Why High-Yield Dividend ETFs Are NOT A Slam Dunk

“The moral of the story here is pretty simple. Higher yields usually mean higher risk. As we’ve seen this year, risk isn’t always rewarded as there’s been a pretty sizeable shift out of riskier assets into more conservative investments,” according to a Seeking Alpha post. “But maybe another reason is that the ETF has just plain old performed lousy. The relatively high exposure to MLPs at a time when their value was tanking doesn’t help the fact that year-to-date the ETF has lagged almost every sector that it has a reasonable exposure to.”

DIV follows 50 of the highest dividend yielding equity securities in the U.S. and equally weights its component holdings. The ETF has a 0.45% expense ratio. The fund also generates a monthly dividend yield for those seeking a steady stream of income. [More Monthly Dividend ETFs]

Global X SuperDividend U.S. ETF