Is the Global X SuperDividend ETF a Buy?
The Global X SuperDividend ETF (NYSEMKT: SDIV) has a lofty trailing dividend yield of 10.7%. Given that the S&P 500 index (SNPINDEX: ^GSPC) has a tiny yield of around 1.3%, it's understandable that investors would be looking at the Global X SuperDividend ETF. But there's one problem here, and dividend investors will want to understand this massive negative before they buy this ultra high-yield exchange-traded fund.The stated objective of the Global X SuperDividend ETF is to track the Solactive Global SuperDividend Index. This index is fairly simple. It buys the 100 highest-yielding dividend stocks in the world. There are market cap and trading liquidity restrictions, of course, but the approach is fairly straightforward and logical.Image source: Getty Images.Continue reading
The Global X SuperDividend ETF (NYSEMKT: SDIV) has a lofty trailing dividend yield of 10.7%. Given that the S&P 500 index (SNPINDEX: ^GSPC) has a tiny yield of around 1.3%, it's understandable that investors would be looking at the Global X SuperDividend ETF. But there's one problem here, and dividend investors will want to understand this massive negative before they buy this ultra high-yield exchange-traded fund.
The stated objective of the Global X SuperDividend ETF is to track the Solactive Global SuperDividend Index. This index is fairly simple. It buys the 100 highest-yielding dividend stocks in the world. There are market cap and trading liquidity restrictions, of course, but the approach is fairly straightforward and logical.
Image source: Getty Images.
