EMHD And EMDG: Promising Funds That Have Attached Little Attention, So Far
A Seeking Alpha Contribution
Summary
- EGShares has two unique emerging market dividend ETFs, EMDG and EMHD, but both have very low volume.
- EMDG takes a dividend growth approach, but the history is too short to determine whether the fund is delivering on growth.
- EMHD is delivering a high yield of about 6% and it has been outperforming other emerging market dividend ETFs this year.
Emerging Global Advisors offers a trio of high yield emerging market dividend ETFs. Two of the funds offer some promise, but they have attracted very little investor interest and have extremely low trading volume.
One of these is the EGShares Emerging Markets Dividend Growth ETF (NYSEARCA:EMDG).
Index & Strategy
EMDG tracks the FTSE Emerging All Cap ex-Taiwan Diversified Capped Dividend Growth 50 Index. The 50 holdings in the fund are capped at 2.5 percent each quarter. Holdings are selected annually in March. The index criteria are summed up well by the index provider:
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