Is iShares Emerging Markets Dividend ETF (DVYE) a strong ETF right now?

The iShares Emerging Markets Dividend ETF (DVYE Quick QuoteDVYE - Free Report) was launched on 02/23/2012, and is a smart beta exchange traded fund designed to offer broad exposure to the Broad Emerging Market ETFs category of the market.

What are smart beta ETFs?

The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.

Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.

But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.

Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.

The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.

Fund sponsor and index

The fund is sponsored by Blackrock. It has amassed assets over $911.18 million, making it one of the larger ETFs in the Broad Emerging Market ETFs. DVYE, before fees and expenses, seeks to match the performance of the Dow Jones Emerging Markets Select Dividend Index.

The Dow Jones Emerging Markets Select Dividend Index measures the performance of the companies in emerging market countries that have provided relatively high dividend yields on a consistent basis over time.

Cost and other expenses

Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.

Operating expenses on an annual basis are 0.49% for DVYE, making it on par with most peer products in the space.

DVYE's 12-month trailing dividend yield is 10.31%.

Sector exposure and top holdings

It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

When you look at individual holdings, Petroleo Brasileiro Pref Sa (PETR4) accounts for about 5.26% of the fund's total assets, followed by Cia Vale Do Rio Doce Sh (VALE3) and China Construction Bank Corp H.

The top 10 holdings account for about 31.05% of total assets under management.

Performance and risk

So far this year, DVYE return is roughly 19.51%, and is up roughly 23.34% in the last one year (as of 09/09/2025). During this past 52-week period, the fund has traded between $23.95 and $30.06.

The ETF has a beta of 0.65 and standard deviation of 16.28% for the trailing three-year period, making it a medium risk choice in the space. With about 130 holdings, it effectively diversifies company-specific risk .

Alternatives

iShares Emerging Markets Dividend ETF is a reasonable option for investors seeking to outperform the Broad Emerging Market ETFs segment of the market. However, there are other ETFs in the space which investors could consider.

Vanguard FTSE Emerging Markets ETF (VWO) tracks FTSE Emerging Markets All Cap China A Inclusion Index and the iShares Core MSCI Emerging Markets ETF (IEMG) tracks MSCI Emerging Markets Investable Market Index. Vanguard FTSE Emerging Markets ETF has $98.06 billion in assets, iShares Core MSCI Emerging Markets ETF has $103.71 billion. VWO has an expense ratio of 0.07% and IEMG changes 0.09%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Broad Emerging Market ETFs

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