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IDV: A Developed Markets Dividend ETF To Consider For An Uncertain Economic Environment

Published Tue, 27 Nov 2018 10:12:23 -0500 on Seeking Alpha

The ongoing tensions between the US and China have rattled the financial markets and clouded the world’s economic outlook. For an uncertain environment, investors should consider loading up on well-established companies with a great history of dividend payments. The iShares International Select Dividend ETF (IDV) can give investors exposure to a number of international dividend-paying stocks. What I like about this ETF is that it is one of the largest and most liquid among all international dividend funds and offers an above-average yield. It has no exposure to emerging markets, particularly China whose economy may come under pressure as the US ramps up the trade war. Although it is not the perfect ETF, it is still the best among all developed markets focused dividend funds.

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This hasn’t been a great year for the US stock markets which have slipped into the red on a year-to-date basis. The fourth quarter is turning out to be particularly tough, as both Dow Jones (DIA) and the S&P 500 (SPY) have fallen by 8.2% and 9.4% respectively. The commodity prices, particularly for oil, have come under pressure. The Bloomberg Commodity Index, which tracks returns for 22 raw materials, has fallen 10% in the last six months.
Moreover, the future looks more uncertain now than a year ago due in part to the ongoing trade war between the US and China. For China, an escalation in tensions with the US, combined with the cooling housing market... Read more