part of it is historical. Wall Street focuses on growth in stock prices and ignores dividends. I care about total returns. If you're collecting eight percent a year in dividends, your principle doubles in nine years. Dividends and compounding are the way to go in investing."

Along those lines, it is worth nothing SDIV's trailing 12-month yield is more than double that of HDV's and nearly quadruple VIG's. Simple math dictates the concept of the super dividend will reward long-term investors and that could mean more inflows for SDIV as more investors take notice. SDIV, which pays a monthly dividend, had <a href="http://www.benzinga.com/markets/bonds/12/04/2508554/sixer-6-etfs-yielding-6-or-more-sdiv-aud-emfn">$56.3 million in AUM in mid-April</a>. Today, the number is approaching $111 million.

"There has been a lot of talk about dividend securities, but we think we're in just the third inning of that conversation," del Ama said. "Low yield has been overdone and super dividend is the new story."

For more on dividend ETFs, click <a href="http://www.benzinga.com/markets/bonds/12/04/2508554/sixer-6-etfs-yielding-6-or-more-sdiv-aud-emfn">here</a>.

AGNC

AINV

This Dividend ETF Isn't The Same Old Song

It was a tumultuous second quarter for equities as the SPDR S&amp;P 500 (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>) fell almost 3.2 percent, but dividend ETFs flexed their muscles and provided investors some shelter from macroeconomic headwinds and broader market carnage.

During the quarter, the iShares High Dividend Equity Fund (NYSE: <a class="ticker" href="/stock/hdv#NYSE">HDV</a>) and the SPDR S&amp;P Dividend ETF (NYSE: <a class="ticker" href="/stock/sdy#NYSE">SDY</a>), two of the most popular dividend ETFs, were able to scratch out positive returns. The Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="/stock/vig#NYSE">VIG</a>), the largest dividend ETF by assets, performed in line with the S&amp;P 500.

VIG's unimpressive second-quarter performance aside, these are good days for dividend investors. Dividend increases have far outpaced reductions and suspensions this year to the point where about 80 percent of S&amp;P 500 constituents <a href="http://blogs.marketwatch.com/thetell/2012/06/15/an-etf-that-pays-you-for-waiting/">currently pay dividends</a>. 

That's good news considering the income one can depend on from Treasuries and CDs. In other words, barely enough to get fund a trip to Starbuck's (NASDAQ: <a class="ticker" href="/stock/sbux#NASDAQ">SBUX</a>) on the city bus. With that in mind, these dividends merit consideration in the second half.

WisdomTree MidCap Dividend Fund (NYSE: <a class="ticker" href="/stock/don#NYSE">DON</a>)
Maybe it is because DON tracks mid-caps that it flies under the radar. It certainly is not because of size as the six-year-old DON has over $341 million in assets under management. DON, which charges 0.38 percent per year, currently yields almost 3.1 percent, according to <a href="http://www.wisdomtree.com/etfs/fund-details.aspx?etfid=3">WisdomTree data</a>.

Home to over 350 stocks, DON has a lot to like in that its yield and expenses are reasonable. Plus, the fund has jumped almost five percent year-to-date. The biggest knock on DON is an almost 39 percent allocation to financials. Obviously, this is a mid-cap fund so that does not mean the most controversial bank stocks are featured here, but recent history has taught investors that when one big bank sneezes, it seems like the rest of the sector catches a cold. 

EGShares Low Volatility Emerging Markets Dividend ETF (NYSE: <a class="ticker" href="/stock/hilo#NYSE">HILO</a>)
The EGShares Low Volatility Emerging Markets Dividend ETF usually enters the <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/06/2664497/the-definitive-guide-to-emerging-markets-dividend-etfs">emerging markets dividend ETF conversation</a>, but the fund is showing it might be one of the better international dividend funds, including those that track developed markets.

In the second quarter, HILO outperformed the SPDR S&amp;P International Dividend ETF (NYSE: <a class="ticker" href="/stock/dwx#NYSE">DWX</a>), which focuses more on developed markets, by more than 200 basis points. DWX may have the higher yield, but HILO's price/earnings and price/book ratios are slightly better. 

