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. Modern Alpha Channel
  2. Quality International Dividends Can Tame Volatility
Modern Alpha Channel
Share

Quality International Dividends Can Tame Volatility

Nick Peters-GoldenFeb 02, 2023
2023-02-02

Investors may be excited by yesterday’s Fed meeting and market upswing, but this year’s volatility is far from over. That merits a look at current income in the form of dividends, which exploded in popularity at the turn of the year and are still popular, with the third-highest inflows over the last three months for dividend ETFs, according to VettaFi. Investors who find the space appealing may want to watch quality international dividends in the WisdomTree International Quality Dividend Growth Fund (IQDG A-).

One particular reason investors may want to look to dividends could be avoiding a potential recession, still possibly in the cards for later this year. Dividends tend to be much less volatile than stocks in a recession, with current income buoying portfolios and lowering beta in times when share prices are flying up and down.

With U.S. markets still perhaps overvalued and with some way to go before really seeing the drop-offs that might come due to the Fed’s rate hikes, international markets may also become more appealing by comparison. Many foreign economies have already done the hard work of managing inflation with rate hikes, and when adding a quality dividend screen to international firms, there may be some interesting options available.

That presents an opportunity for an ETF like the quality international dividends ETF IQDG. IQDG charges 42 basis points to track the WisdomTree International Quality Dividend Growth Index, which offers an alternative look on total market stocks by adding dividend flavor. Targeting firms outside the U.S., the strategy ranks stocks by quality and long-term growth, with earnings yield required to exceed dividend yields.

IQDG identifies the top 300 names and weights them according to the total of their annual cash dividend payouts, capped at 5% for each. No nation or sector receives a weight greater than 20%, as well. IQDG has outperformed its ETF Database category average and its FactSet segment average to start the year, returning 9.8% over one month compared to 9 % and 7.5%, respectively. It has also added $26 million in net inflows over the last five days.

Dividends have started the year well and merit a place on investors’ shortlists. As such, an international look offered by a strategy like IQDG may be a strategy to watch in the weeks ahead, buoying portfolios if the U.S. market dips in 2023.

For more news, information, and analysis, visit the Modern Alpha 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