Why the iShares Dow Jones International Select Dividend ETF Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the iShares Dow Jones International Select Dividend Index Fund (NYSEMKT: IDV  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at IDV and see what CAPS investors are saying about the ETF right now.

IDV facts

Inception

June 2007 

Total Net Assets

$1.3 billion

Investment Approach

Seeks investment results that correspond to the performance of the Dow Jones EPAC Select Dividend Index. The underlying index measures the performance of a selected group of equity securities issued by companies that have provided relatively high dividend yields on a consistent basis over time.

Expense Ratio

0.5%

1-Year / 3-year / 5-Year Annualized Returns

21.6% / 5.8% / (2.1%)

Dividend Yield

5.2%

Alternatives

WisdomTree DEFA (NYSEMKT: DWM  )
PowerShares International Dividend Achievers
(NYSEMKT: PID  )
SPDR S&P International Dividend
(NYSEMKT: DWX  )

Sources: Morningstar and Motley Fool CAPS.

On CAPS, 94% of the 36 members who have rated IDV believe the ETF will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, Grahdodd, tapped IDV as a particularly attractive bargain opportunity:

10 times earnings. 1.5. times book value. Ben Graham prices, 5.3% Dividend. [G]reat way to play washed out Europe. Portfolio largely sidesteps the problem areas in Europe. Fantastic value play [with] diversification.

Owning exceptional ETFs is a surefire way to secure your financial future. Of course, despite a strong four-star rating, IDV may not be your top choice.

If that's the case, our special report on ETFs highlights three funds that are poised to soar in the next recovery. It's 100% free, but won't last forever, so click here to access it now.

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Read/Post Comments (4) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 28, 2012, at 7:59 PM, SuntanIronMan wrote:

    I own the IDV myself. Easy and cheap way to get international diversification with a great dividend.

  • Report this Comment On November 29, 2012, at 12:36 PM, sergelew wrote:

    Is Fool contradicting itself? Fool has been advising to get out of ETF's for months. They are risky assets over which we have no control and are overpriced, so WHY ??? jump into iShares (domestic or International, N,S,E.W?

    Please send a detailed report re your logic to this Fool. thanks. sergelew

  • Report this Comment On November 29, 2012, at 6:29 PM, SuntanIronMan wrote:

    @sergelew

    I've never seen the Fool advising people to get out of ETFs.

    And even if someone writing for the Fool did advised such a move:

    "We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors." - Posted at the end of all articles.

    There is no unified Fool voice. One Fool's opinion is allowed to contradict/oppose another Fool's opinion.

  • Report this Comment On November 29, 2012, at 6:49 PM, SuntanIronMan wrote:

    @sergelew

    Maybe you are thinking of actively managed mutual funds; the majority of which underperform their benchmarks and charge customers a lot of the privilege of that underperformance.

    The Dow Jones International Select Dividend ETF is just a passive index fund with a cheap 0.5% expense ratio. It tracks an index and is transparent about what it holds.

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