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Emerging Market Dividend ETFs for Income, Growth & Diversification
By Devon Layne | March 05, 2012

Related ETFs: DEM / EDIV

 

Emerging markets-focused dividend ETFs may be able to provide income-seeking investors with increased growth potential and exposure to companies with yields that are often more attractive than firms in the developed world, according to an article on Zacks.

Emerging economies are projected to grow 5.4 percent in 2012, compared with estimates of 1.2 growth for developed economies, said Zacks.

The article highlights the following ETFs as holding stable companies that also pay high dividends:

  • WisdomTree Emerging Markets Equity Income Fund (NYSEArca: DEM)
  • Emerging Markets Dividend Index Fund (NYSEArca: DVYE)
  • SPDR S&P Emerging Markets Dividend ETF (NYSEArca: EDIV)

 

Investors should note that emerging markets have a low correlation with developed markets, and that higher returns come with higher volatility, the article said.

For additional information on these funds, head over to Zacks.com.