Guggenheim Plans International Equity ETFs Focused on Dividends, BRIC Investing

Includes: DEW, DNL, EEB, HAP
by: Michael Johnston

Guggenheim has been focusing on the fixed income portion of its ETF lineup in recent weeks, but the product development team at the Chicagoland issuer is also busy laying the groundwork for new equity ETFs as well. The firm recently filed details with the SEC for four international stock funds, including multiple dividend-focused product and a new spin on BRIC investing. The proposed ETFs include:

  • ABC High Dividend Yield ETF: This ETF would be linked to the BNY Mellon ABC Index, a benchmark that is comprised of about 30 U.S.-listed ADRs of companies from Australia, Brazil and Canada (thus the “ABC”) that have paid dividends in the past two years. There are currently no ETFs offering exposure to the “ABC bloc” though there are multiple options for each of the component economies.
  • BMAC Commodity Producers ETF: This fund would seek to replicate the BNY Mellon BMAC Index, which includes about about 30 U.S.-listed ADRs of companies from Brazil, Mexico, Australia and Canada. Component companies must operate in one of two industries: oil and gas and basic materials. There are currently 26 ETFs in the Commodity Producers Equities ETFdb Category, including broad based options such as HAP and more targeted ETFs focusing on everything from agribusiness to gold miners to steel.
  • Small-Mid Cap BRIC ETF: This ETF would seek to replicate the BNY Mellon Small-Mid BRIC Index, a benchmark that includes ADRs from Brazil, Russia, India, and China defined by BNY Mellon as small or mid cap securities. Guggenheim already offers the popular BRIC ETF (NYSEARCA:EEB) that focuses primarily on large cap stocks from the BRIC bloc. In recent years, investors have embraced small cap emerging markets ETFs. There are now small cap ETFs dedicated to Brazil, China, India, South Korea and Taiwan, among other economies.
  • International High Dividend ETF: This fund would be linked to the BNY Mellon International High Dividend Index, which includes ADRs of dividend-paying companies from both developed and emerging markets. WisdomTree already offers several dividend-weighted ETFs, including a Global Equity Income Fund (NYSEARCA:DEW) and World ex-U.S. Growth Fund (NYSEARCA:DNL). Both of those products are linked to dividend-weighted indexes.

No expense ratios or ticker symbols were included in the filing.

Disclosure: No positions at time of writing.

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