GlobalX SuperDividend REIT ETF offers a high 8% yield and monthly payouts, but faces significant risks and underperformance. SRET's declining dividend history and weak total returns highlight concerns about the quality of its high-yield REIT holdings. Top SRET holdings show erratic cash flow and high debt, raising doubts about the sustainability of its high yield.
Global X SuperDividend REIT ETF has a 8% yield from 30 global REITs, with 67% of assets in U.S. issuers and 34% in mortgage REITs. SRET has lost 54% in value and 49% in distribution since 2015, lagging benchmarks and competitors. Investors seeking global real estate exposure may prefer REITs, with higher historical returns and liquidity, and lower fees and volatility.
Global X SuperDividend REIT ETF (SRET) warrants a sell rating due to concerning indicators tied to its dividend sustainability. SRET's high expense ratio and low growth, combined with a high concentration of mortgage and healthcare REITs, indicate potentially poor future performance. SRET's top holdings have high payout ratios, negative AFFO growth, and are sensitive to interest rate changes, increasing the risk of dividend cuts.
| NASDAQ (NMS) Exchange | US Country |
The company described is a fund focusing on investment in real estate investment trusts (REITs), specifically targeting the highest yielding REITs globally. By allocating at least 80% of its total assets into the securities of the underlying index alongside American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) that are based on these securities, the fund aims to provide investors with exposure to the global real estate market through high-yield REIT investments. The selection of the REITs is determined by Solactive AG, a provider known for delivering comprehensive index solutions, which ensures that the underlying index reflects a focused investment strategy in high-yield REITs.
The fund invests a significant portion of its assets in the securities of the underlying index. These securities are selected to provide exposure to high-yielding REITs globally, targeting those that offer potentially higher returns compared to the broader market. This product is designed for investors seeking an investment vehicle that specifically focuses on the real estate sector with a high-yield investment strategy.
In addition to direct securities of the underlying index, the fund diversifies its investment by including American Depositary Receipts and Global Depositary Receipts. ADRs and GDRs represent a specified number of shares in a foreign company and are traded on U.S. and global stock exchanges, respectively. This aspect of the fund’s portfolio allows investors to gain exposure to foreign markets' real estate sectors without the complexities of direct investment in foreign stocks, broadening the geographical diversity of the investment.