Extremely low interest rates have crippled income investors scratching for yield in bonds and the fixed-income market. However, investors who are still seeking attractive payouts can look to globally oriented dividend exchange traded funds that invest in the stock market.
In comparison, the S&P 500 has a dividend yield of just 2.11% while the benchmark 10-year Treasury has a 1.63% yield. [Dividend ETFs and the Fiscal Cliff]
The Global X SuperDividend fund tries to reflect the performance of the Solactive Global SuperDividend Index, which follows 100 equally weighted companies that are ranked amongst the highest dividend yielding equity securities in the world. SDIV has a 0.58% expense ratio.
SDIV’s country allocations as of Sept. 30 include U.S. 29.3%, Australia 24.5%, U.K. 12.4%, Singapore 6.2%, Canada 5.8%, Poland 2.2%, Germany 2.1%, China 2.0%, Netherlands 1.6% and Brazil 1.5%.
Within the foreign markets, investors can find opportunities for higher dividend payouts. For instance, in looking at the top countries of SDIV, the country-specific ETFs iShares MSCI Australia Index (NYSEArca: EWA) has a 4.45% yield, iShares MSCI United Kingdom Index (NYSEArca: EWU) has a 3.51% yield and iShares MSCI Singapore Index (NYSEArca: EWS) has a 3.51% yield.