HILO's heavy allocations to conservative sectors such as telecommunications and utilities along with an almost 17 percent weight to Thailand could be positive catalysts for the fund in the second half.

Global X SuperDividend ETF (NYSE: <a class="ticker" href="/stock/sdiv#NYSE">SDIV</a>)
The Global X SuperDividend ETF, which just celebrated its first birthday, give investors some reasons to celebrate. Home to 100 stocks, the ETF is well-balanced as no stock receives a weight in excess of 1.47 percent. SDIV has a jaw-dropping yield of 9.41 percent. 

That high yield is driven by the fact that SDIV allocates less than a third of its country weight to the U.S., giving investors an opportunity to exploit the higher yields often offered by global stocks. SDIV's U.S./global mix has worked in investors' favor this year as the Global X offering has outperformed DWX and the iShares Dow Jones International Select Dividend Index Fund (NYSE: <a class="ticker" href="/stock/idv#NYSE">IDV</a>) year-to-date.

Another point in SDIV's favor: It pays a monthly dividend.

WisdomTree Emerging Markets Corporate Bond Fund (NASDAQ: <a class="ticker" href="/stock/emcb#NASDAQ">EMCB</a>)
There should be at least one bond fund on this list and EMCB makes the list for several reasons. First, with almost $60.2 million in AUM, the almost four-month-old ETF, has been one of the better new ETFs of 2012 in terms of attracting assets. Second, EMCB yields five percent. Third, it pays a monthly dividend.

Finally, PIMCO's Bill Gross <a href="http://www.benzinga.com/markets/bonds/12/06/2702422/etfs-bill-gross-might-like-bono-hdv-pbj">recently said he likes Brazilian and Mexicand debt</a>. Brazil and Mexico combine for more than 38 percent of EMCB's weight. 

Guggenheim Multi-Asset Income ETF (NYSE: <a class="ticker" href="/stock/cvy#NYSE">CVY</a>)
Last week, the Guggenheim Multi-Asset Income ETF cleared resistance at $21 and now looks poised to challenge its 52-week high in the $21.75 area. Do not be deterred by the fact that almost a third of this ETF's weight is devoted to financials. In this case, that means real estate investment trusts (REITs).

Along those lines, CVY is true the multi-asset roots it purports to have. The fund holds common and preferred stocks, ADRs, REITs, MLPs and royalty trusts.

CVY has a trailing 12-month yield of 5.31 percent and the fund has jumped 4.5 percent in the past month. In this environment, the knock on CVY is an almost 18 percent weight to energy stocks. If oil prices continue to struggle, that could suppress CVY's second-half upside.

For more on dividend ETFs, click <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/06/2667219/s-p-bullish-on-vanguard-dividend-appreciation-etf-vig-pe">here</a>.

EMCB

SBUX

5 Dividend ETFs for the Second Half 

April showers didn't give way to many May flowers for U.S. stocks and ETFs. After Friday's action, it's safe to say traders and investor might be in for some June gloom as well. Quips about the months aside, the path of least resistance for riskier assets is down, at least for the foreseeable future. 

These are trying times indeed, but contrarian investing has often proven rewarding over time <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/05/2600146/contrarian-etf-bets-to-consider-fcg-iyw">and there are plenty of worthy ETFs with which to establish contrarian positions right now</a>.

S&amp;P Capital IQ runs a contrarian ETF portfolio that holds eight ETFs. The portfolio was up 11.2% through the end of April and has outperformed its benchmark index by 150 points since its October 2009 inception. Earlier this week, the research firm made some new additions to the portfolio that certainly fit the bill as contrarian given the current market environment.

Despite the substantial declines experienced by almost every emerging markets ETF under the sun over the past several weeks, S&amp;P Capital IQ added the Vanguard MSCI Emerging Markets ETF (NYSE: <a class="ticker" href="/stock/vwo#NYSE">VWO</a>) to its contrarian portfolio. VWO, which had almost $54 billion in assets under management at the end of April, is the largest emerging markets ETF on the market today. 

