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!

ABCs of Guggenheim's New Fund

Stocks in this article: BHP ABV EFA GXF

NEW YORK ( TheStreet) -- The new Guggenheim ABC High Dividend ETF (ABCS) plays into an ETF segment that could be crucial in helping U.S.-based investors in enjoying stock market success over the course of the next 10 years. The fund accesses high-yielding stocks from Australia, Brazil and Canada -- the "ABC" in the name of the fund.

The uniting theme to the country selection is that they are commodity-based countries and obviously, these countries, along with other commodity-based countries like Chile and Peru, have become very popular and rewarding investment destinations. Also, the trends that have led to success for these markets appear to still be in place.

The fund is not a simple repackaging of mega-cap stocks from each country that are ubiquitous in so many funds; names like Vale (VALE) or BHP Billiton (BHP). The fund will have 30 holdings with 46% of the fund in Brazil, 29% in Australia and the rest in Canada. With only 30 holdings, some of the names have fairly large weightings. The largest holding is beer and soft drink maker Ambev (ABV) from Brazil at 9.1%, followed by Australian telecom provider Telstra (TLSYY) at 8.4%, followed by several other Brazilian companies with weightings greater than 4%.

As this is a dividend-centric fund, it will not be a surprise that utilities is the largest sector at 20%, followed by telecom at 17%, and industrials and discretionary each at 12%. The fund will have a 0.65% expense ratio and currently, there is no yield information available as the fund is brand new, but investors should expect the payouts to be lumpy as some of the stocks in the fund will only pay one annual dividend as opposed to the quarterly dividend that U.S. investors are accustomed to.

As mentioned above, the fund could play a crucial role for US investors preferring to build foreign exposure using broad-based funds similar to the iShares MSCI EAFE Index Fund (EFA). Unfortunately, EFA is dominated by countries that are fundamentally most similar to the U.S., and with many similar problems as the U.S. The UK, Japan, France and Germany account for 58% of the fund making it very unappealing.

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 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

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