We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
This has been a terrible year for global markets. High inflation, rising rates, geopolitical tensions and supply-chain woes due to the zero-Covid policy in China made matters most difficult this year. The S&P 500 is off 17.5% this year (as of Dec 9, 2022).
Vanguard Total International Stock ETF (VXUS - Free Report) has lost about 16% this year. Vanguard European Stock Index Fund (VGK - Free Report) has retreated about 16%. iShares MSCI Emerging Markets ETF (EEM - Free Report) is off 20.1%. However, not all corners of the international market returned in the same muted manner.
Latin America and Turkey gained while geographies like India and United Kingdom lost moderately. Notably, commodity market rally favored the Latin America region.
What Won?
Against this backdrop, below we highlight a few broad international ETFs that have topped the chart in the space as well as beat the S&P 500. Currency-hedged ETFs outperformed the regular ones due to the greenback strength (helped by a super-hawkish Fed). Thirst for dividends was notable in the international market.
ETFs in Focus
Franklin International Low Volatility High Dividend Index ETF (LVHI - Free Report) – Up 0.6%; Yields 5.10% annually
The underlying QS International Low Volatility High Dividend Hedged Index is composed of equity securities of developed markets outside the United States with relatively high yield and low price and earnings volatility while mitigating exposure to fluctuations between the values of the U.S. dollar and other international currencies. The fund charges 40 bps in fees and yields 8.04% annually.
Xtrackers MSCI EAFE High Dividend Yield Equity ETF (HDEF - Free Report) – Down 1.8%; Yields 5.47% annually
The underlying MSCI EAFE High Dividend Yield Index tracks the developed market performance. The fund charges 20 bps in fees and yields 5.57% annually.
WisdomTree International High Dividend Fund (DTH - Free Report) – Down 2.2%; Yields 4.82% annually
The underlying WisdomTree International High Dividend Index is a fundamentally weighted Index that measures the performance of companies with high dividend yields selected from the WisdomTree International Equity Index. The fund charges 58 bps in fees and yields 5.76% annually.
The underlying MSCI EAFE 100% Hedged to USD Index is an equity benchmark for its international stock performance with the currency risk of the securities included in the Underlying Index hedged against the U.S. dollar on a monthly basis. The fund charges 35 bps in fees and yields 26.16% annually.
The underlying MSCI EAFE US Dollar Hedged Index provides exposure to equity securities in developed international stock markets, while at the same time mitigating exposure to fluctuations between the value of the U.S. dollar and non-U.S. currencies. The fund charges 35 bps in fees and yields 15.70% annually.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Top-Performing Broad Foreign ETFs of 2022
This has been a terrible year for global markets. High inflation, rising rates, geopolitical tensions and supply-chain woes due to the zero-Covid policy in China made matters most difficult this year. The S&P 500 is off 17.5% this year (as of Dec 9, 2022).
Vanguard Total International Stock ETF (VXUS - Free Report) has lost about 16% this year. Vanguard European Stock Index Fund (VGK - Free Report) has retreated about 16%. iShares MSCI Emerging Markets ETF (EEM - Free Report) is off 20.1%. However, not all corners of the international market returned in the same muted manner.
Latin America and Turkey gained while geographies like India and United Kingdom lost moderately. Notably, commodity market rally favored the Latin America region.
What Won?
Against this backdrop, below we highlight a few broad international ETFs that have topped the chart in the space as well as beat the S&P 500. Currency-hedged ETFs outperformed the regular ones due to the greenback strength (helped by a super-hawkish Fed). Thirst for dividends was notable in the international market.
ETFs in Focus
Franklin International Low Volatility High Dividend Index ETF (LVHI - Free Report) – Up 0.6%; Yields 5.10% annually
The underlying QS International Low Volatility High Dividend Hedged Index is composed of equity securities of developed markets outside the United States with relatively high yield and low price and earnings volatility while mitigating exposure to fluctuations between the values of the U.S. dollar and other international currencies. The fund charges 40 bps in fees and yields 8.04% annually.
Xtrackers MSCI EAFE High Dividend Yield Equity ETF (HDEF - Free Report) – Down 1.8%; Yields 5.47% annually
The underlying MSCI EAFE High Dividend Yield Index tracks the developed market performance. The fund charges 20 bps in fees and yields 5.57% annually.
WisdomTree International High Dividend Fund (DTH - Free Report) – Down 2.2%; Yields 4.82% annually
The underlying WisdomTree International High Dividend Index is a fundamentally weighted Index that measures the performance of companies with high dividend yields selected from the WisdomTree International Equity Index. The fund charges 58 bps in fees and yields 5.76% annually.
iShares Currency Hedged MSCI EAFE ETF (HEFA - Free Report) – Down 2.4%; Yields 2.06% annually
The underlying MSCI EAFE 100% Hedged to USD Index is an equity benchmark for its international stock performance with the currency risk of the securities included in the Underlying Index hedged against the U.S. dollar on a monthly basis. The fund charges 35 bps in fees and yields 26.16% annually.
Xtrackers MSCI EAFE Hedged Equity ETF (DBEF - Free Report) – Down 2.8%; Yields 2.77% annually
The underlying MSCI EAFE US Dollar Hedged Index provides exposure to equity securities in developed international stock markets, while at the same time mitigating exposure to fluctuations between the value of the U.S. dollar and non-U.S. currencies. The fund charges 35 bps in fees and yields 15.70% annually.