Daily ETF Watch: Int’l Dividend Fund Debuts

August 21, 2014

ProShares rolls out a new dividend ETF derived from the MSCI EAFE Index.

Today ProShares launched a fund targeting developed-market stocks with solid records of growing their dividends.

The ProShares MSCI EAFE Dividend Growers ETF (EFAD) is tied to an index with components selected from the MSCI EAFE Index. Companies included in the underlying index must have at least a decade of increases in dividend payments behind them.

The methodology targets a minimum of 40 components, which it equally weights; sectors are capped at 30 percent of the total index.

The launch makes sense in the context of the current environment: Investors are searching for yield and income, and stocks that have a steady record of growing dividends are likely to be very appealing.

ProShares last year launched a similarly themed domestic ETF, the ProShares S&P 500 Aristocrats ETF (NOBL | B-61), which targets S&P 500 components that have at least a 25-year track record of growing dividends.

The firm also has an emerging markets “dividend growers” ETF in registration—once that launches, ProShares will have a full suite of dividend growth ETFs covering domestic, developed and emerging markets.

EFAD comes with an expense ratio of 0.50 percent. NOBL charges 0.35 percent. The ProShares MSCI Emerging Markets Dividend Growers ETF (EMDV) is slated to come with an expense ratio of 0.60 percent.

FXI’s Index To Be Revamped

FTSE has said that it is going to expand one of its most widely used China indexes, as reported by ETF.com’s European sister site.

The FTSE China 25 Index underlies the iShares China Large-Cap ETF (FXI | B-49), which has nearly $6 billion in assets under management. The fund essentially covers the 25 largest China stocks listed on the Hong Kong stock exchange and includes red chips, H shares and P chips. The index underlies additional ETFs issued by Deutsche Bank and iShares in European markets.

As of Sept. 19, the FTSE China 25 Index will be revamped to include 50 components instead of 25. From that date, it will be known as the FTSE China 50 Index.

 

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