Foreign Large Cap Equities Deliver Strong Returns Among Dividend Stock ETFs
05/04/2011 0 comments
Foreign Large Cap Equity ETFs allow investors to diversify their portfolios by gaining exposure large stocks in developed economies across the globe. These ETFs track equities from nations like Japan, the UK, and Germany, among many others. These ETFs invest primarily in stocks with market caps in the top 70% of their respective markets.
Among Dividend Stock ETFs (see table), those that track Foreign Large Cap Equities performed very well in the past week, continuing their string performance over the past 52 weeks.. The iShares Dow Jones International Select Dividend ETF (IDV) returned 2.81% in the past week and over 28% in the past 52 weeks. Also performing well among Dividend Stock ETFs was the iShares MSCI EAFE Index ETF (EFA), which gained 2.69% in the last week and almost 18% during the past year.
Top Dividend Stock ETF Trends
4/29/2011
| ETF Name | Symbol | 1 Week | 4 Weeks |
| SPDR DJ Wilshire Intl Real Estate | RWX | 2.98% | 5.22% |
| iShares Dow Jones Intl Select Div Idx | IDV | 2.81% | 6.02% |
| iShares MSCI EAFE Index | EFA | 2.69% | 4.90% |
| iShares Dow Jones US Real Estate | IYR | 2.62% | 4.78% |
| First Trust Value Line Dividend Index | FVD | 1.93% | 3.15% |
| SPDR S&P 500 | SPY | 1.93% | 2.18% |
| iShares Dow Jones Select Dividend Index | DVY | 1.89% | 2.32% |
| Vanguard High Dividend Yield Indx | VYM | 1.84% | 3.27% |
| PowerShares Intl Dividend Achievers | PID | 1.81% | 4.28% |
| PowerShares HighYield Dividend Achievers | PEY | 1.73% | 1.78% |
The growth of these ETFs has followed an upward trend in the overall equity market in recent periods. As a higher percentage of the world's equity market capitalization continues to shift away from the United States, Foreign Large Cap Equities will continue to bring strong returns to investors.
Foreign Large Cap Equities
04/29/2011| Description | Symbol | 1 Yr | 3 Yr | 5 Yr | Avg. Volume(K) | 1 Yr Sharpe |
|---|---|---|---|---|---|---|
| iShares MSCI EAFE Index | EFA | 16.26% | -3.93% | 0.58% | 17,665 | 68.32% |
| Vanguard MSCI EAFE ETF | VEA | 21.49% | -0.87% | NA | 2,135 | 88.16% |
| Schwab International Equity | SCHF | 19.65% | NA | NA | 180 | 86.62% |
| iShares Dow Jones Intl Select | IDV | 26.81% | 1.73% | NA | 156 | 107.04% |
| iShares MSCI EAFE Value Index | EFV | 14.36% | -4.8% | -1.08% | 133 | 55.66% |
| PowerShares Intl Dividend Achievers | PID | 20.98% | -1.56% | 2.87% | 121 | 112.83% |
| iShares MSCI EAFE Growth Index | EFG | 19.53% | -2.71% | 1.55% | 84 | 86.67% |
| PowerShares DWA Dev Mkts Techn | PIZ | 22.65% | -0.49% | NA | 115 | 93.38% |
In addition to the ETFs mentioned above, others in the Foreign Large Cap sector have shown strong growth in recent periods. The PowerShares DWA Developed Markets Technical ETF has returned 22.65% in the past year and the Vanguard MSCI EAFE ETF (VEA) gained 21.49% during the same period. These strong gains have helped to offset the large valuation declines experience during the recent financial crisis.
While high equity valuations may trigger a market retraction in coming periods, Foreign Large Cap Equity ETFs should remain a substantial part of any well-diversified portfolio.
Symbols: EFA, VEA, SCHF, IDV, EFV, PID, EFG, PIZ, RWX, IDV, EFA, IYR, FVD, SPY, DVY, VYM, PEY
Disclosure: MyPlanIQ does not have any business relationship with the company or companies mentioned in this article. It does not set up their retirement plans. The performance data of portfolios mentioned above are obtained through historical simulation and are hypothetical.
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