Fidelity Investments is expanding its factor - based exchange - traded fund (ETF) offerings for individual investors and financial advisers with the introduction of two international factor - based ETFs: Fidelity
International High Dividend ETF (FIDI) and Fidelity International Value Factor ETF (FIVA).
WisdomTree
International High Dividend Fund seeks to track the investment results of high - dividend - yielding companies in the developed world ex the U.S. and Canada.
Vanguard
International High Dividend Yield Index Fund and Vanguard International Dividend Appreciation Index Fund will complement Vanguard's existing domestic dividend - oriented funds: The USD15 billion Vanguard High Dividend Yield Index Fund and the USD23 billion Vanguard Dividend Appreciation Index Fund.
The expense ratio is relatively low in comparison to both international total market funds, as well as to
international high dividend yield funds.
Not exact matches
Better plan: Invest in a conservative bluechip
dividend portfolio and enjoy the same
high - flying lifestyle — with a much lower risk of being summarily executed by the
international intelligence community.
International stocks also look attractive relative to domestic ones thanks to lower valuations and generally
higher dividend yields.
For the following F - series funds, these dates were: Corporate Advantage Fund (September 11, 2015),
High Yield Bond Fund (hedged and unhedged)(September 11, 2015), Canadian
Dividend Fund (September 11, 2015), US Equity Fund (May 25, 2016), US
Dividend Fund (September 26, 2016), US Small / Mid-Cap Equity Fund (October 31, 2016),
International Equity Plus Fund (May 25, 2016), Income Advantage Fund (September 11, 2015), and Balanced Fund (August 25, 2015).
There are other real world factors that could drive down an ideal
international allocation, such as taxation (
dividend investors may prefer a
higher allocation to domestic stocks due to more favorable tax treatment).
International stocks also look attractive relative to domestic ones thanks to lower valuations and generally
higher dividend yields.
Sixty percent of the portfolio is allocated to
high - quality American and
international dividend - paying stocks via the positions in $ VIG, $ DLN, and $ PID.
As a good rule of thumb,
high - yield investments or investments that produce
high dividends should be in an IRA / 401 (k) whereas low - yield investments, tax - exempt bonds and
international investments (if you pay foreign taxes, to take advantage of the foreign taxes paid deduction) is better placed in a taxable account.
International equities are the least tax - efficient (because they are not eligible for the
dividend tax credit and they have a
higher yield than US equities), so they should be the first candidate.
There really is no clear - cut winner here; however, as one moves from U.S. to global to
international: (1) There tends to be greater volatility in the price of the chosen investment vehicle, and (2) There tends to be
higher dividend payments for the greater risk associated with foreign stocks in your mix.
This list will include both
high - yield ETFs and
dividend - growth ETFs, as well as targeted sector and
international plays.
My answer: I see relative value in U.S.
high yield, tax - exempt bonds,
international dividend paying stocks and preferred stock.
Q: In your Vanguard taxable portfolio page, you leave out domestic and
international real estate... for someone who wants to invest in a taxable account, wouldn't the
high dividends and the traditionally strong performance of this asset class outweigh their less favorable tax conditions?
The
Dividend Focus,
High Yield, Emerging Opportunities, Small Cap, Mid Cap, Discovery, Growth, Large Cap and
International Fund may invest in foreign securities which will involve political, economic and currency risks, greater volatility and differences in accounting methods.
As expected, the reference portfolio predominantly consisted of large - cap,
dividend - paying equity ETFs: the ProShares Large Cap Core Plus (CSM), WisdomTree Dividend ex-Financials Fund (DTN), Vanguard High Dividend Yield ETF (VYM), Vanguard Mega Cap Value ETF (MGV), and iShares International Developed Property ET
dividend - paying equity ETFs: the ProShares Large Cap Core Plus (CSM), WisdomTree
Dividend ex-Financials Fund (DTN), Vanguard High Dividend Yield ETF (VYM), Vanguard Mega Cap Value ETF (MGV), and iShares International Developed Property ET
Dividend ex-Financials Fund (DTN), Vanguard
High Dividend Yield ETF (VYM), Vanguard Mega Cap Value ETF (MGV), and iShares International Developed Property ET
Dividend Yield ETF (VYM), Vanguard Mega Cap Value ETF (MGV), and iShares
International Developed Property ETF (WPS).
For income investors, Paychex, CDI Corp. (NYSE: CDI), Compass Diversified Holdings (NASDAQ: CODI), and Heidrick & Struggles
International (NASDAQ: HSII) all pay
dividends higher than the 2 percent average for a member of the Standard & Poor's 500 Index.
There are other real world factors that could drive down an ideal
international allocation, such as taxation (
dividend investors may prefer a
higher allocation to domestic stocks due to more favorable tax treatment).
At current prices, investors can get a
higher dividend yield in Johnson & Johnson (NYSE: $ JNJ), Procter & Gamble (NYSE: $ PG) and Unilever (NYSE: $ UL), and Philip Morris
International trades at a
higher P / E ratio than all but Procter & Gamble.
