Exchange Traded Funds (ETFs)

Large, Liquid High-Dividend-Seeking Fund

We conclude our series on international income-driven dividend exchange traded funds (ETFs) with SPDR S&P International Dividend ETF (DWX). This fund has a very different portfolio makeup from the other funds we have covered so far, due to its approach in weighing securities by dividend yield rather than by market cap. The approach is bearing fruit for DWX with its 5.2% current yield, a quite high yield for international equity funds.

DWX is a large fund with $998 million in total assets, a quarter of which is invested in Australia and another quarter in the United Kingdom and Canada. Furthermore, DWX also has considerable holdings in other countries including Hong Kong, South Africa, France and China, exposing it to certain currency risks but causing less exposure to region-specific risks.

Recently, the fund has experienced a minor drop, being down 0.14% over the past month. However, in the graph below it is clear the fund has had a strong overall performance for the year — up 9.47% year to date, handily beating out the S&P 500’s 5.66%. The fund has an expense ratio of 0.45%.

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

DWX generally corresponds to the total return performance of an index that includes 100 exchange-listed common stocks from around the world that offer the highest dividend yields. DWX’s top five holdings are Crescent Point Energy Corp. (CPG.TO), 4.38%; Sands China Ltd. (B5B23W), 3.10%; Woodside Petroleum Ltd (697972.AX), 3.00%; Rio Tinto plc (071887.LS), 2.91%; and Pembina Pipeline Corporation (PPL.TO), 2.74%.

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Most of DWX’s holdings are highly liquid, meaning they can be quickly traded on the market if the need arises. This reduces the overall risk of the fund. If you seek a fund that is striving to provide you with the highest possible dividend yield from around the world and offers relatively low risk, consider looking into SPDR S&P International Dividend ETF (DWX) for a potential addition to your portfolio.

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

Doug Fabian

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