DVYE ETF: What Is It? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
This ETF invests in 100 high-dividend stocks across emerging markets. It suits investors who want high income and geographic diversification at the same time.
SubscribeWhat Is This ETF?
The fund invests in the top 100 companies with the highest dividend yields in emerging-market equities. By holding quality dividend payers from a range of emerging countries such as Taiwan, China, and Brazil, it helps investors build a globally diversified income portfolio.
It suits investors who want the growth potential of emerging markets together with high dividend income, as well as those who want to diversify a developed-market-centered dividend portfolio geographically.
Launched by BlackRock in 2012, it is a passively managed (index-tracking) ETF.
How Does It Invest?
| Item | Details |
|---|---|
| Tracked Index | Dow Jones Emerging Markets Select Dividend Index |
| Management Style | Passive (index-tracking) |
| Rebalancing Frequency | Annually (reviewed quarterly) |
| Dividend Frequency | Quarterly |
| Total Expense Ratio | 0.50% |
The fund uses a dividend-weighted approach, selecting stocks and setting weights based on dividend yield. To prevent excessive concentration in any single country, it caps country weights, capturing high-dividend opportunities across the emerging-market universe.
- 100 carefully selected high-dividend emerging-market stocks
- A dividend-weighted approach that maximizes income
Size and Costs
Assets under management (AUM) stand at $1.1B, and the Expense Ratio is 0.50% per year.
Its management fee is standard compared with similar products such as DEM, EDIV, and FDEM, which uses a multifactor strategy. It offers solid liquidity compared with Invesco's emerging-market dividend products, and it seeks to offset the price volatility typical of emerging markets with high dividend income.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangePerformance depends heavily on the global interest rate environment, commodity price movements, and changes in emerging-market currencies. During economic recovery phases, its appeal as an income asset can stand out.
The trend of global capital flowing into emerging markets and the direction of the US Dollar Index play a decisive role in fund flows. Inflows tend to strengthen when the earnings outlook for emerging-market companies improves.
Strengths and Weaknesses
The fund provides efficient exposure to high-dividend emerging-market stocks, but investors should fully consider the risks stemming from political and economic uncertainty and currency volatility.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
DEM and EDIV, shown in the table, are leading competing emerging-market high-dividend products managed by WisdomTree and State Street, respectively. If you want broad exposure to the growth of the entire emerging-market universe rather than dividend income, VWO or IEMG may be better alternatives, and if you prefer an approach centered on emerging-market large caps, EEM is also worth considering.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 DFEM | Dimensional Emerging Markets Core Equity 2 ETF | $36.44 | -2.6% | $9.1B | 0.39% | 2.14% | +10.1% |
 DEM | WisdomTree Emerging Markets High Dividend Fund | $52.80 | -0.4% | $4.0B | 0.63% | 4.19% | +14.6% |
 DGS | WisdomTree Emerging Markets SmallCap Dividend Fund | $58.58 | -1.7% | $1.6B | 0.58% | 4.06% | +3.1% |
 EDIV | State Street SPDR S&P Emerging Markets Dividend ETF | $40.34 | -0.1% | $1.2B | 0.49% | 4.34% | +4.5% |
 FDEM | Fidelity Emerging Markets Multifactor ETF | $33.39 | -2.2% | $504.2M | 0.25% | 3.49% | +8.0% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| PBR-A | Petroleo Brasileiro SA Petrobras ADR | 0.08% | $19.41 | -0.1% | $52.9B | 4.9 | 7.65% |
| VALE | Vale SA ADR | 0.07% | $11.39 | +1.9% | $46.4B | 24.0 | 8.62% |
 GGAL | Grupo Financiero Galicia ADR | 0.05% | $32.30 | -4.2% | $4.3B | 43.1 | 2.92% |
| BMO | Bank of Montreal | 0.02% | $171.13 | -2.7% | $118.9B | 19.3 | 2.85% |
 BMRC | Bank of Marin Bancorp | 0.02% | $28.37 | -1.5% | $460.5M | - | 3.52% |
| EC | Ecopetrol SA ADR | 0.04% | $17.19 | -0.5% | $35.3B | 10.1 | 6.54% |
Investor Checkpoints
Here are the key factors to review before investing in DVYE. You should approach it with an understanding of both the opportunities and the risks that come from combining the regional characteristics of emerging markets with a dividend strategy.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Dividend Yield Trend | Past dividend history and outlook for future distributions | Good |
| 💧 Trading Liquidity | Bid-ask spread and average daily trading value | Adequate |
| 📊 Country Weights | Concentration in any single emerging market | Diversified |
High volatility in emerging markets and currency risk are the main risk factors. Investors should recognize that political events or economic crises in individual countries can have an immediate and significant impact on fund performance.
It is a useful tool for investors who seek both the strong growth of emerging markets and dividend income. However, it is wise to allocate only a portion of your assets to it in order to manage the risk of your overall portfolio.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
Today's 5 AI picks, all free