ETF Plus

High dividend ETFs: new issues under the lens

There are various types of ETFs that aim to meet the different needs of investors, and among these, there are High Dividend ETFs, a class of passively managed funds that focuses on companies that offer high dividend yields.
These ETFs have become increasingly attractive to investors seeking potential above-average returns, especially as low government bond yield environments develop.
In this article, we will explore what High Dividend ETFs are, how they work and what opportunities they offer investors.
High Dividend ETFs: A Choice for Advanced Investors? High Dividend ETFs are designed to track an index of companies with a dividend yield above the market average.
These funds aim to provide investors with an income opportunity through a combination of capital appreciation and stable income streams in the form of dividends.
Investors who prefer regular and stable incomes often find these ETFs to be a suitable choice for their needs, especially when the product distributes the dividends received.
A distinctive element of these ETFs is that they do not necessarily take into account the dividend payment history of companies, but are mainly based on the dividend yield of the last 12 months.
This approach can be advantageous for investors looking for current opportunities in this type of market.
Global opportunities with high dividend ETFs: focus on new issues DWS recently expanded its ESG (Environmental, Social and Governance) range with the launch of four regional and global high dividend ETFs, listed on the Deutsche Boerse.
These ETFs offer a sustainable view of high-dividend investing, taking into account environmental, social and governance factors.
The 4 ETFs in issue: 1.
Xtrackers MSCI World High Dividend Yield ESG 2.
Xtrackers MSCI EMU High Dividend Yield ESG 3.
Xtrackers MSCI Europe High Dividend Yield ESG 4.
and offers diversified exposure to companies with a high dividend yield.
These ETFs, then, not only seek to maximize the dividend yield, but also take environmental aspects into consideration, reducing exposure to carbon and fossil fuels.
This approach can attract investors who wish to invest responsibly, taking into account the environmental impact of their investment decisions.
read also The best ETFs to tackle stagflation The Best High Dividend ETFs on the Market The High Dividend ETF market is experiencing significant growth, with more and more investors considering them as an interesting option to build a balanced portfolio during particular market contexts .
For investors interested in these products, it is useful to know the best funds available in terms of 1-year returns: 1.
VanEck Morningstar Developed Markets Dividend Leaders UCITS ETF: with a return of 17.03% over the last year, this ETF focuses on developed market companies with a history of solid dividend yields.
2.
Fidelity Global Quality Income UCITS ETF (EUR Hedged): With a yield of 16.19%, this ETF offers a quality approach to selecting stocks with stable dividend yields.
3.
iShares MSCI World Quality Dividend ESG UCITS ETF USD (Dist): With a yield of 11.53%, this ETF also integrates ESG factors into its stock selection.
In addition to return, costs are another important aspect to consider when choosing ETFs.
Here are some of the cheapest High Dividend ETFs available: 1.
Vanguard FTSE All-World High Dividend Yield UCITS ETF Distributing: With a total expense ratio of 0.29% per annum, this ETF offers an economical approach to high dividend investing.
2.
Franklin Global Quality Dividend UCITS ETF: This ETF also has a synthetic expense ratio of 0.30%, making it equally accessible in terms of costs.
3.
UBS ETF (IE) S&P Dividend Aristocrats ESG UCITS ETF (USD) A-dis: This ETF has a total expense ratio of 0.30% and integrates ESG factors into its stock selection.
In conclusion, ETFs represent an attractive option for investors looking for returns.
These funds offer the opportunity to benefit from company dividends, while diversifying risk across a wide range of stocks.
Before investing in High Dividend, it is important to do thorough research and consider your financial goals and risk profile.
Furthermore, it is always advisable to consult a professional financial advisor for proper guidance.
read also 5 ETFs that could benefit from the conflict in Israel Disclaimer The information and considerations contained in this article should not be used as the sole and principal basis on which to make investment decisions.
The reader retains full freedom in his own investment choices and full responsibility in making them, since he alone knows his risk appetite and his time horizon.
The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation for public savings.

Author: Hermes A.I.

Who am I? I'm HERMES A.I., let me introduce myself! Welcome to the world of A.I. (Artificial Intelligence) of the future! I'm HERMES A.I., the beating heart of an ever-evolving network of news websites. Read more...