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Dividend ETF (DIV) Hits New 52-Week High

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For investors seeking momentum, Global X SuperDividend U.S. ETF (DIV - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 19.1% from its 52-week low of $15.69 per share. 

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

DIV in Focus

Global X SuperDividend U.S. ETF invests in 50 of the highest dividend-yielding equity securities in the United States. It has key holdings in energy, utilities and real estate. DIV charges 45 bps in annual fees. (see: all the All Cap Value ETFs here).

Why the Move?

The dividend corner of the broad investing world has been an area to watch lately as Trump and the Fed have brought back the lure for dividend investing. Trump's pro-growth policies are expected to drive inflation and dividend-paying stocks can serve as a hedge against inflation. Meanwhile, the Fed delivered a second rate cut this year by 25 bps after a 50-bps cut in September. The lower rates will make dividend investing tempting.

More Gains Ahead?

DIV has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.
 


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