The “sell America” trade is gaining traction as investors consider reallocating assets away from the U.S. market. However, the interconnected nature of global markets presents a challenge in achieving a sustainable shift to international stocks. The top U.S.-listed ETFs are dominated by U.S. stock funds, particularly those owning mega-cap tech stocks. While there is a dividend-focused ETF among the top 20, it is primarily a growth fund with minimal dividend exposure. Investors seeking yield in stocks outside the U.S. may look to international dividend and emerging market ETFs for income and stability.

The iShares International Select Dividend ETF (IDV) focuses on developed markets in Europe and Asia, offering a 4.7% trailing 12-month yield. The WisdomTree Emerging Markets High Dividend Fund (DEM) covers smaller non-U.S. markets with a similar yield to IDV. While these international dividend ETFs have seen strong performance, they are unhedged, leaving investors susceptible to currency fluctuations. Overall, investing in international dividends is a strategy for uncorrelated income, with IDV and DEM being potential options for those looking to diversify their portfolio.

Read more at Barchart: 2 International Dividend ETFs To Watch as the ‘Sell America’ Trade Gains Popularity