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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.

Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.

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 $646.69 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

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.

Annual operating expenses for DIV are 0.45%, which makes it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 6.05%.

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.

DIV's heaviest allocation is in the Financials sector, which is about 28% of the portfolio. Its Energy and Real Estate round out the top three.

When you look at individual holdings, B&g Foods Inc (BGS - Free Report) accounts for about 2.33% of the fund's total assets, followed by Ardagh Metal Packaging Sa (AMBP - Free Report) and Altria Group Inc (MO - Free Report) .

Its top 10 holdings account for approximately 22.32% of DIV's total assets under management.

Performance and Risk

Year-to-date, the Global X SuperDividend U.S. ETF has added roughly 1.19% so far, and is up about 8.05% over the last 12 months (as of 05/19/2025). DIV has traded between $16.54 and $19.32 in this past 52-week period.

The fund has a beta of 0.71 and standard deviation of 14.97% 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 an excellent option for investors seeking to outperform the Style Box - All Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.

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 $816.54 million in assets, Capital Group Dividend Growers ETF has $2.16 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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