...there are 22 foreign dividend-oriented exchange-traded funds, mostly launched since 2006. Sixteen of these are from WisdomTree Investments Inc., a company which subscribes to the research of Jeremy Siegel, a professor at the University of Pennsylvania, who believes that dividends are the most objective way to value a company.
The ETFs go from broad ones, such as the PowerShares International Dividend Achievers Porfolio (PID), launched in 2005 and yielding 4.1%, to specialized ones such as the WisdomTree International SmallCap Dividend (DLS), which currently yields 2.6%. These are two of the largest such ETFs, with slightly more than $460 million in assets.
The foreign-focused fund with the highest yield currently is Henderson Global Equity Income (HFQAX), with a 12-month yield of 8.8%, followed by the iShares Dow Jones EPAC Select Dividend ETF (IDV) with an 8.3% yield. The highest-yielding fund may not be suitable for all investors. For instance, the iShares DJ EPAC ETF has 50% of its assets in financials.
The Dividends From Far, Far Away
The Wall Street Journal
By: Shefali Anand
August 16, 2008