Emerging markets equities have had a positive last twelve months, returning 9.3% over the last year per YCharts. Many investors have turned towards the category as an option for diversification and potential upside as supply chains and interest rates shift. Still, emerging markets equities aren’t without their risks. The space often poses challenges to investors given the lack of information. Looking to dividends may help.
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Dividends can provide both current income and key information about a firm, given that companies mostly offer dividends from a position of strength. As an indicator, it can help investors sift through a sometimes uncertain emerging markets equities space. That’s why it may be worth looking to a firm that leans into dividend expertise.
Emerging Markets Equities Options
SS&C ALPS Advisors offers a suite of ETFs that apply the “Dogs of the Dow” theory. That includes the ALPS Emerging Sector Dividend Dogs ETF (EDOG). EDOG tracks an equal-weighted index that identifies the five firms with the highest dividend yield in each of the ten GIC sectors save for real estate.
That provides investors with a well-researched option to invest in emerging markets equities. The ETF charges a 60 basis point (bps) fee to do so, having hit its 10-year ETF milestone just this year. It has offered a 6.8% trailing 12-month yield per SS&C ALPS Advisors.
That current income doesn’t just provide information, either, but also investable funds that can also boost portfolios for those nearing retirement. With the dividend dogs approach, then, investors can get exposure to emerging markets equities that stand out from the pack. It could appeal as an addition to a core set of portfolio holdings.
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vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for EDOG, for which it receives an index licensing fee. However, EDOG is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of EDOG.
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