2 International Dividend ETFs To Watch as the 'Sell America' Trade Gains Popularity

Core Viewpoint - The "sell America" trade is gaining traction among investors, suggesting a shift in portfolio allocations away from U.S. assets, but skepticism remains regarding its sustainability due to the interconnectedness of global markets [1][2]. Group 1: Market Dynamics - The sentiment to increase international investments is growing among U.S.-based investors, but the market's electronic linkage complicates a significant asset shift from U.S. to international stocks [2][3]. - The top 20 U.S.-listed ETFs, each with at least $100 billion in assets, are predominantly focused on U.S. stocks, particularly mega-cap tech stocks, which raises questions about the feasibility of reallocating assets to international markets [3][5]. Group 2: Investment Opportunities - The Vanguard Dividend Appreciation ETF (VIG), while included in the top 20 ETFs, is primarily a growth fund with a low dividend payout, indicating a trend towards growth stocks rather than income-generating investments [4][5]. - For investors seeking yield outside the U.S., international dividend and emerging market ETFs are more appealing, as they offer income and stability during market rotations away from U.S. equities [6]. - The iShares International Select Dividend ETF (IDV) is highlighted as a classic choice for international dividend exposure, focusing on developed markets and offering a trailing 12-month yield of 4.7%, significantly higher than major benchmark ETFs [7].