Is the Global X SuperDividend ETF a Buy?
The Global X SuperDividend ETF (NYSEMKT: SDIV) has a lofty trailing dividend yield of 10.7%. Given that the S 500 index (SNPINDEX: ^GSPC) has a tiny yield of around 1.3%, it's understandable that investors would be looking at the Global X SuperDividend ETF. But there's one problem here, and dividend investors will want to understand this massive negative before they buy this ultra high-yield exchange-traded fund.
The stated objective of the Global X SuperDividend ETF is to track the Solactive Global SuperDividend Index. This index is fairly simple. It buys the 100 highest-yielding dividend stocks in the world. There are market cap and trading liquidity restrictions, of course, but the approach is fairly straightforward and logical.
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Source Fool.com
