New ETF Promises 'Super' Dividends

In 2011, Global X launched its Super Dividend ETF (SDIV_), a globally allocated fund that seeks a high yield for its shareholders. SDIV has a trailing yield of 8% and has attracted $383 million in assets. Trying to build on that success, the firm launches the Global X Super Dividend US ETF (DIV_) this week, a domestic version of the globally oriented SDIV.

DIV will equal-weight 50 stocks at 2% each. The underlying INDXX Super Dividend U.S. Low Volatility Index has an indicated yield of 7.5%, which after accounting for the fund's 0.45% expense ratio means the fund could yield 7.05%. However, it is important to note that with all ETFs, there can be no assurance of how much future dividends will be. The yield could be more or less than 7.05%.

Source: The Street

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