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Global X Adds New REIT And Emerging Market Dividend ETFs

David Fabian

Global X Funds has expanded its suite of income-oriented ETFs to include two new high yield funds with an international twist. 

The Global X SuperDividend Emerging Markets ETF (NYSE: SDEM) and Global X SuperDividend REIT ETF (NYSE: SRET) began trading on Monday and offer investors unique ways to diversify their portfolios.

SDEM follows an index of 50 equally weighted high yield emerging market stocks that have consistently paid dividends over at least the last two years. 

The top country allocations in this index include Brazil, China, Russia, and South Africa. 

This new offering will go head to head with the well-established WisdomTree Emerging Markets Equity Income Fund (NYSE: DEM) and SPDR S&P Emerging Markets Dividend ETF (NYSE: EDIV). 

Both ETFs offer 30-day SEC yields in excess of 5 percent and have different exposure to both underlying country and sector allocations.

One of the distinctive features of SDEM will be its monthly dividend, which is a departure from the traditional quarterly schedule. 

This may be an attractive feature for investors that prefer smaller and more regular income from overseas holdings.  SDEM will debut with an expense ratio of 0.65 percent as well. 

The second notable unveiling, SRET, will focus on an index of 30 real estate investment trusts that rank among the highest yielding globally. 

Real estate ETFs are traditionally segregated by traditional diversified REITs and high yielding mortgage REITs. 

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However, SRET will feature a combination of the two industry classes, which should result in a higher aggregate dividend stream than a diversified global fund such as theSPDR Dow Jones Global Real Estate ETF (NYSE: RWO). 

SRET will also feature a monthly dividend payment, which is another differentiating factor from conventional real estate ETFs.  This new fund will feature an expense ratio of 0.58 percent as well. 

Global X has a history of combining multiple asset classes within its dividend funds, which has resulted in successful adoption by yield hungry investors.

The Global X SuperDividend ETF (NYSE: SDIV) has over $1 billion in assets dedicated to common stocks, REITs, and other alternative income securities.   

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