EDIV ETF - S&P Emerging Markets Dividend ETF
๐๐๐Investing in Emerging Markets ETFs offer unique opportunities and benefits such as growth potential and diversification.
$SPDR S&P Emerging Markets Dividend ETF(EDIV)$ taps into the huge potential for growth as compared to developed countries. EDIV ETF seeks to provide exposure to 100 emerging market stocks with the highest risk adjusted yield that have passed stability and growth screens.
EDIV tracks the total return performance of the S&P Emerging Markets Dividend Opportunities Index. This index is weighted based on 12 month dividend yield. For diversification purpose, no single country can be greater than 25% and no stock weight can be greater than 3% in the index.
The stocks selected must have stable or increasing 3 year dividend growth. Stocks must be profitable, as measured by positive earnings per share over the latest 12 month period.
The Top 10 holdings include Power Grid Corp of India, PetroChina Co Ltd, NTPC, Malayan Banking, Hero Motor, Sanlam Ltd, Saudi Telecom, Advanced Info Service, Qatar National Bank and China Resources Land Ltd.
The Top 10 weightage is 29%. Total number of holdings is 101. Distributions are paid every 3 months. The current Distribution yield is 4.18%. The expense ratio is 0.49%.
Country Allocation - Taiwan at 33%, Hong Kong 27%, India at 11%, Thailand at 8%, Qatar at 3.5%, Malaysia at 3%, Saudi Arabia at 2.7%, Czech Republic at 1.8%, Mexico at 1.7% and South Africa at 1.6%.
$SPDR S&P Emerging Markets Dividend ETF(EDIV)$ is the best performing Emerging Markets ETF in 2023 with an impressive returns of 34.7%. EDIV is currently up 1.2% in the past week and 5.6% year todate.
What I like about EDIV is its emphasis on profitability and stable dividends. At the last closing price of USD 33.80, $SPDR S&P Emerging Markets Dividend ETF(EDIV)$ offers great value for money, good diversification and taps into the fast growing economies of Emerging markets. Best of all, $SPDR S&P Emerging Markets Dividend ETF(EDIV)$ pays great distributions every 3 months, which is a great source of passive income while waiting for capital growth.
Emerging market earnings growth is expected to accelerate to 18% in 2024, driven by growth in countries like India and Taiwan. EDIV ETF is my tactical bet to capture this exciting growth ahead.
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