International ETFs: Dividends & High Returns
- Investors seeking top dividend stock picks frequently enough believe they must sacrifice capital appreciation for regular dividend payouts.
- ETFs spread risk across a basket of stocks, allowing investors to pursue dividend income while maintaining teh possibility of capital appreciation.
- The First Trust STOXX® European Select Dividend Index Fund (FDD) has increased approximately 36% year-to-date, making it a top-performing, non-leveraged ETF in 2025.
Unlock the potential of your portfolio wiht international ETFs designed for both dividend growth and high returns. Discover how ETFs can outperform, providing a unique path to capital appreciation alongside consistent income. Dive into the performance of top-performing funds like FDD and IDV, exploring their strategies for maximizing yields within European and global markets.Learn how to diversify with international stocks and enhance your returns. At news Directory 3, we break down the best international dividend ETFs, offering insights to empower your investment decisions. See how to get started and what key sectors like financials, industrials and utilities make solid performers. Discover what’s next …
International ETFs Offer Dividend Growth Opportunities
Updated June 25, 2025
Investors seeking top dividend stock picks frequently enough believe they must sacrifice capital appreciation for regular dividend payouts. While this can be true for some established dividend companies with limited growth potential, exchange-traded funds, or ETFs, offer a way to potentially achieve both.
ETFs spread risk across a basket of stocks, allowing investors to pursue dividend income while maintaining teh possibility of capital appreciation. Several funds have demonstrated strong year-to-date returns while providing compelling dividend yields.
European Dividend Stocks
The First Trust STOXX® European Select Dividend Index Fund (FDD) has increased approximately 36% year-to-date, making it a top-performing, non-leveraged ETF in 2025. it also features a 5.79% dividend yield. The fund concentrates on about 30 european equities with high dividend yields, selected from the STOXX Europe 600 Index. Inclusion requires a positive five-year dividend-per-share growth rate and a dividend-to-earnings-per-share ratio of 60% or less.
The fund’s geographic focus is primarily the United Kingdom, the Netherlands, France, and Germany. Financial stocks comprise nearly half of the portfolio. FDD suits investors seeking European market exposure who are not overly concerned with broad diversification. No single holding exceeds approximately 6.3% of total invested assets.
International Stock Exposure
The iShares International Select Dividend ETF (IDV) focuses on developed international markets and has returned over 26% year-to-date with a 5.30% dividend yield. Its expense ratio is slightly lower than FDD, at 0.49% compared to 0.59%. IDV targets international stocks in developed markets with a consistent history of dividend payouts. The fund’s portfolio includes 100 stocks, providing broader reach than FDD.
Companies based in the United Kingdom and Italy account for more than 30% of the portfolio, with allocations to France, Spain, Hong Kong, and other countries. While IDV leans toward European companies, it also includes firms from Canada, Australia, parts of Asia, and elsewhere. This ETF offers a wider view in terms of geography and portfolio size, making it suitable for investors seeking a general international fund.
Diversified International Dividends
The WisdomTree International High Dividend fund (DTH) mirrors IDV’s focus. Its year-to-date return is 22.4%, and its dividend yield is 4.30%, with an expense ratio of 0.58%.DTH targets companies in developed markets outside the U.S. and Canada. Its portfolio is broader than IDV and FDD, with nearly 600 holdings and no single holding exceeding about 4.4% of assets.
Companies from the United Kingdom, japan, France, Spain, and Italy are most prevalent, with firms from 22 nations represented. Financial stocks account for about 28% of holdings, followed by industrials and utilities.
Mid-Cap International Stocks
The SPDR S&P International Dividend ETF (DWX) is another international dividend fund. DWX has year-to-date returns near 21% and a dividend yield of 3.68%, with the lowest expense ratio on this list at 0.45%. With 103 names, DWX’s portfolio is less diversified than DTH, but it also focuses on developed markets outside the U.S. and Canada.DWX emphasizes mid-cap names, though larger firms are also represented.