Explainer: DIV

Dividend ETFs had a hard time in 2020.

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Reviewed by: Heather Bell
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Edited by: Heather Bell

Each month, we look at an ETF selected by ETF.com based on its performance and importance to investors. This month, we consider the performance of the $496.4 million Global X SuperDividend U.S. ETF (DIV), which, like other dividend ETFs, underperformed the S&P 500 Index in 2020. All the companies mentioned below are holdings in DIV, unless otherwise noted (*).

 

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JAN 30 Altria Group’s stock is hit hard after reporting a $4 billion charge from its stake in e-cigarette maker Juul Labs. Altria says it has reworked its deal with the company.

MAR 18 Arbor Realty Trust, along with other commercial mortgage companies, sees its share price plummet more than the broad stock market as the financial turmoil worsens.

APR 8 Kraft Heinz is one of 13 S&P 500 stocks to erase its pandemicrelated losses after seeing a sizable bump in sales, with the firm projecting 3% growth for the first quarter.

OCT 1 In the wake of strong results for the first fiscal quarter driven by the pandemic, General Mills sees its stock price increase despite a decline for its peer group.

NOV 3 B&G Foods sees increased expectations for 3Q earnings due to growth in at-home consumption, although foodservice sales fell due to decreased restaurant patronage.

DEC 15 Tobacco supplier Universal’s stock price soars, despite recent earnings declines, due to diversification efforts, continued strong dividends and well-timed stock buybacks.

Source: Bloomberg; data for 12/31/2019-12/31/2020

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.