A Global Dividend ETF with a 7% Yield

April 17th at 6:30am by Tom Lydon

ETF Spotlight on the Guggenheim S&P Global Dividend Opportunities Index ETF (NYSEArca: LVL), part of an ongoing series.

Assets: $64.5 million.

Objective: The Guggenheim S&P Global Dividend Opportunities Index fund tries to reflect the performance of the S&P Global Dividend Opportunities NR Index, which is comprised of American depositary receipts, or “ADRs,” that offer high dividend yields.

Holdings: Top holdings include Shin Corp PCL 3.8%, Metcash LTD 3.6%, Bezeq Israeli Telecom 3.6%, Chimera Investment Corp 3.4% and Telenet Group Holding 3.3%.

What You Should Know:

  • Guggenheim Investments sponsors the fund.
  • LVL has a 0.60% expense ratio.
  • The ETF has 104 holdings and the top ten make up 33.1% of the overall portfolio.
  • Sector allocations include telecom services 23.7%, financials 22.6%, energy 11.9%, consumer discretionary 11.5%, utilities 9.6%, industrials 9.3%, materials 3.4%, information technology 3.3%, health care 3.2% and consumer staples 1.6%.
  • Country allocations include U.S. 16.6%, Australia 11.4%, France 10.7%, Spain 7.6%, U.K. 6.9%, Germany 6.2%, Turkey 4.8%, Portugal 3.6%, Finland 3.4% and Italy 3.4%.
  • LVL has a 12-month yield of 7.07%. [Dividend ETFs: Yields Falling as Market Rallies]
  • The ETF is down 2.1% over the past month, down 0.7% over the last three months and up 2.3% year-to-date.
  • ADRs are a type of certificate that represents a number of shares in a foreign stock but is traded on a U.S. exchange. ADRs are denominated in U.S. dollars. The securities help investors gain access to foreign exposure.

The Latest News:

  • The International Monetary Policy cut its outlook for global economic growth by 0.2% to 3.3%, reports Ian Talley for the Wall Street Journal.
  • The IMF cites Europe’s ongoing recession, dips in the U.S. economy and lower Chinese growth are weighing on the global economy.
  • In the U.S., the institution points to the stringent new tax and budget cuts as a major impediment during an economic recovery.
  • Meanwhile, the aggressive monetary policies in Japan has fueled an economic turnaround.

Guggenheim S&P Global Dividend Opportunities Index ETF

For past stories in this series, visit our ETF Spotlight category.

Max Chen contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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