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Is SPDR S&P Emerging Markets Dividend ETF (EDIV) a Strong ETF Right Now?

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The SPDR S&P Emerging Markets Dividend ETF (EDIV - Free Report) made its debut on 02/23/2011, 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?

Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.

Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.

However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.

These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.

The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.

Fund Sponsor & Index

Managed by State Street Global Advisors, EDIV has amassed assets over $798.05 million, making it one of the larger ETFs in the Broad Emerging Market ETFs. This particular fund seeks to match the performance of the S&P Emerging Markets Dividend Opportunities Index before fees and expenses.

The S&P Emerging Markets Dividend Opportunities Index includes 100 tradable, exchange-listed common stocks from emerging market countries that offer high dividend yields.

Cost & Other Expenses

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.

Annual operating expenses for this ETF are 0.49%, making it on par with most peer products in the space.

EDIV's 12-month trailing dividend yield is 4.36%.

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, Cia Energetica Minas Ger Prf (CMIG4) accounts for about 3.26% of the fund's total assets, followed by Banco Bradesco Adr (BBD) and Sino American Silicon Produc.

EDIV's top 10 holdings account for about 23.93% of its total assets under management.

Performance and Risk

The ETF has gained about 11.68% so far this year and is up roughly 11.34% in the last one year (as of 07/08/2025). In the past 52-week period, it has traded between $32.61 and $38.86

The fund has a beta of 0.50 and standard deviation of 13.95% for the trailing three-year period, which makes EDIV a medium risk choice in this particular space. With about 141 holdings, it effectively diversifies company-specific risk .

Alternatives

SPDR S&P 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 $91.4 billion in assets, iShares Core MSCI Emerging Markets ETF has $95.99 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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