I would like to see a global-equity divd ETF, with quarterly payouts. Something akin to the new "VT", but with a divd focus, incorporating U.S. Canada, EFA, and emerging markets. To generate income, or at least, to offset the MER, would like to see limited covered-call writing against world stock market indices.
Re construction of such an ETF, I think any such ETF should have some type of collar/cap from any country being significantly over-/under-represented (the "IDV" ETF, as an example, which purports to be an intl divd ETF, seems almost like a closet Australia fund). In addition, I think that no major market sector (e.g. banks) should be allowed to represent more than say 20% of said ETF Some domestic divd ETFs (e.g. PEY) were constructed to significantly overweight financials.
Basically, the ETF should be constructed in such a way that it is not a closet-sector fund, nor a closet-"single country" (even if that single country is the U.S.)
I would also like any such ETF to factor in major changes to forecasted earnings -- to allow it to anticipate major earnings decreases within a sector, and so rejigger, to some degree --- after all, divd are paid out of earnings. If earnings are expected to decline precipitiously, divds decreases are a predictable result -- why wait until a company halts a divd payment before removing it from an ETF?
It might be a good idea to have TWO VERSION of said ETF -- one hedged to the USD, and an identical fund UNhedged....
