NVDA - EDIV: Long-Term Return Not Attractive

2024-06-15 07:51:41 ET

Summary

• SPDR S&P Emerging Markets Dividend ETF owns emerging markets dividend stocks, with high exposure to Taiwan and China.
• EDIV's concentration in China may drag its performance due to economic challenges, while Taiwan's tech sector may benefit the fund.
• Emerging markets like EDIV typically have higher volatility and downside risk compared to developed markets, impacting performance.

ETF Overview

SPDR S&P Emerging Markets Dividend ETF ( EDIV ) owns a portfolio of emerging markets dividend stocks. The fund’s exposure to Taiwanese stocks is beneficial but its exposure to Chinese stocks may continue to drag its performance. Volatility in these stocks may be quite high. The fund has not been able to deliver dividend growth in the past. Its long-term return has been very weak either. Therefore, we think investors may want to seek other dividend funds....

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