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!

Funds Look Overseas For Yield

Stocks in this article: DVY VWO IDV PID IVFCX DEM

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

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 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

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