Global X launched two new super-dividend ETFs to try and provide income-seeking investors with a high-yield option in the current low interest-rate environment. The ETFs may be new, but this strategy is not new for the New York-based ETF provider.
To date, Global X's super-dividend and income products have been a huge success, as the firm has over $1.5 billion in assets between three existing ETFs. With their Global X SuperDividend ETF (Global X Funds) SDIV amassing over $1 billion in four years and the two year-old Global X SuperDividend U.S. ETF DIV and Global X SuperIncome Preferred ETF SPFF accounting for the remainder of the assets.
Related Link: 3 New ETFs For The Timid Investor
With nearly every country besides the U.S. either cutting or considering cutting interest rates this year, it has been difficult to find attractive yields in both the U.S. and abroad. This had led to new creative ETFs hitting the market, as both issuers and investors need to think outside the box.
Highlighted below are Global X's newest additions to their SuperDividend family.
Global X SuperDividend REIT ETF
The
Global X SuperDividend REIT ETFSRET is designed to track an index of REITs that have a high dividend yield as well as possess low volatility. The index screens for the 60 highest yielding REITs and then picks the top 30 that show the lowest levels of volatility. Australia REITs account for 11 percent of the ETFs weighting, which is favorable considering the Australian reserve bank seems to be continuing their cutting of interest rates, making the yields more attractive to local investors. SRET opened for trading on March 17 at $15.19. The ETF has an expense ratio of 0.58 percent.
Global X SuperDividend Emerging Markets ETF
The
Global X SuperDividend Emerging Markets ETFSDEM is made up of 50 emerging market companies from around the world that have distributed consistently high dividends for two years. The holdings are distributed across 12 countries with Brazil at 18 percent, China at 16 percent and Russia 15 percent being the most heavily weighted countries. The top weighted sectors are financials at 23 percent and utilities at 15 percent. The ETF began trading March 17 at $14.98, and it has an expense ratio of 0.65 percent.
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