When you look at dividend ETFs with high yields, most of them end up being options ETFs or have other dealbreakers attached.
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.
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.
In the stock market, the 4% dividend yield is a number that feels good enough to be table stakes for anyone who wants to really earn a significant amount of money and change their financial status before or during retirement.
Making its debut on 03/11/2013, smart beta exchange traded fund Global X SuperDividend U.S. ETF (DIV) provides investors broad exposure to the Style Box - All Cap Value category of the market.
Unfortunately, you won't earn high yields with today's savings accounts. So, if it's dependability you're after, with yield to boot, you can't go wrong with a safe ETF.
Some of its 126 holdings include Progressive Corp.
Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the Global X SuperDividend U.S. ETF (DIV) is a smart beta exchange traded fund launched on 03/11/2013.
DIV certainly has some warts, but I like it as a role player. And I like it over JEPI, whose best days are probably behind it for a while. DIV's combination of low volatility and an out-of-the-box sector allocation make it a good diversifier, tactically at least. I compare it head to head with more popular ETFs than this $600 million offering, and it shows characteristics I find interesting.
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Global X SuperDividend U.S.
The DIV ETF pays a monthly dividend and is currently yielding a very attractive 7.85%. However, DIV's high yield masks long-term wealth destruction due to poor total returns and a declining share price. The fund's portfolio is filled with value traps and is overweight the underperforming energy sector, leading to severely lagging performance versus the broad market averages.