The IDVY ETF aims to track the price and yield performance of the NASDAQ International Dividend Achievers Index. It is a passive international equity ETF that applies selection criteria centered on developed-market companies outside the US whose dividend value and earnings per share have grown.

It may suit long-term investors who want to move beyond a US-centric portfolio and gain international equity exposure that takes both dividend growth and earnings growth into account.

The ETF is managed by First Trust using a passive (index-tracking) approach.

The product is managed by following the index constituents, and it looks at both dividend value growth and earnings growth among developed-market companies outside the US. By reflecting financial characteristics such as cash relative to debt and the earnings payout level, it applies selection criteria that set it apart from a simple high-dividend approach.

• Selection criteria that consider dividend growth and earnings growth together
• International diversification focused on developed-market stocks outside the US

Assets under management (AUM) stand at $1.3M, and the expense ratio is 0.60% per year.

When reviewing the holdings of the IDVY ETF, investors should look not only at changes in country and sector weightings but also at the individual price movements of the top holdings. The top holdings to check for the IDVY ETF are as follows: ASML, SMFG, TS, MUFG, VINP.

The performance of international dividend growth stocks is influenced by regional economic trends, currency values, corporate earnings expectations, and the interest rate environment. Because the IDVY ETF reflects dividend and earnings growth conditions, its selection criteria differ from those of broad market indexes, and performance gaps may emerge depending on equity market trends in each country.

Interest in international equity ETFs can vary with valuations in non-US markets, exchange rates, dividend policies, and the macro environment. When interpreting fund flows into the IDVY ETF, it is necessary to consider both demand for dividend growth strategies and capital market conditions in each country.

International diversification that combines dividend growth and earnings growth requirements is a strength, while country-level share price and currency fluctuations and the absence of a distribution history are factors to watch.

The VYMI ETF in the comparison table is an international high-dividend product that can be compared if you also want to look at dividend levels. The DFAI ETF offers broad international equity exposure, and the DFIC ETF provides similar international equity diversification, so differences in selection criteria should be checked. The DFAX ETF focuses on the non-US equity allocation, and the VIGI ETF can serve as a benchmark for comparing dividend growth approaches. Since the IDVY ETF reflects both dividend growth and earnings growth requirements, the expense ratio, fund size, and distribution policy of each product should be reviewed qualitatively.

When considering the IDVY ETF, investors should check whether the index's dividend growth screening criteria fit their own international equity allocation direction. Reviewing the expense level, distribution history, country and sector composition of holdings, and currency risk together will give a clearer picture of the product's character.

The IDVY ETF can be exposed to both international equity price swings and currency fluctuations at the same time. Dividend growth and earnings growth conditions do not guarantee long-term performance, and weakness in a particular country or sector can affect index returns. The absence of a distribution history should also be reviewed separately from cash flow expectations.

The IDVY ETF can be a candidate for investors who want to look at dividend growth and earnings growth together in developed markets outside the US. However, given the lack of a distribution history, currency exposure, and performance differences across countries and sectors, it is appropriate to also compare the strategies and cost structures of the VYMI ETF, DFAI ETF, DFIC ETF, DFAX ETF, and VIGI ETF.