Global X SuperDividend ETF

SDIV

Valor de mercado US$ 1,16 bi

I got quite a few notes in the mailbag last week. One that piqued my interest was from JT who asked if there are any ETFs or mutual funds that have a dividend investing philosophy similar to mine.

Global X SuperDividend ETF (SDIV) maintains an 8%+ yield but suffers persistent underperformance versus the MSCI ACWI benchmark. SDIV's deep value metrics mask negative growth rates, high volatility, and a 66% price loss since inception, eroding both capital and income. The fund's high-yield, small-cap, and financials tilt exposes investors to value traps and declining distributions, with inflation compounding the loss.

Investors chasing higher payouts than what typical U.S. blue chips deliver keep landing on the same benchmark: the Schwab U.S.

A 4% dividend yield looks generous until you see what the Global X SuperDividend ETF (NYSEARCA:SDIV) is offering.

Rising oil prices and sticky inflation are fueling demand for income, putting high-yield dividend ETFs offering more than 5% in the spotlight.

Markets face AI, rate and geopolitical risks. These high-dividend ETFs offer attractive yields and steady income to help investors navigate volatility.

Jamie Dimon sees rising geopolitical and fiscal risks ahead. Investors seeking steady income may consider these high-dividend ETFs yielding above 4.5%.

Warren Buffett buys businesses that compound dividends rather than businesses that pay the biggest dividend they can squeeze out today.

Monthly income is having a moment. Retirees and active income investors are pulling cash from money-market funds yielding less than before, and the ETF industry has responded with options-based and high-dividend products that pay every 30 days instead of every 90.

I upgrade Global X SuperDividend ETF (SDIV) to a buy, citing low valuation, technical support, and an attractive 9.29% yield. SDIV's portfolio is heavily weighted to global small-cap value, Financials, Energy, and Industrials, with minimal tech exposure. A broadening equity rally beyond tech and a weaker US dollar would be significant tailwinds for SDIV's performance.