Welcome!

Mobile IoT Authors: Elizabeth White, Liz McMillan, William Schmarzo, Shelly Palmer, Peter Silva

News Feed Item

Zacks Investment Ideas feature highlights: WisdomTree Emerging Markets Equity Income Fund, SPDR S&P Emerging Markets Dividend ETF and Emerging Markets Dividend Index Fund

CHICAGO, Nov. 28, 2012 /PRNewswire/ -- Today, Zacks Investment Ideas feature highlights Features: WisdomTree Emerging Markets Equity Income Fund (AMEX:DEM), SPDR S&P Emerging Markets Dividend ETF (AMEX:EDIV) and Emerging Markets Dividend Index Fund (AMEX:DVYE).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Escape the Cliff with These Dividend ETFs

With the fiscal cliff just a few weeks away and the two parties still at odds, the nervous investors are looking for assets that may provide refuge from the cliff. (3 ETFs to Prepare for the Fiscal Cliff)

A new report released by the White House yesterday warned that the fiscal cliff could "slow real GDP growth by 1.4% and limit consumer spending during the holiday season".

Earlier this month the Congressional Budget Office said that the cliff would drive the U.S. economy back into recession next year and result in a jump in the jobless rate to 9.1% by the end of 2013.

Though the laws will change on January 1st, their actual impact will be felt over the course of next year. But the psychological impact of the changes is already visible as the businesses have curtailed investments and investors are selling stocks ahead of the potential capital gains tax hike.

While it is most likely that the two parties will reach some agreement, it remains to be seen what kind of changes they will agree to. They may agree to change the "threshold" for high-income or take away itemized deductions. It is possible that the dividend taxes may not go up for all the investors.

In anticipation of the increase in tax rate on dividend, many investors have been selling their dividend stocks. Some companies—particularly the ones will high insider ownership—are rushing to make accelerated or special dividends this year. (MLP ETFs: Unfortunate Victims of The Fiscal Cliff)

Currently the qualified dividends are taxed at 15% top rate, same as long-term capital gains rate. If the tax cuts are not extended, long-term capital gains tax will revert to 20% but the dividends will be taxed as income, at rates up to 39.6%.  Additionally, there will be a 3.8% surcharge on investment income for investors with higher incomes.

While high-quality dividend-paying stocks still represent long-term value, it is almost certain that these stocks will experience further sell-off if the tax laws become unfavorable. (Biotech ETFs: A Fiscal Cliff Safe Haven?)

For investors who are concerned about the "dividend-cliff", an attractive option is to invest in the Emerging Markets Dividend ETFs that combine the opportunity to benefit from the higher growth potential in the emerging markets with the steady flow of dividend income in addition to providing the escape from the "fiscal-cliff" issues in the US.

Here are ten reasons for investing in Emerging Markets Dividend ETFs now:

1) The stocks held by these ETFs are not/will not be affected by the fiscal cliff issues, as these are mostly held by the investors who are not impacted by the U.S. tax laws.

2) About 70% of global dividends comes from the companies outside of the U.S. and hence by focusing just on the domestic companies, the investors are losing the bigger dividend opportunity.

3) Dividend payout ratios have been on a decline in the U.S. and the trend is expected to continue. Further, high corporate tax rates in the U.S. act as a disincentive to the large multinational corporations to repatriate their profits from international operations.

4) Emerging markets currently represent about one-third of global GDP and their share will continue to grow in the coming years. As such they ought to be a part of any investment portfolio.

5) The IMF projects that the emerging economies will grow at 5.6% in 2013, versus 1.5% growth for the developed economies and hence investment in emerging markets companies provides greater chances of  capital appreciation.

6) These markets have low correlations with the developed markets and thus provide diversification benefits to the portfolio.

7) The emerging markets companies often offer a higher rate of dividend yield compared with the domestic companies.

8) Some of the U.S. stocks/sector ETFs that are high dividend payers have become expensive compared with the broader market, as the yield-starved investors poured money into them in the last 2-3 years.

9) If the U.S. actually goes over the cliff, the economy would fall into a recession next year, whereas many other countries—especially the ones with a high level of domestic consumption--will continue to grow unaffected by the global headwinds.

10) The largest and most important emerging economy—China—finally seems to be bottoming out.

