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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?

For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.

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.

But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.

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.

This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.

Fund Sponsor & Index

The fund is sponsored by Blackrock. It has amassed assets over $1.02 billion, making it one of the larger ETFs in the Broad Emerging Market ETFs. DVYE, 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

For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.

Operating expenses on an annual basis are 0.49% for this ETF, which makes it on par with most peer products in the space.

It's 12-month trailing dividend yield comes in at 8.93%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, 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 5.55% of the fund's total assets, followed by Cia Vale Do Rio Doce Sh (VALE3) and Orlen Sa (PKN).

Its top 10 holdings account for approximately 31.85% of DVYE's total assets under management.

Performance and Risk

The ETF has gained about 28.39% and was up about 26.78% so far this year and in the past one year (as of 11/13/2025), respectively. DVYE has traded between $23.95 and $31.75 during this last 52-week period.

DVYE has a beta of 0.65 and standard deviation of 15.37% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 124 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 $105.88 billion in assets, iShares Core MSCI Emerging Markets ETF has $116.81 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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