Invesco Dividend Achievers ETF (NASDAQ: PFM)

Invesco Dividend Achievers ETF (NASDAQ:PFM), Top Holdings

Invesco Dividend Achievers ETF

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The Fund generally will invest at least 90% of its total assets in securities that comprise the Underlying Index. Strictly in accordance with its guidelines and mandated procedures, Nasdaq, Inc. (Nasdaq or the Index Provider) includes U.S. exchange-listed common stocks in the Underlying Index pursuant to a proprietary selection methodology that identifies a universe of Dividend Achievers. To qualify for the universe of Dividend Achievers, an issuer must have increased its annual regular cash dividend payments for at least each of its last ten consecutive calendar or fiscal years.

Apple, Inc.

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Walmart, Inc.

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PowerShares Exchange Traded Fund Trust Dividend Achievers Portfolio

What Type of Dividend ETFs Are Winning in 2013?

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Emerging Global Shares Dow Jones Emerging Marketsnsumer Titan Index Fund

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CurrencyShares British Pound Sterling Trust

ETFs to Watch December 26, 2012 (BAB, IDX, OIH)

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Market Vectors Emerging Markets Local Currency Bond ETF

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LEMB

PowerShares ETF Trust International Dividend Achievers Portfolio

SPHD

PowerShares Files Plans for Dividend, EM Debt ETFs

Performant Financial Corporation - Common Stock

Performant Financial Corp

It is not unreasonable to say that many income investors already know that 2013 is shaping up to be a fine year on the dividend growth front.

	For example, the U.S. dividend stream in cash terms currently stands at $342 billion, above the $329 billion seen in late November and well above the prior peak of $288 billion in November 2007, <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/03/3432990/etfs-benefiting-from-dividend-growth">according to recent research from ETF sponsor WisdomTree</a>.

	With the number of dividend ETFs proliferating at a rapid clip, investors face myriad choices. And while abundant choice can be viewed as a good thing, not all dividend ETFs are created the same, leaving investors to ponder which funds are best suited for their individual investment objectives.

	Among dividend ETFs, a familiar choice investors face is choosing between those funds that use length of dividend increase as the primary screening criteria and rival ETFs that use an alternative methodology. Other dividend ETF weighting methodologies currently include weighting by yield or dividends paid in cash terms.

	Here is a look at the total returns, including paid dividends, of some of the most popular U.S.-focused dividend ETFs this year.

	Heading into the start of trading Monday, the top-performing major dividend ETF was the SPDR S&amp;P Dividend ETF (NYSE: <a class="ticker" href="/stock/sdy#NYSE">SDY</a>). SDY, is the second-largest dividend ETF by assets under management, with over $10.8 billion. Home to 86 stocks, SDY tracks the S&amp;P High Yield Dividend Aristocrats Index (SPHYDATR), which requires constituent companies to have raised dividends for at least 25 consecutive years.

	SDY allocates over 19 percent of its weight to the consumer staples sector and does an admirable job of spreading its weight around as its largest holding receives an allocation of just 3.12 percent. Familiar top-10 holdings include AT&amp;T (NYSE: <a class="ticker" href="/stock/t#NYSE">T</a>), Clorox (NYSE: <a class="ticker" href="/stock/clx#NYSE">CLX</a>) and Johnson &amp; Johnson (NYSE: <a class="ticker" href="/stock/jnj#NYSE">JNJ</a>). Overall, it is hard to argue with the fact that SDY has jumped 12.8 percent this year.

	Two other ETFs that use dividend increase as their primary screening metric have also performed well this year. The Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="/stock/vig#NYSE">VIG</a>) is the largest dividend ETF by assets and tracks an index that requires a minimum of 10 years of boosted payouts. The PowerShares Dividend Achievers Portfolio (NYSE: <a class="ticker" href="/stock/pfm#NYSE">PFM</a>) also has a the decade minimum of higher dividends for its constituents.

