Published Sat, 19 Sep 2020 06:17:44 -0400 on Seeking Alpha
Seeking AlphaETF AnalysisInvesco International Dividend Achievers ETF: Risks To ConsiderSep. 19, 2020 6:17 AM ET|| About: Invesco Exchange-Traded Fund Trust - Invesco International Dividend Achievers ETF (PID)by: Vasily ZyryanovVasily Zyryanov Long/Short EquitySummaryPID has ~$598 million in AUM with 59 holdings; its 12-month distribution rate is 4.76%.
The fund is predominantly focused on Canada and the U.K., which account for 50.65% and 7.53% of holdings, respectively.
PID did not deliver alpha in the last ten years, as currency headwinds dented its returns.
Investors should carefully consider all pros and cons and act with caution.
The essential investor takeaway from the recent Fed press conference is that bond yields are not about to climb higher at least until 2023, which gives companies a meaningful amount of time to load up on cheap debt. Moreover, though the OECD lifted the economic outlook for 2020, it also emphasized that the accommodative policy from central banks (put another way, low rates) will be necessary to prop up the recovery.
Thus, as minuscule or even sub-zero coupons make investors seek alternative income options, the importance of dividends in creating a meaningful and scalable income stream is clearly not about to falter. But the pandemic dented cash flows, and hence, dividend plans for many companies, which previously looked fortified, and the process of picking a stock with a safe, sustainable payout and comfortable yield has become much more taxing.
Today, I continue my series of articles on dividend-focused ETFs with a deep delve into the Invesco International Dividend Achievers ETF (PID), a fund that has a few apparent advantages but also risks and flaws that are not observable upon cursory inspection.
A look under the hood
At the moment, PID's portfolio encompasses ~$598 million in assets under management with 59 holdings. Its 12-month distribution rate is 4.76%. The fund tracks the Nasdaq International Dividend... Read more