Domestic fixed income investors aren’t relegated to the U.S. when it comes to yield, particularly with ETF opportunities like the Global X Super Dividend REIT ETF (SRET).
SRET invests in real estate investment trusts (REITs), which gives real estate exposure to investors seeking that diversification of their portfolio through alternative assets. REITS are entities formed for the sole purpose of investing in real estate using pooled capital to purchase properties.
REITs also have their own inherent advantages. Unlike actually holding real estate assets, SRET gives investors the ability to unload shares quickly.
“Real estate investment trusts (REITs) are a key consideration when constructing any equity or fixed-income portfolio,” an Investopedia article explained. “They provide greater diversification, potentially higher total returns, and/or lower overall risk. In short, their ability to generate dividend income along with capital appreciation makes them an excellent counterbalance to stocks, bonds, and cash.”
SRET seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global SuperDividend REIT Index. The underlying index tracks the performance of REITs that rank among the highest yielding REITs globally, as determined by Solactive AG, the provider of the underlying index.
An Income Diversification Tool
SRET includes exposure to developed and emerging market opportunities. It ensures investors are not isolated in specific corners of the market.
More about the index:
- The MSCI ACWI Index captures large- and mid-cap representation across 23 Developed Markets (DM) and 24 Emerging Markets (EM) countries.
- The index covers approximately 85% of the global investable equity opportunity set. DM countries include: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the UK and the US. EM countries include: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Russia, Qatar, South Africa, Taiwan, Thailand, Turkey, and United Arab Emirates.
The fund screens for only the highest yielding opportunities no matter what part of the globe that yield happens to be in.
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