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 the companies that are profitable and economically strong. For investors seeking regular income in times of low interest rates dividend stocks present an attractive investment.

There are several indices available to invest with ETFs in European high-dividend equities. This Investment Guide for European dividend stocks will help you navigate between the peculiarities of indices that vary substantially in their methodologies and ETFs that track them. It will allow you to find the most suitable ETFs for you by ranking them according to your preferences.

0.23% p.a. - 0.58% p.a.
annual total expense ratio (TER) of European dividend ETFs
on European dividend stocks, which is 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 30.11.16

All European dividend ETFs ranked by fund return

 

The largest European dividend ETF by fund size in EUR

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® 50 Dividend Points Futures EURO STOXX® Select Dividend 30 STOXX® Europe Select Dividend 30
Number of ETFs 0 ETFs 5 ETFs 2 ETFs
Number of constituents - 30 30
Investment universe STOXX Dividend Points (DVP) Index EURO STOXX Index: appr. 300 Eurozone stocks STOXX Europe 600 Index: 600 European stocks
Index rebalancing Annually Quarterly Quarterly
Selection criteria 5 dividend futures with different maturities Positive dividend growth over five years, the dividend payment in four of the last five years, a maximum of 60% payout ratio Positive dividend growth over five years, the dividend payment in four of the last five years, a maximum of 60% payout ratio
Index weighting - Dividend yield Dividend yield
 
MSCI EMU High Dividend Yield MSCI Europe High Dividend Yield S&P Euro High Yield Dividend Aristocrats
Number of ETFs 1 ETF 1 ETF 1 ETF
Number of constituents appr. 37 (as of 31.10.16) appr. 65 (as of 31.10.16) appr. 40
Investment universe MSCI EMU Index: 241 Eurozone stocks (as of 241) MSCI Europe Index: 446 European stocks (as of 446) S&P Europe Broad Market Index (BMI): 1.635 European stocks
Index rebalancing Semi-annually Semi-annually Quarterly
Selection criteria Quality factors, dividend yield of at least 30% above the average of the underlying index, positive dividend growth over 5 years Quality factors, dividend yield of at least 30% above the average of the underlying index, positive dividend growth over 5 years Controlled dividend policy with rising or stable dividends for at least 10 consecutive years
Index weighting Market cap (free float) Market cap (free float) Dividend yield

Source: justETF Research; As of 31/03/2014

 

EURO STOXX® Select Dividend 30 Index

The EURO STOXX Select Dividend 30 Index consists of a selection of 30 companies in the Eurozone which meet the standards of high quality dividend. This European Dividend Index contains the stocks with highest dividends in the EURO STOXX Index. Stock selection is based on the historical dividend yield. The stocks in the index are weighted by the indicated dividend yield.

 

Methodology of the EURO STOXX® Select Dividend 30 Factsheet Methodology

  • 30 dividend stocks from the EURO STOXX Index
  • The EURO STOXX Index includes appr. 300 companies in the Eurozone
  • Index rebalancing on a quarterly basis
  • Stock selection is based on the historical dividend yield
  • Selection criteria: positive growth in dividends over 5 years, dividend payment in four of the last five years, a maximum of 60% payout ratio
  • Index weighted by the 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 which are selected according to quality factors and dividend strength. These include a dividend yield of at least 30 percent above the average of the company and a non-negative dividend growth rate over the last 5 years. The stocks are weighted by free float market capitalization.

 

Methodology of the MSCI EMU High Dividend Yield Factsheet Methodology

  • 37 dividend stocks from Eurozone (only developed countries) (as of 31.10.16)
  • The MSCI EMU Index includes 241 shares from Eurozone (as of 31.10.16)
  • Criteria for selection: quality factors, dividend yield of at least 30% above the average of the underlying index, positive dividend growth over 5 years
  • Index weighted by free float market capitalization
  • Maximum weight per individual stock is 5%
 

MSCI Europe High Dividend Yield Index

The composition and weighting of the MSCI Europe High Dividend Yield Index is the same as in MSCI EMU High Dividend Yield Index. However, this index includes dividend-yielding companies from developed countries throughout Europe. The weighting of the stocks in the index is also based on market capitalization.

 

Methodology of the MSCI Europe High Dividend Yield Factsheet Methodology

  • 65 dividend stocks from 15 European countries (developed countries only) (as of 31.10.16)
  • The MSCI Europe Index comprises 446 European equities (as of 31.10.16)
  • Criteria for selection: quality factors, dividend yield of at least 30% above the average of the underlying index, positive dividend growth over 5 years
  • Index weighted by free float market capitalization
  • Index rebalanced semi-annually in May and November
  • 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 a long-term and stable dividend growth. In the index a company of Eurozone is included only if it has at least 10 consecutive years of a controlled dividend policy with rising or stable dividends. In addition, pre-defined yield criteria must be met. Despite the strict inclusion rules, the limits of individual securities, sector and country weightings ensure that no cluster risks arise in the index.

 

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

  • 40 dividend Eurozone stocks from the S&P Europe Broad Market Index (BMI)
  • The S&P Europe Broad Market Index (BMI) includes 1,635 shares of Europe (as of 31/03/2014)
  • Index rebalancing is carried out quarterly
  • Stock selection is based on the historical dividend yield
    Selection criteria: controlled dividend policy with rising or stable dividends for at least 10 consecutive years
  • 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 the standards of high quality dividend. This European dividend index contains the stocks with highest dividends in the STOXX Europe 600 Index. Stock selection is based on the historical dividend yield. The stocks in the index are weighted by the indicated dividend yield.

