Dividend Dreamland: A Pair of Global X ETFs to Consider

Recent upticks in Treasury yields might have fixed income investors more hopeful for yield, but those still seeking more can consider the Global X S&P 500 Quality Dividend ETF (QDIV) and Global X SuperDividend U.S. ETF (DIV).

QDIV offers ETF investors an annual dividend rate of about 3% with a low 0.20% expense ratio. With the quality feature added, investors get that added tilt towards companies with strong fundamental characteristics.

The fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P 500® Quality High Dividend Index. The fund invests at least 80% of its total assets in the securities of the underlying index.

The underlying index is designed to provide exposure to U.S. equity securities included in the S&P 500® Index that exhibit high quality and dividend yield characteristics, as determined by Standard & Poor’s Financial Services LLC, the provider of the underlying index.

QDIV gives investors:

  • A Quality Focus: QDIV invests in companies that score in the top 200 of the S&P 500 based on a variety of quality metrics including return-on-equity, accruals, and financial leverage.
  • High Income Potential: To qualify for QDIV, a company must score in the top 200 of the S&P 500 in dividend yield.
  • Monthly Distributions: QDIV makes its distributions on a monthly basis.

DIV Chart

Low Volatility Dividends

With first quarter earnings underway, ETF investors may want to minimize volatility using funds like DIV. It seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx SuperDividend® U.S. Low Volatility Index.

The fund invests at least 80% of its total assets in the securities of the underlying index. The underlying index tracks the performance of 50 equally-weighted common stocks, including Master Limited Partnerships (“MLPs”) and Real Estate Investment Trusts (“REITs”) that rank among the highest dividend yielding equity securities in the United States.

DIV gives investors:

  • High Income Potential: DIV accesses 50 of the highest dividend-paying equities in the United States, potentially increasing a portfolio’s yield.
  • Monthly Distributions: Like QDIV, DIV makes distributions on a monthly basis and has made distributions each month for over 7 years.
  • Low Volatility: DIV’s index methodology screens for equities that have exhibited low betas relative to the S&P 500 in an effort to produce low volatility returns.

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