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SPDR S&P International Dividend ETF: A Well-Diversified International Alternative

Published Wed, 25 Nov 2020 00:48:41 -0500 on Seeking Alpha

Seeking AlphaETF AnalysisSPDR S&P International Dividend ETF: A Well-Diversified International AlternativeNov. 25, 2020 12:48 AM ET|| About: SPDR S&P International Dividend ETF (DWX)by: Michael A. Gayed, CFAMichael A. Gayed, CFA The Lead-Lag ReportAnticipate Corrections and Volatility with Award Winning ResearchSummaryDWX offers you well-diversified exposure to developed international markets besides the US; emerging market exposure is limited to 15%.
Dividend plays have come into focus of late; DWX offers a yield of almost 5%.
DWX offers you attractive exposure to sectors with better value such as financials and real estate and underweights the overheated tech sector.
Concentrating your assets can make you rich but diversifying your assets keeps you rich. - Anonymous

Readers of The Lead-Lag Report may recall that I had recently flagged the relatively strong performance of developed markets over the last month. I’ve been exploring some investment options in that landscape, and in this article, I will attempt to shed some insight into the key qualities of a developed market-themed ETF - The SPDR S&P International Dividend ETF (NYSEARCA: DWX).
Profile
DWX offers investors an opportunity to pursue the 100-highest-yielding companies outside the US by tracking the S&P International Dividend Opportunities Index. Initial screening for this index is rather rigorous, and stocks are screened on the basis of market cap, minimum value traded, profitability, dividend growth, dividend coverage ratio, and dividend yield. Additionally, only regular cash dividend outflows are considered, and special cash dividends are avoided. I feel this is a welcome screening measure as a lot of companies tend to pay one-off special dividends which rarely sustain; on account of this screening barrier, one avoids the risk of being linked with companies that have a patchy track record. A lot of ETFs in this space tend to weigh their constituents based on the market... Read more