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The family of dividend-paying ETFs just got a little larger.

State Street Global Advisors on February 12th launched a new dividend-oriented exchange-traded fund, S&P International Dividend ETF (NYSEARCA:DWX). The new fund tracks the S&P International Dividend Opportunities Index, which was introduced a month ago on January 25, 2008. According to the fund prospectus, the benchmark consists of 100 highest dividend-paying stocks and American Depositary Receipts (ADRs) listed in stock exchanges included in the S&P/Citigroup Broad Market Index. The 5-year backtested performance of the index, which is measured by a 31% return, is showing in the following plot.

To be included in the index, a stock must have at least $1.5 billion in market capitalization, three-month daily trading value at least $5 million, and average monthly trading volume of 300,000 shares for six months. The index is rebalanced semi-annually in January and July.

The breakdown of new dividend ETF’s top 10 country weights is as follows.

  • United Kingdom: 24.91%
  • Canada: 18.29%
  • Australia: 8.79%
  • Sweden: 8.21%
  • Italy: 7.69%
  • Finland: 6.47%
  • Norway: 3.69%
  • Belgium: 3.66%
  • Hong Kong: 3.65%
  • Indonesia: 2.88%

Currently, DWX holds 98 stocks and has a gross expense ratio of 0.45%.

• More on International Dividend ETFs

Source: New International Dividend ETF from State Street