I’ve been working to reallocate my income portfolio (a taxable brokerage account separate from retirement savings, which I use to build up a long term income source) to 50% US and 50% international. While I’m fairly comfortable with analyzing and choosing stocks here in the US, I prefer to take a broader approach when it comes investments globally. With this in mind I’ve been looking around to see what ETFs are available for a dividend-focused investor like myself.

One such ETF that I came across is DEM, or Wisdomtree’s Emerging Markets High-Yielding Equity Fund. This fund picks out stocks international holdings that have a high yield as per the description below:

“The WisdomTree Emerging Markets High-Yielding Equity Index is a fundamentally weighted index that measures the performance of the highest dividend yielding stocks selected from the WisdomTree Emerging Markets Dividend Index. At the index measurement date, companies within the WisdomTree Emerging Markets Dividend Index are ranked by dividend yield. Securities ranking in the highest 30% by dividend yield are selected for inclusion. Companies are weighted in the Index based on annual cash dividends paid.”

The fund currently yields 6.13%, which is quite high and well over my 4% threshold. Top countries include some nations I’ve been looking into of late like Brazil and yes, even a touch of China. Considering the slow down in the US economy which could or could not be more pronounced in the coming years coupled with the inevitable rise of other nations with developing middle classes and a lust for status and wealth (Again..China.) a hefty amount of international exposure makes sense.

In terms of sectors I’m happy to see that it’s not top-heavy with financials like many of their dividend counterparts. Here’s the top 10:

1. Materials 23.43%
2. Energy 21.32%
3. Telecommunication Services 16.12%
4. Banks 12.19%
5. Utilities 4.94%
6. Semiconductors & Semiconductor Equipment 3.72%
7. Food, Beverage & Tobacco 3.60%
8. Transportation 3.42%
9. Capital Goods 2.41%
10. Technology Hardware & Equipment 2.33%

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This entry was posted on Thursday, June 19th, 2008 at 10:33 am and is filed under Dividend Investing, Make Money, Passive Income. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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