Strength in iShares Emerging Markets Dividend ETF's People Pillar is partially offset by an Average Process Pillar rating, leading to a Morningstar Medalist Rating of Neutral. The portfolio maintains a sizable cost advantage over competitors, priced within the least expensive fee quintile among peers.  

 The strategy receives an Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in yield exposure and an underweight in momentum exposure compared with category peers. High yield exposure is attributed to holding more stocks with high dividend or buyback yields. And low momentum exposure is rooted in holding stocks that are not currently on a winning streak and instead holding those that managers believe are undervalued. The strategy’s management team earns an Above Average People Pillar rating. The strategy's parent organization earns the firm an Above Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

VictoryShares Emerging Market Volatility Wtd ETF

Aduro BioTech

Apollo Commercial Real Estate Finance

TransUnion

Star Bulk Carriers

KKR Income Opportunities Fund

Capitol Investment Corp. V

ProShares UltraPro S&P500

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. iShares Emerging Markets Dividend ETF earns an Average Process Pillar rating. 

The leading factor in the rating is the firm's five-year retention rate of 92% over the period. This fund tracks an index, which also increases its process rating. Historical data, like Morningstar's Active/Passive Barometer, shows that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Lastly, the process is limited by the fund's unremarkable long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the process has struggled over that period.

 This strategy tends to hold smaller, more value-oriented companies compared with its average peer in the Diversified Emerging Mkts Morningstar Category. Examining additional factor exposure, this strategy has continually had more high-yield exposure than the Morningstar Category average during recent years, with the portfolio holding more stocks with high dividend or buyback yields. Higher-yield stocks can provide dependable income, but also have their risks. Dividend payers may cut payouts, for instance, if their earnings fall. In recent months, the strategy was more exposed to the Yield factor compared with its Morningstar Category peers as well. This strategy has also taken a contrarian approach with lower exposure to momentum stocks over peers in recent years. Momentum tends to be a powerful force in asset markets, as stocks that have done well recently usually continue to do so in the short term. As top performers change, this can sometimes be hard to capture without higher trading costs. Compared with category peers, however, the strategy had more exposure to the Momentum factor in the most recent month. Additionally, the strategy had more exposure to high-quality stocks compared with Morningstar Category peers in recent months. Such holdings could cause it to trail peers during economic booms, but help it better withstand busts.  More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section. 

 The portfolio is overweight in basic materials and energy relative to the category average by 14.5 and 11.8 percentage points, respectively. The sectors with low exposure compared to category peers are technology and consumer cyclical, underweight the average by 11.4 and 10.5 percentage points of assets, respectively. The strategy owns 129 securities and is diversified among those holdings. In its most recent portfolio, 22.5% of the fund’s assets were concentrated in the top 10 fund holdings, compared to the category average's 25.3%. And finally, in terms of portfolio turnover, looking at year-over-year movements, 55% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Average

Process

iShares’s team is strong compared with others in the industry, resulting in an Above Average People Pillar rating. There are three managers listed on the fund: Paul Whitehead, Jennifer Hsui, Greg Savage. Experience on the team is abundant, with 18 years of average portfolio management experience. Together, they manage a total of 257 strategies, with solid long-term prospects. The strategies average a Silver asset-weighted Morningstar Medalist Rating, indicating a position to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Above Average

People

BlackRock offers compelling options across asset classes and vehicles. It earns an Above Average rating for Parent. 
The firm’s approximately USD 8 trillion in assets under management, as of Sept. 30, 2022, gives it unparalleled scale and influence. It is a market-leading index fund provider globally, and its iShares exchange-traded fund franchise offers a low-cost lineup of core funds that investors can use to build a well-diversified portfolio for dirt cheap. The firm can be more adventurous in its ETF launches than some peers, so not everything it launches is appropriate for the masses. As a result, it is likely to have more ETF closures than peers that stick to the basic building blocks.  
The firm’s active fixed-income and multi-asset efforts also stand out as some of the best in the industry. Those benefit from BlackRock’s commitment to building a first-class risk management system via its Aladdin analytics software. The software is also available for sale to other firms and has proved to be a popular option for competitors, a testament to its usefulness. 
More recently, the firm has shifted its focus to ESG offerings and incorporating ESG across its investment lineup, leading to a political backlash in the United States.
BlackRock isn’t the best at everything it tries to do, but retail investors, financial advisors, and large institutions could all build robust portfolios using BlackRock’s products.

