Dividend ETFs: Growth and yield combines-this is how investors benefit from sustainable distributions and long-term capital growth. (Photo: Freepik, rawpixel.com)
Dividend ETFs are the silent power in the depot. But dividend is not the same as dividend: the Wisdomtree Global Dividend Growth ETF relies on sustainable growth and strong companies such as Microsoft and Apple. Europe reports back – with the L&G Quality Equity Dividends ESG ETF, stable dividends from the euro zone can be used, while the Ishares Asia Pacific Dividend ETF dividend yields from around 5 percent from the Asian stock market. 3 ETFs that not only pay, but also grow – and at astonishingly low costs.
Worldwide champion: Wisdomtree Global Dividend Growth ETF
High dividends are good – sustainable growth is better. This is exactly where the Wisdomtree Global Dividend Growth Ucits ETF (ISIN: IE00BZ56RN96): Instead of simply bringing the most generous payers into the portfolio, he relies on companies with strong profit growth and high return on equity. The idea behind it: stability plus long -term increase in value.
The highlight: The weighting is not based on market capitalization, but after the amount paid. This creates a mixture of growth and earnings. An example of the dynamics of the strategy? Meta was started immediately in 2024 after the first dividend payment. The heavyweights include Microsoft, Apple, Abbvie and Procter & Gamble – companies that not only pour out but also grow.
With a USA share of 60 percent, the ETF relies on the most powerful capital market in the world, while European quality values from Switzerland (7 percent), France and Japan (5 percent each) ensure diversification. The biggest positions read like the WHO-IS-WHO of global growth values: Microsoft, Apple, Abbvie, Procter & Gamble, Home Depot-all dividend stars with solid growth course.
The best thing about it? The costs remain low: With a total cost rate (ter) of 0.38 percent, the ETF is one of the cheapest of its kind. The strategy also works in turbulent times, because in addition to price gains, dividend growth ensures value stability. The current distribution return is around 2.2 percent – a solid compromise for investors who want to have both yield and growth in the depot.
European comeback with quality: L&G Quality Equity Dividends Ex UK ESG ETF
For a long time, Europe’s stock exchanges were only the unadorned accessories in the global stock circus – now they are suddenly in the spotlight. After years of under-performance, European shares have clearly left the US values. The reasons? Partly ridiculous reviews, a US government that ensures uncertainty, and billions of billions in investment plans in the EU. If Brussels deliver, the rally could only be at the beginning.
With the L&G Quality Equity Dividends ESG Exclusions Europe Ex-U-UK UCITS ETF (ISIN: IE00BMYDM919) rely on exactly the companies that are now in demand: stable quality values with sustainable dividend growth. Weak balance sheets? None. The ETF filters rigorously, who does not deliver – both in profitability and in terms of Sustainability and ESG (Environment, social affairs and corporate management).
Instead of a smorgasbord of shares, the fund rely on around 130 positions from the euro zone with a clear focus: almost half of the capital is in financial values, strong industrial and raw material titles round off the picture. The top positions include banks such as Banco Sabadell and Unicredit as well as the building materials giant Heidelberg Materials.
The result? A performance that is impressive: almost 60 percent plus in 3 years-that is 30 percentage points more than the cut of the Euroland stock funds. And this year too, it runs dazzling: plus 17 percent since the beginning of the year. If you believe in the comeback of the old continent, you will find a clever combination of dividend, quality and long -term growth here.
Asia’s dividend boost: Ishares Asia Pacific Dividend Ucits ETF
Asia was and is a synonym for dynamics and growth – but in the past few years it has also been showing weaknesses in some key regions. The Ishares Asia Pacific Dividend ETF (ISIN: IE00B14X4T88) opens up access to 50 dividend -strong companies from the entire Pacific region and offers a tempting distribution return of around 5 percent, distributed to 4 regular payments a year.
It is no secret that markets such as China and Hong Kong have repeatedly struggled with slow growth in the past few years – a phenomenon that temporarily stressed ETF. These historical phases of weakness have meant that the ETF had slight declines in certain phases, so since the beginning of the year. But if you keep an eye on the overall picture, you see: The fund has grown solidly 76 percent for over 5 years, which shows that Asia’s long -term profitability is unbroken.
The portfolio is characterized by a balanced regional mix: Around 40 percent of companies come from Australia, 36 percent from Hong Kong, 12 percent from Singapore and 2.6 percent from Japan. Heavy weights such as BHP Group, Fortescue Metals, Anz Group and DBS Group are exemplary for the strength and stability that the ETF offers its investors – even if short -term challenges repeatedly cloud the image in some markets.
With a ter of 0.59 percent, the ETF is not one of the cheapest, but is acceptable for a fully replicating strategy with high dividend quality. In the long term, the Ishares Asia Pacific Dividend Ucits ETF offers an interesting way to invest in a region that, despite recurring weaknesses, does not lose sight of its earnings horizon.
Disclaimer:
No investment advice. No call to buy or sell securities.