This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Funds Look Overseas For Yield

NEW YORK ( TheStreet) -Macroeconomic issues plaguing the U.S. have made for jittery market conditions that continue to test the minds and stomachs of investors.

Given the qualities which have shaped the domestic investing environment, it is understandable that income and international investing strategies have come into vogue in 2010.

As seen from the most recent flow data compiled by the National Stock Exchange, ETF investors have developed an insatiable thirst for emerging markets and yield-bearing equities.

Funds such as the Vanguard Emerging Market ETF (VWO), SPDR S&P Dividend Achievers ETF (SDY), iShares MSCI Brazil Index Fund (EWZ) and iShares Dow Jones Select Dividend Index Fund (DVY) saw some of the largest inflows across the entire ETF industry.

While it is possible to use funds such as SDY and VWO to take advantage of the benefits of international- and dividend-oriented investing strategy on an individual basis, there are also a number of products which investors can use to take advantage of both of these strategies at once.

The iShares Dow Jones International Dividend Index Fund (IDV), PowerShares International Dividend Achievers Portfolio (PID), the Federated International Strategic Value Dividend Fund (IVFCX), and the WisdomTree Emerging Market Equity Income Fund (DEM) are four liquid products which seek to expose investors to a bevy of internationally-based companies which are dedicated to paying out comfortable dividends to investors.

Investors holding these funds have enjoyed strong yields ranging from 3% to 4%.

Aside from their attractive distributions, over the past six months, all four of these funds have managed to outperform the broad U.S. markets, as indicated by their performance against the SPDR S&P 500 ETF (SPY).

In the case of IDV, PID and IVFCX, these funds avoid getting too carried away with emerging market exposure. Although they have proven to be strong in recent months, the markets of nations such as Brazil, Indonesia and Vietnam remain volatile and therefore may not be suited for conservative investors fearful of market swings.

Instead, IDV, PID, and IVFCX appear more dedicated to providing investors with stable returns over the long term. For instance, the funds center the largest percentages of their portfolios on nations considered part of the developed world.

Geographically, countries like the United Kingdom are the major drivers of the funds' performance with13% of IDV, 22% of PID and 27% of IVFCX dedicated to its marketplace. Australia and Canada are two other influential global players representing substantial geographic chunks of each of these three funds.

This may not sit well with aggressive investors looking specifically for dividend-paying emerging market companies. However, they are not out of luck. Using a product like DEM, investors can gain access to yield-bearing companies hailing from some of the hottest corners of the globe.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
SYM TRADE IT LAST %CHG
IDV $35.11 -0.43%
DEM $42.97 -1.42%
PID $18.12 -0.71%
DVY $78.57 -0.58%
VWO $40.88 -1.16%

Markets

DOW 18,096.90 -106.47 -0.58%
S&P 500 2,098.53 -9.25 -0.44%
NASDAQ 4,967.1410 -12.76 -0.26%

Partners Compare Online Brokers

Free Reports

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