Zacks Investment Ideas feature highlights: Vanguard FTSE Europe ETF, iShares International Select Dividend ETF and WisdomTree Europe SmallCap Dividend ETF

Zacks

For Immediate Release

Chicago, IL  August 21, 2013 – Today, Zacks Investment Ideas feature highlights Features: Vanguard FTSE Europe ETF (VGK-Free Report), iShares International Select Dividend ETF (IDV-Free Report) and WisdomTree Europe SmallCap Dividend ETF (DFE-Free Report).

High-Dividend ETFs to Buy Even If the Fed Tapers

While many emerging market securities have been impacted by this trend as well, some in international developed markets have held up in this environment. These have actually appreciated as of late, and they still provide investors with solid yields too.

In particular, many key European markets have apparently turned it around in recent months, pushing up asset prices across the continent. Add this to a bout of euro currency strength, and dollar-denominated investors see a solid trend in place for European securities (see all the European Equity ETFs).

These European stocks may thus prove to be relatively-well insulated from the current bout of Fed taper talk and thus be better dividend choices in this kind of market environment. Plus, thanks to some sluggish trading until very recently, many European stocks are trading at decent values, something that can’t really be said for many of their peer high dividend securities in the U.S.

Given this, investors can certainly look abroad for yield at this time, especially considering the price appreciation in many markets as of late. For an easy way to do this while obtaining exposure across a number of developed markets, any of the following dividend-focused ETFs could easily accomplish the task:

Vanguard FTSE Europe ETF (VGK-Free Report)

This is one of the most popular European ETFs on the market, with assets of nearly $8 billion. The product is also relatively cheap, charging investors just 12 basis points a year in fees, while seeing solid volume of 2.3 million shares a day.

The fund has roughly one-fifth of its assets in the financials sphere, followed by consumer staples (14%), health care (12%), and industrials (12%). British stocks take the biggest holding, followed by Swiss companies, then a variety of euro zone nations (also see 3 European ETFs Holding Their Ground).

The product has added about 3.1% over the past month, compared to a 2.4% loss for the S&P 500 in the same time frame, or a nearly double digit loss for a REIT ETF. However, the 12 month yield for this fund comes in just under 5%, making it a very solid income destination.

iShares International Select Dividend ETF (IDV-Free Report)

For a broader international dividend play, investors could consider IDV. This product tracks the Dow Jones EPAC Select Dividend Index, a benchmark of roughly 100 companies from around the developed world.

The ETF skews towards Europe (roughly two-thirds of the portfolio) though a few nations like Australia and Canada make up sizable allocations as well. This product also offers a solid allocation to mid and small cap securities (nearly 30% of the portfolio), while its sector focus centers on financials, energy, utilities, and industrials.

IDV has also had a solid past month, gaining about 4.1% in the time frame. Plus this ETF is also sporting a 12 month yield around the 5.0% level, while its 30-Day SEC Yield comes in at 4.9% (also see Can This High Yield European ETF Surge Higher?).

WisdomTree Europe SmallCap Dividend ETF (DFE-Free Report)

For a small cap look at the solid trends appearing in Europe, WisdomTree’s DFE could be an excellent choice. This product follows a dividend-weighted index, giving investors exposure to about 230 small cap securities in Europe.

Industrials take the top allocation from a sector look (25%), followed by consumer discretionary (15%) and technology (14%). Country exposure is once again focused on the UK, while Sweden and Italy also receive double digit allocations.

Of the group, this small cap ETF has actually had the best month, adding about 6.4% in the time frame. Its yield leaves a little to be desired at 3.4%, though it is still definitely an income destination for most investors at this time.

Bottom Line

Talk of the taper in the U.S. market has crushed a number of yield-focused securities lately. Many products in this space have seen losses exceeding 10% in the past three months, marking the first big losses for many of these product categories.

This has forced many investors to go off the beaten path in order to find high yielding securities that aren’t facing such severe capital losses as well. Three such options in this market are VGK, IDV, and DFE, as all three of these pay great yields and have beaten out the S&P 500 over the past month (also read 3 ETFs for Rising Interest Rates).

