In the current market environment, you can’t have too much yield and a pair of dividend exchange-traded funds (ETFs) from Global X have them in spades.
Even with the U.S. Federal Reserve raising the federal funds rate by 25 basis points, the rate environment is still relatively low by historical standards. That said, fixed-income investors are still pressed for yield.
First up is a fund with a 30-day SEC yield of 6.06% (as of April 5). The Global X SuperDividend U.S. ETF (DIV) seeks to provide investment results that correspond generally to the Indxx SuperDividend® U.S. Low Volatility Index, which 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.
The ETF 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: 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.
An Internationally Diversified Option
Seeking dividends overseas can have its advantages. One of them is a 30-day yield of almost 12% (also as of April 5) in the Global X SuperDividend ETF (SDIV).
The fund seeks investment results that correspond generally to the price and yield performance of the Solactive Global SuperDividend® Index. The index tracks the performance of 100 equally weighted companies that rank among the highest dividend-yielding equity securities in the world, including emerging market countries.
- High-income potential: Potentially increasing a portfolio’s yield, SDIV accesses 100 of the highest dividend-paying equities around the world.
- Monthly distributions: SDIV makes distributions on a monthly basis and has made distributions each month for over 10 years.
- Global exposure: Investing in equities from around the globe can help diversify both geographic and interest rate exposure.
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