5-Star ETFs Poised to Pop: PowerShares International Dividend Achievers

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the PowerShares International Dividend Achievers ETF (NYS: PID) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at PowerShares International Dividend Achievers and see what CAPS investors are saying about the ETF right now.

PowerShares International Dividend Achievers facts

Inception

September 2005

Total Assets

$567.3 million

Investment Approach

Seeks investment results that correspond to the International Dividend Achievers Index, which is composed of international companies that have increased their aggregate annual regular dividend payments consistently over the course of the last five years.

Expense Ratio

0.50%

1-Year / 3-Year / 5-Year Annual Returns

4.4% / 16.6% / (1.3%)

Top Holdings with High CAPS Rating (4 or 5 stars) and Portfolio Weight

Telefonica (NYS: TEF) (4.3%)
AstraZeneca (NYS: AZN) (2.5%)
Telefonos de Mexico (NYS: TMX) (2.3%)

Dividend Yield

3.9%

Alternatives

iShares Dow Jones International Select Dividend Index (NYS: IDV)
SPDR S&P International Dividend (NYS: DWX)

Source: Morningstar and Motley Fool CAPS.

On CAPS, 97% of the 100 members who have rated PowerShares International Dividend Achievers believe the ETF will outperform the S&P 500 going forward. These bulls include All-Star liamhahn and geohjr.

Earlier this year, liamhahn succinctly summed up the opportunity: "Foreign exposure is a good thing, but choosing good companies can be hard without traveling to find them. I expect that foreign companies paying dividends are established and profitable."

In fact, PowerShares International Dividend Achievers sports a portfolio whose stocks average long-term expected earnings growth of 8%. That's higher than other foreign dividend ETFs such as iShares Dow Jones International Select Dividend (6%) and SPDR S&P International Dividend (2%).

CAPS member geohjr expands on the outperform argument: "A great way to diversify globally, hedge the dollar and take advatage of the increasing importance of foreign markets. This ETF invests in ADR's and non-US stocks that have increased their annual dividends for the last five years."

What do you think about PowerShares International Dividend Achievers, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to trackPowerShares International Dividend Achievers?Add it to your watchlist.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Telefonica. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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