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AAM's Global Dividend ETFs Report Distributions for November

Advisors Asset Management's three smart beta index exchange-traded funds offer a diverse view of geographic stock market performance across the globe. In October, the three segments of the global market in which they represent reported the following results:

  • U.S. S&P 500: 2.04%
  • S&P Developed Ex-U.S. BMI: 3.40%
  • S&P Emerging Markets BMI: 3.85%



AAM's S&P 500 High Dividend Value ETF is a smart beta index fund seeking to replicate S&P's customized S&P 500 Dividend and Free Cash Flow Yield Index. The ETF and Index both focus on dividend income-paying stocks that are generally large-cap blue chips. In addition to dividend income, the index also screens for free cash flow characteristics, helping to add an additional fundamental characteristic that provides investors with an edge over the standard dividend income sample.

For the month of October, the ETF had a total return of 80 basis points, beating the S&P 500 Dividend and Free Cash Flow Yield Index by 10 basis points with the help of its distributions. Year to date, the fund has a total return of 15.06% and a one-year return of 6.2%.

Like all three of the AAM ETFs, the fund pays a monthly dividend. The November distribution had an ex-dividend date of Nov. 1 with a record date of Nov. 4 and a payable date of Nov. 6.

The ETF's November distribution is reported at 9.64 cents per share. It has an approximate dividend yield of 3.61%.

For October, the U.S. S&P 500 reported a gain of 2.04%. A phase one China trade deal helped stocks along with a strong start to the third-quarter earnings season, which kicked off with the big banks reporting mid-month. The Federal Reserve announced its third federal funds rate cut for the year with a target of 1.50% to 1.75%. Gross domestic product's third-quarter growth came in at 1.9% in the advance report, mostly in line with expectations. In November, investors will be watching the impeachment investigation and a potential China trade agreement finalization. Year to date, the S&P 500 is up 22.19%, trailing just slightly behind the Nasdaq's gain of 25.8%.

AAM S&P Developed Markets High Dividend Value ETF (DMDV)

The Developed Markets ETF follows the same dividend and free cash flow screening methodology as AAM's two other value-focused ETFs. However, DMDV holds stocks in the developed markets, excluding the U.S. In this area of the world, Brexit negotiations topped headlines in October. The U.K.'s Boris Johnson negotiated a Jan. 31, 2020 extension, giving the country more time to agree on terms for a more peaceful exit.

The ETF's value stocks outperformed the broader market, but fell just a few basis points short of beating the tracker index. The fund seeks to replicate the S&P Developed Ex-U.S. Dividend and Free Cash Flow Yield Index ,which had an October return of 4.42%. It reported an October total return of 4.33%. In the broader market, the S&P Developed Ex-U.S. BMI had an October return of 3.40%.

Year to date, Developed Markets has reported a gain of 10.61% with no one-year return yet since the ETF was launched on Nov. 27, 2018.

The S&P Developed Ex-U.S. BMI has a year to date return of 13.63% and a one-year return of 7.45%.

All three AAM ETFs follow the same distribution schedule. As such, DMDV's November distribution had an ex-dividend date of Nov. 1 with a record date of Nov. 4 and a payable date of Nov. 6.

The November distribution is 12.5 cents per share. The ETF has an approximate dividend yield of 4%.

AAM S&P Emerging Markets High Dividend Value ETF (EEMD)

AAM's Emerging Markets ETF rounds out the global lineup with a look at emerging markets value. In emerging markets, the BRICs (Brazil, Russia, India and China) dominate a substantial majority of the exposure. China continues to grapple with the U.S.'s pressure on trade, while also showing some weakening in growth, which could make it more vulnerable to acquiescing with the U.S.'s demands. Hong Kong also permeated much of the headlines in October with ongoing riots and a recession report.

Investors gravitated more toward a mix of capitalizations during the month with the S&P Emerging Markets BMI topping returns at 3.85%. AAM's customized ETF in the emerging markets space seeks to replicate the S&P Emerging Markets Dividend and Free Cash Flow Yield Index, which had an October return of 2.68%. EEMD reported a total return of 2.59%.

Year to date, EEMD has a total return of 3.0% and a one-year return of 1.79%. The S&P Emerging Markets BMI is showing a year to date return of 9.15% and a one-year return of 10.89%.

The Fund's November dividend distribution is reported at 10.6 cents per share. The distribution is payable on Nov. 6, with the ex-dividend date of Nov. 1 and the record date of Nov. 4. The approximate dividend yield is 4.10%.

Disclosure: I own shares of the S&P 500 High Dividend Value ETF.

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This article first appeared on GuruFocus.