	VIG is up nearly 10 percent year-to-date while PFM has returned 10.6 percent. Looking at PFM, since it is arguably the unheralded member of this trio, the ETF has nearly $286 million in assets and an expense ratio of 0.6 percent, well above the fees on SDY (0. 35 percent) and VIG (0.13 percent). PFM is another staples-heavy play as it allocates 24.7 percent to that sector.

	The ETF also features eight Dow stocks among its top-10 holdings with PepsiCo (NYSE: <a class="ticker" href="/stock/pep#NYSE">PEP</a>) and Abbott Labs (NYSE: <a class="ticker" href="/stock/abt#NYSE">ABT</a>) being the exceptions.

	Turning to some dividend ETFs that do things a little bit differently, the WisdomTree Equity Income Fund (NYSE: <a class="ticker" href="/stock/dhs#NYSE">DHS</a>) has climbed 11.4 percent this year <a href="http://www.etfreplay.com/charts.aspx">while being less volatile than all three of the aforementioned competitors</a>.

	DHS tracks an index that includes "securities ranking in the highest 30% by dividend yield are selected for inclusion. The index is dividend weighted annually to reflect the proportionate share of the aggregate cash dividends each component company is projected to pay in the coming year, based on the most recently declared dividend per share," according to WisdomTree.

	DHS charges 0.38 percent per year and features many of the same holdings as PFM, SDY and VIG. However, DHS has an advantage over those funds because <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/02/3368316/the-monthly-dividend-etf-difference">it pays a monthly dividend</a>. That is good news for retirees looking for monthly income or those income investors looking to put the power of compounding to work for themselves faster.

	In what is perhaps a surprise given the solid performance of the financial services sector this year, the WisdomTree Dividend ex-Financials Fund (NYSE: <a class="ticker" href="/stock/dtn#NYSE">DTN</a>) checks in with a year-to-date gain of almost 11 percent while also being less volatile than SDY and VIG.

	DTN, which also charges 0.38 percent per year and also features a monthly dividend, has one way of making up for the rally in bank stocks and restoration of that sector's dividends. The ETF's second-largest sector weight is technology at 13.15 percent. In dollar terms, technology is now the largest dividend sector in the U.S. and the one many analysts to be a primary driver of dividend growth going forward due to the strong balance sheets at many large-cap U.S. technology firms.

	For those wondering, Apple (NASDAQ: <a class="ticker" href="/stock/aapl#NASDAQ">AAPL</a>) is not a member of DTN's 85-stock lineup.

	The PowerShares High Yield Equity Dividend Achievers Portfolio (NYSE: <a class="ticker" href="/stock/pey#NYSE">PEY</a>) cannot be ignored. The $307 million fund tracks an index that "is comprised of 50 stocks selected principally on the basis of dividend yield and consistent growth in dividends," <a href="http://www.invescopowershares.com/products/overview.aspx?ticker=PEY">according to the issuer</a>.

	Focusing on yield means PEY has a 30-day SEC of 4.22 percent, by far the best in the group mentioned here. It is also the second-best year-to-date performer behind SDY with a gain of 12.2 percent. PEY also pays a monthly dividend, but there is a trade-off. The ETF's yield bias and a 52.5 percent weight to small-caps means PEY is easily the most volatile fund mentioned here.

	For more on dividend ETFs, click <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/02/3368316/the-monthly-dividend-etf-difference">here</a>.

Here is the ETF Professor's ETF Watch List for Wednesday December 26, 2012.

Keep an eye gold with the iShares Gold Trust (NYSE: <a class="ticker" href="/stock/iau#NYSE">IAU</a>).

Will energy stocks rebound in 2013? The Market Vectors Oil Services ETF (NYSE: <a class="ticker" href="/stock/oih#NYSE">OIH</a>) may hold the answer.

Grab some dividends with the PowerShares Dividend Achievers Portfolio (NYSE: <a class="ticker" href="/stock/pfm#NYSE">PFM</a>).