So if you are in the market for yield but are concerned about the recent trends in the space, consider the aforementioned ETFs as some overlooked plays that could be better choices in this uncertain time for income-centric investors.

 About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.

 

Get the full Report on VGK – FREE

Get the full Report on IDV – FREE

Get the full Report on DFE – FREE

Follow us on Twitter:  http://twitter.com/ZacksResearch

Join us on Facebook:  http://www.facebook.com/ZacksInvestmentResearch

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Read the analyst report on VGK

Read the analyst report on IDV

Read the analyst report on DFE

Zacks Investment Research



More From Zacks.com

Rates

View Comments (0)

Recommended for You

  • Tycoon buys 30 Rolls-Royces for Macau hotel

    A Hong Kong tycoon has placed the biggest ever order for Rolls-Royce cars, agreeing to buy 30 Phantoms to chauffeur guests at a luxury resort he's building in the global gambling capital of Macau. Stephen Hung's $20 million purchase surpasses the 14 Phantoms bought by Hong Kong's Peninsula Hotel in…

    Associated Press
  • 1 Tip To Lose Belly Fat

    It's Hollywood's Hottest Diet And Gets Rid Of Stubborn Fat Areas Like Nothing Else.

    AdChoicesagoodcooksSponsored
  • Tycoon's arrest sends shock wave through Russia

    Tycoon's arrest sends shock wave through Russia MOSCOW (AP) — The arrest of a Russian telecoms and oil tycoon has sent shock waves through the country's business community, with some fearing a return to the dark days of a decade ago, when the Kremlin asserted its power by imprisoning the country's…

    Associated Press
  • Before You Buy Alibaba, Check Out 4 Top China Stocks

    Before You Buy Alibaba, Check Out 4 Top China Stocks While investors gear up for Alibaba Group 's (BABA) hotly anticipated initial public offering, don't forget about other Chinese stocks that are worth keeping an eye on. Today's Young Guns Screen of

    Investor's Business Daily
  • Costco Stores in Canada to Stop Taking American Express

    “The credit card relationship between American Express and Costco Wholesale Canada will not be renewed when it expires” on Dec. 31, the company said today in an e-mail to Canadian customers. The message was attributed to Lorelle Gilpin, vice president of marketing and membership for Costco…

    Bloomberg
  • Play

    Citi, Bank of America Offer Discounted Mortgages

    Citigroup and Bank of America will offer mortgages at discounted interest rates to help borrowers with low incomes or subprime credit. AnnaMaria Andriotis joins MoneyBeat. Photo: Getty.

    WSJ Live
  • "The Retiree Next Door": How successful retirees stretch their savings

    "The Retiree Next Door": How successful retirees stretch their savingsBy the time she hit her late 40s, Toni Eugenia wasn’t sure she would ever be able to retire. Eugenia, 56, a pharmacy technician who lived in Houston, was nearly $200,000 in debt and

    Yahoo Finance
  • As Fed takes baby steps, Cramer's trick for profit

    In turn, Cramer says making money in the market, involves looking at the environment through the lens of the Fed. "The trick is to remember that they speak for the common person," Cramer said. "The Fed wants the common person to make money." With that backdrop always in mind, Cramer says it becomes…

    CNBC
  • Norwich Information Security MS

    Online, accredited, top ranked. NSA Center of Academic Excellence. Recognized by the Department of Homeland Security. Download your free brochure!

    AdChoicesNorwich UniversitySponsored
  • CNBC Anchor Calls Out Fed-Hater Bill Fleckenstein In Startling Shouting Match

    CNBC Bill Fleckenstein of Fleckenstein Capital appeared on CNBC's Futures Now program on Tuesday. Futures Now host Jackie DeAngelis came out swinging, asking Fleckenstein right at the top if he was willing to admit that he had misunderstood monetary policy. Sounding taken aback, Fleckenstein…

    Business Insider
  • Beanie Babies creator's sentence debated in court

    Beanie Babies creator's sentence debated in court CHICAGO (AP) — Federal prosecutors seeking to put the billionaire creator of Beanie Babies in prison for hiding millions in Swiss bank accounts told appellate court judges Wednesday that the toymaker's sentence of probation threatens to erode the…

    Associated Press
  • Apple to unveil new iPads, operating system on Oct. 21 : report

