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from24/7 Wall St.
3 days agoThis Yield International ETF Combines Overseas Blue Chips And A Covered-Call Paycheck
IDVO combines foreign dividend income with tactical covered calls on individual ADRs to boost returns versus MSCI EAFE.
IQLT tracks the MSCI World ex USA Sector Neutral Quality Index, which selects developed-market stocks based on strong balance sheets and stable profitability. In practice, that means three screens (high return on equity, stable year-over-year earnings, and low debt-to-equity). Sector neutral matters here, because the fund is not allowed to dump every European bank in favor of Swiss pharma. It picks the highest-quality names within each sector, which is why financials still anchor the fund at 25%, followed by industrials at 18% and health care at 10%.