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/Critical Minerals
    • 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. Volatility Resource Channel
  2. Look to LVHI for Less Volatile International Dividends
Volatility Resource Channel
Share

Look to LVHI for Less Volatile International Dividends

Tom LydonAug 19, 2022
2022-08-19

Home country bias is a factor that more investors should be aware of, and with that in mind, it’s relevant to the 2022 equity income discussion.

As many dividend investors are aware, with nearly eight months of 2022 in the books, the domestic dividend outlook is bright with S&P 500 payouts poised to hit another all-time high. With that, it’s easy to lose sight of the fact that dividends are trending higher in other developed markets. Fortunately, some exchange traded funds make it easy to access steady ex-U.S. dividends. That group includes the Franklin International Low Volatility High Dividend Index ETF (LVHI A).

Home to nearly $130 million in assets under management, LVHI follows the QS International Low Volatility High Dividend Hedged Index. Various economic data points confirm the relevance of LVHI in the current environment.

“Inflation and global recession fears are behind the trend. With the US and Eurozone inflation forecast between 7.5 to 8% for 2022, dividend stocks provide much needed yield to protect against asset erosion. While the S&P Global Markit Intelligence Economics team forecast global GDP to grow 2.7% in 2022 and 2.6% in 2023, some markets, specifically Western Europe, are headed toward a contraction. Dividend paying companies have defensive characteristics that are well suited for recession, supply chain resilience and rising interest rates,” according to IHS Markit.

Fortunately, there is vibrancy this year in European dividends, and LVHI is levered to that theme with the U.K., Switzerland, France, and Germany combining for about 40% of the exchange traded fund’s geographic exposure. Nine other European nations are also represented in the fund at weights ranging from 0.06% to 4.78%.

Speaking of geography, among international dividend ETFs, LVHI has the right mix at the right time by some metrics.

“The highest dividend yield firms outperformed non-dividend payers by notable spreads in the US Total Cap (39.6 percentage points), Developed Europe (29.7 percentage points) and Developed Pacific (26.9 percentage points) universes over the past year. Taking advantage of this dividend yield strategy, which also outpaced its earnings estimate-based value cohort in 2022 in each region, we construct a dividend forecast/short sentiment multi-factor model which demonstrated robust performance since the beginning of 2021, with average decile spreads of 4.42%, 2.66% and 2.55%, respectively,” added IHS Markit.

Among developed Asia-Pacific markets with impressive dividend growth trajectories this year, Japan, Australia, and Singapore are part of that conversation. Those three countries combine for roughly 30% of LVHI’s roster.

For more news, information, and strategy, visit the Volatility Resource Channel.

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