Pass on this ETF

Article Excerpt

GLOBAL X SUPERDIVIDEND ETF $13.24 (New York symbol SDIV) invests in 100 of the highest-yielding stocks worldwide. Stocks in the portfolio are equally weighted to reduce the risk associated with a high exposure to individual companies. The stocks must also meet market cap and liquidity criteria. With 29.0% of the ETF’s assets, the U.S. is its largest country allocation. That’s followed by China (16.1%), Hong Kong (11.6%), the U.K. (6.3%), Thailand (4.7%), Russia (4.5%), Brazil 4.3%), Australia (3.7%), South Africa (3.4%), and Singapore (2.2%). The Global X SuperDividend ETF launched in June 2011, and charges an MER of 0.59%. Over the last 10 years, the fund has returned (dividends plus capital growth) an average of 3.6% annually. However, that’s less than half the 9.9% gain for the benchmark MSCI All Country Index. The $989.9 million fund pays a fluctuating monthly dividend, which amounted to $0.99 a unit for the past 12 months. That gives it a high and attractive yield of 7.5%. However, we’ve said many…