ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Alternatives Channel
      • Artificial Intelligence
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Education
      • ETF Investing
      • ETF Strategist
      • Faith-Based Investing
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Invest Beyond Cash
      • Leveraged & Inverse
      • Modern Alpha
      • Portfolio Strategies
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Gold/Silver/Critical Materials
        • Crypytocurrency
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Indexes
    • Scenario Analysis
    • Watchlists
    • Head-To-Head ETF Comparison Tool
    • Mutual Fund To ETF Converter
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • Gaining Perspective Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Global Diversification Channel
  2. Use HDEF and SNPD to Gain Income from Dividend Stocks
Global Diversification Channel
Share

Use HDEF and SNPD to Gain Income from Dividend Stocks

James ComtoisFeb 22, 2023
2023-02-22

While the S&P 500 is up 5% year-to-date, the index lost more than 18% in 2022. And even though inflation has come down from its 9.1% peak in June, prices are still high, which means that the Federal Reserve will likely continue raising interest rates. In such an environment, investors are looking for income. In fact, Amanda Rebello, DWS’s head of Xtrackers sales, U.S. onshore, told VettaFi at Exchange that income is a top concern for clients.

“The number one conversation I’m having with clients at the moment is about income,” Rebello said. “Especially given where the risk-free rate is, if you’re taking risk into a portfolio with equities, for example, it’s going to have to work just a little bit harder than it has done historically.”

In a low-yielding interest rate environment, investors searching for additional sources of income may consider a high-dividend yield approach. High-dividend yielding strategies seek exposure to companies with higher-than-average dividend yields relative to their market cap-weighted counterparts with the goal of capital preservation and potential long-term capital appreciation.

The Xtrackers MSCI EAFE High Dividend Yield Equity ETF (HDEF A-) gives investors exposure to high-quality international equities across developed market countries (ex. the U.S. and Canada), and provide an alternative, potentially reliable income stream. The fund seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI EAFE High Dividend Yield Index.

HDEF has about 112 securities. Its top holdings as of Feb. 21 were BHP Billiton (with a weighting of 5.15%), Unilever PLC (4.86%), and Novartis AG (4.63%).

Rebello explained that the dividend yield for HDEF was 5.2%, which is “quite a boost versus domestic equities,” which typically yield about 1.7%. “So, that’s almost four times as much,” she added.

For investors with a home bias, the Xtrackers S&P ESG Dividend Aristocrats ETF (SNPD B) provides exposure to U.S. equity investment styles with ESG-screened U.S. dividend-oriented equities. SNPD seeks investment results that correspond generally to the performance, before fees and expenses, of the S&P ESG High Yield Dividend Aristocrats Index, which measures the performance of constituents from the S&P High Yield Dividend Aristocrats Index that meet certain ESG criteria.

The S&P High Yield Dividend Aristocrats Index measures the performance of companies within the S&P Composite 1500 Index that have followed a policy of consistently increasing dividends every year for at least 20 years.

SNPD is yielding about 2.7%, “so you’re still getting a one point uplift versus the S&P 500 with quality dividends,” Rebello said.

For more news, information, and analysis, visit the Global Diversification Channel.

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2025 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X