Parent

iShares Emerging Markets Dividend ETF

DVYE tracks a dividend-weighted index of high-dividend-paying emerging markets companies.

Launched on 02/23/2012, the iShares Emerging Markets Dividend ETF (DVYE) is a smart beta exchange traded fund offering broad exposure to the Broad Emerging Market ETFs category of the market.

Is iShares Emerging Markets Dividend ETF (DVYE) a Strong ETF Right Now?

The iShares Emerging Markets Dividend ETF offers exposure to 100 dividend-paying emerging market stocks, with a track record of paying dividends for only 3 years. DVYE has eroded wealth for its investors since its inception, and we question if it can be too rewarding even now. DVYE's low valuations are driven by its exposure to Brazilian stocks, which may not be the most attractive EM region due to a likely significant drop-off in the GDP trajectory.

DVYE ETF: Not Too Conducive

Pacer Emerging Markets Cash Cows 100 ETF

iShares MSCI Emerging Markets ETF

Matthews Emerging Markets Ex China Active ETF

Rayliant Quantamental Emerging Market Equity ETF

Columbia EM Core ex-China ETF

Emerging market ETF investing can gain steam this year due to undervaluation, likely halt in Fed rate hikes, falling EM inflation and higher growth rates (than developed economies).

Time for Emerging Markets ETFs?

Russia's invasion of Ukraine caused volatility in emerging markets and hurt ETFs with exposure to Russian stocks early last year. iShares Emerging Markets Dividend ETF features less volatility today compared to then, but I still see risks given its current composition. DVYE has high exposure to cyclical sectors and troubled countries, making it a risky bet on economic growth in emerging markets.

DVYE: More Risky Than It Seems, Uncertain Dividend Trends

iShares Emerging Markets Dividend ETF holds about 100 dividend stocks from emerging markets and has a 12-month trailing yield of 10.15%. The portfolio is well-diversified across sectors and holdings, and it overweights Brazil relative to China. However, I see 3 red flags for iShares Emerging Markets Dividend ETF: geopolitical risk, volatility, and capital decay.

DVYE: 10% Yield With 3 Red Flags

Home Depot

iShares Nasdaq Biotechnology ETF

Walmart

Financial Select Sector SPDR Fund

Technology Select Sector SPDR Fund

Consumer Discretionary Select Sector SPDR Fund

Core inflation for the month of October marked its slowest pace in over two years. Several retailers are also of the view that the worst of inflation is over.

"Worst of U.S. Inflation Over"? ETF Areas Likely to Gain

VanEck Vectors BDC Income ETF

iShares Mortgage Real Estate ETF

Two iShares ETFs are on the list, one focused on real estate and the other on emerging markets. VanEck's ETF, which owns positions in BDCs, has delivered an especially impressive total return this year.

These 3 ETFs Offer Ultra-High-Dividend Yields of 10% or More. Are They Buys?

iShares Emerging Market Dividend ETF combines the investment themes of emerging markets and dividends. The fund's portfolio is heavily tilted towards materials and energy, with a significant portion invested in Brazil and China. Over the past 10 years, DVYE's performance has been erratic, and investing in a developed market ETF may have yielded better results.

DVYE: A High Yielding ETF That Carries Risks

iShares Emerging Markets Dividend ETF, managed by BlackRock, focuses on high-dividend-yielding stocks in emerging markets, offering an attractive yield at the surface. DVYE follows the Dow Jones Emerging Markets Select Dividend Index, aiming to replicate the performance of this index before fees and expenses. While the iShares Emerging Markets Dividend ETF offers high yields and potential exposure to emerging markets, its high risk and weak long-term performance warrant caution for potential investors.

DVYE: High Yield, High Risk, Poor Timing

International stocks trade with discounted prices and valuations. Emerging market stocks doubly so. iShares Emerging Markets Dividend ETF is a simple emerging markets ETF, offers exposure to cheap emerging market equities, and yields 8.8% to boot. The fund is a strong, high-yield investment, but quite risky, too.