Emerging markets plays of the day: Market Vectors Vietnam ETF (NYSE: <a class="ticker" href="/stock/vnm#NYSE">VNM</a>), Market Vectors Indonesia ETF (NYSE: <a class="ticker" href="/stock/idx#NYSE">IDX</a>) and the EGShares Emerging Markets Consumer ETF (NYSE: <a class="ticker" href="/stock/econ#NYSE">ECON</a>).

Currency play of the day: CurrencyShares British Pound Sterling Trust (NYSE: <a class="ticker" href="/stock/fxb#NYSE">FXB</a>).

Bond play of the day: PowerShares Build America Bond Portfolio (NYSE: <a class="ticker" href="/stock/bab#NYSE">BAB</a>).

Invesco's (NYSE: <a class="ticker" href="/stock/ivz#NYSE">IVZ</a>) PowerShares unit, the fourth-largest U.S. ETF sponsor, has filed plans with Securities and Exchange Commission to possibly introduce two new ETFs.

In an effort to capitalize on the <a href="http://www.benzinga.com/trading-ideas/dividends/12/07/2712580/5-dividend-etfs-for-the-second-half">growing popularity of dividend ETFs</a> while expanding its own lineup of funds for income investors, PowerShares has filed plans to introduce the PowerShares S&amp;P 500 High Dividend Portfolio. That ETF will track the S&amp;P 500 High Dividend Index. 

That index is designed to track the 75 S&amp;P 500 constituents with the highest dividend yields. The ETF will trade on the New York Stock Exchange under the ticker "SPHD," according to <a href="http://www.sec.gov/Archives/edgar/data/1378872/000110465912051747/a12-16979_1485apos.htm"> an SEC filing</a>. An expense ratio was not included in the filing.

Other dividend ETFs sponsored by PowerShares included the PowerShares International Dividend Achievers Portfolio (NYSE: <a class="ticker" href="/stock/pid#NYSE">PID</a>), the PowerShares Dividend Achievers Portfolio (NYSE: <a class="ticker" href="/stock/pfm#NYSE">PFM</a>) and the PowerShares High Yield Equity Dividend Achievers Portfolio (NYSE: <a class="ticker" href="/stock/pey#NYSE">PEY</a>).

PowerShares also filed plans for the PowerShares Fundamental Emerging Markets Local Debt Portfolio. This ETF will track the Citi RAFI Sovereign Emerging Markets Bond Index. 

As of June 30, 2012, that index included bonds issued by the national governments of Brazil, Colombia, Chile, the Czech Republic, Hungary, Indonesia, Malaysia, Mexico, Peru, the Philippines, Poland, South Africa, Thailand and Turkey, <a href="http://www.sec.gov/Archives/edgar/data/1378872/000110465912051743/a12-16978_1485apos.htm">according to the ETF's filing</a> with the SEC.

A ticker and expense ratio were not included in the filing.

The PowerShares Fundamental Emerging Markets Local Debt Portfolio looks to be a potential rival to several established <a href="http://www.benzinga.com/markets/bonds/12/05/2565731/the-definitive-guide-to-non-usd-em-bond-etfs">non-dollar emerging markets debt funds</a>. 

The WisdomTree Emerging Markets Local Debt Fund (NYSE: <a class="ticker" href="/stock/eld#NYSE">ELD</a>) is one of the premier funds tracking the debt of developing nations denominated in local currencies. That ETF has over $1.2 billion in AUM. The Market Vectors Emerging Markets Local Currency Bond ETF (NYSE: <a class="ticker" href="/stock/emlc#NYSE">EMLC</a>) has almost $755 million in AUM while the iShares Emerging Markets Local Currency Bond Fund (NYSE: <a class="ticker" href="/stock/lemb#NYSE">LEMB</a>) has nearly $50.4 million in AUM.

PowerShares had $56.8 billion in combined ETF and ETN AUM at the end of July, according to data from the ETF Industry Association. 

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Financial markets continue to evolve, but some portfolio managers and market theorists still place an emphasis on proper asset allocation. To be sure, there's something to be said for having a portfolio that stretches beyond the confines of just one asset class. 

