“SRET will access 30 of the highest dividend yielding REITs in the world with features to reduce volatility. The index screens for the 60 highest yielding REITs, but then selects the 30 that demonstrated the lowest recent volatility,” according to Global X.
SRET combines the familiarity of U.S. REITs as such fare accounts for over three-quarters of the new ETF’s weight with the yield advantage of Australia. Australian REITs account for nearly 11% of SRET’s, which could prove advantageous to investors at a time when the Reserve Bank of Australia looks poised to continue cutting interest rates. [Australia ETFs Have Potential]
“As a result of their stable earnings, REITs have demonstrated less volatility than equity prices. Global REIT volatility from 2010 – 2014 was 15.3% as compared to 16% of S&P 500. This stability has contributed to higher risk-adjusted returns as observed by Sharpe Ratio. The Sharpe Ratio for global REITs in 2014 was 2.11 as compared to a Sharpe Ratio of 1.01 for S&P 500,” said Global X, citing Bloomberg data.
SRET charges 0.58% per year while SDEM charges 0.65%.
Global X SuperDividend Emerging Markets ETF