The best ETFs for European Dividend Stocks

How do I invest in European dividend stocks?

An investment in high-dividend-yielding stocks is a solid investment. Dividends are usually paid by profitable and established companies. For investors seeking regular income in times of low interest rates, dividend stocks can provide attractive yields.

There are several indices available to invest with ETFs in European high-dividend equities. This Investment Guide for European dividend stocks will help you to differentiate between the most important indices and to select the best ETFs tracking indices on European dividend stocks.

0.25% p.a. - 0.58% p.a.
annual total expense ratio (TER) of European dividend ETFs
on European dividend stocks, which are tracked by ETFs
on European dividend stocks
The best indices for European dividend ETFs

The best European dividend ETF by 1-year fund return as of 31/10/20

All European dividend ETFs ranked by fund return

 

The largest European dividend ETF by fund size in CHF

All European dividend ETFs ranked by fund size

 

The cheapest European dividend ETF by total expense ratio

All European dividend ETFs ranked by total expense ratio

 
 

Indices on European Dividend Stocks compared

Methodologies of the compared indices

EURO STOXX® Select Dividend 30 STOXX® Europe Select Dividend 30 S&P Euro High Yield Dividend Aristocrats
Number of ETFs 2 ETFs 1 ETF 1 ETF
Number of constituents 30 30 41 (30/10/20)
Investment universe EURO STOXX® index: appr. 300 Eurozone stocks STOXX® Europe 600 index: 600 European stocks S&P Europe Broad Market Index (BMI): 1,526 (30/04/20) European stocks, only Eurozone companies are included
Index rebalancing Annually Annually Quarterly
Selection criteria Dividend quality, non-negative payout ratio, indicated dividend yield Dividend quality, non-negative payout ratio, indicated dividend yield Controlled dividend policy with rising or stable dividends for at least 10 consecutive years
Index weighting Dividend yield Dividend yield Dividend yield
 
MSCI EMU High Dividend Yield MSCI Europe High Dividend Yield
Number of ETFs 0 ETFs 0 ETFs
Number of constituents 37 (30/10/20) 57 (30/10/20)
Investment universe MSCI EMU index: 246 (30/10/20) Eurozone stocks (without REITs) MSCI Europe index: 435 (30/10/20) European stocks (without REITs)
Index rebalancing Semi-annually Semi-annually
Selection criteria Quality factors, dividend yield of at least 30% above the average of the underlying index, non-negative dividend growth over 5 years Quality factors, dividend yield of at least 30% above the average of the underlying index, non-negative dividend growth over 5 years
Index weighting Market cap (free float) Market cap (free float)

Source: justETF Research; as of 30/04/20

 

EURO STOXX® Select Dividend 30 index

The EURO STOXX® Select Dividend 30 index consists of a selection of 30 companies from the Eurozone that meet criteria for high dividend quality. The parent index is the EURO STOXX® index. Securities are selected based on their indicated dividend yield and their historical dividend policy. The selected stocks are weighted by their indicated dividend yield.

 

Methodology of the EURO STOXX® Select Dividend 30 Factsheet Methodology

  • 30 dividend stocks from Eurozone countries
  • Investment universe: EURO STOXX® index, which includes appr. 300 companies
  • Stock selection is based on the indicated dividend yield. In addition, companies must meet certain requirements with respect to dividend quality and payout ratio
  • Selection criteria: positive dividend growth over five years, dividend payments in four of the last five years, non-negative payout ratio (max. 60%)
  • Index rebalancing takes place annually in March
  • Index weighted by indicated dividend yield
 

MSCI EMU High Dividend Yield index

The MSCI EMU High Dividend Yield index focuses on the highest dividend stocks in the Eurozone. This dividend index includes 37 companies (as of 30/10/20) which are selected according to quality factors and dividend strength. The criteria include a dividend yield of at least 30 percent above the average of the underlying index (MSCI EMU index) and a non-negative dividend growth rate over the last 5 years. The selected stocks are weighted by their free float market capitalization.

 

Methodology of the MSCI EMU High Dividend Yield Factsheet Methodology

  • 37 dividend stocks from Eurozone countries (as of 30/10/20)
  • Investment universe: MSCI EMU index, which includes 246 shares (as of 30/10/20), excluding REITs
  • Stock selection is based on the indicated dividend yield
  • Selection criteria: quality factors, dividend yield of at least 30% above the average of the underlying index, non-negative dividend growth over 5 years
  • Index rebalancing takes place semi-annually in May and November
  • Index weighted by free float market capitalization
  • Maximum weight per individual stock is 5%
 

MSCI Europe High Dividend Yield index

The MSCI Europe High Dividend Yield index focuses on the highest dividend stocks from Europe. This dividend index includes 57 companies (as of 30/10/20) which are selected according to quality factors and dividend strength. The criteria include a dividend yield of at least 30 percent above the average of the underlying index (MSCI Europe index) and a non-negative dividend growth rate over the last 5 years. The selected stocks are weighted by their free float market capitalization.