Fortunately for investors that don't find the subject of proper asset allocation to be stimulating conversation, there are ETFs to help with the chore of ensuring one's portfolio has the look of being allocated the way some of the pros would recommend. 

Not surprisingly, asset allocation funds are another are of the exchange-traded products universe that ETF sponsors are looking to for future growth as more of these funds <a href="http://www.benzinga.com/markets/bonds/12/04/2500353/advisorshares-may-list-business-cycle-etf-dbiz-hdge-hyld">are seen coming to market</a>. 

For now, we'll focus on the currently existing products starting with the...

iShares S&amp;P Conservative Allocation Fund (NYSE: <a class="ticker" href="/stock/aok#NYSE">AOK</a>)
The iShares S&amp;P Conservative Allocation Fund, which will turn four years old later this year, is really an ETF fund of funds as its top-10 holdings are all other iShares ETFs. Looking at the asset class breakdown, AOK is definitely conservative as U.S. fixed income funds account for almost 74% of the fund's weight. Domestic and global stocks account for the rest. 

The iShares Barclays Aggregate Bond Fund (NYSE: <a class="ticker" href="/stock/agg#NYSE">AGG</a>) by itself commands an allocation of nearly 30% in AOK. Other holdings include the iShares Barclays Short Treasury Bond Fund (NYSE: <a class="ticker" href="/stock/shv#NYSE">SHV</a>) and the iShares iBoxx $ High Yield Corporate Bond Fund (NYSE: <a class="ticker" href="/stock/hyg#NYSE">HYG</a>).

iShares S&amp;P Growth Allocation Fund (NYSE: <a class="ticker" href="/stock/aor#NYSE">AOR</a>)
The iShares S&amp;P Growth Allocation Fund is also nearly four years old and it's one of the largest asset allocation ETFs on the market today with over $136 million in assets under management. Some investors might assume AOR is loaded with speculative fare because "growth" is in the ETF's name. That's not the case. 

The iShares S&amp;P 500 Index Fund (NYSE: <a class="ticker" href="/stock/ivv#NYSE">IVV</a>) accounts for 34.4% of AOR's weight while AGG chimes in at almost 20%. The fund also features exposure to the iShares S&amp;P SmallCap 600 Index Fund (NYSE: <a class="ticker" href="/stock/ijr#NYSE">IJR</a>) and the iShares MSCI Emerging Markets Index Fund (NYSE: <a class="ticker" href="/stock/eem#NYSE">EEM</a>).

PowerShares RiverFront Tactical Growth &amp; Income Portfolio (NYSE: <a class="ticker" href="/stock/pca#NYSE">PCA</a>)
The PowerShares RiverFront Tactical Growth &amp; Income Portfolio, which will turn four in a few weeks and is home to $17.3 million in AUM, uses a similar approach to AOK and AOR in that it's an ETF fund of funds. 

PCA current asset allocation breakdown is almost 41% fixed income, just over 40% to U.S. stock ETFs and 15.1% to international stock ETFs. Top-10 holdings include the PowerShares Fundamental High Yield Corporate Bond ETF (NYSE: <a class="ticker" href="/stock/phb#NYSE">PHB</a>), the PowerShares Dividend Achievers ETF (NYSE: <a class="ticker" href="/stock/pfm#NYSE">PFM</a>) and the PowerShares Hi-Yield Dividend Achievers ETF(NYSE: <a class="ticker" href="/stock/pey#NYSE">PEY</a>). PCA also features iShares, SPDRs, Vanguard and WisdomTree ETFs among its holdings.

Global X Permanent ETF (NYSE: <a class="ticker" href="/stock/perm#NYSE">PERM</a>)
The Global X Permanent ETF debuted in February and has thus far done a fine job of attracting assets from investors as the fund is now home to $11.1 million in AUM. The ETFS Physical Swiss Gold Shares (NYSE: <a class="ticker" href="/stock/sgol#NYSE">SGOL</a>) is PERM's top holding at almost 20% of the fund's weight and the ETFS Physical Silver Shares (NYSE: <a class="ticker" href="/stock/sivr#NYSE">SIVR</a>) accounts for almost 5%.

