State Street Launched S&P International Dividend ETF (DWX)

Posted by Sun on February 25, 2008
Post viewed 577 times, 5 so far today

The family of dividend-paying ETFs just got a little larger.

State Street Global Advisors on February 12th launched a new dividend-oriented exchange-traded fund, S&P International Dividend ETF (DWX). The new fund tracks the S&P International Dividend Opportunities Index, which was introduced a month ago on January 25, 2008. According to the fund prospectus, the benchmark consists of 100 highest dividend-paying stocks and American Depositary Receipts (ADRs) listed in stock exchanges included in the S&P/Citigroup Broad Market Index. The 5-year backtested performance of the index, which is measured by a 31% return, is showing in the following plot.

dwx.png

To be included in the index, a stock must have at least $1.5 billion in market capitalization, three-month daily trading value at least $5 million, and average monthly trading volume of 300,000 shares for six months. The index is rebalanced semi-annually in January and July.

The breakdown of new dividend ETF’s top 10 country weights is as follows.

  • United Kingdom: 24.91%
  • Canada: 18.29%
  • Australia: 8.79%
  • Sweden: 8.21%
  • Italy: 7.69%
  • Finland: 6.47%
  • Norway: 3.69%
  • Belgium: 3.66%
  • Hong Kong: 3.65%
  • Indonesia: 2.88%

Currently, DWX holds 98 stocks and has a gross expense ratio of 0.45%.

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5 Comments
February 25, 2008

I’ll have to wait on Morningstar to see the size/style boxes on this but it looks like DWX is a Intl Large Cap Div ETF from the 68B average market cap number. By comparison, iShares’ IDV has a market cap of 9B and coverage of small, medium and large. (I currently use both DOO + DLS but plan to switch to just IDV.)

Posted by MossySF
February 25, 2008

Thanks for posting this - I have been searching for something like this for awhile now and am glad to see it here. As I am from Canada however, I need to watch the Canadian content of the fund as it is high and I might go over my overall asset allocation weightings if I am not careful.

Posted by The Dividend Guy
February 26, 2008

MossySF: Actually, from the fund’s website, the average market cap is $12B. The index requires just $1.5B in market cap to be included. So I think the fund may have small/mid-cap stocks. Looking at the performance, IDV has a 5-year historical return of 27%, which is lower than DWX, but a little expensive at 0.50% ER. I am currently using PID, but it seems DWX is a good choice.

Dividend Guy: Do you put strict limit on AA? Are you looking at your AA all the time?

Posted by Sun
February 26, 2008

I see the 12B number on the website. However, the Factsheet PDF link right below it says the target index is 65B. Not sure which one is wrong. Could be both are correct due to ETF startup issues as new ETFs don’t fully replicate the index until enough blocks of ETFs are created.

Posted by MossySF
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