Well yes China is a behemoth in the world today, but there are other countries in the region that are often overlooked and this could be detrimental to an investors portfolio. On country/continent in the region is Australia - how many investors have exposure to Australia?
By adding some Australian investments to your portfolio you not only further diversify a portfolio, but also could potentially increase reward potential. There is the iShares Australia ETF ($EWA), which hit a new 18-month high today for direct exposure. However, I prefer to diversify even further AND want to add some yield to the portfolio.
This is why I am highlighting the iShares Asia/Pacific Dividend ETF ($DVYA). The ETF is a basket of 31 high-yielding stocks in the region. Australia makes up 46% of the ETF, followed by Singapore 19%, Hong Kong 13%, Japan 12%, and New Zealand 10%.
The current 30-day SEC yield on the ETF is 5.2% and it charges an expense ratio of 0.49%.
Year-to-date the ETF is up 5%, not including any dividends paid.
The top holdings are Telecom Corp of New Zealand, Metcash, and National Australia Bank. The ETF is composed mainly of financials, telecom, consumer staples, and industrials.
Here is a chart of the ETF over the last 6 months.
No comments:
Post a Comment