 

Methodology of the MSCI Europe High Dividend Yield Factsheet Methodology

  • 57 dividend stocks from 15 European countries (as of 30/10/20)
  • Investment universe: MSCI Europe index, which comprises 435 European equities (as of 30/10/20), excluding REITs
  • Stock selection is based on the indicated dividend yield
  • Selection criteria: quality factors, dividend yield of at least 30% above the average of the underlying index, non-negative dividend growth over 5 years
  • Index rebalancing takes place semi-annually in May and November
  • Index weighted by free float market capitalization
  • Maximum weight per individual stock is 5%
 

S&P Euro High Yield Dividend Aristocrats index

The S&P Euro High Yield Dividend Aristocrats index focuses on long-term and stable dividend growth. It is based on the S&P Europe Broad Market Index (BMI), but only includes stocks from Eurozone countries. A company is only included in the S&P Euro High Yield Dividend Aristocrats index if it has at least 10 consecutive years of a controlled dividend policy with rising or stable dividend payments. In addition, pre-defined yield criteria must be met. Despite the strict inclusion rules, the limits for individual securities, sector and country weightings ensure that no cluster risks arise in the index. The selected stocks are weighted by their indicated dividend yield.

 

Methodology of the S&P Euro High Yield Dividend Aristocrats Factsheet Methodology

  • Appr. 40 dividend stocks from Eurozone countries
  • Investment universe: S&P Europe Broad Market Index (BMI), which includes 1,526 European stocks (as of 30/04/20). Only Eurozone companies are included
  • Stock selection is based on the indicated and the historical dividend yield
  • Selection criteria: controlled dividend policy with rising or stable dividends for at least 10 consecutive years
  • Index rebalancing takes place quarterly
  • Index weighted by indicated dividend yield
  • Weight per individual stocks max. 5%; weight per sector/country max. 30%
 

STOXX® Europe Select Dividend 30 index

The STOXX® Europe Select Dividend 30 index comprises a selection of 30 companies from Europe that meet criteria for high dividend quality. The parent index is the STOXX® Europe 600 index. Securities are selected based on their indicated dividend yield and their historical dividend policy. The selected stocks are weighted by their indicated dividend yield.

 

Methodology of the STOXX® Europe Select Dividend 30 Factsheet Methodology

  • 30 dividend stocks from Europe
  • Investment universe: STOXX® Europe 600 index
  • Stock selection is based on the indicated dividend yield. In addition, companies must meet certain requirements with respect to dividend quality and payout ratio
  • Selection criteria: positive dividend growth over five years, dividend payments in four of the last five years, non-negative payout ratio (max. 60%)
  • Index rebalancing takes place annually in March
  • Index weighted by indicated dividend yield
 

European Dividend ETFs in comparison

The most important factors at a glance

When choosing a European dividend ETF one should consider several other factors in addition to the methodology of the underlying index and performance of an ETF. For better comparison, you will find a list of all European dividend ETFs with details on size, cost, age, income, domicile and replication method ranked by fund size.

Compare all European dividend ETFs in detail
Compare all European dividend ETFs in a chart

Provider
ISIN
  Fund size
in m CHF
TER
in %
Use of profits Fund domicile Replication method
SPDR S&P Euro Dividend Aristocrats UCITS ETF (Dist)IE00B5M1WJ87 1,320 0.30% p.a. Distributing Ireland Full replication
iShares Euro Dividend UCITS ETFIE00B0M62S72 780 0.40% p.a. Distributing Ireland Full replication
Lyxor STOXX Europe Select Dividend 30 UCITS ETF - DistLU1812092168 145 0.30% p.a. Distributing Luxembourg Unfunded swap
ComStage EURO STOXX Select Dividend 30 UCITS ETFLU0378434236 69 0.25% p.a. Distributing Luxembourg Full replication
WisdomTree Europe Equity UCITS ETF USD Hedged AccIE00BYQCZP72 59 0.58% p.a. Accumulating Ireland Full replication
WisdomTree Europe Equity Income UCITS ETFIE00BQZJBX31 23 0.29% p.a. Distributing Ireland Full replication
WisdomTree Europe Equity UCITS ETF USD HedgedIE00BVXBH163 19 0.58% p.a. Distributing Ireland Full replication
Franklin LibertyQ European Dividend UCITS ETFIE00BF2B0L69 18 0.25% p.a. Distributing Ireland Full replication
Invesco EURO STOXX High Dividend Low Volatility UCITS ETFIE00BZ4BMM98 15 0.30% p.a. Distributing Ireland Full replication
BNP Paribas Easy Equity Dividend Europe UCITS ETFLU1615090864 10 0.30% p.a. Accumulating Luxembourg Unfunded swap
WisdomTree Europe Equity UCITS ETF EUR AccIE00BYQCZX56 5 0.32% p.a. Accumulating Ireland Full replication
WisdomTree Europe Equity Income UCITS ETF AccIE00BDF16007 5 0.29% p.a. Accumulating Ireland Full replication
WisdomTree Europe Equity UCITS ETF GBP HedgedIE00BYQCZQ89 3 0.35% p.a. Distributing Ireland Full replication
WisdomTree Europe Equity UCITS ETF CHF Hedged AccIE00BYQCZT11 0 0.35% p.a. Accumulating Ireland Full replication

