Opinions
Mike S. Newton, CIM FCSI
iShares Emrg Mkt Div ETF
DVYE-N
BUY
Nov 06, 2013
Stock price when the opinion was issued
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The big, big name in this space is Wisdom Trade (?), which is about $4 billion. This is a small fund. What is happening is that pension funds globally, sovereign wealth funds, insurance companies are looking for ways to diversify their yields. Interesting play because you have a very much changing philosophy around payout ratios of companies in emerging markets. Thinks the dividend theme is graduating on the global scale of what kind of risks people want to take.
(A Top Pick Dec 19/12. Down 8.41%.) He would have felt that out of the 3 Top Picks, this would have been his best choice. Had 2 very appealing underlying elements to it. 1.) Had felt emerging markets were on the verge of really breaking out and that call was too early. 2.) The dividend theme. Thinks he was broke even on this name.
An ETF in emerging markets? The most widely owned would be iShares MSCI Emerg Mkt (EEM-N). Feels that a lot of global allocators are moving back into emerging markets. For one that is higher dividend oriented, you could go for this one. (See Top Picks.)