S&amp;P rates VWO Marketweigtht. The fund, which has lost more than 13% in the past month, is heavily allocated to Chinese, South Korean, Brazilian and Taiwanese equities, among others. 

The Vanguard Mid-Cap Growth ETF (NYSE: <a class="ticker" href="/stock/vot#NYSE">VOT</a>) was also added to the portfolio. VOT, which is also rated Marketweight by S&amp;P, has an expense ratio of just 0.1%, making it cheaper than 93% of comparable funds, according to Vanguard. Consumer discretionary and technology names account for 42.5% of VOT's weight while health care and industrials combine for another 29.3%. The fund has lost 11.3% in the past month.

Perhaps the most contrarian addition of the three is the iShares Dow Jones US Oil Equipment Index Fund (NYSE: <a class="ticker" href="/stock/iez#NYSE">IEZ</a>), which S&amp;P also rates Marketweight. Since the start of May, West Texas Intermediate crude has lost about 20%, including a 17% drop last month. Over the same time, the iShares Dow Jones US Oil Equipment Index Fund has slipped almost 16%. 

"A look under the hood of IEZ reveals that the ETF ranks favorably in the performance-ranking category, but receives a neutral assessment of its cost factors. In the risk considerations category, S&amp;P Capital IQ determined the ETF ranks unfavorably" S&amp;P said in a research note. "IEZ tracks the performance of the Dow Jones US Select Oil Equipment &amp; Services Index, which is focused on oil industries. While the ETF's ranking is hurt by its elevated volatility, analyst Todd Rosenbluth pointed to the potentially favorable characteristics of the underlying holdings. Five-STARS-ranked Schlumberger (NYSE: <a class="ticker" href="/stock/slb#NYSE">SLB</a>) is the ETF's top holding and six other stocks within the top-10 holdings are considered attractive by S&amp;P Capital IQ equity analysts."

Schlumberger, the world's largest oilfield services provider, currently accounts for nearly 20.5% of IEZ's weight. Other top-10 holdings include National Oilwell Varco (NYSE: <a class="ticker" href="/stock/nov#NYSE">NOV</a>), Halliburton (NYSE HAL) and Baker Hughes (NYSE: <a class="ticker" href="/stock/bhi#NYSE">BHI</a>).

Other members of the S&amp;P contrarian portfolio include the iShares Dow Jones International Select Dividend Index Fund (NYSE: <a class="ticker" href="/stock/idv#NYSE">IDV</a>), the First Trust Health Care AlphaDEX Fund (NYSE: <a class="ticker" href="/stock/fxh#NYSE">FXH</a>) and the PowerShares S&amp;P 500 High Quality ETF (NYSE: SPHQ).

iShares Dow Jones US Oil Equipment & Services Index Fund

S&P Capital IQ Highlights 3 Contrarian ETFs (IEZ, VWO, VOT)

Here is the ETF Professor's ETF Watch List for Tuesday May 29, 2012.

See if the iShares Dow Jones International Select Dividend Index Fund (NYSE: <a class="ticker" href="/stock/idv#NYSE">IDV</a>) can hold support at $28.

The Global X Silver Miners ETF (NYSE: <a class="ticker" href="/stock/sil#NYSE">SIL</a>) and Market Vectors Gold Miners ETF (NYSE: <a class="ticker" href="/stock/gdx#NYSE">GDX</a>) have been perking up as of late.

Defensive play of the day: Health Care Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlv#NYSE">XLV</a>).

Emerging markets plays of the day: Market Vectors Egypt ETF (NYSE: <a class="ticker" href="/stock/egpt#NYSE">EGPT</a>), Market Vectors Brazil Small-Cap ETF (NYSE: <a class="ticker" href="/stock/brf#NYSE">BRF</a>) and the Direxion Daily China Bear 3X Shares (NYSE: <a class="ticker" href="/stock/yang#NYSE">YANG</a>).

