3 Passive Funds for Income

After six years of record low interest rates income seekers are constantly on the look out for new sources of yield. These dividend focused ETFs could provide a solution

Kenneth Lamont 6 May, 2015 | 4:28PM

 
 
 

Kenneth Lamont: The prevailing low-rate environment has seen income-starved European investors turn increasingly to dividend-orientated equity ETFs to help meet their needs.

Unlike traditional cap-weighted equity ETFs these ‘strategic beta’ funds track a benchmark designed only to select stocks with a history of paying or regularly increasing dividends. Such screens have long been used by active managers, but can now be offered in a passive fund wrapper at a fraction of the cost.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Amundi ETF MSCI EMU High Dividend C123.50 EUR-0.15
iShares Euro Dividend ETF EUR Dist GBP1,791.00 GBX-0.58
SPDR® S&P Euro Dividend Aristocrats ETF GBP20.12 GBP-0.47

About Author

Kenneth Lamont  is a passive funds research analyst for Morningstar Europe.

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