Joellyn and I went to the Rice/North Carolina game at the College World Series last night and Steve Garvey was four rows ahead of us; I gotta give a big thanks to my buddy V for helping us get great seats.
I saw over on ETF Trends that iShares has a new dividend ETF, ticker IDV, that owns forgein stocks; well that is always worth a gander.
The underlying index is something called the EPAC Dividend Index. The way Tom referred to it I feel like it something I should have heard of but I haven't.
It kind of looks like a WisdomTree fund in that it is heaviest in Australia at 36%, then UK 31% followed by several countries with single digit weightings. It is heaviest, sector-wise in financials at 42% with a lot of the big foreign banks in the top ten. Even New Zealand Telecom (NZT), a former client holding is in the top ten with a 2.03% weight, the entire NZ exposure for the fund BTW.
Kind of unique is that Greece has a 3.09% weight.
The backtest blew away the S&P 500 and the EAFE at every turn but I was not able to find a Sharpe ratio or any charts to get a feel for how volatile it might be. I suspect its not that volatile but don't know for sure.
9 comments:
Roger:
IDV sounds intriguing. Is there any indication what the yield might be?
Talk about "glad handing". What a terrific picture.
I am a money manager in Omaha,,, If you need anything send an e-mail. Enjoy the game.
what is the deal with the "strange" ads in the right colmun recently?
CA
You gotta get rid of the porn on the right column.
nice picture.
The picture/ad is great, keep it :)
A note about back testing ... being an experienced backtester of sorts, or maybe a slow learner, backtesting really should be taken with a grain of salt. If you want some good old fashioned "past performance does not guarantee future results", take some of the ETFs with backtested results and put them up against the indexes over the last couple of years. The results are not quite so impressive and many fail to beat. You never know what's going on with these back tests. Survivorship bias? Curve fitting? Both can be skew the results huge.
A few things...
I meant to mention the yield and that I could not find any indication. A weird thing about iShares; anytime I have called to ask what the underlying index yields they say they don't know, it is very strange.
I will inquire about the ad and whether it can chnage or find out how to remove it.
Re the back testing you are right. I usually make the disclaimer that if the back test wasn't great there'd be no fund.
Hi Roger,
The yield for IDV accoding to IndexUniverse.com is 4.18
Glen
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