Long-term and short-term Treasuries each receive allocations of roughly 25%. The other quarter of PERM's weight goes to a mix of domestic and international equities, but unlike the other funds on this list, PERM does hold common stocks and ADRs such as Apple (Nasdaq: <a class="ticker" href="/stock/aapl#Nasdaq">AAPL</a>), Chevron (NYSE: <a class="ticker" href="/stock/cvx#NYSE">CVX</a>), Royal Dutch Shell (NYSE: RDS-A) and Rio Tinto (NYSE: <a class="ticker" href="/stock/rio#NYSE">RIO</a>). Two Vanguard ETFs are also found among PERM's equity holdings.

For more on forgotten ETFs, please click <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/04/2476979/4-ex-etfs-your-broker-forgot-to-mention-dtn-axen-fdt">HERE</a>.

Futures

Commodities

After-Hours Center

PowerShares RiverFront Tactical Growth & Income Portfolio

PERM

PowerShares Fundamental High Yieldorate Bond Portfolio

SGOL

SIVR

4 Asset Allocation ETFs Your Broker Forgot to Mention (PERM, PCA)

<div style="text-align: left;" dir="ltr">The stock market hasn't returned a single red cent in over twelve years, as measured by the S&amp;P 500. Twelve years is a long time to go without earning a return on your investment, particularly if you are close to retirement.</div>
With the boom years of the 1980s and 1990s now a distant memory, it is not shocking to see investors losing faith in the cult of capital gains and gravitating instead to dividend-paying stocks and ETFs. In a world in which paper gains can be ephemeral, it's good to be paid in cold, hard cash.
In many ways, this is simply a return to the basics of investing. Historically, before federal capital gains taxes and Modern Portfolio Theory shifted the industry to a focus on growth, dividends were the primary source of investor returns (see Figure 1), and over the past twelve years dividends have been the only source of investor returns.
<div class="separator" style="clear: both; text-align: center;"><a style="margin-left: 1em; margin-right: 1em;" href="http://3.bp.blogspot.com/_xwXK9DWd6Pc/TT_LYhxB65I/AAAAAAAAAPs/GVXlINOrbAU/s1600/Slide1.JPG"><img src="http://3.bp.blogspot.com/_xwXK9DWd6Pc/TT_LYhxB65I/AAAAAAAAAPs/GVXlINOrbAU/s400/Slide1.JPG" border="0" alt="" width="400" height="300" /></a></div>
Today, we have our choice of a host of dividend-focused ETFs—so many, in fact, that it can be daunting to choose. Though all claim dividends as the central piece of their investment mandate, there are significant differences between the strategies that investors should understand. In this article, I'm going to pick apart some of those differences.
Three Strategies
There are already well over a dozen dividend ETFs that focus on the U.S. market, and I included the most popular in Figure 2. Each can be grouped into one of three major categories:
<ol style="text-align: left;">
<li>High dividend yield</li>
<li>High dividend growth rate</li>
<li>Dividend weighting</li>
</ol>
<div class="separator" style="clear: both; text-align: center;"><a style="margin-left: 1em; margin-right: 1em;" href="http://4.bp.blogspot.com/_xwXK9DWd6Pc/TT_LmEanQdI/AAAAAAAAAPw/5KGFTl89EOc/s1600/Slide2.JPG"><img src="http://4.bp.blogspot.com/_xwXK9DWd6Pc/TT_LmEanQdI/AAAAAAAAAPw/5KGFTl89EOc/s400/Slide2.JPG" border="0" alt="" width="400" height="300" /></a></div>
The first category is what most investors immediately think of when they hear “dividend investing.” The primary focus is on high current income with capital gains as a distant secondary objective. This is good, old-fashioned “widows and orphans” investing and is the most conservative of the three strategies.
The iShares Dow Jones U.S. Select Dividend ETF (NYSE: <a class="ticker" href="/stock/dvy#NYSE">DVY</a>) is the oldest dividend-focused ETF and is the only one to follow a pure high-yield strategy. The fund represents America's top stocks by dividend yield, selected annually. To weed out those at risk of cutting their dividend, companies must have a positive five-year dividend-per-share growth rate and a dividend payout ratio of no more than 60% of earnings. The stocks that qualify are then ranked by dividend yield and the top 100 are selected.
The result is a solid ETF that currently yields more than the 10-year Treasury with an expense ratio and turnover that are tolerably low.
The second category is based less on dividend yield and more on the growth rate of dividends. The PowerShares Dividend Achievers ETF (NYSE: <a class="ticker" href="/stock/pfm#NYSE">PFM</a>) and Vanguard Dividend Appreciation ETF (NYSE: <a class="ticker" href="/stock/vig#NYSE">VIG</a>) are based on rival (yet nearly identical) versions of the Mergent Dividend Achievers Index. To become eligible for inclusion in the Index, a company must have increased its annual dividend for the last ten or more consecutive years.
