Successful investing requires both time and patience, but dividends are an excellent reminder that acquiring assets is fun. Dividend-centric ETFs are an excellent vehicle for those who rely on income from investments, but have a long enough time horizon to withstand equity risk. Locally, the CoreShares Dividends Aristocrats ETF invests in companies that consistently pay a dividend.
This year, CoreShares is adding an international offering to its dividend stable. Unlike the local offering, however, this ETF doesn’t invest in dividend-paying companies. The Global Dividend Aristocrats ETF invests in four different dividend-paying ETFs with exposure in the United States, Europe, Canada and Asia.
Added together, these four ETFs invest in 275 shares across 24 countries.
Companies are included in the Dividend Aristocrats indices when they consistently pay a dividend increasing in value for a number of consecutive years. The number of years depends on the region where the company is listed. For example, American companies are included in the ETF if they’ve consistently paid an increasing dividend for 25 years or more. European companies are included if they’ve paid a dividend of increasing value for 10 consecutive years.
Companies included in the ETFs that the Global Dividend Aristocrats ETF invests in also have to be large enough to meet minimum requirements set by the index maker and have enough shares in the market to trade easily.
The ETFs at the heart of the Global Dividend Aristocrats ETF are:
- The S&P 500 Dividend Aristocrats
- The S&P Europe Dividend Aristocrats
- The S&P/TSX Dividend Aristocrats
- The S&P Pan Asian Dividend Aristocrats
The ETF will pay out dividends twice a year, in June and December.