3 ETFs Holding Airline Satellite Company Inmarsat

| March 31, 2014 | 0 Comments

How can a Boeing 777, one of the safest aircrafts ever made, go missing for weeks?

The world is demanding answers. Malaysia Airlines flight 370, on route from Kuala Lampur to Beijing, seemingly vanished mid-flight.

The aircrafts transponder was apparently not functioning and not able to communicate with air traffic controllers.  There has been only one resource to provide any definitive information.

Inmarsat (IMASF) has used their satellite tracking data to conclude the plane is in the ocean off the coast of Perth, Australia.  The CEO of Inmarsat gave a news conference and recommended that all commercial planes be tracked with their software so no plane goes missing like this again.

Needless to say, this could be a big change for the airline industry that the public demands.

Let’s take a look a three top performing ETFS that contain this satellite company.

SPDR S&P International Dividend (DWX)

DWX is one of the top ETFs holding Inmarsat.  At a recent price of $47.83, DWX is up 0.53% this week and 103.9% on a 5-year return.

The S&P International Dividend Opportunities Index generally includes 100 tradable, exchange-listed common stocks from around the world that offer high dividend yields.

DWX currently holds 116 stocks from high dividend yielding stocks.  It has a dividend yield of 6.05% and an expense ratio of 0.45%.

As the name suggests, DWX contains foreign stocks with a majority being in the communications and financial sectors.

We have seen a rise in the price of the ETF, not only because of Inmarsat’s sharp 16 point increase in price, but also because of some of its other top holdings such as ProSieban SAT (PBSFF) and AstraZeneca (AZNCF).

FTSE Developed Europe Index (VGK)

VGK is another top performer that has Inmarsat in its holdings.  With a recent price of $58.14, it is up 21.17% on a 1-year return and 113.86% on a 5-year return.

The FTSE Developed Europe Index is one of a range of indices designed to help investors benchmark their European investments.  The index is comprised of large and mid cap stocks in Europe’s Developed markets.

VGK holds 507 stocks and has a low expense ratio of 0.12%. It has a dividend payout of 2.8%.

The majority of VGK’s holdings are in the financial services and consumer defense sectors.  Its top holdings include Nestle, GlaxoSmithKline, and Vodafone.

WisdomTree International MidCap Dividend (DIM)

DIM is another top performing ETF currently holding Inmarsat. It was recently trading at $59.61 and is up 18.13% over 1 year.  It has an awesome 5-year return of 118.04%!

This ETF is a fundamentally weighted index that measures the performance of the mid-capitalization segment of the dividend-paying market in the industrialized world outside North America.  The Index is comprised of the companies that make up the top 75% of the market capitalization of the WisdomTree DEFA Index.

It currently holds 558 stocks. It has an expense ratio of 0.58% and a dividend payout of 3.20%.

DIM currently holds a majority of its stocks in the Industrial and Financial Services sectors. Some of its top holdings include Belgacom, Atlantia, and Veolia Environment.

Here’s the upshot…

The tragedy of Malaysia Airlines flight 370 could be the catalyst for changes in the airline industry.  If Inmarsat is integrated into all airlines around the world, we could avoid a lengthy search and potentially save lives.  It could also be a profitable investment that boosts the value of ETFs the hold the stock.

Good Investing,

Corey Williams

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Category: ETFs

About the Author ()

Corey Williams is the editor of Sector ETF Trader, an investment advisory service focused on profiting from ETFs and the economic cycle. Under Corey’s leadership, the Sector ETF Trader has become one of the most popular and successful ETF advisories around. In addition to his groundbreaking service, Corey is the lead contributor to ETF Trading Research, where he shares his insights about ETFs and financial markets on a daily basis. He’s also a regular contributor to the Dynamic Wealth Report and the editor of one the hottest option trading services around – Elite Option Trader.

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