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Is Global X SuperDividend U.S. ETF (DIV) a Strong ETF Right Now?
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A smart beta exchange traded fund, the Global X SuperDividend U.S. ETF (DIV - Free Report) debuted on 03/11/2013, and offers broad exposure to the Style Box - All Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the 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.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is managed by Global X Management. DIV has been able to amass assets over $594.94 million, making it one of the larger ETFs in the Style Box - All Cap Value. This particular fund 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
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain 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 has a 12-month trailing dividend yield of 7.22%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 27.70% of the portfolio, the fund has heaviest allocation to the Energy sector; Financials and Consumer Staples round out the top three.
Taking into account individual holdings, Iron Mountain Inc (IRM - Free Report) accounts for about 2.91% of the fund's total assets, followed by Ibm (IBM - Free Report) and Universal Corp/va (UVV - Free Report) .
The top 10 holdings account for about 25.55% of total assets under management.
Performance and Risk
The ETF has lost about -0.90% and is down about -1.12% so far this year and in the past one year (as of 03/06/2024), respectively. DIV has traded between $15.43 and $17.98 during this last 52-week period.
The fund has a beta of 1.04 and standard deviation of 14.35% 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.
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 $215.05 million in assets, Global X SuperDividend ETF has $730.72 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?
A smart beta exchange traded fund, the Global X SuperDividend U.S. ETF (DIV - Free Report) debuted on 03/11/2013, and offers broad exposure to the Style Box - All Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the 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.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is managed by Global X Management. DIV has been able to amass assets over $594.94 million, making it one of the larger ETFs in the Style Box - All Cap Value. This particular fund 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
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain 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 has a 12-month trailing dividend yield of 7.22%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 27.70% of the portfolio, the fund has heaviest allocation to the Energy sector; Financials and Consumer Staples round out the top three.
Taking into account individual holdings, Iron Mountain Inc (IRM - Free Report) accounts for about 2.91% of the fund's total assets, followed by Ibm (IBM - Free Report) and Universal Corp/va (UVV - Free Report) .
The top 10 holdings account for about 25.55% of total assets under management.
Performance and Risk
The ETF has lost about -0.90% and is down about -1.12% so far this year and in the past one year (as of 03/06/2024), respectively. DIV has traded between $15.43 and $17.98 during this last 52-week period.
The fund has a beta of 1.04 and standard deviation of 14.35% 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.
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 $215.05 million in assets, Global X SuperDividend ETF has $730.72 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.