 

Methodology of the STOXX® Europe Select Dividend 30 Factsheet Methodology

  • 30 dividend stocks from the STOXX Europe 600 Index
  • The STOXX Europe 600 Index comprises 600 European companies
  • Index rebalancing on a quarterly basis
  • Stock selection is based on the historical dividend yield
    Selection criteria: positive dividend growth over five years, the dividend payment in four of the last five years, a maximum of 60% payout ratio
  • Index weighted by the 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 EUR
TER
in %
Use of profits Fund domicile Replication method
SPDR S&P Euro Dividend Aristocrats UCITS ETFIE00B5M1WJ87 1,044 0.30% p.a. Distributing Ireland Full replication
iShares EURO Dividend UCITS ETFIE00B0M62S72 647 0.40% p.a. Distributing Ireland Full replication
iShares EURO STOXX Select Dividend 30 UCITS ETF (DE)DE0002635281 569 0.32% p.a. Distributing Germany Full replication
iShares STOXX Europe Select Dividend 30 UCITS ETF (DE)DE0002635299 484 0.31% p.a. Distributing Germany Full replication
db x-trackers EURO STOXX Select Dividend 30 UCITS ETF (DR) 1DLU0292095535 182 0.30% p.a. Distributing Luxembourg Full replication
Lyxor UCITS ETF STOXX Europe Select Dividend 30 EURFR0010378604 167 0.30% p.a. Distributing France Unfunded swap
Deka EURO iSTOXX ex Fin Dividend Plus UCITS ETFDE000ETFL482 152 0.30% p.a. Distributing Germany Full replication
Deka EURO STOXX Select Dividend 30 UCITS ETFDE000ETFL078 127 0.30% p.a. Distributing Germany Full replication
WisdomTree Europe Equity UCITS ETF USD HedgedDE000A14SLJ6 61 0.58% p.a. Distributing Ireland Full replication
ComStage EURO STOXX Select Dividend 30 NR UCITS ETFLU0378434236 56 0.25% p.a. Accumulating Luxembourg Unfunded swap
Amundi ETF MSCI Europe High Dividend Factor UCITS ETFFR0010718874 40 0.23% p.a. Accumulating France Unfunded swap
Amundi ETF MSCI EMU High Dividend UCITS ETFFR0010717090 40 0.30% p.a. Accumulating France Unfunded swap
Source FTSE RAFI Europe Equity Income Physical UCITS ETF BDE000A143TJ9 34 0.35% p.a. Distributing Ireland Full replication
WisdomTree Europe Equity Income UCITS ETFDE000A14ND38 33 0.29% p.a. Distributing Ireland Full replication
PowerShares EURO STOXX High Dividend Low Volatility UCITS ETFIE00BZ4BMM98 6 0.30% p.a. Distributing Ireland Full replication
UBS ETF (LU) Factor MSCI EMU Total Shareholder Yield UCITS ETF (EUR) A-disLU1215455947 6 0.28% p.a. Distributing Luxembourg Full replication
WisdomTree Eurozone Quality Dividend Growth UCITS ETF EUR AccDE000A2AHL91 1 0.29% p.a. Accumulating Ireland Full replication
WisdomTree Europe Equity UCITS ETF EUR AccDE000A142K52 1 0.32% p.a. Accumulating Ireland Full replication

Source: justETF.com; As of 07.12.16

 

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 %
iShares EURO STOXX Select Dividend 30 UCITS ETF (DE) -0.48% 3.91% 2.31% 0.78% 27.00%
Deka EURO STOXX Select Dividend 30 UCITS ETF -0.64% 3.72% 2.10% 0.15% 26.05%
ComStage EURO STOXX Select Dividend 30 NR UCITS ETF -0.61% 3.77% 2.13% 0.00% 26.50%
db x-trackers EURO STOXX Select Dividend 30 UCITS ETF (DR) 1D -0.65% 3.77% 2.22% -0.01% 25.79%
iShares EURO Dividend UCITS ETF -0.64% 3.70% 1.69% -0.17% 25.77%
SPDR S&P Euro Dividend Aristocrats UCITS ETF -2.58% -2.13% -1.02% -1.48% 17.75%
Deka EURO iSTOXX ex Fin Dividend Plus UCITS ETF -2.93% -0.48% 0.59% -2.18% -
iShares STOXX Europe Select Dividend 30 UCITS ETF (DE) 1.68% 1.65% -1.16% -3.69% 23.88%
Lyxor UCITS ETF STOXX Europe Select Dividend 30 EUR 1.60% 1.60% -1.49% -4.11% 22.82%
WisdomTree Europe Equity Income UCITS ETF 0.34% 2.51% -0.05% -5.28% -
WisdomTree Europe Equity UCITS ETF USD Hedged 1.32% 5.18% 7.04% -5.93% -
WisdomTree Europe Equity UCITS ETF EUR Acc -1.54% -0.21% 2.32% -5.94% -
Amundi ETF MSCI EMU High Dividend UCITS ETF -2.07% 1.82% -1.36% -6.14% 25.41%
UBS ETF (LU) Factor MSCI EMU Total Shareholder Yield UCITS ETF (EUR) A-dis -1.80% 1.10% -1.72% -6.23% -
Amundi ETF MSCI Europe High Dividend Factor UCITS ETF 0.73% 0.34% -2.29% -7.35% 18.09%
PowerShares EURO STOXX High Dividend Low Volatility UCITS ETF -2.06% 0.94% -0.99% - -
Source FTSE RAFI Europe Equity Income Physical UCITS ETF B 0.58% 2.45% 1.04% - -
WisdomTree Eurozone Quality Dividend Growth UCITS ETF EUR Acc -0.38% -0.23% - - -

Source: justETF.com; As of 30.11.16; Calculations in EUR including dividends