The rationale for the criteria is easy to understand. Companies that pay regular—and rising—dividends send a powerful message about their financial health and stability. Maintaining a dividend forces discipline on managements that are prone waste shareholder wealth on nonsensical mergers and “empire building.” Dividends are also honest; there can be no cooking of the books or “creative accounting” when the accounts have to be settled in cash.
Given the similarity of the two ETFs, it is hard to see how PowerShares justifies its higher fee. If you like the Dividend Achievers strategy, go with VIG. You'll pay almost two thirds less in fees.
As a sort of hybrid between the first high-yielding category and the second high-growth strategy, PowerShares also offers the High Yield Dividend Achievers ETF (NYSE: <a class="ticker" href="/stock/pey#NYSE">PEY</a>). This fund is based on the Mergent Dividend Achievers 50 Index, which holds the 50 highest-yielding stocks of the broad Mergent dividend index, on which PFM is based.
Standard &amp; Poor's has its own competing strategy called the Dividend Aristocrats, which goes even further than the Dividend Achievers. The S&amp;P 500 Dividend Aristocrats Index measures the performance of the companies within the S&amp;P 500 that have increased their dividends every year for the last twenty five or more consecutive years.
In a similar methodology to PEY, the SPDR S&amp;P Dividend ETF (NYSE: <a class="ticker" href="/stock/sdy#NYSE">SDY</a>) builds a portfolio out of the 50 highest-yielding Aristocrats.
While both PEY and SDY offer very attractive yields, their higher portfolio turnover would make them less attractive than DVY for taxable investors. You're already being taxed twice on the dividends; why be taxed again with capital gains distributions?
This brings me to the third category: dividend-weighted ETFs.
WisdomTree is a relatively new entrant into the ETF sphere, but the company has carved out a distinct niche with its use of fundamental weighting rather than traditional market-cap weighting. The problem with traditional index funds is that they tend to overweight the companies and sectors that are faddishly overvalued due to the current whims of the market (think of tech stocks in the 1990s or financials in the 2000s). By weighting an index by a fundamental value—such as earnings or dividends—you largely eliminate this bias. This was WisdomTree's rationale for its Large Cap Dividend (NYSE: <a class="ticker" href="/stock/dln#NYSE">DLN</a>) and Total Dividend (NYSE: <a class="ticker" href="/stock/dtd#NYSE">DTD</a>) ETFs.
Because their weightings are based on the dollar size of the dividend rather than the yield, the WisdomTree funds will tend to be biased more towards mega caps than the other ETFs. This is not necessarily a bad thing, however. In fact, of all of the ETFs in Figure 2, I consider WisdomTree's DLN to have the best potential for capital gains in the years ahead specifically because of its exposure to quality blue chips. The low fees and low turnover are also quite compelling.
Still, if it is yield that you are looking for in an investment, the WisdomTree ETFs might not be the best choice. The yields are considerably smaller than those of DVY, PEY, and SDY.
Which One is Best?
Let's now return to our original question: how do we choose the right dividend ETF? The answer is that it really depends on what it is you are trying to accomplish. To keep it simple, I'll break it down like this:
<ul style="text-align: left;">
<li>For the best combination of high current income and tax and fee efficiency, go for DVY.</li>
<li>For the best long-term growth prospects, VIG is your best bet. Though if your objective is growth, make sure that you reinvest your dividends. Compounding is the key.</li>
<li>For the best medium-term (5-7) year allocation, DLN is probably your best option. Large-cap, high-quality companies represent some of the most attractive investments at current prices, and DLN is loaded with them.</li>
</ul>
With the economy still looking wobbly and many sectors of the stock market looking extended, stocks that pay consistent dividends have never looked more attractive. With this in mind, investors should consider adding a dividend-focused ETF to their portfolios.
Charles Lewis Sizemore, CFA
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iShares Dow Jones Select Dividend Index Fund

