The fund sponsor also discovered that the risk of dividend paying stocks is lower than non-dividend paying stocks. Notably, the 6%-10% dividend payer group showed similar risk to the 0%-2% and 2%-6% group. The 10%-17% dividend payer group showed the highest risk-adjusted return. [Are ETF Investors Ignoring Important Dividend Payers?]

Lastly, Global X reveals that dividend stocks are still trading at discounts to their historical valuations.

Dividend ETFs are an important part to the shifting demographics. According to the census bureau, 13% of the U.S. population is classified as “retired” and this number is rising as the number of “baby boomers” reach retirement age. Furthermore, with yields in Treasuries at historical lows, retirees have become more reliant on riskier income opportunities.

For more information on dividends funds, visit our dividend ETFs category.

Max Chen contributed to this article.