State Streets’ SPDR® DJ Global Titans ETF (DGT) tracks the world’s 50 largest stocks by market capitalization. One watch out for those looking to diversify a Western-focused portfolio is the ETF’s concentration in U.S. and U.K. based companies (60% and 15% respectively as of 2.20.08). Read more at State Street’s website.
Barclay’s iShares S&P Global 100 Index ETF (IOO) tracks 100 companies with a market cap above $5 billion that have at least one international facility. Like Global Titans, the IOO approach results in heavy concentration in companies headquartered in the U.S. and U.K. (47% and 14% respectively as of 12.31.07). Read more at iShares website.
WisdomTree’s International Dividend Top 100 Index (DOO) takes a different approach on a couple of dimensions. First, it excludes U.S. based companies – the result is a portfolio without significant concentration in any one country. Second, WisdomTree weights the portfolio using dividend-yield, the ratio of a company’s annualized dividend to its stock price. One benefit of that approach is the portfolio’s overall dividend-yield – a generous 5.18% as of February 20, 2008. Read more at WisdomTree’s website.
We’ve only covered the tip of the iceberg when it comes to Global ETFs. To receive a copy of our upcoming in-depth report Global ETF Investing, please subscribe to our e-mail list.