Forex play of the day: ProShares UltraShort Euro (NYSE: <a class="ticker" href="/stock/euo#NYSE">EUO</a>).

Bond play of the day: PowerShares Emerging Markets Sovereign Debt Fund (NYSE: <a class="ticker" href="/stock/pcy#NYSE">PCY</a>).

PowerShares Emerging Markets Sovereign  Portfolio

YANG

ETFs to Watch May 29, 2012 (XLV, BRF, EUO)

Given that the SPDR S&amp;P 500 (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>) is down 5.5% in the past month, plenty of ETFs have the look of value plays. There are also plenty of style funds that aim to be value propositions as well. Within the large-cap value ETF universe, few are as dominant or as popular as the Vanguard Value Trust (NYSE: <a class="ticker" href="/stock/vtv#NYSE">VTV</a>). 

Simply put, VTV is big, cheap and offers exposure to over 400 stocks, most of which are readily identifiable blue chips. It's also not the only kid on the value ETF block. Here are a few large-cap value ETFs your broker probably neglected to mention.

PowerShares Dynamic Large Cap Value ETF (NYSE: <a class="ticker" href="/stock/pwv#NYSE">PWV</a>)
The PowerShares Dynamic Large Cap Value ETF has been around for over seven years and in terms of headlines, the ETF has toiled in relative obscurity. However, investors have paid attention because PWV is home to almost $401 million in assets under management. Home to 50 stocks, PWV's constituency reads like a "usual suspects" of value funds. Eight of the fund's top-10 holdings are Dow stocks with Abbott Labs (NYSE: <a class="ticker" href="/stock/abt#NYSE">ABT</a>) and Altria (NYSE: <a class="ticker" href="/stock/mo#NYSE">MO</a>) the outliers.

A combined 36% allocation to staples and health care names speaks to PWV's value propensities and the fund has outperformed VTV year-to-date. If the broad market keeps falling, PWV will need to find support at $19 or risk significant damage. Be aware of the 0.6% expense ratio.

First Trust Value Line Dividend Index Fund (NYSE: <a class="ticker" href="/stock/fvd#NYSE">FVD</a>)
Not just any old stock can make FVD's cut. Companies must have a market cap north of $1 billion and garner a Value Line safety ranking of one or two to be included. Like PWV, FVD has plenty of AUM, $440.5 million, but only draws occasional mentions from the so-called value experts. The 2.4% yield isn't jaw dropping, but FVD does a good job of mixing nearly 170 stocks together from the mid- and large-cap universes. 

No single names receives an allocation of more than 0.68% and, predictably, utilities and staples combine for over 42% of the ETF's weight. 

iShares Dow Jones International Select Dividend Index Fund (NYSE: <a class="ticker" href="/stock/idv#NYSE">IDV</a>)
The iShares Dow Jones International Select Dividend Index Fund has by no means anonymous, but these days it might be fair to say the $901.7 million fund is overlooked. It's easy to see why: "International" is part of this fund's name. As such, IDV has been outperformed by plenty of popular U.S. dividend funds this year, including the iShares High Dividend Equity Fund (NSYE: HDV).

A 20.5% allocation to financial aside, IDV's sector lineup, which is heavy on staples, telecom and utilities names, is conservative, the fund features no emerging markets exposure and its beta is barely higher than the S&amp;P 500's. What all that indicates is IDV is being hampered by its Europe exposure. In particular, a 13% combined weight to France and Italy.

Guggenheim Defensive Equity ETF (NYSE: <a class="ticker" href="/stock/def#NYSE">DEF</a>)
Not much about the Guggenheim Defensive Equity ETF will surprise investors because the fund's name gives away what its objectives are. Staples and utilities combine for over 45% of DEF's weigth and top-10 holdings include defensive names such as Wal-Mart (NYSE: <a class="ticker" href="/stock/wmt#NYSE">WMT</a>), PepsiCo (NYSE: <a class="ticker" href="/stock/pep#NYSE">PEP</a>) and Verizon (NYSE: <a class="ticker" href="/stock/vz#NYSE">VZ</a>).

