Pack Your Bags – Traveling Abroad for Yield
The search for yield continues and dividend products remain a popular destination for asset flows. YTD net flows to international dividend ETFs recently eclipsed their U.S.-focused peers for the period ending August 31, 2017. As investors position their portfolios for changing economic, growth and political outlooks, our opinion is that this preference for international dividend strategies makes a lot of sense.
But what are the drivers behind this growth? What choices are there for investors who wish to diversify their dividend income by investing abroad? And what shortcomings should international dividend investors consider?