The Federal Reserve wasn’t expected to make a move higher on interest rates to start the new year, which kept yield-hungry investors starving. The Global X SuperDividend ETF (SDIV) and the Global X SuperDividend U.S. ETF (DIV) might help.
SDIV seeks investment results that correspond generally to the price and yield performance of the Solactive Global SuperDividend Index, which tracks the performance of 100 equally-weighted companies that rank among the highest dividend-yielding equity securities in the world, including emerging market countries. The fund is one of several products designed to offer exposure to a basket of dividend-paying equities, but one of few that combines this objective with a global scope.
Furthermore, SDIV can be used in a variety of different ways within a portfolio; it may have appeal as a core holding as part of a long-term, as a buy-and-hold strategy that emphasizes current return, or as a means to establish a shorter-term tactical tilt towards a group of equities that offer attractive distributions and a unique risk/return profile.
“The 101-stock fund invests in 100 of the highest dividend-yielding equity securities in the world,” a Zacks article published on Nasdaq said. “United States (24.8%) holds the top spot in the fund, followed by 9.6% in South Africa, 7.7% in Russia and 7.7% in China. Real Estate (29.7%), Financials (18.3%), Energy (14.5%) and Materials (14.1%) are the top four sectors of the fund.”
In addition the yield, the fund is up over 20% the past few months:
Yield in the U.S.A.
With a focus on the United States, DIV seeks to provide investment results that correspond generally to the price and yield performance 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.
“The 42-stock fund invests in 50 of the highest dividend-yielding equity securities in the United States,” the Zacks article continued. “Consumer Staples (23.9%), Real Estate (21.1%), Energy (20.7%) and Industrials (11.3%) are the top sectors of the fund. DIV charges 46 bps in fees (read: 5 Market-Beating Dividend ETFs of 2020).”
DIV is up almost 20% the last few months:
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