[On :Freetrade:] iShares Euro Dividend UCITS ETF (IDVY)

iShares Euro Dividend UCITS ETF

WHY IDVY?

  1. Exposure to diversified Eurozone companies with the highest dividend yields
  2. Direct investment into 30 listed securities from the Eurozone
  3. Regional exposure with a focus on income

INVESTMENT OBJECTIVE

The Fund seeks to track the performance of an index composed of 30 stocks with leading dividend yields selected from companies in Eurozone countries.

https://www.ishares.com/uk/individual/en/products/251787/ishares-euro-dividend-ucits-etf

Following on from the ‘What is your biggest holding’ thread

thought I’d share why IDVY are mine!

It was one of the first ETF’s I bought when I opened my Freetrade account when I had little knowledge of buying shares

At the time I wanted to steer away from the UK with brexit and so alongside a few other ETF’s this felt like a good option to diversify across Europe

Nice dividend yield @ 4.86% as well

They’re currently up 5.13% for me so quite happy really

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Given that it’s in EUR aren’t your dividends taking a beating by the conversion rate Freetrade charge? Spot rate +0.45% right - what effect has that had on EUR dividends vs your actual return?

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Even in your scenario, that would be a dividend yield of 4.86%*0.955. The difference is negligible.

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Not something I’ve really considered tbh!

This ETF has many listings. On London Stock Exchange it is quoted and traded in GBP. Given enough liquidity there shouldn’t be FX penalty on buy/sell. Not sure if the LSE share class distributes dividends in € or £. I.e. some vanguard $ exposure ETFs pay out dividends in £ on either £ share classes. Thus FX penalty is paid in bulk by the ETF rather than by freetrade.

Current thoughts on IDVY?

A great way to diversify into eurozone shares! Personally I’d like to see ‘main blue chip companies’ individual shares on the platform with SAP, Heineken, LVMH, Nestlé, Novo Nordisk and Ferrari all on my radar.

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Well my largest holding is suffering somewhat :man_facepalming:

It’s made up of the following

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Does anyone know what are their dividend ex and pay dates?

If you google it you’d find:

Dividendmax shows the next ex date as 10.10.20
ETF are known to not share payment dates very freely. But it’s quarterly, so just add 3 months roughly.