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The Xtrackers MSCI EAFE High Dividend Yield Equity ETF (NYSEARCA:HDEF) offers exposure to the developed world (ex-North America) high-quality dividend-paying stocks with value characteristics manifested in above-average yields.
This is a concept I like, yet there are a few disadvantages as there is something to dislike about the fund’s performance in the past, while there are FX risks in the mix that are not supportive of a bullish thesis.
Investment strategy
HDEF is managed passively, with the biannually-rebalanced market-cap-weighted MSCI EAFE High Dividend Yield Equity Index being the foundation of its strategy.
The MSCI EAFE Index, where the EAFE stands for Europe, Australasia, and the Far East, is the selection universe. To qualify for inclusion in the high-yield index, a stock must demonstrate dividend consistency coupled with an…
