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Is iShares Emerging Markets Dividend ETF (DVYE) a Strong ETF Right Now?

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The iShares Emerging Markets Dividend ETF (DVYE - Free Report) made its debut on 02/23/2012, and is a smart beta exchange traded fund that provides broad exposure to the Broad Emerging Market ETFs category of the market.

What Are Smart Beta ETFs?

The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.

A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.

There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.

Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.

While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.

Fund Sponsor & Index

DVYE is managed by Blackrock, and this fund has amassed over $853.8 million, which makes it one of the larger ETFs in the Broad Emerging Market ETFs. This particular fund, before fees and expenses, seeks to match the performance of the Dow Jones Emerging Markets Select Dividend Index.

The Dow Jones Emerging Markets Select Dividend Index measures the performance of the companies in emerging market countries that have provided relatively high dividend yields on a consistent basis over time.

Cost & Other Expenses

Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.

Operating expenses on an annual basis are 0.49% for DVYE, making it on par with most peer products in the space.

It's 12-month trailing dividend yield comes in at 10.88%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

When you look at individual holdings, Petroleo Brasileiro Pref Sa (PETR4) accounts for about 5.34% of the fund's total assets, followed by Cia Vale Do Rio Doce Sh (VALE3) and Industrial And Commercial Bank Of.

Its top 10 holdings account for approximately 30.97% of DVYE's total assets under management.

Performance and Risk

Year-to-date, the iShares Emerging Markets Dividend ETF return is roughly 13.4% so far, and was up about 16.54% over the last 12 months (as of 06/30/2025). DVYE has traded between $23.95 and $29.76 in this past 52-week period.

The fund has a beta of 0.62 and standard deviation of 16.59% for the trailing three-year period, which makes DVYE a medium risk choice in this particular space. With about 129 holdings, it effectively diversifies company-specific risk .

Alternatives

iShares Emerging Markets Dividend ETF is a reasonable option for investors seeking to outperform the Broad Emerging Market ETFs segment of the market. However, there are other ETFs in the space which investors could consider.

Vanguard FTSE Emerging Markets ETF (VWO) tracks FTSE Emerging Markets All Cap China A Inclusion Index and the iShares Core MSCI Emerging Markets ETF (IEMG) tracks MSCI Emerging Markets Investable Market Index. Vanguard FTSE Emerging Markets ETF has $89.54 billion in assets, iShares Core MSCI Emerging Markets ETF has $94.3 billion. VWO has an expense ratio of 0.07% and IEMG changes 0.09%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Broad Emerging Market ETFs

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

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