To that end, DEF has disappointed in terms of recent performance, losing almost 3% in the past week alone. We suspect the culprit is an over 18% allocation to energy stocks, which in this case, is an allocation to MLPs. Still, DEF's energy exposure is being treated as though it's with traditional oil names. Sometimes the market doesn't do proper examinations before beating up an ETF and that's proving to be the case with DEF.

Technicals

First Trust Value Line Dividend Index Fund ETF

PowerShares Exchange Traded Fund Trust Dynamic Large Cap Value Portfolio

4 Value ETFs Your Broker Forgot to Mention (DEF, IDV, FVD)

BlackRock's (NYSE: <a class="ticker" href="/stock/blk#NYSE">BLK</a>) iShares unit, the world's largest ETF sponsor, will introduce its third and fourth ETFs <a href="http://www.benzinga.com/markets/bonds/12/04/2466846/3-new-bond-etfs-debut-tuesday-ihy-emhy-emcb">this week</a> when it rolls out the iShares Global High Yield Corporate Bond Fund (BATS: GHYG) and the iShares Morningstar Multi-Asset Income Index Fund (BATS: IYLD). The two funds will add to iShares' growing lineup on the BATS Exchange.

The The iShares Global High Yield Corporate Bond Fund will track the Markit iBoxx Global Developed Markets High Yield Index. At the end of February, that index was comprised of almost 650 high yield corporate bonds denominated in U.S. dollars, Euros, British pounds sterling and Canadian dollars. GHYG will have an expense ratio 0.55%.

The The iShares Morningstar Multi-Asset Income Index Fund will track the the Morningstar Multi-Asset High Income Index. Thaat index is designed to provide 20% exposure to equities, a 20% allocation to alternative investment strategies and a 60% weight to fixed income products.

IYLD's index is comprised of other iShares ETFs including the following: The iShares Dow Jones Select Dividend Index Fund (NYSE: <a class="ticker" href="/stock/dvy#NYSE">DVY</a>), the iShares Dow Jones International Select Dividend Index Fund (NYSE: <a class="ticker" href="/stock/idv#NYSE">IDV</a>) and the iShares S&amp;P Global Infrastructure Index Fund (NYSE: <a class="ticker" href="/stock/igf#NYSE">IGF</a>). The following ETFs are found within the fixed-income asset class: The iShares iBoxx $ High Yield Corporate Bond Fund (NYSE: <a class="ticker" href="/stock/hyg#NYSE">HYG</a>), the iShares Barclays 20+ Year Treasury Bond Fund (NYSE: <a class="ticker" href="/stock/tlt#NYSE">TLT</a>), the iShares J.P. Morgan USD Emerging Markets Bond Fund (NYSE: EEMB), the iShares S&amp;P/Citigroup International Treasury Bond Fund (NYSE: <a class="ticker" href="/stock/igov#NYSE">IGOV</a>), and the iShares 10+ Year Credit Bond Fund (NYSE: GLJ). The following funds are found among the alternatives asset class: The iShares S&amp;P U.S. Preferred Stock Index Fund (NYSE: <a class="ticker" href="/stock/pff#NYSE">PFF</a>) the and iShares FTSE NAREIT Mortgage Plus Capped Index Fund (NYSE: <a class="ticker" href="/stock/rem#NYSE">REM</a>).

IYLD will have an expense ratio of 0.6%.

Earlier this week, iShares introduced the iShares Emerging Markets High Yield Bond Fund (BATS: EMHY) and the the iShares Global ex USD High Yield Corporate Bond Fund (BATS: HYXU).

iShares S&P Global Infrastructure Index Fund

iShares S&P/Citigroup International Treasury Bond Fund

IGOV

iShares S&P US Preferred Stock Index Fund

iShares FTSE NAREIT Mortgage PLUS Capped Index Fund

iShares Trust Barclays 20+ Year Treasury Bond Fund