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iShares launches ETF to capture the performance of emerging market dividend stocks


iShares, the Exchange Traded Funds (ETF) platform of BlackRock, has launched of the iShares Dow Jones Emerging Markets Select Dividend ETF, a physically replicating fund which seeks to deliver exposure to emerging market companies that can sustain an appropriate dividend programme over time.

The fund aims to track the performance of the Dow Jones Emerging Markets Select Dividend Index SM, which currently consists of 100 companies across 18 emerging markets.
The fund, which has listed on the London Stock Exchange, aims to provide investors with the opportunity to combine an income stream with 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.
Alex Lomholt (pictured), Head of iShares Product Development EMEA, says: “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 gross indicated annual yield for the index was 7.34% at the end of October.
“The iShares Dow Jones Emerging Market Select Dividend ETF complements our range of dividend and yield focused ETFs and provides transparent, cost-efficient and liquid exposure that can be difficult for an investor to achieve through buying stocks directly.”
Michael A Petronella, President, Dow Jones Indexes, says: “We are pleased to license The Dow Jones Emerging Markets Select Dividend Index to iShares for an ETF that provides access to opportunities associated with emerging-market dividends. This index is based on a robust methodology that aims to capture the performance of dividend-paying companies that can sustain their dividend programme over time and it has demonstrated better performance in comparison to its broad-market counterparts.”


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