IDV: Yield Without Quality

  • The iShares International Select Dividend ETF offers a high yield of 5.17%, but long-term returns have been underwhelming, with just a 3.56% CAGR since 2007. IDV's top holdings are in structurally challenged sectors like European telecoms and mining, which tend to be poor long-term performers. The ETF's 48% turnover rate and 0.49% expense ratio make it less attractive for long-term investors.