A high dividend yield tilt tends to lean defensive, and the MSCI EAFE High Dividend Yield Index has shown it. At every horizon over the past decade, 3, 5, 7 and 10 years, it delivered lower annualized volatility than the parent MSCI EAFE Index. The reduction was the largest over the most recent three years, when its volatility ran about 1.7 percentage points below the parent index.

That pattern is consistent with the index tilt toward higher-yielding, cash-generative companies. Investors seeking international developed-market exposure with a steadier return path may find the yield tilt has offered more than income alone. Explore the full analysis in our product insight report.