A crisis in the utility sector is unlikely but 20% of an entire portfolio in the industry would risk exposure to an unforeseen event.
Another fund relevant to the conversation is the PowerShares International Dividend Achiever Portfolio (PID). The fund currently has 30% in financials versus 41% when it was first listed four years ago. The reason for the smaller decline in the financial-stock weighting is that the fund has always been relatively heavy in the five large Canadian banks, which held up much better through the crisis, thanks to being more conservative. Thus, none had to cut its dividends.
The outperformance of the PowerShares International Dividend Achiever Portfolio also captures the general outperformance of foreign stocks over domestic in the past few years and the weakness in the U.S. dollar. If dividend-centric ETFs fit in to your financial plan, it makes sense to allocate a portion to a foreign dividend fund like PowerShares International Dividend Achiever Portfolio.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV