The best ETFs for German Dividend Stocks
How do I invest in German 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 two indices available to invest with ETFs in German high-dividend equities. This Investment Guide for German dividend stocks will help you navigate between the peculiarities of the DivDax index and the DAXplus Maximum Dividend index as well as ETFs that track them. It will allow you to find the most suitable ETFs for you by ranking them according to your preferences.
The best German dividend ETF by 1-year fund return as of 30/09/16
|1||WisdomTree Germany Equity UCITS ETF GBP Hedged||9.48%|
|2||WisdomTree Germany Equity UCITS ETF EUR Acc||-|
|3||WisdomTree Germany Equity UCITS ETF USD Hedged||-|
The largest German dividend ETF by fund size in GBP
|1||WisdomTree Germany Equity UCITS ETF GBP Hedged||20 m|
|2||WisdomTree Germany Equity UCITS ETF EUR Acc||2 m|
|3||WisdomTree Germany Equity UCITS ETF USD Hedged||1 m|
The cheapest German dividend ETF by total expense ratio
|1||WisdomTree Germany Equity UCITS ETF EUR Acc||0.32% p.a.|
|2||WisdomTree Germany Equity UCITS ETF GBP Hedged||0.35% p.a.|
|3||WisdomTree Germany Equity UCITS ETF USD Hedged||0.48% p.a.|
Indices on German Dividend Stocks compared
DivDax vs. DAXplus Maximum Dividend
|DivDax®||DAXplus® Maximum Dividend|
|Number of ETFs||0 ETFs||0 ETFs|
|Number of constituents||15||20|
|Investment universe||Dax: 30 German stocks||HDax: 110 German stocks|
(May and November)
|Selection criteria||Historical dividend yield,
last dividend paid distribution amount in relation to the stock price
|Indicated dividend yield,
companies that pay a dividend in the next 6 months and have the highest indicated dividend yield, based on the closing price at the reporting date
|Index weighting||Market cap (free float)
|Maximum weight per constituent||10%||10%|
Source: justETF Research; As of 31/03/2014
DivDax®: The 15 best dividend stocks in the DAX
The DivDax contains the 15 companies with the highest dividend yield. Stock selection is based on the historical dividend yield of the DAX companies. The last dividend paid is crucial in relation to the price on the distribution date. The index is weighted by the free float market capitalization.
Methodology of the DivDax® Methodology
- 15 DAX stocks with the highest dividend yield
- Index rebalancing takes place annually in September
- Stock selection is based on historical dividend yield
- Index weighted by free float market capitalization
- Maximum weight per constituent is 10%
DAXplus® Maximum Dividend: The 20 best dividend stocks in the HDax
The DAXplus Maximum Dividend Index focuses on stocks' indicated dividends. This index only includes companies that will pay a dividend in the next six months. It is theoretically possible that on the rebalancing date all the companies in the index would be replaced.
The stock selection of the DAXplus Maximum Dividend index includes 110 companies out of DAX, MDAX and TecDax. These three benchmark indices are summarized in HDax. Dividend yield plays a crucial role in the index weighting. This is done according to the indicated dividend yield calculated on the basis of the closing price of the shares at the time of selection.
Methodology of the DAXplus® Maximum Dividend Methodology
- 20 stocks with the highest dividend yield from the HDAX Index (110 companies)
- The HDax includes all companies in the DAX, MDAX and TecDax
- Index rebalanced semi-annually in May and November
- Stock selection is based on companies that pay a dividend in the next 6 months and have the highest expected dividend yield calculated on the basis of the closing price on the reporting date
- Index weighted according to dividend yield
- Maximum weight per constituent is 10%
German Dividend ETFs in comparison
When choosing a German 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 German dividend ETFs with details on size, cost, age, income, domicile and replication method ranked by fund size.
in m GBP
|Use of profits||Fund domicile||Replication method|
|WisdomTree Germany Equity UCITS ETF GBP HedgedIE00BVXBGY20||20||0.35% p.a.||Distributing||Ireland||Full replication|
|WisdomTree Germany Equity UCITS ETF EUR AccIE00BYQCZC44||2||0.32% p.a.||Accumulating||Ireland||Full replication|
|WisdomTree Germany Equity UCITS ETF USD HedgedIE00BYQCZ682||1||0.48% p.a.||Distributing||Ireland||Full replication|
Source: justETF.com; As of 26/10/16
Return comparison of all German dividend ETFs
The table shows the returns of all German 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.
|WisdomTree Germany Equity UCITS ETF GBP Hedged||-0.78%||8.51%||4.71%||9.48%||-|
|WisdomTree Germany Equity UCITS ETF EUR Acc||0.34%||12.70%||15.10%||-||-|
|WisdomTree Germany Equity UCITS ETF USD Hedged||0.59%||12.77%||17.79%||-||-|
Source: justETF.com; As of 30/09/16; Calculations in GBP including dividends