A Global Dividend ETF with a 7% Yield

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.

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