WisdomTree Emerging Markets Equity Income Fund (AMEX:DEM)

DEM tracks the WisdomTree Emerging Markets Equity Income Index, which is a fundamentally weighted index that measures the performance of the high dividend yielding stocks in emerging markets. The fund has currently has more than $4.5 billion in assets under management and charges 63 basis points annually for operating expenses.

The funds assigns heaviest weight to Financials (26.7%), followed by Energy (18.5%) and Materials (18.2%).

In terms of country allocations, Taiwan is at the top (20.5%), followed by China (15.6%), Russia (13.2%) and Brazil (11.9%). Its annual dividend yield is 3.64% versus average US dividend yield of less than 2%.

SPDR S&P Emerging Markets Dividend ETF (AMEX:EDIV)

EDIV tracks S&P Emerging Markets Dividend Opportunities Index, consisting of dividend paying securities of 100 publicly-traded companies in emerging markets. The ETF was launched in February last year and has so far attracted $321 million in assets.

Currently, it is heaviest weighted in financials (21.8%), followed by Materials (20.3%) and Telecom (18.1%). Country weights for the top three are Brazil (18.8%), Taiwan (14.1%), and Poland (10.0%).

The expense ratio for this fund is 0.59%, and it pays out a very attractive dividend yield of 6.01%.

Emerging Markets Dividend Index Fund (AMEX:DVYE)

This ETF introduced very recently (February 24, 2012), is designed to compete with the popular WisdomTree ETF mentioned above by providing a lower cost alternative to the investors, while fulfilling similar investment objective.

The fund seeks to replicate the Dow Jones Emerging Markets Select Dividend Index. This fund is less exposed to the Financials (14.6%) compared to DEM, with top weighting assigned to Industrials (17.7%) and Telecom (15.4%).

Taiwan leads the country allocation with 22.6% weight, followed South Africa (10.5%) and by Turkey (9.6%). The fund holds 101 stocks and thus focuses on a smaller group of companies compared with DEM (293 holdings).

The underlying stocks are selected on the basis of dividend yield. The ETF currently charges 0.49% to the investors. The adviser to the fund has agreed to waive a part of its management fee to limit the expense ratio at this level through the end of December 2014.

 About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Len Zacks. The company continually processes stock reports issued by 3,000 analysts from 150 brokerage firms.  It monitors more than 200,000 earnings estimates, looking for changes.

Then when changes are discovered, they're applied to help assign more than 4,400 stocks into five Zacks Rank categories:  #1 Strong Buy, #2 Buy, #3 Hold, #4 Sell, and #5 Strong Sell. This proprietary stock picking system; the Zacks Rank, continues to outperform the market by nearly a 3 to 1 margin.  The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter Profit from the Pros.  In short, it's your steady flow of profitable ideas GUARANTEED to be worth your time.  Get your free subscription to Profit from the Pros at:  http://at.zacks.com/?id=7298

Follow us on Twitter:  http://twitter.com/ZacksResearch

Join us on Facebook:  http://www.facebook.com/ZacksInvestmentResearch

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

[email protected]

http://www.zacks.com

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
With 15% of enterprises adopting a hybrid IT strategy, you need to set a plan to integrate hybrid cloud throughout your infrastructure. In his session at 18th Cloud Expo, Steven Dreher, Director of Solutions Architecture at Green House Data, discussed how to plan for shifting resource requirements, overcome challenges, and implement hybrid IT alongside your existing data center assets. Highlights included anticipating workload, cost and resource calculations, integrating services on both sides...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
Big Data engines are powering a lot of service businesses right now. Data is collected from users from wearable technologies, web behaviors, purchase behavior as well as several arbitrary data points we’d never think of. The demand for faster and bigger engines to crunch and serve up the data to services is growing exponentially. You see a LOT of correlation between “Cloud” and “Big Data” but on Big Data and “Hybrid,” where hybrid hosting is the sanest approach to the Big Data Infrastructure pro...
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications. In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day. He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
Verizon Communications Inc. (NYSE, Nasdaq: VZ) and Yahoo! Inc. (Nasdaq: YHOO) have entered into a definitive agreement under which Verizon will acquire Yahoo's operating business for approximately $4.83 billion in cash, subject to customary closing adjustments. Yahoo informs, connects and entertains a global audience of more than 1 billion monthly active users** -- including 600 million monthly active mobile users*** through its search, communications and digital content products. Yahoo also co...
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.