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This ETF targets quality dividends tied to the MSCI EAFE index
The ALPS O’Shares International Developed Quality Dividend ETF, OEFA, allocates about 18% to Japanese stocks while using quality and cash flow screens rather than pure yield metrics.
ETF Trends highlights the ALPS O’Shares International Developed Quality Dividend ETF, OEFA, which tracks the O’Shares International Developed Quality Dividend Index as a quality dividend alternative tied to the MSCI EAFE benchmark.
In 2026, the largest ETF in the Europe stock category has gained 9.9%, exceeding the MSCI EAFE Index by 280 basis points, the outlet said, pointing to OEFA’s approach as part of the appeal.
The fund is Europe-heavy and uses an index methodology that emphasizes quality traits to reduce the risk of “yield traps” that can lead to dividend cuts. ETF Trends says OEFA places 18% of weight in Japanese stocks, while 31.6% goes to industrials and 28.7% is in consumer cyclical and healthcare names.
Holdings cited include Rolls-Royce and HSBC. Morningstar’s Loredana Muharremi said Rolls-Royce resumed dividends in 2024, paid a 2025 dividend of 9.5p per share, and completed a £1 billion share buyback in 2025, alongside plans for a multiyear £7 billion to £9 billion buyback funded from free cash flow, while Kathy Chan said HSBC has increased shareholder distributions via buybacks and dividends as earnings improved.