L'ETF SPDR S&P International Dividend (PCX:DWX) cherche à répliquer aussi proche que possible la performance (avant frais) du cours et du rendement de l'indice S&P International Dividend Opportunities. Cet indice est composé d'actions de sociétés domiciliées dans des pays hors États-Unis et qui offrent des rendements de dividendes élevés.
DWX fait partie de ma stratégie "Ex-US International ETFs and Dividend Stocks", qui consiste en une sélection de titres offrant un rendement solide ainsi qu’une bonne protection face au risque monétaire et de marché. En particulier, les ETFs se composent de titres hors Etats-Unis, ceci afin d'offrir une bonne diversification à la stratégie Global Dividend Growers, essentially based on the dollar.
The ten major positions of DWX
| Name | Weight | Number of shares |
|---|---|---|
| Westpac Bkg Corp | 3.25% | 1,118,377 |
| Telstra Corp Ltd | 3.22% | 6,385,722 |
| Seadrill Ltd | 3.18% | 683,323 |
| Tele2 Ab | 3.16% | 1,587,229 |
| Atlantia Spa | 3.15% | 1,988,560 |
| Aviva | 3.06% | 5,527,281 |
| Min Energy Company | 3.05% | 1,344,910 |
| France Telecom | 3.04% | 1,900,224 |
| Deutsche Telekom | 3.00% | 2,229,511 |
| Peugeot Sa | 2.90% | 3,164,874 |
THE average yield of DWX amounts to 6.04%, while the current yield even climbs to 7.86%. Distributions are paid on a quarterly basis. The price/book ratio as well as the PER confirm this particularly attractive valuation of the ETF, with 1.09 and 8.22. The expense ratio is very reasonable, with only 0.45%.
There volatility en CHF de DWX est supérieure à celle de mon portfolio, ainsi qu'à celle du SMI. Mais avec 16.56%, elle reste acceptable étant donné que certains secteurs représentés au sein de l'ETF (voir ci-dessous) possèdent la particularité d'être particulièrement turbulents. Je pense par exemple à la finance et aux matériaux.
Sector Breakdown
Since DWX does not own any US securities and benefits from a very large international representation (see below), the value of the ETF in CHF is little impacted by fluctuations in the dollar ($risk of -0.14).
Geographic Breakdown
If we look at the graph below, we could a priori think that DWX's performance has been particularly poor since May 2011. If we add the generous yield and the very good performance of the dollar during the same period, the loss in total return and in CHF for a little over a year is around 10%. This remains negative, but it is already less catastrophic than what we might think. On the other hand, it contradicts considerably certain theories that we can read everywhere on the web in relation to investors' enthusiasm for dividends, which have become a new fashion, or even the new big bubble on the markets... And then all this is consistent with the particularly attractive financial ratios that we saw above.
In conclusion, I consider DWX to be a buying opportunity at the moment. Its valuation is particularly attractive and the stock offers a very attractive yield, the risk of which is spread over more than a hundred positions. 0.45% of fees to own so many large dividend payers is not expensive. I plan to take a position in the coming months.
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Hello Jerome,
I am a little surprised by your analysis of this ETF. Indeed, in all your articles you have a very in-depth analysis of the companies that leads you to very rigorously select those that you retain, except the ETF presented here holds shares of companies that in my opinion would not fit into your usual analysis criteria. I am thinking for example of France Telecom or PSA? I think that your own selections will give better results.
Aurelien
Hi Aurélien,
I expected a reader to make a remark to me about this and you are right from this point of view. I do indeed select securities that offer rather average and increasing returns. I also generally prefer to buy securities directly rather than transit via a fund or an ETF. I remain faithful to these principles. However, I also always look for ways to diversify my investments, especially in relation to currency risk. This ETF allows me to do this at a lower cost, while bringing me regular fresh money and spreading the risk over more than 100 positions.
It is precisely because this investment is outside my usual principles that it is placed under my strategy. Ex-US International ETFs and Dividend Stocks. No worries, I haven't changed my mind and I'm still a fan of growing dividends! 😉