Source: justETF.com; As of 23/11/20

 

Return comparison of all European dividend ETFs

The table shows the returns of all European dividend ETFs in comparison. All return figures are including dividends as of month end. Besides the return the reference date on which you conduct the comparison is important. In order to find the best ETFs, you can also perform a chart comparison.

ETF   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
WisdomTree Europe Equity UCITS ETF CHF Hedged Acc -5.62% -1.86% 5.96% -13.08% -12.08%
Franklin LibertyQ European Dividend UCITS ETF -5.08% -2.99% 1.12% -14.69% -16.09%
WisdomTree Europe Equity UCITS ETF EUR Acc -6.66% -2.51% 7.41% -15.38% -18.24%
WisdomTree Europe Equity UCITS ETF USD Hedged Acc -6.40% -1.08% 0.17% -18.07% -12.95%
WisdomTree Europe Equity UCITS ETF USD Hedged -6.43% -1.07% 0.20% -18.18% -13.10%
WisdomTree Europe Equity UCITS ETF GBP Hedged -5.44% -2.43% 3.96% -19.39% -19.28%
SPDR S&P Euro Dividend Aristocrats UCITS ETF (Dist) -8.35% -7.90% -2.31% -24.23% -22.54%
Lyxor STOXX Europe Select Dividend 30 UCITS ETF - Dist -3.83% -4.83% 0.26% -27.03% -21.39%
Invesco EURO STOXX High Dividend Low Volatility UCITS ETF -6.84% -6.21% -1.22% -29.17% -29.84%
WisdomTree Europe Equity Income UCITS ETF -6.75% -7.11% -5.05% -29.52% -29.34%
WisdomTree Europe Equity Income UCITS ETF Acc -6.67% -7.10% -5.05% -29.53% -29.32%
BNP Paribas Easy Equity Dividend Europe UCITS ETF -4.70% -2.24% -3.59% -29.93% -38.27%
iShares Euro Dividend UCITS ETF -4.85% -3.04% 5.25% -32.06% -34.61%
ComStage EURO STOXX Select Dividend 30 UCITS ETF -4.80% -3.05% 5.14% -32.40% -35.05%
ETF   2020
in %
2019
in %
2018
in %
2017
in %
2016
in %
WisdomTree Europe Equity UCITS ETF CHF Hedged Acc -16.04% 23.56% -12.01% 11.75% -
WisdomTree Europe Equity UCITS ETF EUR Acc -17.15% 19.34% -14.85% 22.22% 7.36%
Franklin LibertyQ European Dividend UCITS ETF -18.98% 17.45% -10.37% - -
WisdomTree Europe Equity UCITS ETF USD Hedged Acc -19.51% 24.88% -8.36% 9.00% -
WisdomTree Europe Equity UCITS ETF USD Hedged -19.62% 24.97% -8.37% 8.91% 12.40%
WisdomTree Europe Equity UCITS ETF GBP Hedged -22.14% 26.10% -14.55% 18.30% -7.48%
SPDR S&P Euro Dividend Aristocrats UCITS ETF (Dist) -25.76% 17.64% -11.23% 20.52% 8.66%
Lyxor STOXX Europe Select Dividend 30 UCITS ETF - Dist -29.68% 21.62% -7.78% 14.35% 5.01%
Invesco EURO STOXX High Dividend Low Volatility UCITS ETF -29.97% 13.43% -11.60% 19.47% -
WisdomTree Europe Equity Income UCITS ETF Acc -31.61% 16.03% -10.72% 18.99% -
WisdomTree Europe Equity Income UCITS ETF -31.63% 16.10% -10.75% 18.99% 7.07%
BNP Paribas Easy Equity Dividend Europe UCITS ETF -33.38% 17.40% -22.71% - -
iShares Euro Dividend UCITS ETF -33.69% 17.35% -14.31% 19.54% 11.57%
ComStage EURO STOXX Select Dividend 30 UCITS ETF -34.07% 18.68% -15.07% 18.49% 11.11%

Source: justETF.com; As of 31/10/20; Calculations in CHF including dividends