Fixed income investors seeking more than the staid, but steady Treasury note rates don’t have to venture too far down the yield curve with the Global X SuperDividend U.S. ETF (DIV).
DIV 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.
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.
- Strong Fund Performance: DIV is up 22% the past year.
Travelling Outside the U.S. for Yield
For investors looking for international yield exposure can consider the Global X SuperDividend ETF (SDIV). 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.
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 plan, as a buy-and-hold strategy that emphasizes current returns, or as a means to establish a shorter-term tactical tilt toward a group of equities that offer attractive distributions and a unique risk/return profile.
SDIV similarly 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.
- Strong Fund Performance: DIV is up 22% the past year.
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