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Is Global X SuperDividend U.S. ETF (DIV) a Strong ETF Right Now?
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Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the Global X SuperDividend U.S. ETF (DIV - Free Report) is a smart beta exchange traded fund launched on 03/11/2013.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer 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.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is sponsored by Global X Management. It has amassed assets over $645.62 million, making it one of the larger ETFs in the Style Box - All Cap Value. DIV seeks to match the performance of the INDXX SuperDividend U.S. Low Volatility Index before fees and expenses.
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.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.45%.
It has a 12-month trailing dividend yield of 5.80%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
DIV's heaviest allocation is in the Energy sector, which is about 21.90% of the portfolio. Its Real Estate and Utilities round out the top three.
When you look at individual holdings, Virtu Financia-A (VIRT - Free Report) accounts for about 3.41% of the fund's total assets, followed by Natl Health Investors Inc (NHI - Free Report) and Spire Inc (SR - Free Report) .
DIV's top 10 holdings account for about 25.89% of its total assets under management.
Performance and Risk
The ETF has gained about 12.70% so far this year and it's up approximately 20.82% in the last one year (as of 11/15/2024). In the past 52-week period, it has traded between $16.19 and $18.82.
The fund has a beta of 1.05 and standard deviation of 14.29% for the trailing three-year period, which makes DIV a medium risk choice in this particular space. With about 52 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.
Global X SuperDividend ETF (SDIV - Free Report) tracks Solactive Global SuperDividend Index and the Capital Group Dividend Growers ETF (CGDG - Free Report) tracks ----------------------------------------. Global X SuperDividend ETF has $772.24 million in assets, Capital Group Dividend Growers ETF has $1.31 billion. SDIV has an expense ratio of 0.58% and CGDG charges 0.47%.
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?
Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the Global X SuperDividend U.S. ETF (DIV - Free Report) is a smart beta exchange traded fund launched on 03/11/2013.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer 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.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is sponsored by Global X Management. It has amassed assets over $645.62 million, making it one of the larger ETFs in the Style Box - All Cap Value. DIV seeks to match the performance of the INDXX SuperDividend U.S. Low Volatility Index before fees and expenses.
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.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.45%.
It has a 12-month trailing dividend yield of 5.80%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
DIV's heaviest allocation is in the Energy sector, which is about 21.90% of the portfolio. Its Real Estate and Utilities round out the top three.
When you look at individual holdings, Virtu Financia-A (VIRT - Free Report) accounts for about 3.41% of the fund's total assets, followed by Natl Health Investors Inc (NHI - Free Report) and Spire Inc (SR - Free Report) .
DIV's top 10 holdings account for about 25.89% of its total assets under management.
Performance and Risk
The ETF has gained about 12.70% so far this year and it's up approximately 20.82% in the last one year (as of 11/15/2024). In the past 52-week period, it has traded between $16.19 and $18.82.
The fund has a beta of 1.05 and standard deviation of 14.29% for the trailing three-year period, which makes DIV a medium risk choice in this particular space. With about 52 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.
Global X SuperDividend ETF (SDIV - Free Report) tracks Solactive Global SuperDividend Index and the Capital Group Dividend Growers ETF (CGDG - Free Report) tracks ----------------------------------------. Global X SuperDividend ETF has $772.24 million in assets, Capital Group Dividend Growers ETF has $1.31 billion. SDIV has an expense ratio of 0.58% and CGDG charges 0.47%.
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.