Dividend income enthusiasts cannot miss out on this! This new ETF from BlackRock brings together high dividend stocks from around the world.

The world's largest asset management firm BlackRock, Inc. (BLK.US) announced on Monday the launch of its first actively managed exchange-traded fund (ETF) on the U.S. stock market - BlackRock, Inc. International Dividend ETF. This ETF, which trades on the U.S. stock market, invests in international companies that pay high dividends, covering global stock markets. Its core holdings include UK pharmaceutical giant Astrazeneca PLC Sponsored ADR, European energy giant Shell, Japanese industrial products giant Keyence, and Danish pharmaceutical giant Novo Nordisk A/S Sponsored ADR Class B, among other top global companies. In this process, asset management giant BlackRock, Inc. transformed its BlackRock International Dividend Fund into an actively managed ETF, creating and issuing the BlackRock, Inc. International Dividend ETF (ETF code: BIDD). This marks the first time BlackRock, Inc. has converted an actively managed mutual fund into an actively managed ETF. "By focusing on investing in high-quality international listed companies and emphasizing corporate value and valuation systems, we have achieved long-term and stable recurring returns," said Olivia Trehaan, portfolio manager and co-head of the Global Equity team at BlackRock, Inc. "The launch of this actively managed ETF helps more investors easily grasp the high dividend investment opportunities in the international market." The newly launched active management ETF BIDD, with an expense ratio of 0.61%, invests at least 80% of its net assets in high dividend-paying listed companies in developed and emerging markets internationally. BIDD, which debuted on the U.S. stock market on Monday, actively manages and invests in high dividend securities globally. The predecessor of this actively managed ETF was a mutual fund, and during the mutual fund period, it achieved an average return of about 7% over a five-year period, which was comparable to the average return of funds focusing on high dividends and a small proportion of fixed income assets. This is considered a significant investment return for conservative, high-net-worth investors who previously invested in the mutual fund. Rise in popularity of ETF assets in the U.S. stock market By converting mutual funds into ETF assets traded on the U.S. stock market for the first time, BlackRock, Inc. has joined the ranks of top asset management companies such as Dimensional Fund Advisors and Fidelity Investments, which have widely converted mutual funds into packaged products that are typically cheaper and more tax-efficient. Since the first conversion in 2021, asset management firms have converted more than 70 mutual funds into ETF assets traded on public exchanges, as global investors increasingly flock to the ETF market and its corresponding options. According to a report from the iShares product team at BlackRock, Inc., the shareholder base and holdings of BIDD are largely similar to ETF-packaged funds, indicating that BlackRock, Inc. has "seen a clear shift in investor preferences, as inflows into active ETFs compared to active mutual funds have shown." Bloomberg Intelligence reported that last Friday, the overall annual net inflow of ETFs in the U.S. stock market set a new record high, reaching a historic high of $913 billion this year, exceeding the previous record of $910 billion inflow in 2021. Extremely suitable for low-risk preference investors seeking stable cash flow The main benefit of high dividend ETFs is providing investors with stable cash returns through regular dividend distributions, while also enjoying capital gains from stock price appreciation. This is highly attractive for value investors with lower risk preferences, relatively large asset sizes, and a preference for companies with high cash flows. It is also suitable for investors who are optimistic about the potential of international markets, especially those who believe that international markets have relatively higher dividend yields and more reasonable valuations. High dividend stocks typically come from highly profitable, stable cash flow companies, with price volatility often significantly lower than growth stocks like NVIDIA Corporation and Tesla. The regular dividends and low volatility of high dividend ETFs can significantly cushion the negative investment effects of market fluctuations. In addition, when the overall financial market is high-risk or facing economic downturns, investors tend to allocate funds to more "defensive" international assets that are undervalued and pay high dividends. High dividend ETFs are relatively sensitive to interest rates. When benchmark interest rates are high but expected to steadily decline in the future, their investment returns are usually more attractive. Compared to fixed-income investment models focusing on bonds, high dividend stocks have both the potential for dividend growth trends and potential stock price appreciation opportunities.