Topic: How To Invest

Q: Pat: What is your recommendation on the Global X SuperDividend ETF? Thanks.

Article Excerpt

A: Global X SuperDividend ETF, $21.86, symbol SDIV on New York (Units outstanding: 35.1 million; Market cap: $767.3 million; www.globalxetfs.com), invests in 100 of the highest-yielding stocks worldwide. Stocks in the fund’s portfolio are equally weighted with the aim of reducing the risk associated with high exposure to individual companies. The stocks must also meet certain market-cap and liquidity criteria. With 33.8% of the ETF’s assets, the U.S. is its largest country allocation. That’s followed by China (9.1%), Hong Kong (8.7%), Brazil 8.5%), Australia (8.1%), South Africa  (4.1%), Indonesia (2.7%), Singapore (2.5%), Bermuda (2.3%), Taiwan (2.1%) and Italy (1.9%). The ETF’s 106 stocks include BW LGP (Singapore, LPG shipping), Yue Yuen Industrial Holdings (Hong Kong, footwear), Lufax Holding ADR (China, personal financial services platform), Solvay SA (Belgium, chemicals) and MFE-MediaForEurope (Italy, media and communications). The Global X SuperDividend ETF launched in June 2011 and charges an MER of 0.58%. The fund currently has a high and attractive yield of 11.3%. However, we’ve often said that a..