Shoot The Lights Out With an ETF That Yields 9%, and Crushed The S&P 500 At The Same Time

"Emerging markets have spent years in the shadow of U.S. large caps, but the tide turned in 2025. The iShares Emerging Markets Dividend ETF (NYSEARCA:DVYE) combines dividend income with capital appreciation potential, and BlackRock's 2026 equity outlook suggests emerging markets may have more room to run, citing "promising prospects" in regions beyond the AI-driven U.S. market. The Dividend-Focused Emerging Markets Play"

"DVYE targets 100 dividend-paying companies across emerging markets, with heavy exposure to financials, energy, and materials in countries like China, Brazil, Poland, and India. The fund's return engine operates on two cylinders: dividend income from established companies in developing economies, and capital appreciation when those markets outperform. The current dividend yield sits around 5.8%, reflecting the fund's focus on income generation alongside growth potential."

DVYE focuses on 100 dividend-paying companies across emerging markets, concentrating in financials, energy, and materials in China, Brazil, Poland and India. The fund combines dividend income (current yield around 5.8%) with potential capital appreciation when emerging markets outperform. A smart-beta screening emphasizes dividend sustainability and company quality, while the 0.50% expense ratio and roughly 43% annual turnover reflect active selection. The strategy entails cyclicality, higher volatility, currency risk, and commodity-sensitivity, producing periods of outperformance and consistent dividend payouts. Top holdings include Vale, ORLEN and China Construction Bank. BlackRock's outlook cites promising prospects outside the AI-driven U.S. market.

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