Top Performing Dividend Exchange-Traded Fund Globally
The Franklin Global Quality Dividend UCITS ETF has demonstrated a mixed but generally solid performance in the global dividend ETF market. This ETF, with the ticker WKN: A2DTF0, stands out for its focus on high-quality, dividend-paying stocks, a low total expense ratio of 0.30%, and physical full replication of its index.
Performance Highlights
As of August 2025, the ETF's year-to-date performance is approximately -3.12%. However, its longer-term returns have been strong, with a return of +23.10% in 2024 and +6.96% in 2023 [2]. The fund forecasts a distribution yield around 2.59% to 2.62% for 2025, consistent with the last few years, which have ranged from about 2.8% to 2.9% [2][3]. The ETF's 1-year volatility is 11.28%, with a Sharpe ratio of 0.46, indicating moderate risk-adjusted returns [2].
Factors Contributing to Success
The ETF's success can be attributed to its quality focus, physical and full replication, reasonable cost structure, and consistent dividends. By investing in high-quality, dividend-paying global companies, the ETF aims to reduce risk, especially in volatile markets [4]. The physical holding of securities and full replication of its index minimizes tracking error, thus closely matching the index performance [2]. A low total expense ratio helps preserve investor returns relative to higher-cost funds [2]. Steady payout yields (~2.6%-2.9%) are attractive for income-oriented investors and contribute positively to total returns [2][3].
Comparison to Other Global Dividend ETFs
The SPDR S&P Global Dividend Aristocrats UCITS ETF (ZPD3 GY) is another popular choice, delivering about 10.14% return over 1 year as of May 2025 and a gross return of 17.19% over 3 years. The Aristocrats ETF screens for companies with at least 10 years of stable or increasing dividends and strong ESG scores [1]. Compared to ZPD3 GY, Franklin ETF’s shorter-term performance has lagged somewhat in 2025 but has shown resilience through volatility given its quality focus [1][2]. The Aristocrats ETF emphasizes ESG and dividend growth stability over a decade, which may appeal to some investors more than Franklin’s slightly broader quality dividend focus.
Summary
The Franklin Global Quality Dividend UCITS ETF offers a quality-based investment universe, steady dividend yields, low cost, and physical replication approach. Its performance has been strong in recent years, though 2025 year-to-date shows a dip relative to some peers like SPDR’s Dividend Aristocrats ETF. The Franklin ETF's moderate volatility and consistent income profile make it a competitive option among global dividend ETFs.
References: [1][2][3][4]
Dividend ETFs allow investors to allocate funds into broadly diversified, high-yielding portfolios with minimal effort and receive attractive payments. Dividend ETFs are becoming increasingly popular among investors. The Franklin Global Quality Dividend UCITS ETF, while relatively unknown in Germany, could potentially see more attractive price increases if past trends continue. The ETF outperforms the Vanguard FTSE All-World High Dividend Yield UCITS ETF (WKN: A1T8FV) in terms of average annual returns. Investors in the Franklin Global Quality Dividend UCITS ETF have seen average annual returns of 9.3%. The ETF has a more concentrated portfolio, with around 50 to 100 values. The current dividend yield of 2.3% for the Franklin Global Quality Dividend UCITS ETF may not seem high, but it might be overlookable considering the total return.
- The Franklin Global Quality Dividend UCITS ETF's focus on high-quality, dividend-paying stocks and its low total expense ratio make it an appealing choice for personal-finance investors seeking steady income and moderate risk-adjusted returns in the global dividend ETF market.
- When considering personal-finance investments, the Franklin Global Quality Dividend UCITS ETF, with its consistent dividends, low cost structure, and physical replication approach, is a competitive option compared to other global dividend ETFs like the SPDR S&P Global Dividend Aristocrats UCITS ETF.
