iShares launches emerging market dividend ETF
iShares, the Exchange Traded Funds platform of BlackRock, has launched the iShares Dow Jones Emerging Markets Select Dividend ETF, which targets exposure to emerging market companies that can sustain an appropriate dividend programme over time.
The fund, which is physically replicating fund, and is listed on the London Stock Exchange, aims to track the performance of the Dow Jones Emerging Markets Select Dividend Index SM. The index consists of 100 companies across 18 emerging markets. The iShares Dow Jones Emerging Market Select Dividend ETF has a total expense ratio of 0.65%.
iShares says the fund aims to provide investors with both an income stream and the potential for long-term capital growth. “The new product is a distributing fund, giving investors the flexibility to withdraw income on a quarterly basis or to reinvest the income payments received according to their investment objectives.”
Axel Lomholt, head of iShares product development EMEA, said: “With many developed market interest rates at historic lows, investors are finding it increasingly difficult to achieve their income targets. This ETF offers investors the potential to achieve dividend yield combined with access to the growth potential of emerging markets companies. The net indicated annual yield for the index was 7.34% at the end of October.
At September 30, 2011, BlackRock’s AUM stood at $3.34trn.