Monthly Dividend ETFs To Buy #2: Global X SuperDividend ETF (SDIV)
Dividend Yield: 6%
The $966 million Global X SuperDividend ETF (SDIV) is a hodgepodge of various global high-yielding stocks, trusts and other securities. However, in that diverse mixture, investors are treated to one of the highest-yielding monthly dividend ETFs around. Currently, around 6.26%.
The key is in SDIV’s underlying index.
SDIV tracks the 100 highest-yielding equity securities (including REITs and MLPs) from across the world and then equally weights them to create its portfolio. Top holdings include telecom Frontier Communications (FTR) and Australian department store operator David Jones. SDIV is truly a global option, with the United States only making up around 23% of assets.
In terms of total performance, SDIV has been solid. Since the monthly dividend ETF’s inception in 2011, SDIV has managed to return 25%. However, it has been prone to big price swings, due to the volatility of its underlying holdings. Income seekers should probably use the dividend ETF as a satellite position.
Expenses for SDIV run 0.58%.