    The company plans to unveil the sixth generation of its iPad and the third edition of the iPad mini, as well as its operating system OS X Yosemite, which has undergone a complete visual overhaul, the Internet news website said. Trudy Muller, a spokeswoman for Apple, declined to comment. The iPad is…

    Reuters
  • Here's What Mark Cuban Wishes He Knew About Money In His 20s

    Cuban is the owner of the Dallas Mavericks basketball team. Billionaire investor and entrepreneur Mark Cuban is generous with his advice. When we asked him what he wishes he'd known about money in his 20s, he said:

    Business Insider
  • Margaritaville casino owners seek bankruptcy

    The owner of Biloxi's Margaritaville casino has filed for Chapter 11 bankruptcy protection Tuesday, only hours before a hearing where the landlord aimed to seize the property. The filing by MVB Holding LLC in U.S. Don Dornan, a lawyer for landlord Clay Point LLC, said the company had planned to ask…

    Associated Press
  • Gilead Stock Is Falling On These Drug Setbacks

    Gilead Stock Is Falling On These Drug Setbacks Gilead Sciences (GILD) shares are backsliding Wednesday on news that the patient drop-out rate for hepatitis C drug Sovaldi is quadruple that of clinical trials. In addition, the biotech's Phase 2 study results

    Investor's Business Daily
  • Master's Degree in Nursing

    CCNE accredited MS in nursing in as few as 18 months online. Learn more today!

    AdChoicesNorwich UniversitySponsored
  • Embraer to sell 50 E-175 jets to Republic in $2.1 billion deal

    Brazil's Embraer SA, the world's third largest commercial planemaker, said on Wednesday it booked a firm order from U.S. The deal, which will be included in Embraer's order book for the third quarter, is valued at $2.1 billion, the planemaker said in a securities filing. The planes will be operated…

    Reuters
  • Play

    What the Fed Meeting Means for Bonds

    Janet Yellen & Co. are expected to hint at their timetable for raising interest rates. Here's how investors should prepare ahead of the meeting.

    WSJ Live
  • SHOE COMPANY: Our CEO Just Disappeared And Most Of The Money Is Gone

    "and like that: he's gone." This is an actual headline from a company press release: "CEO and COO disappeared, most of the company's cash missing." (Via FastFT) In a statement, German-based shoe company Ultrasonic said its CFO,  Chi Kwong Clifford Chan, has been unable to reach the company's CEO,…

    Business Insider
  • Don't buy Alibaba stock: 'Dean of Valuation'

    Investors should steer clear of Alibaba , valuation expert Aswath Damodaran said Wednesday. On CNBC's " Fast Money ," Damodaran, a professor of finance at New York University's Stern School of Business, noted that he was looking at Alibaba stock from the perspective of a long-term investor, not a…

    CNBC
  • Billionaire Investor Says Chinese People Work Harder And Western Companies Could Face Deep Trouble After Alibaba IPO

    Michael Moritz, the chairman of VC firm Sequoia Capital, is a huge fan of Chinese internet companies and reiterated his enthusiasm for the Chinese market in an interview with The Wall Street Journal Wednesday. The billionaire investor described the Alibaba IPO as a “major landmark event” that is as…

    Business Insider
  • Top Analyst Upgrades and Downgrades: AEP, BHP, GE, Incyte, 3M, Tyco, Under Armour and More

    Top Analyst Upgrades and Downgrades: AEP, BHP, GE, Incyte, 3M, Tyco, Under Armour and More Stocks were firm on Wednesday morning ahead of the FOMC meeting outcome. Tuesday’s rally may have sparked higher interest again, and investors are looking for bargains

    24/7 Wall St.
  • Tired of Living Paycheck to Paycheck?

    New website reveals how to save $1,000's when you're living paycheck to paycheck. See exactly how.

    AdChoices Media ForceSponsored
  • 6 Things Debt Collectors Wish You Knew

    The work debt collectors do is not popular, and has become increasingly derided by those who don’t like what we do or simply don’t know the facts about debt collection. Too often, debt collection is painted with a broad brush to create a portrait that isn’t accurate, and doesn’t properly educate…

    Credit.com