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Overseas Dividends

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Northern Trust Corp. has just added three U.S. listed ETFs that seek out dividends from international stocks.

The FlexShares International Quality Dividend Index Fund (IQDF), FlexShares International Quality Dividend Defensive Index Fund (IQDE), and the FlexShares International Quality Dividend Dynamic Index Fund (IQDY) join the company’s FlexShares ETF menu and use what it calls “quality dividend funds” or QDF.

The ETFs employ Northern Trust’s proprietary dividend quality score (DQS), which focuses on management efficiency, profitability and cash flow. According to the company’s research, these three factors may very well be reliable predictors of quality rather than historical metrics like dividend growth. One of the main goals behind this method is to achieve a more stable dividend income stream over time for investors.

“Income remains a key consideration for individual and institutional investors alike,” said Shundrawn Thomas, head of Northern Trust’s Exchange Traded Funds Group. “Geopolitical, regulatory and market structure changes are driving a clear evolution in this area.”

All three funds charge annual net expense ratios of 0.47% and are listed on the NYSE. Including this latest launch, Northern Trust now manages 13 U.S. listed ETFs with approximately $4.5 billion in assets.


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