4 Income ETFs That Hit $1B In 2014

June 24, 2014

1. $1.1 billion Global X SuperDividend ETF (SDIV | B-41) YTD Return: 13.4 percent

SDIV, which launched in June 2011, tracks an equal-weighted index of 100 global securities with high yields and, similar to DON, strongly favors REITs. The ETF’s equal-weight methodology technically is a less-aggressive hunt for yield than its competitors because of its slant toward smaller-cap companies that typically have lower dividend yields than larger-cap companies.

However, SDIV has the highest dividend yield in the segment of 5.9 percent, which, Spencer Bogart, an ETF specialist at ETF.com, said is more of an anomaly than a predictable result of the fund’s methodology.

“The fund ended up with larger positions in some smaller companies that later boosted the dividend yield,” he said.

However, Paul Britt, senor ETF specialist at ETF.com, said investors should more closely scrutinize yields relative to the ETF’s price action.

“With yields, if you have an ETF that pays a dividend of 10 cents per share every month, the yields go up if the price of the ETF goes down,” said Britt. “So sometimes yields are good, but other times they’re good for the wrong reasons.”

SDIV has an expense ratio of 0.58 percent, or $58 for every $10,000 invested.

SDIV_YTD_Performance

 

Charts courtesy of StockCharts.com

 

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