A new international ETF was just introduced by AdvisorShares — AdvisorShares Athena High Dividend ETF (DVI) — that is a go-anywhere ETF using behavioral research to identify top dividend-paying stocks. It’s one of several global dividend funds investors can choose from.
As international ETFs become more popular with American investors, the question is no longer whether you should invest outside the United States. You should, which means the only remaining question is where.
Yardeni Research published a report on August 13 about the performance of global stock markets year-to-date. According to Yardeni’s report, the world indices are up 2.9% on the year — 240 basis points worse than the S&P 500. That would seem to lend credence to the idea that home-grown investments are your friend.
Not so fast, though.
Just as small-caps sometimes outperform large caps, the same things occurs with countries. One minute the U.S. markets are flying high; the next they’re not. Don’t let country bias hurt your investment returns; remember that 55% of the world’s market cap is held in non-U.S. equities.
Rather than pick the best international ETF, the second-best, etc., I’m going to recommend the best international ETF from five different fund companies. May the best fund company win.