DVYE - DVYE: Good Emerging Markets Dividend ETF But Better Choices Out There

2024-05-21 22:33:42 ET

Summary

• DVYE is an emerging market equity index ETF.
• It focuses on high-yield stocks, with a strong, growing 8.2% yield.
• Total returns have been quite weak since inception, although these have improved in the recent past.
• DVYE compares unfavorably to several of its peers, including EYLD.

I last covered the iShares Emerging Markets Dividend ETF ( DVYE ), an emerging markets high-yield equity index ETF, in mid-2023. In that article , I argued that DVYE's strong dividend yield and cheap valuation made the fund a buy. DVYE has slightly outperformed since, broadly in-line with expectations:

Since my last article, DVYE's dividends have grown and its valuation remains incredibly cheap, albeit a bit less than before. At the same time, I've grown more bullish on the Cambria Emerging Shareholder Yield ETF (BATS: EYLD ), a broadly similar ETF focusing on emerging markets with particularly high shareholder yields . EYLD's strategy results in a more diversified, less risky portfolio, and the fund has outperformed both DVYE and the S&P 500 in the past. EYLD does yield quite a bit less, with a 5.0% dividend yield compared to 8.2% for DVYE....

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