International REITs Outshine Among Dividend ETFs

by: MyPlanIQ

In this holiday season, dividend ETFs continue their strong performance, especially U.S. dividend ETFs such as PEY, VIG, DVY. In our previous articles, we pointed out this trend. More detailed asset class performance trend can be found on this Market View page.

Though foreign dividend ETFs (including emerging market stocks) have lagged behind their U.S. counterparts, the international REI (NYSEARCA:RWX) has inched up in the past month to become the best performer. The U.S. REIT (NYSEARCA:IYR) have been consolidating after strong performance earlier this year. Both ETFs have about similar annual dividend yield (3.46% and 3.48% respectively).

Preferred stocks (NYSEARCA:PFF) have been mistreated as their fixed income (bond) cousin: it has been on the bottom for more than a month now. One, however, can make an observation that if U.S. stocks continue their strong performance, preferred stocks should perform well while in the meantime, their fat dividends should provide cushion to the eventual next shock to the markets.

Assets Class Symbols 12/22
SPDR DJ Wilshire Intl Real Estate RWX 11.62% 10.05% ^
PowerShares HighYield Dividend Achievers PEY 10.95% 9.37% ^
SPDR S&P 500 SPY 9.81% 8.19% ^
Vanguard Dividend Appreciation VIG 9.3% 8.14% ^
Vanguard High Dividend Yield Indx VYM 9.06% 7.89% ^
iShares Dow Jones Select Dividend Index DVY 8.6% 7.03% ^
iShares Dow Jones US Real Estate IYR 8.43% 4.36% ^
iShares MSCI Emerging Markets Index EEM 8.33% 7.16% ^
SPDR S&P Dividend SDY 7.98% 6.89% ^
PowerShares Intl Dividend Achievers PID 7.45% 6.73% ^
First Trust Value Line Dividend Index FVD 7.43% 6.98% ^
iShares Dow Jones Intl Select Div Idx IDV 6.6% 6.05% ^
iShares MSCI EAFE Index EFA 6.01% 5.29% ^
iShares S&P U.S. Preferred Stock Index PFF 3.36% 3.91% v

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.