Global X Funds is banking on significant opportunities in high dividend-paying equities.
The New York-based exchange-traded fund provider today launched Global X SuperDividend U.S. ETF (DIV) on NYSE Arca. The new ETF provides exposure to 50 of the highest dividend-yielding equity securities in the U.S.
DIV seeks investment results corresponding to the price and yield performance of the INDXX SuperDividend U.S. Low Volatility Index, which equally weights across a diverse group of 50 securities.
The ETF offers exposure to a range of industries: REITS (24%), Utilities (24%), MLPs (18%), Telecommunications (12%), Consumer Staples (8%), Health Care (6%), Consumer Discretionary (4%), Industrials (2%), and Technology (2%).
Sector caps of 25% prevent heavy overweighting in any one particular sector and to ensure diversification. The ETF also applies to its investment choices a low-volatility filter and filters to exclude companies that are most likely to cut their dividends, as determined by the Index provider. The Fund expects to pay monthly dividends.
“In an environment where people are seeking monthly income, the SuperDividend U.S. ETF offers convenient access to 50 high yielding companies in the US through one security,” said chief executive officer Bruno del Ama, in a press release. “Based on the research we have conducted, we believe very high-yielding dividend stocks are generally overlooked and may play an important role in a portfolio.”
Global X managed $1.7 billion in assets as of March 1.