Choosing the Right Dividend ETF

Every investment has a season. For bonds, the season is "Fall". The vast majority of bond holders of almost all sorts have seen their values head south. What to do? Odds are, one should not take the bait of doubling down on bond holdings, but should rotate to a portfolio containing a hefty percentage of dividend-paying common stocks that hold hope of maintaining absolute value plus a capital gain.
I believe that being flexible is superior than being locked into one strict index ETF as the world economy moans, groans and lurches forward. Asia should be overweight,Latin America should be underweight as history tells us that periodic confiscatory politics of our southern neighbors have often times destroyed the best-laid Latin American investment scheme. Europe as a stand-alone is also off limits, although investors know that there is a bleed-through of many Asian and North American companies with Euroland. Within these arbitrary (some would argue, capricious) parameters, here are a few ETF investment ideas to pursue:
POWERSHARES DIVIDEND ACHIEVERS PORTFOLIO ETF (<a class="ticker" href="/stock/pfm#">PFM</a>): This $188m market cap fund corresponds to the price and yield of the Broad Dividend Achievers Index. A minimum of 80% of the fund's holdings have raised annual dividend payments for ten or more consecutive years. Trading at $13.98/share PFM has a 3.75% yield. It features a 4-Star Morningstar Rating.
GUGGENHEIM MULTI-ASSET INCOME ETF (<a class="ticker" href="/stock/cvy#">CVY</a>): This $356m market cap fund corresponds to the Zacks Multi-Asset Income Index, which includes U.S. stocks, ADRs, REIT's, MLP's, CEF's and traditional preferred stocks, all paying dividends. Trading at $19.91/share,CVY has a yield of 4.50%. It features a 4-Star Morningstar Rating.
VANGUARD DIVIDEND APPRECIATION INDEX ETF (<a class="ticker" href="/stock/vig#">VIG</a>): This $4.4b market cap fund corresponds to the Mergent Dividend Achievers Select Index.Trading at $52.80/share, VIG has a yield of 2.02% The index measures the investment return of common stocks of companies that have a record of increasing dividends over time. It features a 5-Star Morningstar Rating.
POWERSHARES DYNAMIC SMALL CAP VALUE PORTFOLIO ETF (<a class="ticker" href="/stock/pwy#">PWY</a>): This small $65m market cap fund corresponds to the Small Cap Value Intellidex. Trading at $15.08/share, PWY fund has a yield of 3.45% This index is comprised of 100 U.S. small-cap value stocks selected primarily on the basis of their capital appreciation potential as identified by the AMEX (the Intellidex provider). Morningstar has it assigned only a 2-Star Rating, however, I believe this index hits a sweet spot as we head into 2011.
WISDOMTREE PACIFIC EX-JAPAN EQUITY INCOME ETF (<a class="ticker" href="/stock/dnh#">DNH</a>). This small $77m market cap fund self-servingly corresponds to the Wisdom Tree Equity Income Index. Trading at $59.01/share,DNH has a yield of 6.51%.Morningstar has it assigned a 4-Star Rating. Finding a high yielding far eastern fund is not common. The yield should mitigate serious downside risk compared too other funds focusing on that region.
VANGUARD HIGH DIVIDEND YIELD INDEX ETF (<a class="ticker" href="/stock/vym#">VYM</a>): This $1.0b market cap fund tracks the performance of the FTSE/High Dividend Yield Index. Trading at $42.32/share, the fund has a yield of 2.61%. Morningstar has it assigned a 4-Star Rating.
WISDOMTREE EMERGING MARKETS SMALL CAP DIVIDEND ETF (<a class="ticker" href="/stock/dgs#">DGS</a>): This $879m fund tracks WisdomTree's own Emerging Markets Small Cap Dividend Index. Trading at $52.91/share, the fund has a yield of 3.42%. Morningstar has it assigned a 5-Star Rating.
The investor is encouraged to examine the moving parts of each fund (and any fund, for that matter) so there is not unintentional overlap of sectors or individual holdings. I have deliberately avoided TIP funds. I prefer to buy TIPS directly from the Treasury to avoid dilution and unnecessary expenses. Further, investors can find some preferred stocks with better-than-treasury inflation features. Metropolitan's MetpA and the Prudential' PFK come to mind. 
Even though the Fed speaks of holding interest rates close to zero, the money printing presses here and elsewhere in the world are minting 24/7. Inflation is the easiest way for a government to monetize extreme debt to (in their mind) a resolvable level. This bodes disaster for bond holders, but is a mild blessing for holders of companies who can raise prices (and dividends). For investors diversified with dividend stocks in strong economic regions and sectors, opportunities to be successful are self-evident. Despite higher expenses,appropriate traditional mutual funds should also be on your shopping list to accomodate this portfolio scenario.
AUTHOR HAS NO POSITION IN THE ABOVE ETFs. 
<div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/33358029-6385418318682820130?l=investingfromtheright.blogspot.com' alt='' /></div>

