DIV Global X Superdividend US ETF
U.S. SuperDividend Payers
The Global X SuperDividend U.S. ETF tracks the performance of companies that rank among the highest dividend yielding equity securities in the United States. By equal weighting across a diverse group of 50 securities, investors have less exposure to single-company risk. Sector caps of 25% are used to ensure that the portfolio is not heavily overweight in a particular sector and to provide an additional layer of diversification. A low-volatility filter is also used in an effort to dampen the volatility of the portfolio. Furthermore, all companies are reviewed on a quarterly basis and can be removed from the Index if they forecast a significant dividend cut. The Fund expects to pay monthly dividends.
1. What happens if a company in the Index eliminates or significantly cuts its dividend? If a company announces a significant dividend cut, it will be removed from the Index as well as from the Fund at the next quarterly review and replaced with a new holding.
2. What are the market capitalization and liquidity requirements for the holdings? In order to be included in the Index, on the day of selection/rebalance a company must have a market capitalization of at least $500 million and have an average daily trading volume of at least $1 million over the past six months.
3. How is the low-volatility filter applied to potential holdings? On the rebalance date, companies must have a beta of less than 0.85 relative to the S&P 500 to be eligible for inclusion in the Index. Beta is a measurement of the volatility of a security relative to a market benchmark. A beta less than 1 suggests that the security is less volatile than the market benchmark.
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Investing involves risk including possible loss of principal. High yielding stocks are often speculative, high risk investments. These companies can be paying out more than they can support and may reduce their dividends or stop paying dividends at any time, which could have a material adverse effect on the stock price of these companies and the Fundís performance. The Fund may invest in REIT stocks, which tend to be small- or mid-capitalization stocks and there is the possibility that returns from REITs may trail returns from the overall stock market. Small- and mid-capitalization companies may have greater volatility in price than the stocks of mid- and large-capitalization companies. The Fund is non-diversified which represents a heightened risk to investors. Investments in securities of MLPs involve risk that differ from investments in common stock including risks related to limited control and limited rights to vote on matters affecting the MLP. MLP common units and other equity securities can be affected by macro-economic and other factors affecting the stock market in general, expectations of interest rates, investor sentiment towards MLPs or the energy sector, changes in a particular issuerís financial condition, or unfavorable or unanticipated poor performance of a particular issuer (in the case of MLPs, generally measured in terms of distributable cash flow). Diversification does not prevent all investment loss. The potential benefits of investing in MLPs depend on them being treated as partnerships for federal income tax purposes. If the MLP is deemed to be a corporation then its income would be subject to federal taxation at the entity level, reducing the amount of cash available for distributions to the fund which could result in a reduction of the fundís value. There is no guarantee that dividends will be paid.
This information is not intended to be individual or personalized investment or tax advice. Please consult a financial advisor or tax professional for more information regarding your tax situation. The fund is required to distribute income and capital gains which may be taxable. Buying and selling shares will result in brokerage commissions and tax consequences. Shares are only available through brokerage accounts which may have minimum requirements. Only whole shares may be purchased.
The information presented here is for informational purposes only. It was prepared on information and sources that we believe to be reliable, but we make no representations or guarantees as to the accuracy or the completeness of the information contained herein.
Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Global X NAVs are calculated using prices as of 4:00 PM Eastern Time. The closing price is the Mid-Point between the Bid and Ask price as of the close of exchange.
Carefully consider the Funds' investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Funds' prospectus or summary prospectus, which may be obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or by visiting Read the prospectus carefully before investing.
Solactive AG Indexes have been licensed for use by Global X Management Company, LLC. Global X Funds are not sponsored, endorsed, issued, sold, or promoted by Solactive AG, nor does this company make any representations regarding the advisability of investing in the Global X Funds. Global X Management Company, LLC serves as an advisor to the Global X Funds. The Funds are distributed by SEI Investments Distribution Co., which is not affiliated with Global X Management Company or any of its affiliates.