Global X SuperDividend ETF

SDIV

Market cap $959M

Generating passive income is a way to make your money work for you, with little effort.

Income-seeking investors often invest in exchange-traded funds (ETFs) as a good way to diversify and collect a dividend. However, if the dividend yield is exceptionally high, is it too good to true?

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Key Points in This Article: High-yield ETFs balance attractive income with diversification to reduce risks tied to chasing unsustainable dividends.

[00:00:04] Doug McIntyre: So when you look at ETFs, do you recommend monthly pay ETFs?

Global X SuperDividend ETF's high yield comes at the expense of capital erosion, making long-term income unsustainable for investors seeking portfolio growth. The ETF lacks quality screens, resulting in a portfolio heavily exposed to risky, leveraged, and cyclical stocks with little focus on dividend sustainability. Empirical performance shows SDIV consistently underperforms peers, with flat or negative total returns and persistent NAV decline despite high yields.

Apple's long-term success shows the power of buying and holding high-quality stocks, compounding wealth over decades. Chasing high yields often leads to poor outcomes; focus on dividend growth and quality to avoid 'sucker yields.' My 5% Rule balances income and growth: build a portfolio of high-quality dividend growers, aiming for a 5% yield at retirement.

Many investors in 2025 need dependable passive income, and one outstanding way to achieve this is to invest in exchange-traded funds (ETFs).

Not only do high yielding ETFs keep you well diversified, they'll also pay you handsomely just to hold the fund With an expense ratio of 0.48%, the REM ETF has a 30-day yield of just over 10.3%.

Dividends play a significant role in an investor's portfolio and if you're looking for passive income, JEPI and SDIV won't disappoint.