DVYE: Emerging Markets ETF, Strong 9.0% Yield, Cheap Valuation, Risky Holdings

DVYE invests in high-yield stocks in emerging markets. It seems to own a lot of stocks whose yield is boosted by one-time special dividends. It also has many yield traps.

DVYE: A High Yield To Avoid

DVYE invests in high dividend paying companies in emerging markets. The fund sports a 10.1% trailing distribution yield.

DVYE: Perpetually Out Of Favor

DVYE invests in relatively high-yielding dividend stocks in emerging markets. The fund's focus on high-yielding stocks may result in a lower-quality portfolio and impact its long-term total returns negatively.

DVYE: You Should Not Own This ETF For The Long Term

Vanguard FTSE Emerging Markets ETF

After years of valuation comparison, emerging markets have become very attractive at this point, both in absolute terms and relative terms. This article examines two popular emerging market funds to help investors make an informed decision in this space.

VWO And DVYE: Consider Emerging Markets For Your 2023 Portfolio

Through investing in dividend-paying stocks from high-growth major emerging markets, DVYE has been able to generate strong yield and total returns. DVYE targets the core sectors (materials, energy, utilities, financials) in emerging markets having large size, high growth, and better credibility.

DVYE: Steady Yield Generating EM Fund Betting High In The Core Sectors

iShares JP Morgan USD Emerging Markets Bond ETF

Invesco Emerging Markets Sovereign Debt ETF

Global X MSCI SuperDividend Emerging Markets ETF

Invesco DB US Dollar Index Bullish Fund

Falling inflation in many developing economies, cheaper valuation and higher yields may boost some emerging markets ETFs.

Time for Beaten-Down Emerging Markets ETFs?

There is strong re-pricing risk for the iShares Emerging Markets Dividend ETF, DVYE. The macroeconomic uncertainty will continue to widen equity risk premiums for emerging markets.

DVYE ETF: Macroeconomic Environment Is Unkind To Emerging Markets

DVYE invests in higher-yielding stocks based in emerging markets, with Brazil being the fund's largest country exposure. On a risk-adjusted basis, DVYE remains undervalued, while FX tailwinds could also materialize in the long run.

DVYE: Emerging Market Dividend Stocks Remain Undervalued

DVYE is an emerging market ETF with an attractive 7.88% yield. Valuation also look attractive, but there are two red flags.

2 Reasons To Avoid DVYE: China And A Scary Total Return

WisdomTree Emerging Markets High Dividend Fund

ProShares MSCI Emerging Markets Dividend Growers ETF

ALPS Emerging Sector Dividend Dogs ETF

It's long been said that emerging markets equities offer investors a value proposition relative to U.S. stocks, and that remains true today despite a rough five-month stretch for the S&P 500. However, as is the case with searching for value in other regions, some exchange traded funds are better suited for emerging markets value-seekers than [.

Where to Turn for Value in Emerging Markets Stocks

DVYE is trading a valuation that suggests a high level of uncertainty. While there are many variables to consider, DVYE's valuation would suggest that annual returns are likely to be high even if earnings are underwhelming.

DVYE: Most Likely Undervalued In Spite Of Implied Uncertainty

Emerging markets stocks are struggling again this year, but that's painting with broad strokes. Investors taking the time to conduct further examination will find pleasant surprises in the form of Latin American stocks.

Evaluate EDOG for Latin American Exposure

iShares MSCI Russia ETF

Schwab Fundamental Emerging Markets Large Co. Index ETF

VanEck Vectors Russia ETF

A handful of stock and bond funds have above-average exposure to Russia. Some have taken big hits due to Western sanctions aimed at crippling Russia's economy.

The 10 stock and bond funds with the biggest Russia exposure

Emerging markets assets are dealing with bumps in the early innings of 2022, but with valuations looking attractive, investors may want to consider nibbling at the long-criticized asset class. A potentially safe way of doing that is by commanding the power of dividends.

Playing It Safe in Emerging Markets

DVYE's current yield and valuations are infinitely superior to an ETF tracking high-yielders of the S&P 500. Emerging market stocks are expected to be the most generous with their payouts this year.

News for iShares Emerging Markets Dividend ETF ETF (DVYE)