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Designed to provide broad exposure to the World ETFs category of the market, the GLBLX SUPERDIV (SDIV - Free Report) is a smart beta exchange traded fund launched on 06/08/2011.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
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.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $945.07 million, this makes it one of the larger ETFs in the World ETFs. SDIV is managed by Global X Management. This particular fund, before fees and expenses, seeks to match the performance of the Solactive Global SuperDividend Index.
The Solactive Global SuperDividend Index tracks the performance of 100 equally weighted companies that rank among the highest dividend yielding equity securities in the world.The index provider applies certain dividend stability filters.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.59% for this ETF, which makes it on par with most peer products in the space.
SDIV's 12-month trailing dividend yield is 7.80%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, China Power International accounts for about 1.76% of total assets, followed by Electra Consumer (ECP) and Nos Sgps (NOS).
SDIV's top 10 holdings account for about 14.26% of its total assets under management.
Performance and Risk
The ETF has gained about 8.06% and was up about 21.20% so far this year and in the past one year (as of 11/15/2021), respectively. SDIV has traded between $11.95 and $14.72 during this last 52-week period.
The ETF has a beta of 1.17 and standard deviation of 25.46% for the trailing three-year period, making it a low risk choice in the space. With about 99 holdings, it effectively diversifies company-specific risk.
Alternatives
GLBLX SUPERDIV is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
WBIPWR FAC HD (WBIY - Free Report) tracks Solactive Power Factor High Dividend Index and the GLBLX SPRDV US (DIV - Free Report) tracks INDXX SuperDividend U.S. Low Volatility Index. WBIPWR FAC HD has $66.34 million in assets, GLBLX SPRDV US has $683.02 million. WBIY has an expense ratio of 0.70% and DIV charges 0.45%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
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 GLBLX SUPERDIV (SDIV) a Strong ETF Right Now?
Designed to provide broad exposure to the World ETFs category of the market, the GLBLX SUPERDIV (SDIV - Free Report) is a smart beta exchange traded fund launched on 06/08/2011.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
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.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $945.07 million, this makes it one of the larger ETFs in the World ETFs. SDIV is managed by Global X Management. This particular fund, before fees and expenses, seeks to match the performance of the Solactive Global SuperDividend Index.
The Solactive Global SuperDividend Index tracks the performance of 100 equally weighted companies that rank among the highest dividend yielding equity securities in the world.The index provider applies certain dividend stability filters.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.59% for this ETF, which makes it on par with most peer products in the space.
SDIV's 12-month trailing dividend yield is 7.80%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, China Power International accounts for about 1.76% of total assets, followed by Electra Consumer (ECP) and Nos Sgps (NOS).
SDIV's top 10 holdings account for about 14.26% of its total assets under management.
Performance and Risk
The ETF has gained about 8.06% and was up about 21.20% so far this year and in the past one year (as of 11/15/2021), respectively. SDIV has traded between $11.95 and $14.72 during this last 52-week period.
The ETF has a beta of 1.17 and standard deviation of 25.46% for the trailing three-year period, making it a low risk choice in the space. With about 99 holdings, it effectively diversifies company-specific risk.
Alternatives
GLBLX SUPERDIV is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
WBIPWR FAC HD (WBIY - Free Report) tracks Solactive Power Factor High Dividend Index and the GLBLX SPRDV US (DIV - Free Report) tracks INDXX SuperDividend U.S. Low Volatility Index. WBIPWR FAC HD has $66.34 million in assets, GLBLX SPRDV US has $683.02 million. WBIY has an expense ratio of 0.70% and DIV charges 0.45%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
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.