Global X SuperDividend U.S. ETF (DIV)
ARCA ARCA Primary Summary
DIV Chart
3 Dividend ETFs With Over 6% Yields That Don't Use Options or Gimmicks
When you look at dividend ETFs with high yields, most of them end up being options ETFs or have other dealbreakers attached.
DIV: Global X SuperDividend ETF Uses A Highly Unsound And Risky Strategy
DIV offers an extremely attractive yield in the 6-7% range. However, its selection process is unsound, and many holdings benefit from generous buffer screens, implying the main criteria are insufficient. Its Index attempts to manage downside risk by screening for low beta. However, its maximum drawdown and downside risk-adjusted returns have historically been poor. Like most high-dividend ETFs, many of DIV's holdings have low or negative earnings growth rates trading at cheap valuations. Quality is better than expected, but I expect it's only temporary.
Is Global X SuperDividend U.S. ETF (DIV) a Strong ETF Right Now?
A smart beta exchange traded fund, the Global X SuperDividend U.S. ETF (DIV) debuted on 03/11/2013, and offers broad exposure to the Style Box - All Cap Value category of the market.
Global X SuperDividend U.S. ETF (DIV) FAQ
What is the stock price today?
On which exchange is it traded?
What is its stock symbol?
Does it pay dividends? What is the current yield?
What is its market cap?
Has Global X SuperDividend U.S. ETF ever had a stock split?
Global X SuperDividend U.S. ETF Profile
| ARCA Exchange | US Country |
Overview
The fund is an investment entity designed to offer its investors exposure to a diverse portfolio of high dividend-yielding equity securities in the United States. By committing at least 80% of its total assets to the securities of its underlying index, the fund strategically focuses on the performance of 50 equally-weighted common stocks. These include selections from Master Limited Partnerships (MLPs) and Real Estate Investment Trusts (REITs), specifically chosen for their ranking among the highest dividend yielding equity securities within the country. This targeted approach positions the fund as an attractive option for investors seeking income through dividend returns in addition to potential capital appreciation.
Products and Services
- High Dividend Yield Equity Securities
This product focuses on equities that offer high dividend yields, providing an income stream to investors along with the potential for capital appreciation. By targeting companies that distribute a significant portion of their earnings as dividends, the fund caters to those looking for regular income from their investments. The selection includes prominent Master Limited Partnerships (MLPs) and Real Estate Investment Trusts (REITs) that are known for their high dividend yields.
- Equally-Weighted Common Stocks
As part of its investment strategy, the fund invests in 50 equally-weighted common stocks, ensuring that no single stock dominates the portfolio. This equal weighting is fundamental to the fund's approach, as it aims to reduce the risk associated with overexposure to any single equity. Therefore, it offers a balanced exposure across its selected high dividend-yielding securities, promoting a diversified investment portfolio for its subscribers.
- Exposure to MLPs and REITs
Specializing in Master Limited Partnerships (MLPs) and Real Estate Investment Trusts (REITs), the fund provides its investors with the opportunity to diversify into assets that have unique tax considerations and typically offer higher dividend yields. MLPs are attractive for their distribution yield and tax benefits, while REITs offer exposure to real estate markets with the advantage of regular dividend payments. This focus on MLPs and REITs enables the fund to offer a distinctive mix of income-generating investments.
