Global X SuperDividend ETF
If you’re just chasing yield, then consider the Global X SuperDividend ETF (SDIV), which has a strategy that sounds exactly like you would expect — a focus on big dividends, with a 6.5% yield right now — and a 12-month yield that is 7.9% based on the past year of dividends instead of just current payout rates.
SDIV gets its yield from a wide array of holdings. They range from R.R. Donnelley & Sons (RRD), a midcap U.S. stock in the communications sector, to Electricite de France, a $45 billion French utility.
This dividend fund doesn’t have a long track record, and has been mostly flat across 2012 and 2013. However, those looking for big yield without a lot of focus on share appreciation could find big income potential in SDIV. Given the fact that the market seems to be struggling to find its way, a sideways market is likely in the fall and into 2014 — meaning that big dividends are your best chance to get paid.
Expenses are modest at 0.58%, or $58 per year on $10,000 invested.