Dividend ETFs remain a favorite among income-seeking investors, but not all are created equal. Using TipRanks’ High Dividend Yield ETFs tool, we have shortlisted three ETFs: iShares Emerging Markets Dividend ETF (DVYE), iShares Asia/Pacific Dividend ETF (DVYA), and Global X MSCI SuperDividend EAFE ETF (EFAS) that offer a solid balance of high yields, strong returns, and reasonable expense ratios.
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For context, a dividend ETF (Exchange-Traded Fund) is a fund that invests in dividend-paying stocks and trades on an exchange like a regular stock.
TipRanks Makes Dividend Investing Easier
TipRanks provides a range of tools to help investors find and track dividend opportunities that fit their goals. For example, the Best Dividend Stocks list highlights top dividend-paying companies along with key comparison metrics. Meanwhile, the Dividend Calendar makes it simple to track upcoming payouts, so investors can plan purchases in time to qualify for the next distribution.
For those interested in ETFs, TipRanks also offers powerful comparison features. TipRanks’ ETF Comparison Tool lets investors compare funds across metrics such as AUM (assets under management), expense ratios, technicals, dividend analysis, etc.
Let’s take a closer look at the three high-dividend-yield ETFs.
iShares Emerging Markets Dividend ETF (DVYE)
The iShares Emerging Markets Dividend ETF aims to track the Dow Jones Emerging Markets Select Dividend Index. This index follows a dividend-weighted methodology to select roughly 100 stocks from emerging markets. This focus on companies in emerging economies helps the fund deliver attractive dividend yields.
DVYE currently pays a quarterly dividend of $0.684 per share, leading to a 10.35% yield, while maintaining a low expense ratio of 0.49%. Importantly, an ETF with an expense ratio around 0.50% is often considered attractive, ensuring that the investor keeps more of the income generated. As of September 5, the DVYE held 97 stocks with $898.7 million in AUM.
Global X MSCI SuperDividend EAFE ETF (EFAS)
The Global X MSCI SuperDividend EAFE ETF focuses on delivering strong dividends by investing in international equities across developed markets outside North America. It seeks to track the MSCI EAFE Top 50 Dividend Index, which selects companies based on their high dividend yields.
EFAS pays a regular monthly dividend of $0.072 per share, reflecting a yield of 5.1%. Importantly, EFAS has an expense ratio of 0.56%. In terms of holdings, EFAS has a total of 51 holdings with total assets of $30.6 million.
iShares Asia/Pacific Dividend ETF (DVYA)
The iShares Asia/Pacific Dividend ETF tracks the Dow Jones Asia/Pacific Select Dividend 50 Index, providing exposure to a diverse range of high-yielding stocks across the Asia-Pacific region.
Meanwhile, DVYA pays a quarterly dividend of $0.0762 per share, reflecting a 5.09% yield, and carries a low expense ratio of 0.49%. The ETF holds 52 stocks with total assets of $46.4 million, with its top 10 holdings accounting for 42.37% of the portfolio.
