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%.