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Is Global X SuperDividend U.S. ETF (DIV) a Strong ETF Right Now?
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The Global X SuperDividend U.S. ETF (DIV - Free Report) was launched on 03/11/2013, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - All Cap Value category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is managed by Global X Management. DIV has been able to amass assets over $597.57 million, making it one of the larger ETFs in the Style Box - All Cap Value. Before fees and expenses, DIV seeks to match the performance of the INDXX SuperDividend U.S. Low Volatility Index.
The INDXX SuperDividend U.S. Low Volatility Index tracks the performance of 50 equally weighted common stocks, MLPs & REITs that rank among the highest dividend yielding equity securities in the US.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.45% for DIV, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 6.80%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
For DIV, it has heaviest allocation in the Energy sector --about 24.50% of the portfolio --while Real Estate and Utilities round out the top three.
Taking into account individual holdings, Telephone & Data (TDS - Free Report) accounts for about 3.10% of the fund's total assets, followed by Virtu Financia-A (VIRT - Free Report) and Natl Health Investors Inc (NHI - Free Report) .
Its top 10 holdings account for approximately 23.94% of DIV's total assets under management.
Performance and Risk
So far this year, DIV has gained about 2.14%, and was up about 9.22% in the last one year (as of 07/08/2024). During this past 52-week period, the fund has traded between $15.43 and $17.58.
The fund has a beta of 1.05 and standard deviation of 14.27% for the trailing three-year period, which makes DIV a medium risk choice in this particular space. With about 53 holdings, it effectively diversifies company-specific risk.
Alternatives
Global X SuperDividend U.S. ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Capital Group Dividend Growers ETF (CGDG - Free Report) tracks ---------------------------------------- and the Global X SuperDividend ETF (SDIV - Free Report) tracks Solactive Global SuperDividend Index. Capital Group Dividend Growers ETF has $405.94 million in assets, Global X SuperDividend ETF has $776.72 million. CGDG has an expense ratio of 0.47% and SDIV charges 0.58%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is Global X SuperDividend U.S. ETF (DIV) a Strong ETF Right Now?
The Global X SuperDividend U.S. ETF (DIV - Free Report) was launched on 03/11/2013, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - All Cap Value category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is managed by Global X Management. DIV has been able to amass assets over $597.57 million, making it one of the larger ETFs in the Style Box - All Cap Value. Before fees and expenses, DIV seeks to match the performance of the INDXX SuperDividend U.S. Low Volatility Index.
The INDXX SuperDividend U.S. Low Volatility Index tracks the performance of 50 equally weighted common stocks, MLPs & REITs that rank among the highest dividend yielding equity securities in the US.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.45% for DIV, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 6.80%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
For DIV, it has heaviest allocation in the Energy sector --about 24.50% of the portfolio --while Real Estate and Utilities round out the top three.
Taking into account individual holdings, Telephone & Data (TDS - Free Report) accounts for about 3.10% of the fund's total assets, followed by Virtu Financia-A (VIRT - Free Report) and Natl Health Investors Inc (NHI - Free Report) .
Its top 10 holdings account for approximately 23.94% of DIV's total assets under management.
Performance and Risk
So far this year, DIV has gained about 2.14%, and was up about 9.22% in the last one year (as of 07/08/2024). During this past 52-week period, the fund has traded between $15.43 and $17.58.
The fund has a beta of 1.05 and standard deviation of 14.27% for the trailing three-year period, which makes DIV a medium risk choice in this particular space. With about 53 holdings, it effectively diversifies company-specific risk.
Alternatives
Global X SuperDividend U.S. ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Capital Group Dividend Growers ETF (CGDG - Free Report) tracks ---------------------------------------- and the Global X SuperDividend ETF (SDIV - Free Report) tracks Solactive Global SuperDividend Index. Capital Group Dividend Growers ETF has $405.94 million in assets, Global X SuperDividend ETF has $776.72 million. CGDG has an expense ratio of 0.47% and SDIV charges 0.58%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Value.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.