This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

With S&P at Record High, Consider Dividend ETFs with International Exposure

Stocks in this article: SDIV LVL DWX

NEW YORK ( TheStreet) -- This week's news that the Federal Reserve is not yet ready to cut back on stimulus programs has sent the S&P 500 to new record highs, and left many investors with the idea that it is too late to move into new positions in U.S. assets.

At the same time, we have seen pronounced weakness in many foreign markets as declining economic data have added an element of uncertainty and increased risk.

But for those with longer-term time horizons, there are examples of cheap dividend exchange-traded funds with international exposure that are designed to generate income and able to weather any near-term volatility that might be seen as the market adjusts to new central bank stimulus projections.

Momentum is supportive, as well. Dividend ETFs have posted strong reversals from the lows see last summer. Since the market is now positioning for a low interest rate environment that extends into 2015, income plays will trade at a premium. Economic data in Asia and the eurozone have shown evidence of stabilization, so it will be important for investors to consider moving into dividend products with international exposure into the final months of the year.

Of course, positions in this space are accompanied by added volatility in most cases. So the ETFs suggested below will be most appropriate for investors with a higher risk tolerance and broader time horizons.

Global ETFs With Yields Above 6%

First, we look at the Global X Super Dividend Fund (SDIV), which offers exposure to a weighted basket that includes 100 high-yielding global stocks. Roughly one-third of the fund is made up of U.S. companies but the remainder allows access to assets in Australia, Canada, Latin America, Asia and the eurozone.

Sector allocation focuses on utilities, telecom, real estate and financial -- and annual fees are below 60 basis points. The fund is well-diversified and is designed to benefit from companies able of elevated high returns and sustainable yields. Weighting shows that no company makes up more than 1.6% of the fund (another example of strong diversification), and with 7% yields the fund is likely to attract attention in the months ahead.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs