In another sign of the importance and popularity of dividend stocks and exchange traded funds, the Global X SuperDividend ETF (NYSEArca: SDIV) has topped $1 billion in assets under management.
To be precise, SDIV had $1.05 billion in AUM as of the close of U.S. markets on June 11. SDIV, which launched just over three years ago, has rapidly grown. The ETF reached $100 million in AUM in August 2012. [Super Global Dividends in This ETF]
SDIV tracks the Solactive SuperDividend Index, providing exposure to 100 equal weighted companies that are among the highest dividend yielding stocks around the globe. U.S. securities account for 23 percent of the fund, while Australia and the U.K. represent 20 percent and 10 percent respectively. The fund has a 12-month dividend yield of 6.06%. The 30 Day SEC Yield (as of the most recent month end) is 5.85%, according to Global X.
Not only is that strong yield part of the allure with SDIV, but the ETF has offered solid returns as well, gaining almost 20% in the past year. Additionally, SDIV pays a monthly dividend. [Monthly Dividend ETFs]
SDIV is the second income-generating ETF to top $1 billion in AUM in the past month. The actively managed AdvisorShares Peritus High Yield ETF (NYSEArca: HYLD) is the other.
“In this low and uncertain interest rate environment, we believe exposure to global dividend payers can provide key diversification to income-oriented portfolios,” said Jay Jacobs, Global X research analyst, in a statement. “Our SuperDividend ETF provides access to a class of dividend payers that have traditionally been overlooked by the market.
SDIV is the first $1 billion ETF for Global X, but the superlatives do not end there for the New York-based issuer. The firm also said the Global X SuperDividend U.S. ETF (NYSEArca: DIV) and the Global X SuperIncome Preferred ETF (NYSEArca: SPFF) have both crossed the $100 million in AUM mark.
Like other ETFs holding preferred stocks, SPFF has benefited from this year’s decline in Treasury yields. DIV has risen 11% this year, due in part to its 20% weight to the utilities group, the best-performing S&P 500 sector in 2014. [Right Sector Mix Boosting This Dividend ETF]
With Treasury yields falling and the search for yield remaining intense, investors continue to embrace master limited partnerships and Global X has benefited from that trend as well. The firm also said the Global X MLP ETF (NYSEArca: MLPA) and the Global X MLP & Energy Infrastructure ETF (NYSEArca: MLPX) each now have more than $100 million in assets. MLPX is just 10 months old.
Global X SuperDividend ETF
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of HYLD.