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. Volatility Resource Channel
  2. With DIVI, Consider Foreign Equities With a Dividend Tilt
Volatility Resource Channel
Share

With DIVI, Consider Foreign Equities With a Dividend Tilt

Nick Peters-GoldenDec 23, 2022
2022-12-23

Dividends have picked up a lot of steam towards the end of 2022, and rightly so, offering current income to buoy investors’ portfolios ahead of an uncertain new year. With the domestic U.S. market facing the risk of a rising rate-instigated recession next year, it could be a good moment to revisit ex-U.S. equities, available in a foreign dividend equities ETF like the Franklin International Core Dividend Tilt Index ETF (DIVI C)+.

Dividends could see another solid year in 2023 by avoiding some of the bigger tech or internet firms in place of large firms in some more mature industries like utilities, consumer staples, energy, and healthcare — all areas that may remain more durable going forward. With dividend-paying stocks having notably outperformed the broader market in the 1970s, they could do so again with inflation unlikely to leave us quickly in the next few months.

That could be a helpful lean for looking at foreign equities. Emerging markets faced a lot of headwinds in 2022, but markets could be approaching a turning point with the possibility of a weaker dollar from tightening policy and slowing U.S. growth allowing for some stability in undervalued EM currencies. Further, according to Franklin Templeton’s 2023 outlook, some of the worst negative sentiment in places like China and Europe may have been overshot and already well settled into valuations.

DIVI actively invests with a dividend yield tilt to its parent index, the Morningstar Developed Markets ex-North America Target Market Exposure Index. The foreign dividend equities ETF includes large- and mid-cap stocks, applying optimization to the trailing 12-month dividend yields of the eligible securities.

The ETF charges just nine basis points for its exposures and has added $40 million in one-month net inflows, a notable spike compared to its $66.6 million net inflows over one year. Further, it has outperformed both its ETF Database category average and its Factset segment average on a YTD basis, and outperformed the former metric 12.6% to 2.3% over three months. It offers a 3.4% annual dividend yield.

There are a variety of dividend strategies out there available for investors, but the tilt available in DIVI adds a notable flavor for a foreign equities slice. For investors on the lookout for the right dividend play for 2023, DIVI may be one to watch in the weeks to come.

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

VettaFi is an independent publisher and takes responsibility for our edit staff, research, and postings. Franklin Templeton is not affiliated with VettaFi and was not involved in drafting this article. The opinions and forecasts expressed are solely those of VettaFi and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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