The iShares Euro Dividend UCITS ETF (IDVY) is an Ireland-domiciled equity ETF managed by BlackRock and traded on the London Stock Exchange.

The fund seeks to track the performance of the STOXX Eurozone Select Dividend 30 Index, a benchmark composed of 30 stocks from Eurozone companies selected with a focus on dividends.

IDVY provides exposure to Eurozone companies with relatively high dividend yields. The ETF follows a passive investment strategy and uses physical replication to track its benchmark. It operates under the UCITS framework and follows a distributing income policy.

The index methodology draws from the Eurozone equity universe and applies criteria related to dividend payments and sustainability. 

Eligible companies are evaluated using factors including non-negative historical dividend-per-share growth, dividend-to-earnings-per-share ratios, and dividend yield relative to their home market. The final portfolio consists of 30 companies, with constituent weighting also reflecting dividend yield.

Composition / Exposure Profile

IDVY holds companies across different sectors of the Eurozone economy, which can include:

• Financials.

• Industrials.

• Utilities.

• Energy.

• Consumer discretionary.

• Consumer staples.

• Communication services.

• Materials.

• Health care.

• Real estate.

• Information technology.

Geographically, the fund is limited to companies from Eurozone countries, which can include markets such as France, Germany, Spain, Italy, the Netherlands, Belgium, Finland, and other members of the currency union.

Because the benchmark selects only 30 companies based on specific dividend characteristics, IDVY has a more concentrated portfolio than broad Eurozone equity indexes. Its country and sector allocations can change as different companies meet the benchmark's selection criteria.

Structure and Costs

IDVY has the euro as both its fund base currency and share class currency and is traded on the London Stock Exchange.

The ETF has a total expense ratio (TER) of 0.40% per year, uses a physical structure with replicated methodology, and is domiciled in Ireland under the UCITS framework. Its issuing company is iShares plc, and the fund is managed by BlackRock Asset Management Ireland Limited.

IDVY follows a quarterly distribution policy, meaning income generated by portfolio companies can be paid periodically to shareholders rather than fully reinvested within the fund.

History and Evolution of the ETF

The iShares Euro Dividend UCITS ETF (IDVY) was launched in 2005 to provide exposure to Eurozone companies selected with a focus on dividends.

Since its launch, the fund has maintained a passive strategy linked to the STOXX Eurozone Select Dividend 30 Index, concentrating its portfolio in 30 companies that meet the benchmark's dividend-related selection criteria.

Throughout its history, the fund's performance has reflected both Eurozone equity-market cycles and factors affecting companies' ability to maintain dividend payments, including economic growth, corporate profitability, credit conditions, and changes in interest rates.

Additional Information

iShares Euro Dividend UCITS ETF (Ireland) is an exchange-traded fund (ETF), with assets under management totaling $1.62 billion.

Over the past 12 months, iShares Euro Dividend UCITS ETF recorded a return of 12.67%, with its price trading between $25.69 and $32.01 during the same period.

The ETF is traded under the ticker IDVY.