Gain targeted developed
international world, ex-U.S. and Canada equity exposure to
high dividend yielding companies
My return on Canadian equities should be
higher than my return on US and
International equities because the
dividends are not subject to withholding taxes.
Earlier this week I was able to take advantage of the selloff and pick up two
high quality
dividend growth stocks on the cheap: Phillip Morris
International (PM) and Time Warner (TWX).
The other thing I would suggest is to consider the tax implications of each investment and then balance them across multiple accounts; ie, the stuff that generates interest and that is taxed at the
highest rates (Bonds, GICs, REITs) goes in your TFSAs,
International stuff goes into your RRSPs so there's no withholding of foreign
dividends, and stuff that generates Canadian
dividends goes in your taxable account to get the Canadian gross up tax
dividend.
Because
dividends from U.S. and
international equities are fully taxable, you generally want to tax - shelter foreign stocks with
high yields.
Share in the ownership of an Australian or
international company, with
higher potential for capital growth and
dividend income, and
higher potential risk
Gain targeted exposure to developed
international from
high dividend yielding large cap companies excluding the financial sector
WisdomTree
International Dividend ex-Financials Fund seeks to track the investment results of high - dividend - yielding companies outside the financial sector in the developed world ex the U.S. and
Dividend ex-Financials Fund seeks to track the investment results of
high -
dividend - yielding companies outside the financial sector in the developed world ex the U.S. and
dividend - yielding companies outside the financial sector in the developed world ex the U.S. and Canada.
The SPDR S&P
International Dividend ETF is designed to invest in the 100 highest - yielding international stocks that pass certain quality requirements, such as positive 12 - month trailing earnings per share, and a dividend coverage ratio
International Dividend ETF is designed to invest in the 100 highest - yielding international stocks that pass certain quality requirements, such as positive 12 - month trailing earnings per share, and a dividend coverage ratio abov
Dividend ETF is designed to invest in the 100
highest - yielding
international stocks that pass certain quality requirements, such as positive 12 - month trailing earnings per share, and a dividend coverage ratio
international stocks that pass certain quality requirements, such as positive 12 - month trailing earnings per share, and a
dividend coverage ratio abov
dividend coverage ratio above 100 %.
Or could we perhaps see increased flow to
international equities that pay relatively
higher dividends?
International equities (i.e. VIU) have the
highest dividend yields, so VIU would arguably be a better option for the RRSP than emerging markets (a Canadian - listed emerging markets equity ETF held in an RRSP will generally face two levels of foreign withholding taxes).
Personally, it is great to choose an
international dividend ETF that has
higher assets and a low expense ratio.
There are a number of
high - quality
international dividend growth funds that offer attractive expense ratios and offer attractive
dividend yields.
There are plenty of
high - quality
international dividend growth stocks that you can invest in without owning a global
dividend growth fund.
Notes: U.S. stocks represented by Dow Jones U.S. Total Stock Market Index through April 2005, MSCI US Broad Market Index through June 2013 and CRSP US Total Market Index thereafter; emerging markets stocks are represented by MSCI Emerging Markets Index; REITs by FTSE NAREIT Equity REIT Index;
dividend stocks by Dow Jones U.S. Select Dividend Index; commodities by S&P GSCI Commodity Index; high yield bonds by Bloomberg Barclays U.S. Corporate High Yield Bond Index; emerging markets bonds by Bloomberg Barclays EM USD Aggregate Index; investment - grade corporate bonds by Bloomberg Barclays U.S. Corporate Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond Index; Hedge fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bon
dividend stocks by Dow Jones U.S. Select
Dividend Index; commodities by S&P GSCI Commodity Index; high yield bonds by Bloomberg Barclays U.S. Corporate High Yield Bond Index; emerging markets bonds by Bloomberg Barclays EM USD Aggregate Index; investment - grade corporate bonds by Bloomberg Barclays U.S. Corporate Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond Index; Hedge fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bon
Dividend Index; commodities by S&P GSCI Commodity Index;
high yield bonds by Bloomberg Barclays U.S. Corporate High Yield Bond Index; emerging markets bonds by Bloomberg Barclays EM USD Aggregate Index; investment - grade corporate bonds by Bloomberg Barclays U.S. Corporate Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond Index; Hedge fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond In
high yield bonds by Bloomberg Barclays U.S. Corporate
High Yield Bond Index; emerging markets bonds by Bloomberg Barclays EM USD Aggregate Index; investment - grade corporate bonds by Bloomberg Barclays U.S. Corporate Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond Index; Hedge fund index by HFRI fund - weighted total return Index and international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond In
High Yield Bond Index; emerging markets bonds by Bloomberg Barclays EM USD Aggregate Index; investment - grade corporate bonds by Bloomberg Barclays U.S. Corporate Index; U.S. Treasury bonds by Bloomberg Barclays U.S. Treasury Bond Index; Hedge fund index by HFRI fund - weighted total return Index and
international bonds by Bloomberg Barclays Global Aggregate ex-USD Bond Index.