Topic: How To Invest

Pat: Would you please give me your opinion on two ETFs: PowerShares International Dividend Achievers Portfolio ETF and the WisdomTree Trust DEFA Fund? Thank you.

Article Excerpt

PowerShares International Dividend Achievers Portfolio ETF, $17.94, symbol PID on Nasdaq (Units outstanding: 85.4 million; Market cap: $1.5 billion; www.invescopowershares.com), aims to mirror the performance of the Nasdaq International Dividend Achievers Index. Its MER is 0.54%, and it yields 1.9%. The Nasdaq International Dividend Achievers Index only includes non-U.S. stocks (although it does contain foreign ADRs trading on U.S. exchanges) that have raised their dividends for five straight years. That means the index excludes a number of sound companies that pay dividends but haven’t increased them annually. The ETF also takes on a lot of risk with its holdings: Eight of its top 10 holdings are oil or energy-related stocks, including its second-largest investment, KazMunaiGas Exploration, Kazakhstan’s state-controlled energy giant. Others include Russian energy companies Rosneft and Lukoil. The fund’s breakdown by industry is as follows: Energy, 33.5%; Financials, 14.9%; Industrials, 11.7%; Consumer Discretionary, 9.9%; Telecommunication Services, 9.5%; Consumer Staples, 7.5%; Health Care, 6.5%; Materials, 6.4%; Information Technology, 2.9%; and Utilities, 1.5%. We don’t…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.