For most of the year, bonds have been heading downward, but on the flip side, yields have been rising subsequently. Still, fixed income investors who want to supercharge their yield income have options in the current market environment.
For investors looking for that added extra, exchange traded fund provider Global X has a pair of funds to consider— both with a long history of monthly distributions because it’s one thing to offer higher yield and another thing to do it consistently over time. With a 30-day SEC yield of 6.23%, one fund to consider is the Global X SuperDividend U.S. ETF (DIV).
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 seven 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.
Yield Outside the U.S.
Fixed income investors who want more will have to accept more risk. That said, opportunities exist for yield outside the U.S., which is all available in the Global X SuperDividend ETF (SDIV) with a 30-day SEC yield of just over 11%.
The fund 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.
- High income potential: Potentially increasing a portfolio’s yield, SDIV accesses 100 of the highest dividend-paying equities around the world. This allows for more income diversification across various countries, including the U.S.
- 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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