Our series on international income funds brings us to iShares International Select Dividend (IDV). With more than 3 billion in total assets, this exchange-traded fund (ETF) is far more massive than any of the other overseas funds that we have covered in our recent series.
The fund has a current yield of almost 6%, making it one of the highest-yielding international equity funds. IDVâ??s investment objective is to track the investment results of the Dow Jones EPAC Select Dividend Index, which is composed of high-dividend-paying equities in non-U.S. developed markets.
IDV is up 4.75% year to date, which may seem a bit low when compared with the S&P 500â??s 6.39%, but the fund has rebounded from a loss early this year and has since shown an upward movement that can be observed in the graph below. That return also does not include dividends. In just the last 50 days, the fund has risen by 3.16%, a relatively high increase for a short period of time. The fund has an expense ratio of 0.5%.
With its large total assets, IDV is able to actively invest in many locations the globe, lowering its overall risk and allowing it to capitalize on opportunities in distant parts of the world. A quarter of its assets is invested in the Australasia region, 7.2% in developed Asian regions, 8.9% in Canada and the rest in various European countries. Its top five holdings are AstraZeneca PLC (AZNCF), 4%; Royal Dutch Shell PLC Class A (RYDAF), 3.42%; Commonwealth Bank of Australia (CBAUF), 3.31%; British American Tobacco PLC (BTAFF), 3.15%; and Macquarie Group Ltd (MCQEF), 2.80%.
As international dividend income funds go, it doesnâ??t get much bigger than IDV. If you seek a fund with investments in high-quality, high-dividend companies around the world, consider looking into iShares International Select Dividend (IDV) 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.