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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) was launched on 02/23/2012, and is a smart beta exchange traded fund designed to offer broad exposure to the Broad Emerging Market ETFs category of the market.

What Are Smart Beta ETFs?

Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.

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.

Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.

Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.

Fund Sponsor & Index

DVYE is managed by Blackrock, and this fund has amassed over $1.07 billion, which makes it one of the larger ETFs in the Broad Emerging Market ETFs. DVYE seeks to match the performance of the Dow Jones Emerging Markets Select Dividend Index before fees and expenses.

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 0.50% for DVYE, making it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 5.66%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

Taking into account individual holdings, Petroleo Brasileiro Pref Sa (PETR4) accounts for about 5.51% of the fund's total assets, followed by Cia Vale Do Rio Doce Sh (VALE3) and Industrial And Commercial Bank Of.

DVYE's top 10 holdings account for about 32.75% of its total assets under management.

Performance and Risk

Year-to-date, the iShares Emerging Markets Dividend ETF has gained about 3.82% so far, and it's up approximately 36.29% over the last 12 months (as of 01/14/2026). DVYE has traded between $23.95 $32.35 in this past 52-week period.

The ETF has a beta of 0.55 and standard deviation of 15.18% for the trailing three-year period, making it a medium risk choice in the space. With about 127 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 $109.92 billion in assets, iShares Core MSCI Emerging Markets ETF has $127.53 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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