Wisdomtree Emerging Markets Smallcap Dividend Fund

PowerShares Exchange Traded Fund Trust Dynamic Small Cap Value Portfolio

December 19, 2010: Bait And Switch, Time To Exit (Most) Bonds

Here is the ETF Professor's ETF Watch List for Thursday September 9, 2010.
The WisdomTree India Earnings ETF (NYSE: <a class="ticker" href="/stock/epi#NYSE">EPI</a>) finally broke through resistance at $24 and made a new 52-week high. 
On news of some strong Swiss economic numbers, try the CurrencyShares Swiss Franc Trust (NYSE: <a class="ticker" href="/stock/fxf#NYSE">FXF</a>) and the iShares MSCI Switzerland Index Fund (NYSE: <a class="ticker" href="/stock/ewl#NYSE">EWL</a>).
Here's a dividend play for the day: PowerShares Dividend Achievers (NYSE: <a class="ticker" href="/stock/pfm#NYSE">PFM</a>).
Watch for a drop in small caps with the ProShares UltraPro Short Russell2000 (NYSE: SRTY).
Bond play for the day: SPDR Barclays Capital High Yield Bond (NYSE: <a class="ticker" href="/stock/jnk#NYSE">JNK</a>).
Play interest rate news with the iShares MSCI South Korea Index Fund (NYSE: <a class="ticker" href="/stock/ewy#NYSE">EWY</a>) and the iShares MSCI United Kingdom Index (NYSE: <a class="ticker" href="/stock/ewu#NYSE">EWU</a>).
Commodities play for the day: iPath DJ-UBS Nickel TR Sub-Index ETN (NYSE: <a class="ticker" href="/stock/jjn#NYSE">JJN</a>).
<a href="http://www.benzinga.com/tryitnow/399344">Beat the market consistently by receiving real-time trade alerts from the ETF Professor!</a>

Global

iPath Dow Jones UBS Nickel Subindex Total Return ETN

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The Only Monthly Membership With a Positive ROI!

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