Multi-Asset Income ETF (CVY) tracks an index designed to select a diversified group of securities with the potential to outperform the Dow Jones U.S. Select Dividend Index. The Index is comprised of approximately 125 to 150 securities selected from a universe of domestic and international companies, including U.S.-listed common stocks, ADRs paying dividends, REITs, MLPs, closed-end funds and traditional preferred stocks.
International Multi-Asset Income ETF (HGI) is similar to CVY, but invests primarily in global companies and has minimal exposure to U.S. securities. The largest weightings are given to the UK, Canada, and France. HGI also invests in multiple emerging economies, including Mexico and Brazil.
PowerShares Dividend ETFs
PowerShares offers three ETFs designed to offer exposure to dividend paying companies of all sizes and nationalities.
Dividend Achievers Portfolio (PFM) is linked to the Broad Dividend Achiever Index, a benchmark that is designed to identify a diversified group of dividend paying companies that have increased their annual dividend for ten or more fiscal years. Companies meeting this requirement include several mega-cap blue chips, such as Wal-Mart, Johnson & Johnson, Exxon Mobil, AT&T, General Electric, and IBM.
High Yield Equity Dividend Achievers Portfolio (PEY) is based on the Dividend Achiever 50 Index, a benchmark composed of stocks selected primarily on the basis of dividend yield and growth in dividends. Compared to PFM, this ETF has a much heavier tilt towards small and mid cap stocks, with large cap companies accounting for only about 20% of holdings. PEY recently had a dividend yield of about 4.3% (see charts of PEY here).
International Dividend Achievers Portfolio (PID) is designed to replicate the performance of a benchmark comprised of dividend paying stocks. In order to be eligible for inclusion, companies must have increased their dividends for five or more consecutive fiscal years. As the fund name suggests, this ETF maintains a global focus, investing in both domestic and non-U.S. stocks.
First Trust Dividend ETFs
First Trust is known for its enhanced index products, offers a number of dividend ETFs focusing on a variety of different markets.
Dow Jones STOXX European Select Dividend Index Fund (FDD) is based on a dividend weighted index composed of 30 stocks selected from the Dow Jones STOXX 600 Index that includes high dividend yielding companies across 18 European countries. The universe of eligible companies includes stocks that have a positive five-year dividend per share growth rate and a dividend to earnings-per-share ratio of 60% or less.