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Global X Expands Super Dividend Suite With Two New ETFs

Global X is expanding its already successful suite of SuperDividend exchange traded funds with the addition of the Global X SuperDividend Emerging Markets ETF (SDEM) and the Global X SuperDividend REIT ETF (SRET) .

“The two new funds are designed to include more focused exposure to high dividend payers by specific geography and asset class type. The funds utilize variants of the ‘Super’ methodology, created to access the highest yielding dividend payers in each segment,” according to a statement from New York-based Global X.

Thus far, the firm’s super dividend suite has been a success, amassing over $1.5 billion in combined assets under management across three ETFs. The Global X SuperDividend ETF (SDIV) is nearly four years old and has over $1 billion in assets under management. [Super Dividend ETF tops $1B in AUM]

The Global X SuperDividend U.S. ETF (DIV) , SDIV’s U.S.-focused counterpart, has $285.4 million in assets while the Global X SuperIncome Preferred ETF (SPFF) has $280.8 million. SDIV and SPFF are two years old and almost three years old, respectively.

SDEM, the new Global X emerging markets ETF, holds 50 high dividend payers that have consistently delivered payouts over at least the past two years. The new ETF’s eligible country universe includes Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Thailand, Turkey, and United Arab Emirates.

Brazil, China, Russia and South Africa, familiar staples of emerging markets dividend ETFs, combine for almost 53% of SDEM’s weight. China is the largest emerging markets dividend-paying nation in dollar terms. [Emerging Markets Dividends Emerge]

“SRET will access 30 of the highest dividend yielding REITs in the world with features to reduce volatility. The index screens for the 60 highest yielding REITs, but then selects the 30 that demonstrated the lowest recent volatility,” according to Global X.

SRET combines the familiarity of U.S. REITs as such fare accounts for over three-quarters of the new ETF’s weight with the yield advantage of Australia. Australian REITs account for nearly 11% of SRET’s, which could prove advantageous to investors at a time when the Reserve Bank of Australia looks poised to continue cutting interest rates. [Australia ETFs Have Potential]

“As a result of their stable earnings, REITs have demonstrated less volatility than equity prices. Global REIT volatility from 2010 – 2014 was 15.3% as compared to 16% of S&P 500. This stability has contributed to higher risk-adjusted returns as observed by Sharpe Ratio. The Sharpe Ratio for global REITs in 2014 was 2.11 as compared to a Sharpe Ratio of 1.01 for S&P 500,” said Global X, citing Bloomberg data.

SRET charges 0.58% per year while SDEM charges 0.65%.

Global X SuperDividend Emerging Markets ETF


Charts Courtesy: Global X