ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • 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 Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Innovative ETFs Channel
  2. Snare Low Volatility and High Dividend Via This ETF
Innovative ETFs Channel
Share

Snare Low Volatility and High Dividend Via This ETF

Ben HernandezMay 06, 2022
2022-05-06

Getting international exposure amid a volatile U.S. equities environment could capture upside and income in other parts of the globe while offering an escape from the rate-hiking bonanza by the U.S. Federal Reserve.

Investors can achieve all of this in one fund: the Invesco S&P International Developed High Dividend Low Volatility ETF (IDHD B-). Despite this, global markets aren’t immune to the effects of rising inflation, so investors still have to navigate the murky market environment carefully when looking at opportunities abroad.

“Gone are the days of low inflation and easy global financial conditions,” a Brookings Institution article notes. “Many emerging market and developing economies (EMDEs) have recently been experiencing an unpleasant combination of elevated inflation and rising borrowing costs. At 8.5 percent in March 2022, inflation in EMDEs has reached its highest level since 2008 (Figure 1).”

“In advanced economies, inflation is now at its highest level since 1991,” the article adds. “Global financing conditions are tightening, as major advanced economy central banks are expected to raise policy interest rates at a faster pace than previously anticipated to contain inflationary pressures.”

This is a chart for this article

Peace of Mind and Income With IDHD

IDHD is based on the S&P EPAC Ex-KoreaLow Volatility High Dividend Index. The fund will invest at least 90% of its total assets in securities that comprise the index.

The index is composed of 100 securities in the S&P EPAC Ex-Korea LargeMidCap Index that have historically provided high dividend yields with lower volatility over the past 12 months. That should give investors a degree of peace when it comes to getting exposure to international markets.

As the index explicitly says, to help mute volatility, the fund focuses over 60% of its assets (as of April 28) on large-cap equities that comprise a value and blended style. To capture some upside growth, the fund also invests in mid-cap equities, which offer a medium between the low volatility of large-caps and the higher market movements of small-caps.

For income, a quarterly distribution is offered for investors. As of May 5, the 30-day SEC yield is pegged at 2.75%, the distribution rate is at 3.18%, and the 12-month distribution rate is at 4.85%.

For more news, information, and strategy, visit the Innovative ETFs Channel.


Content continues below advertisement

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

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