The O’Shares FTSE Europe Quality Dividend ETF (OEUR) offers a relatively low-risk, low-volatility way to invest in out-of-favor international markets.
OEUR is an exchange-traded fund (ETF) designed to reflect the performance of publicly listed, large- and mid-capitalization, dividend-paying issuers in Europe. To be considered for inclusion in the portfolio, targeted issuers must exhibit three main attributes: high quality, low volatility and high dividend yields.
While OEUR seeks out companies with solid dividend yields, the additional emphasis on quality gives the ETF a kind of safety net. For dividend funds, the quality factor often can mean eschewing the companies that currently pay the highest yields, since these are often less stable than those that have track records of long-term dividend payout and growth. As such, OEUR’s respectable 3.7% yield is built on solid ground, even if the payout could be higher.